The last time someone did this, they mistakenly used "0-5 BTC" as the lowest cutoff. You've made the same mistake. There should be "0-0.25", "0.25-0.5", "0.5-0.75", "0.75-1", "1-2", "2-3", "3-4", and "4-5". Extra poll options are better because now we've lost valuable information at the low end. In 20 minutes, 65 people say they own 0-5 BTC. That's anywhere from $0 to $1385. That's a massive range. We now have no idea how many "casual" bitcoiners there are, because casuals will only have like $200 max.
EDIT: Here's what your poll looks like as of t=35min:
Leftmost bar is 0-5BTC. Rightmost bar is 100+BTC. Oh look, now we know basically nothing about the two most interesting ranges.
Didn't notice it as a phenomenon early enough to start mining with desktop and laptop CPUs and GPUs. Can't afford mining ASICs. Would not buy as, not only can I not afford it, I also don't speculate on foreign currency (though I realize that virtual currencies are a special case). So until Bitcoin gains ubiquity I ain’t likely to come into ownership of any. So 0 now and into the foreseeable future.
So, given that article about a guy that bought $17 in BTC in 2009 and found out recently that it was worth 5 figures, should I feel like an idiot for not getting in on this while BTC were cheap a few years ago? My logic at the time was "I don't really know that much about Bitcoin, so buying some would basically be speculating, which seems like a bad idea."
I guess what I'm really wondering is: just know that Bitcoin existed already put me in the minority. Was there something I should have caught on to that would have told me that it was going to succeed? From this and other answers, it looks like that is not the case. Thanks.
You never know how it's going to develop. I once sold Apple stock after getting 40% profit in a few months. Should I have known that it would continue to climb for a few more years? Usually, getting out while you're ahead is a good idea. It's often better to sell to early than too late.
This whole poll just serves to illustrate the problems with bitcoin. Bitcoin is supposed to be a currency, but people are treating it like an investment. The more relevant statistic to bitcoin's popularity as a currency would be how many bitcoin transactions people have participated in over the past year.
It's supposed to be a decentralized, unseizable, un-inflatable value transfer mechanism. Looks like it is succeeding. Also, you have to bootstrap a stateless currency somehow. Day to day transaction volume will always trail speculation/exchange trading volume. Analogously, forex trade volumes for traditional currencies dwarf global GDP.
This is impossible. It never dropped to $6 after hitting $36. In fact, it never dropped below $30 after that point (March 2013). Did you mean $32 (June 2011)? That would be possible, but also extremely poor timing, as it was only at such a price for about 24 hours. With something as volatile as bitcoin, dollar cost averaging is your friend.
At one point I owned about 150 bitcoins, but I sold the majority off at the $30-something peak a few years back. I also paid for my bitcoin miner back when bitcoins were $11, and my cost was 58 bitcoins. The miner that I finally received, has made me 5 bitcoins.
I also bought at around $30. Back when the only way I could realistically get BTC was on IRC on #btc-otc using PayPal. I still have the original Excel spreadsheet I used to track the purchases and marking the ones where I got ripped off. Then it all went to shit in a few hours. Forgot about the coins until now.
It's equally probable that people are going to laugh their heads off in a few years that people were selling their coins at $300. I mean it was ridiculous to us that the $30 coins were selling at $250 in April.
That is not that much if you are dedicated to the idea of Bitcoin and make a point of investing a lot into them. I would not be surprised if a lot of Bitcoin die hards are also into StartUp culture and programming/building stuff.
I am actually surprised there are so few people who posted on the poll with 100+ Bitcoin.
I sometimes invest on Just-Dice and plenty of people have thousands of Bitcoin to throw around, a lot of these people are developers with a passion.
I was going to buy $300 worth when they were 30 cents each. I didn't, though, as it involved travel to a nearby town and I was working on a book and thought I should be practical and spend the weekend on that. Ah well, one less house.
Dude, you made the right choice. Just because things have been heading up for many Bitcoin users doesn't mean it's not speculation. Bitcoin will always have large value fluctuations since it is, unlike "real world" currencies, decoupled from the rest of the economy.
And if I was you, I'd do myself the favor of not torturing myself about what could have been.
Yes, there's definitely an element of speculation about it, but also of platform-building. I was depressed about it for awhile, but take it with a grain of salt now for the most part. It would nice to be financially independent, as some other friends of mine who were early adapters are, but hindsight is 20/20.
I own half of a Bitcoin. I purchased about two weeks ago. In the intervening time, the value of Bitcoin has gone up 40%. I can't complain, and I'll probably buy more in the near future. It is somewhat disappointing that they can't be used for anything, though. Without practical applications, Bitcoin is subject to massive volatility and doesn't have any sort of foundation to prevent against collapse of the market.
Incidentally, I also developed a Bitcoin Twitter ticker. If anyone would like to keep up with hourly prices via Twitter, I suggest that you check it out.
