Silk Road forums
Discussion => Newbie discussion => Topic started by: philbetter333 on March 26, 2013, 02:13 am
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So I know I'm a newb. But that doesn't mean us newbs can't discuss important matters.
So, it seems BTCs are spiking right now. My guts telling me to make a steep buy as I feel as BTCs will hit 3 figures within 2 weeks. I feel like this may be the new thing that takes off. Not as big as the (.com) boom, but I feel it has major potential for investors. So newbs, what do you guys think? That this is just a phase? I'm very curious as to what the BTC market will do.
Opinions?
-PB
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SR is BTC's bread and butter so as long as this place keeps going I think the rest of the jigsaw, more legitimate online and even high street use, will all fall into place within time. I think it's going to be big, big time. However if SR is busted before this happens then it will flop. Once it does catch on in such a manner though it won't matter what SR does anymore it will already be famous. It just needs SR to continue supporting it until that time.
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Great reply! I'm going to have to agree with you 100%. SR definitely lit a fire under BTC's. I doubt SR will get popped anytime soon. It's the future of trading(drugs amongst everything else) in my opinion. I'm excited to see the value of a bitcoin 2-3 years down the road. Again, good reply.
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I think btc are a good investment right now. I am not sure what the future holds for them. They are VERY dependent on SR at this time but like the previous post. When other vendors start accepting them and they slowly are they won't have to depend on SR as much. Once they hit the market and go global with other vendors accepting them as payment I think the potential is very good that they will continue to increase. They are holding steady right now and going up which is a great sign.
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Bas
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It has a lot to do with the financial crisis in Cyprus/ Spain .
http://motherboard.vice.com/blog/cyprus-spain-when-governments-take-your-money-bitcoin-looks-really-good
http://www.wired.co.uk/news/archive/2013-03/20/bitcoin-spain-currency-run
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Ok, let's put BTC and SR in a perspective.
There are 10.95 million BTC trading at $75, giving BTC a total value of $821 million.
SR revenues are $1.7 million/month.
This is less than 0.25% of BTC value.
Don't fall for the trap that authorities want to build by linking BTC to everything that's scary to average Joe, like drugs and terrorism.
The true driving factor behind the BTC appreciation are 300 million Eurozone inhabitants looking for an escape route for their savings.
In Spain, BTC apps for mobile phones shot to the top 3 download ranks last week.
BTC fulfill already 4 important functions of money:
* Divisibility
* Transaction medium
* Store of value
* Growing acceptance
I hold on to my forecast that we will see BTC passing the $100 mark quite soon. In a few years they will be in the 4 digit range because there will never be more than 21 million BTC. This is the main difference to all other fiat currencies: BTC cannot be created at the will of a central authority.
Save your BTC. This will alow you to buy a LOT more drugs in the future.
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If ASICs start shipping (butterflylabs and others) then the BTC market will incur a radical change .
A 60 GHash ASIC mining rig is listed at $1300 and they only take up well presumably 60W, but let's say 70 .... a SINGLE GPU used in mining generates around 400 MHash at a cost of a few hundred dollars each and an energy consumption of a few hundred watts each. To make a mining rig out of GPUs right now (which is currently the only way we mine bitcoins) with an output of 60GHash is VERY ROUGHLY put about 150 video cards. Consider the cost of building 50 rigs (3 cards each) is gonna cost you probably 10 grand or more and that each card can push upwards of 500 watts of electricity each (so 150cards * 500 watts = 75000 watts (WHOA!).
So a 30 GHash ASIC = $1300 and uses 40 watts | GPU = $10,000 and uses 75,000 just for the cards
Needless to say if this so far vaporware comes to fruition the difficulty in mining a block would be radically reduced when compared to cost and people are going to sell their BTC like candy cuz you can pump them out ... like candy. Only solution I can think of is for them to ARTIFICIALLY increase the difficulty, and given there are a finite number of blocks (21 million), this will completely fuck up the intended distribution of bitcoins over time.ip
If we don't see them shipping then there will still be a large % of miner's still under the belief that it's just on the horizon (it's been that way for a year or more). Only reason we have to believe we are ... at the horizon is that they are taking orders, and at least have pics up and shit. Building an ASIC unit to verify the checksum of a hash is extremely technically easy to do. The problem that arises is that if any business wishes to pursue ASIC mining they'll need a TONNE of Capital from Investor's who would mostly probably think a 'bitcoin' is a joke to buy their lot's of chip's.
Frankly if I were CEO of butterflylab's i'd say fuck the company, let's just buy as many as we can and keep adding more as we can afford them, it'll be one individual amassing an unprecedented number of bitcoins from completely a block in the chain. At current difficulty it's statistically been claimed that a 60GHash mining rig would generate 6.9 blocks a day (you don't want no bitcoin pooling if you have a 60 GHash machine o my), and a block correct me if i'm wrong will net you 25 BTC each (used to be 50).
That $1300 unit can chug out 172 BTC per day, and at current market value that's an astonishing 172 x $80/ea = $13800 A DAY. If they are commercialized then ASIC machines will demand an artificial (and HUGE) difficulty increase or else the bitcoin market will experience hyperinflation that German's in the 1930's would be grateful for their rate of inflation lol, and the market would inevitably collapse with no value.
Then there's a lot of people hoarding their BTC in hopes ASICs don't come along for a long time, and the longer the more stable the BTC market and possibly even a consistently raise in value as we've been experiencing. In fact it works both ways, they're the worth so much right now because some of the big players are hoarding all their bitcoins in anticipation of ASICs, which are supposed to begin shipping within weeks, and in fact if they do hit the market then you better hope you'd have sold all your bitcoins at $80ea by then because the big holders are gonna mass sell off their BTCs and buy an ASIC mining rig to generate at whatever rate ASIC's produce a ceiling, we'll be back in the $5 days.
This is all speculation, i'm not a businessman, but I currently have 3 mining rigs chugging along (I get free electricity, included in rent) which have long long paid themselves off and just give me free money all day long so I know a bit about the mining side, and esp. the hype of ASIC's which are by no mean's a pipe dream and can be easily assembled actually. Now is NOT a good time to start mining though !
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Excellent points and I agree.
I would add that while mid-term BTC will rise, you are vulnerable to short term corrections - even significant corrections like 20%. But mid-term it's all good.
Ok, let's put BTC and SR in a perspective.
There are 10.95 million BTC trading at $75, giving BTC a total value of $821 million.
SR revenues are $1.7 million/month.
This is less than 0.25% of BTC value.
Don't fall for the trap that authorities want to build by linking BTC to everything that's scary to average Joe, like drugs and terrorism.
The true driving factor behind the BTC appreciation are 300 million Eurozone inhabitants looking for an escape route for their savings.
In Spain, BTC apps for mobile phones shot to the top 3 download ranks last week.
BTC fulfill already 4 important functions of money:
* Divisibility
* Transaction medium
* Store of value
* Growing acceptance
I hold on to my forecast that we will see BTC passing the $100 mark quite soon. In a few years they will be in the 4 digit range because there will never be more than 21 million BTC. This is the main difference to all other fiat currencies: BTC cannot be created at the will of a central authority.
Save your BTC. This will alow you to buy a LOT more drugs in the future.
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Only time will tell. I think it will drop a few more times first.
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LETS JUST HOPE THE PRICE DOESN'T CRASH
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It's a bubble!
The question is how big?
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It's a bubble!
The question is how big?
21 million blocks that's how big.