Don't buy bitcoins right now

[madfranks]

For those who are intrigued and thinking of buying in to bitcoins right now, don't. There are some new hardware modules coming out in a month or two that promise to vastly improve the ability of bitcoin miners to obtain new coins. I expect once this happens, the amount of bitcoins on the market is going to surge somewhat, depressing their value. If I was planning to buy in, I'd wait for this dip to occur, which surely will, then buy once it's down.

[steyr_m]

Yeah, ASIC machines.... dunno if I'd want to invest....

[Cebu_4_2]

http://image.made-in-china.com/6f3j00gClTBGussYbL/Computer-Shelf.jpg

[steyr_m]

Holy shit.

[Shami-Amourae]

At home mining is so 2011.

[steyr_m]

At home mining is so 2011.

I'm still doing it until those machines are out

[sirgonzo420]

For those who are intrigued and thinking of buying in to bitcoins right now, don't. There are some new hardware modules coming out in a month or two that promise to vastly improve the ability of bitcoin miners to obtain new coins. I expect once this happens, the amount of bitcoins on the market is going to surge somewhat, depressing their value. If I was planning to buy in, I'd wait for this dip to occur, which surely will, then buy once it's down.

The creation of new coins is done according to an algorithmic schedule.

Right now, 25 BTC are created/rewarded approximately every 10 minutes. In time, the block reward will halve - it started at 50 BTC.

In short, ASIC miners would just send difficulty through the roof, and may not have a tremendous impact on price.

I hold some, so I am not exactly looking to buy at these prices, but if I were not already holding I would not hesitate to buy a small amount.

There will only ever be 21,000,000 bitcoins. If you own just 1 bitcoin, you own 1/21,000,000th of the entire supply. If you own 21 bitcoins, you own 1/1,000,000th of the total supply.

Think of any other "commodity"... if you owned 1/1,000,000th of the world's gold, you'd be doing alright.

There may come a day when having a full 1 bitcoin is quite significant. It's not a big deal to buy one now for ~$93 just to be a part of it. A $100 bitcoin is still a faaaaar better investment than a lottery ticket.

[madfranks]

The creation of new coins is done according to an algorithmic schedule.

Right now, 25 BTC are created/rewarded approximately every 10 minutes. In time, the block reward will halve - it started at 50 BTC.

In short, ASIC miners would just send difficulty through the roof, and may not have a tremendous impact on price.

I hold some, so I am not exactly looking to buy at these prices, but if I were not already holding I would not hesitate to buy a small amount.

There will only ever be 21,000,000 bitcoins. If you own just 1 bitcoin, you own 1/21,000,000th of the entire supply. If you own 21 bitcoins, you own 1/1,000,000th of the total supply.

Think of any other "commodity"... if you owned 1/1,000,000th of the world's gold, you'd be doing alright.

There may come a day when having a full 1 bitcoin is quite significant. It's not a big deal to buy one now for ~$93 just to be a part of it. A $100 bitcoin is still a faaaaar better investment than a lottery ticket.

You may be right, but I'm hedging my bets that there's going to be a big dip this summer/fall, which is when I'll make my (probably only) significant move into bitcoins.

[Ares]

You may be right, but I'm hedging my bets that there's going to be a big dip this summer/fall, which is when I'll make my (probably only) significant move into bitcoins.

Same here, I'm doing some EXTREMELY small scale mining at the moment, (1 video card at 70m/Hashes) and am keeping an eye on the bitcoin price. Hoping to get my ASIC miner to start taking part in the mining process. Also hoping there's a little bit of a dip so I can purchase some. All of this hinges on me getting a job sometime soon. Been unemployed since February.

[cpy911]

What is the most reliable and safest method to obtain a bitcoin that you guys are using?

[Ares]

What is the most reliable and safest method to obtain a bitcoin that you guys are using?

There is mining them yourself, or become a member of a trusted Bitcoin Exchange and purchase them. https://mtgox.com is by far the largest by volume alone.

[ShortJohnSilver]

OK hypothetical question. Spain begins a process of collapse, and all the Spanish with any money decide to use Bitcoin to get money out of the country, that is, they don't stay in Bitcoin, but sell Euros to buy Bitcoin, then use Bitcoin to buy silver, gold, and USD. Now Euros go down in value, Bitcoin goes up in value, USD goes up in value under this scenario. However, most Spaniards sell their Bitcoin within a month of buying them, as they cycle into some other currency. Would that not cause a big initial spike, then a decline, in Bitcoin values?

[Ares]

OK hypothetical question. Spain begins a process of collapse, and all the Spanish with any money decide to use Bitcoin to get money out of the country, that is, they don't stay in Bitcoin, but sell Euros to buy Bitcoin, then use Bitcoin to buy silver, gold, and USD. Now Euros go down in value, Bitcoin goes up in value, USD goes up in value under this scenario. However, most Spaniards sell their Bitcoin within a month of buying them, as they cycle into some other currency. Would that not cause a big initial spike, then a decline, in Bitcoin values?