No. It's only useful as savings if it can be reasonably expected to hold long-term value. But with a valuation based almost entirely on speculation there isn't really a rational reason to assume that (unlike, say, gold or silver which still have commercial use providing a price floor).
I'd say it's horrible for savings. Savings is something you actually want to "save", meaning its likelihood of retaining value is as close to 100% as possible. With low risk comes low return, which is okay for savings. Bitcoin is an investment at best, a speculation at worst. It definitely isn't a guaranteed store of value. It's easy to confuse the fact that it's going up with the idea of storing value. Not very long ago your "savings" would have been about 1/2 its peak value in April, and in a year it might be worth 10X or 1/10th.
At this point it is way too volatile for use as as long-term wealth storage. The current state of Bitcoing only makes it suitable for high-risk, high-reward investing, which is not conducive to saving.
In 2010 I chose an amount of money that I wouldn't feel too stupid about spending on a silly web lark. That was $30, and the price was $1. It took me a week to get them, during which the price hit $4, so I got 7. It's quite possible (/likely?) it goes to 0 at some point but I still think of it as a $30 option with an uncapped upside.
And that's the point - the exchange rate has no underlying fundamental except supply is limited and demand is unpredictable. If you're unsure whether you should get some, choose a figure you don't care about and just buy some tiny amount. You might get 0.01 btc but you won't care if it goes down and you will if it goes up.
Admittedly I'm not sure I'd follow my own advice because the price always seems insane. $280? Madness. But much easier than getting emotionally invested in the whole mining route, which for the majority is destined to fail since you have to be on the leading edge of performance to make anything.
If I were to do it now I'd probably buy a tiny amount now and a bit more if it drops a lot. No amount I'd care about.
I've tucked mine away, took it off mtgox ages ago and no wallet on my computer. Don't care if it hits 0, it was only $30 anyway. It's either a new thing or a bubble, but this feels less stupid than a lottery ticket.
I bought 50$ of bitcoins a year ago. I have sold them this week for 100$. I'll buy back when it's low.
At first I thought a deflationary currency was the future. The more I think about it, the more I think bitcoin is just the first step on a bumpy road. I don't see the point anymore in buying bitcoins to then buy goods/services. What always ends up happening is that someone somewhere hogs them and waits for the price to go up. I'm then stuck to buy at a premium, every time, unless I had a stash of coins to begin with, something which most potential adopters don't have. I'm also not convinced that the early adopters should get a bonus from having mined so many coins when it was easy. I don't have a silver bullet, but I think this problem could be fixed by a new cryptocurrency. Either dampen the bonus to early adopters or remove it entirely. This should be a goal of crypto-anarchists, I think...
Or maybe I'm wrong and we'll be seeing a lot of trade going on with different denominations of one BTC in the near future. Maybe people don't care to give a premium to early adopters.
Figure out your opinion of bitcoin's long term potential value, the percentage of savings/portfolio you are comfortable risking, and then come up with a dollar cost averaging plan. Something like $X a week for 6-12 months would be decent. More months = you believe more strongly in its potential. Altho I wouldn't do less than 3 regardless, as bare minimum volatility mitigation.
1-2. I got a mobo and graphics card for free and mined lightcoin sometime last year. bought some usb asic's and sold all but one for break even, then bought 10 more at the final ASICminer wholesale price. I've mined those to breakeven.
now I have a coin, some anachronistic blinking doo-dads, and a slightly firmer grasp on my own ubuntu box and btc as a whole. had fun to boot. I did buy a usb hub for 50... but now it holds my blinking doodads!
0 now. I made some money from buying low selling high from the first bubble. I sold out all of them when the price was at $144 a couple weeks ago under the belief that mtgox was becoming too unstable. I still haven't received any money from them after cashing out so I'm not feeling to bad about losing out on the current bubble. The market is just too sketchy to stay in any longer, I have no faith in the exchanges.
I had been waiting 4 months for my withdraw -- just email their support and ask them to cancel the transaction. They were able to do so for me today, and I can now trade them again (and transfer them out as BTC anywhere).
I own 1, but I lost it amidst some hard drive reformatting earlier in the year :-|
A couple of years ago, I was trying to get others to invest in my mining operation. Then it tanked, I shut down and sold the rigs, and eventually cashed out - I let the 15 or so coins I had climb back up to $7 or so before I sold. If only ....
If you didn't shred the hard drive and haven't defragged it or anything, there's a good chance that the private keys are able to be recovered. There are scripts that will scan a drive for fragments that look like bitcoin-qt wallet files and dump the keys.
Interesting. I'm not sure which disk its on and it might well be corrupt but I had various components that I was going to make into a secondary desktop or donation machine so I suppose I should check while I test, it might pay for itself!
After it runs, it will create a wallet.dat file that you will load with bitcoin-qt. If it works and you have the private keys, I would recommend exporting them into a better format, like an electrum or armory wallet.
