Don't listen to the naysayers below....do some homework on it. If nothing else Bitcoin is an interesting experiment in currency theory. It's certainly no more of a scam than owning stocks or cash or SLW for that matter. LOL
Do you know what is implied by mining and extracting gold and other precious metals from Mother Earth? Do you realize the capital expenditures mining overhead and minting costs to bring to customers the final product?
If so, why on Earth would you have any interest in “bitcoins”?
From perspectives here these are no different than governments issuing “legal tender”. The fact that there are some depraved carnival act type individuals trying to convince people that bitcoins should be considered as an alternative to fiat counterfeit funny monopoly money is testament to what PT Barnum is to have supposedly said: “There’s a sucker born every minute.”
But in fact this quote is attributed to a bankster named David Hannum. Since you know this originated from a bankster expressing proclivity to engage in devious objectives, you must also have a hunch that bitcoins have arisen from similar type individuals.
Also, since you asked the question, maybe you should withdraw consideration of any market investments until you’ve further educated yourself. A good start would be to read: “The Creature from Jekyll Island” by G. Edward Griffin. It is 600+ pages and available free on the Internet (targeted to a general audience). If you take this advice note that nowhere within is this fraudulent concept of “bitcoins” discussed.
If you have read anything that “sugarsail42” has written, consider him/her a bankster agent. Note that he/she stated it is endorsed by Bernanke and governments (crooks sticking together) and “sugarsail42” acknowledges participation.
BTW, I would not have participated if I didn't think it was a good idea in the first place. Doesn't mean it will be successful, but some form of global digital currency will likely be commonplace in the future considering the growing distrust for government issued fiat and the expansion of Ecommerce. The local flower shop here for example takes bitcoin as payment, it's convenient for them, is good advertising and saves them money over using credit cards.
it's actually quite different than governments issuing legal tender as the supply is controlled through real investment of real resources like gold is and is not controlled by any government. The supply is designed to scale in proportion to the economy that uses it with a max issuance of 21 million Bitcoin. By "endorsing" it, I mean that old Ben has recognized it as actual private currency. It is not run by banks, it is run by a world wide private enterprise network of computer geeks and not one node of the network has control, the algorithms must all be in agreement to produce a new bitcoin and solve "blocks" of transactions in order to produce a bitcoin (real work). Educate yourself, then comment.
Sure, I'm not a Bitcoin basher, in fact, I bought one and I'm more informed than the guys below. Bitcoin is exactly what it says it is...private de-centralized non-government network based digital currency with controlled supply by a network algorithm. It is best to understand fiat money and what gives it value before examining bitcoin critically. It is not a Ponzi scheme, because unlike a Ponzi scheme, Bitcoin provides something of value, that is a convenient medium of exchange. However, a currency is only as valuable as the economy it encompasses and how controlled the supply is. The wider field of merchants that accept it, the more buying power it theoretically should have and that will be reflected in a higher exchange rate to other currencies. Supply is constrained by private enterprising network nodes that "mine" Bitcoins by providing CPU time that solves the encryption for each transaction...the payout gets more difficult for miners the more bitcoins get produced (like mining gold) and this inherently controls supply. Bitcoin offers some advantages over gold and traditional currency or sea shells for that matter. 1. It's not subject to Fed Reserve money printing policy 2. It charges less fees to merchants than credit card companies 3. Being digital it's truly global and not constrained by a geographic region. So basically it takes some pros of paper currency and some pros of gold and combines them into a digital currency. So what are the downsides? First, social acceptance and understanding. If people don't use a currency far and wide, then it isn't that good of a currency, but the bitcoin economy is expanding and had small profit motives built in to give incentive for people to use bitcoin. Another major risk is security...there have been a lot of bit wallet services hacked and money stolen...it's much like the wild west still but then so was Ecommerce when the internet started up. Go online do some homework, it has potential.
It's the PayPal systems for drug dealers, international thugs, arms payments, etc... you get the idea.
A bitcoin coin is however probably more valuable for it's metal -whatever it might be- than is a dollar bill for its paper content.....
I would like to get one... for collection purpose....but at what.... $650.00 a piece in the morning, and $900.00 at noon, and $500.00 at 4.00PM....... no thanks.
Never mind.. I forgot I could check the internet.. Sounds like something the banksters criminals will get outlawed.. Ill put my faith in physical gold-silver. Dont trust anything that floats in cyper-space.
governments have tacitly endorsed Bitcoin by contemplating how they might tax transactions done in the currency as well as how they might structure law enforcement in regards to the currency...there has been no talk of stopping the currency's usage so far, in fact, the German government, Chinese, and Bernanke have positively acknowledged it. Shutting it down would require shutting down the internet since the network servers that support the currency are privately owned and exist all over the world.