Supply and demand would dictate yes. But that scenario also has a contagion effect. If Spain starts imploding and it's populace piles into BitCoin, Italy most likely will not be far behind nor Greece who is already looking like they're going to need yet another bailout. IF bitcoin proves a reliable electronic medium of exchange in these scenarios we're looking at a game changer for money issuance.

[sirgonzo420]

You may be right, but I'm hedging my bets that there's going to be a big dip this summer/fall, which is when I'll make my (probably only) significant move into bitcoins.

I hope you're right!

;D

If there is a dip, methinks it would be from coins being sold by those who hold them, and not from a bunch of coins being created unexpectedly.

https://blockchain.info/charts/total-bitcoins?showDataPoints=false&show_header=true&daysAverageString=1&timespan=&scale=0&address=

[steyr_m]

Same here, I'm doing some EXTREMELY small scale mining at the moment, (1 video card at 70m/Hashes) and am keeping an eye on the bitcoin price. Hoping to get my ASIC miner to start taking part in the mining process. Also hoping there's a little bit of a dip so I can purchase some. All of this hinges on me getting a job sometime soon. Been unemployed since February.

Got mine up to 450 m/Hashes let me know when yours delivers and I'll probably drop out.....

[Ares]

Got mine up to 450 m/Hashes let me know when yours delivers and I'll probably drop out.....

You might look into Litecoin (https://en.bitcoin.it/wiki/Litecoin) mining. A LTC goes for about 81 cents at the moment. The litecoin community calls it the silver to Bitcoins gold. It's still in its infancy (2 years I believe) and even just running my Dell PowerEdge 1950 dual quad core Xeons I've gotten almost 2 LTC's in 2 1/2 days of LTC mining. You'll most likely outperform me with ease GPU mining.

But yeah I'll make a post when I get my ASIC miner, and will take a screen shot of the Gigahashes. :)

[madfranks]

I'm hedging my bets that there's going to be a big dip this summer/fall, which is when I'll make my (probably only) significant move into bitcoins.

The new ASIC miners have been making their presence known, the total computational power of the bitcoin mining economy has been shooting up, and Bitcoins have dropped down to $76. I really believe that ASIC is why. It's like the California gold rush, where they were mining so much gold, prices went down and they had to start making $20 gold coins out of it (prior to the gold rush, the largest gold coin denomination was the $10 gold piece, but they were mining so much gold they easily started minting $20 pieces by the truckload).

Anyway, I'm not ready to make my move yet; I think this summer/fall is going to be primarily downward price movement for bitcoins. Unless of course some major banking event occurs which drives people into them.

[Son-of-Liberty]

I don't think that there is a direct correlation between the asic miners and the BTC price. Other factors are at work. If Asic's mine coins faster, then the difficulty goes up to compensate.

[Son-of-Liberty]

IF there is a direct link to the downward price movement and the Asics it is only because the investment companies that bought Asics are selling their coins to pay their machines off rather then mining and holding like a small time home miner might do.

[madfranks]

IF there is a direct link to the downward price movement and the Asics it is only because the investment companies that bought Asics are selling their coins to pay their machines off rather then mining and holding like a small time home miner might do.

Not just companies, individuals who bought and are now running ASICs are selling their coins off to make a profit too. That's what I think is depressing the prices.

[Shami-Amourae]

I'm glad I converted most of my Bitcoins to Litecoins. Litecoins are holding up in price. It's very possible Bitcoin will retest the $55 lows. I'm hoping more money moves into Litecoin and it becomes a more serious contender.

[vacuum]

I'm pretty sure the reason the price is dropping like a rock is because mt gox had previously disallowed USD withdraws for 2 weeks due to their bank. Now I'm assuming USD withdraws are coming back online again, so naturally people want to take possession of their FRNs because it was frozen for 2 weeks.

[Shami-Amourae]

Yeah, and wait till Mt Gox implements Litecoin when things get settled. This shit is going to the moon.

[Son-of-Liberty]

Yeah, and wait till Mt Gox implements Litecoin when things get settled. This shit is going to the moon.

When is GOX supposed to list LTC?

Seems to be something that is always about to happen but never does.

As much as GOX might influence the market I won't trade there. Not going to give up my privacy to trade there.

[Ponce]

For those who are intrigued and thinking of buying in to bitcoins right now, don't. There are some new hardware modules coming out in a month or two that promise to vastly improve the ability of bitcoin miners to obtain new coins. I expect once this happens, the amount of bitcoins on the market is going to surge somewhat, depressing their value. If I was planning to buy in, I'd wait for this dip to occur, which surely will, then buy once it's down.

Never have and never will.........what man makes government can unmake and all bitcoins will be gone.