The Bitcoin Insanity Continues — Prices Top $450

Discussion in 'HardForum Tech News' started by MajorDomo, Nov 16, 2013.

  1. Elios

    Elios [H]ardness Supreme

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    how are you watching CSPAN?
     
  2. sfsuphysics

    sfsuphysics I don't get it

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    And how much has your dollars changed in value over the last 5 years? Could you buy about the same amount? Or did the value of them springboard all over the place?

    So yeah, there's nothing physical backing US dollars other than the ability of people willing to trade in them, but lets not confuse bitcoins with US dollars and consider them "the same thing" because they're not. Bitcoins are closer to a Zimbabwe currency which fluctuates rapidly by large amounts on a daily basis (ok not true Zimbabwe got their currency more under control). Bitcoins are basically like stocks right now, if you play it smart you can make them profitable, there's not much of any profit in trading currency ... at least at small levels.
     
  3. J Macker

    J Macker [H]ardForum Junkie

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    Mythili Raman Acting Assistant Attorney General, Criminal Division
    U.S. Department of Justice
    she just talked about the previous illegal use. need to deter criminal activity.
    work with congress to ensure it has the tools to protect the public. prosecute criminals who use the currencies.

    Edward W. Lowery III Special Agent in Charge, Criminal Investigative Division
    U.S. Secret Service, U.S. Department of Homeland Security
    criminals use digital currencies. talking about Liberty Reserve.
    The use of digital currencies is expected to continue....
    talking about money laundering, cyber crime and going after the individuals responsible.
    SS prioritizes investigations of administrators of exchanges ensuring they comply with money laundering laws.
    "Digital currencies are a tool used by a wide variety of criminals"

    they don't seem to regonize legitimate users and benefits. They're just emphasizing criminal use, and both speakers stated digital currencies will continue to be a challenge
     
  4. Retronym

    Retronym Something big is coming.

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  5. J Macker

    J Macker [H]ardForum Junkie

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    first speaker is back: minimize regulatory burden, make sure virtual currency exchangers & administrators fit within our regulatory scheme.

    Second speaker again: digital currencies are not illegal and there are many legitimate users out there.
    talking about Liberty Reserve.

    committee chairman:
    The role we are attempting to play on this committee today is to determine oversight role

    "several new payment methods" have worked out for the good (Jennifer Shasky Calvery)
    benefits to consumers... pre-paid cards enable access to the financial system. online banking for the consumer & ACH is good. Technological advances are good for the consumer.

    "we need to think how might criminals exploit these systems" cash is still the best way to launder money.
     
  6. kirbyrj

    kirbyrj [H]ard as it Gets

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    I'm pretty sure the Chinese are behind the recent spike in price. But it essentially tripled in price over the past 2 weeks.
     
  7. J Macker

    J Macker [H]ardForum Junkie

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    is BTC legal within existing laws?
    Lowery: his answer summarized: many criminals have not gravitated toward P2P. As long as use fits within laws, there's no concern for Secret Service

    Ramen answer: our current abilities to prosecute (criminal statues) (money transmitter statutes) are effective and the tools are in place that (we) as prosecutors need. Updates and changes within the past few years are effective and can continue to be updated.

    Jennifer Shasky Calvery: we won't say it's a currency or not a currency.
    this country is interested in protecting our financial system & american consumers.
    other fluff. same perspective but no opinion on decaring it a currency.
     
  8. kirbyrj

    kirbyrj [H]ard as it Gets

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    That's just a ridiculous comment. 200,000x$700 = $140M. You do realize that the government operates on a $3.6 TRILLION dollar budget. It's something like $10 Billion dollars every day, so you're talking about a number that represents 1.5% of the daily budget. You'e talking about a number the government uses every 15-20 minutes. They aren't trying to raise prices artificially to make money.
     
  9. J Macker

    J Macker [H]ardForum Junkie

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    GAO is preparing report or something to recommends that IRS provide requirements for reporting income on virtual currencies.

    new silk roads have been created. how do we develop a strategy to deal with these sites?
    are there characteristics about these sites that mke it difficulty for law enforcement to respond?

    Lowery answer: 3 parts of the infrastructure enable criminal activity; the sites (silk roads), digital currencies & bullet-proof hosters (business setup in country with little or no laws).

    Raman: anonymity is the challenge. we have tools & strategies to address the methods people use for anonymity. important to take steps to disrupt & send message to users of the websites that they can't trust the websites, not immune to investigation.

    Q: there's concern that virtual currency business may leave the US to countries with less regulatory framework. What can we do to help keep these businesses in the US?

    Shasky Calvery answer: gains are short lived for leaving the US. all countries want to protect their own financial systems. Regulation at home & abroad will catch up. She thinks the innovation & jobs will stay, or they will come back to the US.
    To make sure we have regulatory framework, the task force ensures (around the world) that money laundering laws are not broken. Other countries are trying to figure out how they can catch up (regulations) to address digital currencies.

    taking a break. I wont' be summarizing the second half
     
  10. weuntouchable

    weuntouchable [H]ard|Gawd

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    Its 100% speculation on my part, but your argument makes no sense. So if I have $1 billion I wipe my ass with $1 million? And the FBI operates on a budget of approximately $8 billion. Which is only $22 million per day. $140 million funds the FBI for a week. I don't think what I speculated is occurring, but I also wouldn't be completely shocked if it was.
     
