Major glitch in Bitcoin network sparks sell-off | Page 5 | TigerDroppings.com
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Waffle House
Virginia Fan
NYC
Member since Aug 2008
2540 posts

re: Major glitch in Bitcoin network sparks sell-off

quote:

It depends on the website. Most price their goods in USD (or local currency) and use an API call to a major exchange to get the current equivalent bitcoin price.

Most do this on demand. Some do it daily. Some only do it manually.

Obviously, the best method is to do it on demand.


You mentioned in a previous thread about hiring contract work for a website and you would be paying in BTC.

To make it an example, If you would have agreed to pay them BTC100 ($2,500 USD) on Feb. 12 for 1 month of work and today upon completion of the job, would you still pay them the BTC100 which would now be worth $4,500 USD? If you would adjust to only pay them BTC55 ($2,500 USD), why even bother with the whole exercise of using BTC, if all you're going to do is revalue it to USD or some other stable currency?


WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Major glitch in Bitcoin network sparks sell-off
quote:

To make it an example, If you would have agreed to pay them BTC100 ($2,500 USD) on Feb. 12 for 1 month of work and today upon completion of the job, would you still pay them the BTC100 which would now be worth $4,500 USD? If you would adjust to only pay them BTC55 ($2,500 USD), why even bother with the whole exercise of using BTC, if all you're going to do is revalue it to USD or some other stable currency?


This is certainly an interesting argument.

I think in the case of freelancing, if I was going to hire someone and pay them half up front and half at completion, I'd stipulate that it would be done at USD equivalent. But then again, that's always up to the individuals who are negotiating. I could see where it might cause problems if contracts don't take this into consideration, though.

quote:

if all you're going to do is revalue it to USD or some other stable currency?


Because bitcoin excels as a secure transaction network. If you want to hire some Pakistani guy to write a website for you, you can pay him instantly, securely, and anonymously in bitcoin, with easy verification that they received the funds.

Remember, bitcoin is not just a currency. It's also a transaction network. :inserthairclubpresidentpic:


Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58940 posts

re: Major glitch in Bitcoin network sparks sell-off
Why do you need anonymity?


WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Major glitch in Bitcoin network sparks sell-off
quote:

You mentioned in a previous thread about hiring contract work for a website and you would be paying in BTC.

To make it an example, If you would have agreed to pay them BTC100 ($2,500 USD) on Feb. 12 for 1 month of work and today upon completion of the job, would you still pay them the BTC100 which would now be worth $4,500 USD? If you would adjust to only pay them BTC55 ($2,500 USD), why even bother with the whole exercise of using BTC, if all you're going to do is revalue it to USD or some other stable currency?


also, just to expand on all this....


The issue of pricing things in local fiat and exchange in BTC is because bitcoin is attempting to grow. It's part of the transition phase. It is envisioned that one day, as BTC because more stable, that things will just be priced in BTC in a global marketplace.

Will that ever happen? Who knows!


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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Major glitch in Bitcoin network sparks sell-off
quote:

Why do you need anonymity?


There are many reasons why a person may want anonymity in financial transactions.

For instance, let's say you wanted to send me $100 but you don't fully trust me with your personal info. However, if you send me a check, I'll have your name, address, bank account number, etc.

Same concept if you give me your credit card info.


Bitcoin allows you to send money without having to give out any personal information. Some people may see value in that.




BTW, one of the coolest developments in bitcoin lately has been a "bitcoin tip bot" that operates on reddit. It allows users to tip other users in bitcoins for good/thought provoking/funny comments on the site.

Imagine something like that here on TigerDroppings.


Broke
LSU Fan
AKA Buttercup
Member since Sep 2006
58940 posts

re: Major glitch in Bitcoin network sparks sell-off
quote:

BTW, one of the coolest developments in bitcoin lately has been a "bitcoin tip bot" that operates on reddit. It allows users to tip other users in bitcoins for good/thought provoking/funny comments on the site.

Imagine something like that here on TigerDroppings.


If I don't tip at Sonic I damn sure aint tipping you to make me laugh. And I won't do business with someone I don't trust.


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LSURussian
LSU Fan
Member since Feb 2005
85159 posts

re: Major glitch in Bitcoin network sparks sell-off
quote:

For instance, let's say you wanted to send me $100 but you don't fully trust me with your personal info. However, if you send me a check, I'll have your name, address, bank account number, etc.

Same concept if you give me your credit card info.

Good grief!!

PayPal, Western Union, postal money order, bank official check come quickly to mind which provide anonymity.

Why don't you just be honest for once and say why it's important to you.....buying and selling illegal drugs.


lsu_tiger_az
LSU Fan
AZ/LA
Member since Mar 2004
30404 posts

re: Major glitch in Bitcoin network sparks sell-off
quote:

Good grief!!

PayPal, Western Union, postal money order, bank official check come quickly to mind which provide anonymity.

Why don't you just be honest for once and say why it's important to you.....buying and selling illegal drugs.




You just don't understand Russian....









