How high do you see Bitcoin going? | TigerDroppings.com

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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

How high do you see Bitcoin going?


Some people are predicting $1,000 per bitcoin.

With the recent halving of the inflation rate and a growing demand, how high do you see it going?



This post was edited on 12/10 at 11:54 am



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el duderino III
Texas Fan
austin
Member since Jul 2011
1506 posts

re: How high do you see Bitcoin going?


you just drop that question here as if it were gold or some commodity...





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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
20396 posts

re: How high do you see Bitcoin going?


quote:

how high do you see it going?


I see it going to zero. What's the best way to short Bitcoins?






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barry
Cincinnati Fan
Location, Location, Location
Member since Aug 2006
37221 posts

re: How high do you see Bitcoin going?


quote:

How high do you see Bitcoin going?


I consider myself a fairly intelligent person and after spending a lot of time researching I still have no fricking clue how you "farm" bitcoin.






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Cdawg
Mississippi St. Fan
TigerFred's Living Room
Member since Sep 2003
39019 posts

re: How high do you see Bitcoin going?


same here except for the fairly intelligent part.





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CajunRevolution
Columbia Fan
Member since Apr 2009
37990 posts

re: How high do you see Bitcoin going?


I tried to figure it out but it's beyond me. It defies logic because there's nothing insuring it and mining it kind of blows my mind. I can't even understand how to so it or what exactly it is.





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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: How high do you see Bitcoin going?


quote:

I still have no fricking clue how you "farm" bitcoin.


The proper term is "mine"

And you don't need to understand cryptography to understand it.

Just think of it as mining in the traditional sense: hard, resource intensive work

That's all that bitcoin mining is.






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CajunRevolution
Columbia Fan
Member since Apr 2009
37990 posts

re: How high do you see Bitcoin going?


Yeah, that narrows it down.





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TigerDeBaiter
LSU Fan
Member since Dec 2010
2467 posts

re: How high do you see Bitcoin going?


So whoever has the fastest computer gets the most "money"? That's what I took from skimming that article. Why doesn't Watson just steal it all overnight? That would be a nice stunt.





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The Cable Guy
Iowa State Fan
Baton Rouge
Member since Aug 2004
9677 posts

re: How high do you see Bitcoin going?


I was at a training course a couple weeks ago and was speaking to some really bright guys about it. What they were saying is you have some really powerful GPUs that literally process algorithms that somehow sprout bitcoins. I still really didn't quite understand it.





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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: How high do you see Bitcoin going?


quote:

What they were saying is you have some really powerful GPUs that literally process algorithms that somehow sprout bitcoins. I still really didn't quite understand it. 


GPU mining is about to become obsolete once the ASICs are released.


But yea, they are correct. It takes a significant investment in hardware, time, and electricity to mine bitcoins.






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RickAstley
LSU Fan
Reno, Nevada
Member since May 2011
1550 posts

re: How high do you see Bitcoin going?


I'm talking mars bitches. But really, I'm loading up on Ripple





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Bayou Tiger
LSU Fan
The Woodlands, TX
Member since Nov 2003
3188 posts

re: How high do you see Bitcoin going?


Am I too late, or have we already hit "Delusion"?







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el duderino III
Texas Fan
austin
Member since Jul 2011
1506 posts

re: How high do you see Bitcoin going?


don't bother trying to tell wiki about bubbles. Also dont bother wasting time trying to explain things like "supply and demand", hoarding, positive feedback mechanisms, etc, as he will read what you write, completely disregard it, and respond "that's fine, but I just dont think you understand the technology"


and mining really just serves as a substitute for a central bank. The math problems take enough time and computing power to solve that it serves as a mechanism to gradually increase supply with the increase in demand. Of course, supply is increasing significantly faster than demand, which is more or less the definition of a bubble, but live and let live I guess, they'll figure it out eventually. Some people will make a shitload, and the greediest will lose their shirt - bitcoin will end up being beanie babies for computer nerds and anarchists



This post was edited on 12/11 at 5:57 am


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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: How high do you see Bitcoin going?


quote:

but I just dont think you understand the technology


you don't. you even admitted so yourself in one of the poli board threads.

quote:

and mining really just serves as a substitute for a central bank.


No. The algorithms serve as the "central bank."

quote:

supply is increasing significantly faster than demand


really?

The inflation rate was just cut in half a few weeks ago, and will continually be cut in half until no more bitcoins will be mined.

Yet demand has been growing, especially in the last 6 months.

Number of Transactions per Day (All-Time)

Hash Rate (All-Time)

The hash rate stats are very telling because it demonstrates how more and more people are joining the network. But again, that technology probably goes over your head.


Got any more misinformation you want to spread, el duderino?









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el duderino III
Texas Fan
austin
Member since Jul 2011
1506 posts

re: How high do you see Bitcoin going?


understanding the technology has nothing to do with understanding monetary theory.
money growth rate =/= inflation (in the sense you're thinking of inflation)
people "joining the network" =/= money demand
but trying to explain why would be pretty futile






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CrimsonTideMD
Alabama Fan
Member since Dec 2010
1401 posts

re: How high do you see Bitcoin going?


Wiki,
I don't fully understand the scale of the technology (among other things).
For instance, can the "average" American family afford the hardware/software required for mining, or is it the type of endeavor that requires a room full of machines running 24/7.



This post was edited on 12/11 at 6:55 pm


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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: How high do you see Bitcoin going?


quote:

can the "average" American family afford the hardware/software required for mining, or is it the type of endeavor that requires a room full of machines running 24/7.


It's not out of this world expensive, but you would want to seriously deliberate doing it.

And since the mining constantly becomes harder and harder, it requires the continued purchasing of newer and faster hardware to do it.

At the beginning, anyone could do it. Nowadays, you need to invest a few grand to get started. $20,000 rigs aren't unheard of. And that's just the hardware. These things take up a LOT of electricity too, so you gotta keep that bill in mind.

New ASIC chips are about to come out which will pretty much make all previous mining rigs obsolete instantly. A basic ASIC will cost around $1300.




This post was edited on 12/11 at 7:10 pm


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CrimsonTideMD
Alabama Fan
Member since Dec 2010
1401 posts

re: How high do you see Bitcoin going?


I'm intrigued, have about 100 questions which I'm sure will provoke 100 more in my mind.

For instance, how are the thefts and hackings "policed" since there is no central institution and participants are anonymous?

Any good links where I can learn more?






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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: How high do you see Bitcoin going?


quote:

I'm intrigued, have about 100 questions which I'm sure will provoke 100 more in my mind.


Feel free to ask them all. I love talking about it!

quote:

Any good links where I can learn more?


These are two really good starting points:

Bitcoin FAQ

Bitcoin Myths

and if you really want to blow your mind, read the original whitepaper: Whitepaper (PDF)

quote:

For instance, how are the thefts and hackings "policed" since there is no central institution and participants are anonymous?


So, direct theft of Bitcoin is virtually impossible. In other words, it would take billions of years with current computing power to crack the cryptography to steal Bitcoins.

Most thefts are the result of:

1) Poor practice (i.e., someone storing their wallet file unencrypted on an unsecured computer. If an attacker gets control of your wallet file, then they can control the Bitcoins in that wallet)

2) Trust in third parties that shouldn't have been trusted. Some people have chosen to store their Bitcoin wallet with third party websites that essentially act as banks, and those sites have been hacked, resulting in the loss of the Bitcoins controlled by them.







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