  11. kirbyrj

    kirbyrj [H]ard as it Gets

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    http://www.forbes.com/sites/kashmirhill/2013/10/04/fbi-silk-road-bitcoin-seizure/

    Here's your answer. They can't liquidate "evidence" until final disposition of the case.
     
  12. NickJames

    NickJames [H]ardness Supreme

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  13. kirbyrj

    kirbyrj [H]ard as it Gets

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    I bet it hits $1000-1200 before the bubble bursts. Once it starts getting around the same price as gold, people will start to balk.
     
  14. Unknown-One

    Unknown-One [H]ardForum Junkie

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    It hit $750 for a minute.

    I'm honestly curious when it'll crack $1000 per-coin.
     
  15. Retronym

    Retronym Something big is coming.

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  16. NickJames

    NickJames [H]ardness Supreme

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    I was going to buy this a year ago, I hate myself every time I see it.
     
  17. leeleatherwood

    leeleatherwood [H]ard|Gawd

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    Thanks!
     
  18. SlipperyPete

    SlipperyPete Gawd

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    runaway train..almost $800
     
  19. Bigbacon

    Bigbacon [H]ardForum Junkie

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    yup.....
     
  20. elite.mafia

    elite.mafia Broke Back [H]

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    yeah me too :rolleyes:
     
  21. Unknown-One

    Unknown-One [H]ardForum Junkie

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    I hate myself for not buying last-week... Just cracked $830

    I have $0.056 bitcoins, so I'm up to $40 :rolleyes:
     
  22. PersonalJ

    PersonalJ [H]ard|Gawd

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    Let's not get ahead of ourselves, it hit $730 at certain exchanges. :p
     
  23. Omegas

    Omegas [H]ardForum Junkie

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    I'm down to 29 weeks to go before I find out how much I had stashed in a very old wallet. Come on baby HIT!!
     
  24. kirbyrj

    kirbyrj [H]ard as it Gets

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    It's funny...last week it was down around $275 and I said to myself I should buy some as it's kind of low. Oh well. Even LTC went from $2.20 or so to $8.60 over the weekend.
     
  25. kirbyrj

    kirbyrj [H]ard as it Gets

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    $770 at Coinbase...They've been lagging behind Gox at least $100 most of today. Starting to catch up.
     
  26. NickJames

    NickJames [H]ardness Supreme

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    I have nothing to prove but I had registered an exchange account back in April 2012. They wanted a valid ID that wasn't about to expire since my DL was 3 months from expiration. So I tried my passport but apparently it was out of focus or something and they needed me to send it again. Long story short, it was too much BS to deal with so I dropped the idea. I kick myself in the ass thinking about it so I started investing in stock that's doing rather well like AMD. But nothing will come close to the possible gains I could have envisioned with Bitcoin. I believe it was trading for around $4-10/coin back then and I was ready to put down 1K.
     
  27. Elios

    Elios [H]ardness Supreme

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    WOW thats spike i should not of bailed 2 months a go
     
  28. kirbyrj

    kirbyrj [H]ard as it Gets

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    Lol...$900 to $650 in 15 minutes.
     
  29. Elios

    Elios [H]ardness Supreme

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    thats more like it lol
    some one most likely cashed out check the block chain see if was all one transaction
     
  30. Retronym

    Retronym Something big is coming.

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  31. PersonalJ

    PersonalJ [H]ard|Gawd

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    It went down to $502 on bitstamp.
     
  32. STrooperTK421

    STrooperTK421 Limp Gawd

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    I'm just waiting for the bubble to pop so I can watch a bunch of people get their asses handed back to them in steaming chunks on a paper plate.
     
  33. Retronym

    Retronym Something big is coming.

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    im waiting for it to crash to put real money into it :)
     
  34. Aluisious

    Aluisious 2[H]4U

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    Don't believe everything you read :rolleyes:
     
  35. Aluisious

    Aluisious 2[H]4U

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    Completely irrational.

    Do you hate yourself for walking by a casino, and not betting on black after it comes up?
     
  36. elite.mafia

    elite.mafia Broke Back [H]

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    yes
     
  37. meme

    meme Limp Gawd

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    Nobody except a small number of drug users actually uses bitcoin as a currency. Bitcoin is bought by speculators and its price is almost completely due to speculators.

    Take the speculators out of the market and you get the real price, which might be somewhere in the neighborhood of 10 cents per bitcoin. That price would be high enough to support everyone who actually uses it as a currency.

    So, either at some point in the future large numbers of people begin using it as a currency, thus justifying the current price, or else the price eventually crashes down to almost nothing.
     
  38. Aluisious

    Aluisious 2[H]4U

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    The thing dumb money never releases is that speculation is a zero sum game. To make a profit you need to sell, so most of the lucky dopes who own the "asset" at a market price will never sell it for that.

    If you're buying bitcoins because "they go up!" then you're not the smart money.
     
  39. SonDa5

    SonDa5 [H]ardness Supreme

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    What a crock of crap.

    This BIT Coing make believe market is going to crash and when it does those that believe in it will be very sad.

    Wake up people this Bit Coin mining crap is fake.
     
  40. Retronym

    Retronym Something big is coming.

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    Thank you for explaining realized gains. We had no idea.