C
LSU Fan
The Woodlands, TX
Member since Dec 2007
23112 posts
Online

re: Major glitch in Bitcoin network sparks sell-off
quote:

.buying and selling illegal drugs.


Maybe down the road, but it doesn't sound like he is active in the bitcoin market place. It's simply an investment to him at this point. he wants others to join to increase the price. And then those people can get others to join as well. Soon the many layers pay-it forward in a way that creates artifical demand for a crappy product that no one can really use at this this time.


Vols&Shaft83
Tennessee Fan
Throbbing Member
Member since Dec 2012
26975 posts

re: Major glitch in Bitcoin network sparks sell-off


Meauxjeaux
Memphis Fan
90248 posts including my alters
Member since Jun 2005
18917 posts

re: Major glitch in Bitcoin network sparks sell-off
quote:

Yeah, NOOB




I bet he's still trying to mine with his GPU too.



Worse than that. It's my CPU.

So now who's laughing?


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rickgrimes
LSU Fan
Member since Jan 2011
2999 posts

re: Major glitch in Bitcoin network sparks sell-off
quote:

To make it an example, If you would have agreed to pay them BTC100 ($2,500 USD) on Feb. 12 for 1 month of work and today upon completion of the job, would you still pay them the BTC100 which would now be worth $4,500 USD? If you would adjust to only pay them BTC55 ($2,500 USD), why even bother with the whole exercise of using BTC, if all you're going to do is revalue it to USD or some other stable currency?


Will this problem go away when all 21M or whatever total Bitcoins are mined and you no longer have to peg the Bitcoins against the dollar or something else? Once all the bitcoins are mined, will all the services that accept have a fixed cost? As in, if creating a blogging site on Wordpress cost BTC10 today, would it still cost BTC10 25 years from now, since it is supposed to be inflation free and all?


WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Major glitch in Bitcoin network sparks sell-off
quote:

Image: http://t.qkme.me/3tcd5s.jpg




Actually, yes!

With a new service called BitSpend, you can now use bitcoins to buy anything from any site on the internet! They even have an anonymous purchase delivery feature coming online soon.



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WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Major glitch in Bitcoin network sparks sell-off
quote:

Will this problem go away when all 21M or whatever total Bitcoins are mined and you no longer have to peg the Bitcoins against the dollar or something else? Once all the bitcoins are mined, will all the services that accept have a fixed cost? As in, if creating a blogging site on Wordpress cost BTC10 today, would it still cost BTC10 25 years from now, since it is supposed to be inflation free and all?


Well, bitcoin is going to be probably be slightly deflationary over the long haul, even though it will always technically be slightly inflationary. This is due to the inflation rate approaching zero on an exponential curve, and the coin loss rate exceeding the inflation rate.

Will prices stabilize? Eventually, yes. But that won't happen anytime soon.


LSURussian
LSU Fan
Member since Feb 2005
85159 posts

re: Major glitch in Bitcoin network sparks sell-off


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Meauxjeaux
Memphis Fan
90248 posts including my alters
Member since Jun 2005
18917 posts

re: Major glitch in Bitcoin network sparks sell-off
quote:

so are you buying that bitcoin from me or not?


Just mail the damned 1BTC private key and call the cops if your $100 doesn't show up.

I see a valid contract in this thread!


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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
23112 posts
Online

re: Major glitch in Bitcoin network sparks sell-off
quote:

technically be slightly inflationary


I don't see how it will be inflationary unless there is an ability to bring "lost" bit coins back into the market.


LSURussian
LSU Fan
Member since Feb 2005
85159 posts

re: Major glitch in Bitcoin network sparks sell-off
quote:

he wants others to join to increase the price. And then those people can get others to join as well. Soon the many layers pay-it forward in a way that creates artifical demand for a crappy product that no one can really use at this this time.


Which is exactly why it's unseemly for him to be pumping BC on this message board.

It's not allowable, for good reasons, for posters to come on here and tout penny stocks so they can make a quick buck and get out...the old "pump and dump" scheme.

ETA: And, no, I have not and will not RA him for doing so.
This post was edited on 3/12 at 3:31 pm


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GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
29270 posts

re: Major glitch in Bitcoin network sparks sell-off
Post bookmarked for link to buzzword generator.


WikiTiger
LSU Fan
Member since Sep 2007
40721 posts

re: Major glitch in Bitcoin network sparks sell-off
quote:

I don't see how it will be inflationary unless there is an ability to bring "lost" bit coins back into the market.


Because the algorithm keeps producing bitcoins, the amount will just be very insignificant. For instance, right now, each block generates 25 bitcoins. Every 4 years that gets cut in half.

Eventually, the inflation rate will be:

12.5 bitcoins per block then...
6.25 bitcoins per block then...
3.125 then...
1.5625 then...
...
...
...
...
...
eventually...
.0003814697265625
and so on




"Lost" coins will never be able to be "brought back" by the protocol. However, it is theorized that eventually as the bitcoin crpytography is upgraded because the older cryptography is insecure due to technological advancements, that there could be people who profit by cracking old cryptography in non-upgraded bitcoin wallets - i.e. lost coins. Of course, that's probably 100 years away/


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