This is considered one of the most unbreakable aspects of bitcoin. It would take all the hashing power in the world something like 10^50 years to brute force the private key (a.k.a. ain't gonna happen). One cool thing, if the address has never been spent out of it (only received coins), it is theoretically still safe from quantum computers.
A private key is not strictly necessary to receive coins, only to spend them. So while there is still probably a private key with that address (since he intended to actually be able to use those bitcoins), the public key is not revealed unless coins are spent from that address.
Yes, but this information is not published to the blockchain until you spend it.
The address is literally RIPEMD-160(SHA-256(public key)), plus a 4 byte checksum. To receive coins to that address, the sender publishes the amount they are sending and that address, they never see the public key.
When the owner of the address wants to send bitcoins from it, only then do they publish the public key, along with a transaction signed by their private key.
Ok, so I'm not a cryptography specialist, but I don't see how "address = RIPEMD-160(SHA-256(public key))" makes it impossible to derive the public key from the address if you have a quantum computer. Or is SHA-256 not vulnerable to quantum computing the way public/private keypairs are?
Yes that is correct. SHA256 is not known to be vulnerable to quantum computers[^], ECDSA (Bitcoin's public/private key algorithm) is.
[^] There is a known quantum attack against SHA256 that reduces the brute force search space from 2^256 to 2^128, but that wouldn't really break the Bitcoin protocol. The ECDSA quantum vulnerability, however, would make ECDSA essentially useless.
It's not a display bug, it's a feature. It also has nothing to do with block chain accounting structures (which are never negative). It's the internal accounting system used by bitcoind/Bitcoin-Qt, exposed by a command line and JSON-RPC interface.
I had 0.5 and just cashed out. It's really too volatile to do any business on it right now. Its great that there is a current upside, but it has to be predicted that there will be a downside just as big at some time.
Zero.. I recently owned 10 but sold them all when the price jumped to $200. I guess I was too quick on the trigger, but what can you do. Will be buying again in about a month when this hype cycle dies off.
Are you trying to day trade? Are you a long term bull? You gotta come up with an investing plan :)
One potential solution to your problem is to do something like: sell Y% of my coins everytime the price increases by X%. An example would be sell 20% after each 50% rise (semi bullish plan. I also made those numbers up, don't consider them as specific advice).
Blockchain.info is a good start. Also go to bitcoin.org and learn about how much you should trust 3rd parties vs. your local wallet. I'm just starting too, hope this helps a bit! Ps. Don't bother mining, it's a lost cause for most.
Mining is a lost cause for the average Joe. The simplest way to buy for U.S. citizens is coinbase.com. Local bitcoins is pretty good too, and has somewhat of a global presence. Look up creating an offline paper wallet to securely store your invested coins (short version: disconnect internet, print out a few copies of paper wallet using offline version of bitaddress.org, and then reset computer before reconnecting the net). Practice a few times with small amounts first. For everyday use, security is not as important and you can keep small amounts in a smartphone wallet or desktop client.
How quickly can you buy/sell your coin.
Say you buy in at $100 and then sell $110 the end of the day, possible? And really, only USC? What about with SS? And doesn't it defeat purpose if you need to prove you are a USC?
You can do short term trading (as well as long term, of course) if you get an account at an exchange (bitstamp is good from what I hear, it's in the EU). I just mentioned Coinbase as it is easier than getting a trading account. Local bitcoins allows for anonymous trading, as it is peer to peer. All the large exchanges have to follow anti-money laundering laws and other regulations.
My point is that the USD price on Mt. Gox isn't accurate because it isn't liquid. If money comes in, but never comes out, how can you know that money is worth x amount? If I give someone x money and they give me something in return that they say is worth the same amount of money that I gave them, but I can't actually get that amount for it, is it really worth that much?
I have not tried in a bit...last time was 2 days. I have heard they had a backlog due to the withdrawl shutdown but of course that is speculation unless I try to transfer today and see how long it takes.
I used to do this and eventually gave up because of the swings. Being a student (and from a very poor background) it was surreal, I would make or lose in 1 day more than I make in 3 months working at a cafe.
I am slightly ahead day trading but the gain was not worth the risk I took.
Really?! $300 billion worth of drugs is moved each year using "traditional currency". Oh and also, silk road was shut down, and the price doubled. Judge the tech on its features and potential, not who uses it.
All 'yall need to be ashamed of yourselves if you don't own even a US penny's worth of Bitcoin. I'm not even kidding. If you've never witnessed a bitcoin transaction or held a bitcoin on an electronic device this far into the game, just hang your heads in shame.
Spend some time on /r/bitcoin. There's some good discussion, but also some talk on there that would cause you to run away for fear of association. Sometimes I'll go there and want to go somewhere with more intellectualism and open-mindedness, like say a Tea Party forum.