Why not go back to the barter system used hundreds of years ago? A doctor got a chicken or pig for treating a patient. Horses were traded for cows. Hey, it worked for them.
Let’s be careful – if it’s true that it’s a currency that has value only to those who accept the currency – I’d say it’s kinda like the U.S. dollar. The U.S. dollar is no longer backed by gold and hasn’t been for a very long time. It’s now simply backed by “faith” in the U.S. monetary system. Bitcoin is backed by faith in cryptology and faith in the blockchain. One is centralized, the other is not.
I’ve been following bitcoin for about 6 months, but not in a professional capacity.
Bitcoin has value only due to its inherent characteristics.
Gold was arrived at as money independently across several cultures due to several inherent characteristics of it:
It doesn’t degrade or corrode, it can be divided into smaller units, and once melted any bit of gold is identical from any other bit of it (fungible), it has limited supply, and its value to weight ratio is very good.
Bitcoin has all of these characteristics plus some more:
Easy to transfer (it can be transferred anywhere globally instantly, and clears in ~10 min)
Less costly to store (the amount of value that can be stored on a single address is only limited to the market cap of the bitcoin system itself)
Just as gold doesn’t need anyone to ‘back’ it or dictate its value, the same applies to bitcoin. As Tim says, merely market forces determine the price/value.
Download the Mycelium app. Post the ‘address’ (which is 30ish random numbers and letters, (capitalization counts!)), and I’ll send you $2 worth, my treat.
of all making a profit. My conclusion is the majority of these cloud mining companies is they have no purchasing ability, the hardware mining industry is extremely cut-throat and it is trying enough to earn a profit from mining as an end user let alone attempting to make money after these middlemen try to get in-between. When you look at most of the cloud mining contracts available the they are rather unattractive especially when some easy mining profitability calculations are carried out. This is down to one or all factors far fetched predictions, lack of knowledge of Bitcoin mining (increase of the difficulty), and maybe just wanting to be part of the community.
Why not go back to the barter system used hundreds of years ago? A doctor got a chicken or pig for treating a patient. Horses were traded for cows. Hey, it worked for them.
How can you acquire bitcoins? It’s a virtual currency, having value only to those who accept the currency. Do banks accept bitcoins?
Let’s be careful – if it’s true that it’s a currency that has value only to those who accept the currency – I’d say it’s kinda like the U.S. dollar. The U.S. dollar is no longer backed by gold and hasn’t been for a very long time. It’s now simply backed by “faith” in the U.S. monetary system. Bitcoin is backed by faith in cryptology and faith in the blockchain. One is centralized, the other is not.
I’ve been following bitcoin for about 6 months, but not in a professional capacity.
Bitcoin has value only due to its inherent characteristics.
Gold was arrived at as money independently across several cultures due to several inherent characteristics of it:
It doesn’t degrade or corrode, it can be divided into smaller units, and once melted any bit of gold is identical from any other bit of it (fungible), it has limited supply, and its value to weight ratio is very good.
Bitcoin has all of these characteristics plus some more:
Easy to transfer (it can be transferred anywhere globally instantly, and clears in ~10 min)
Less costly to store (the amount of value that can be stored on a single address is only limited to the market cap of the bitcoin system itself)
Just as gold doesn’t need anyone to ‘back’ it or dictate its value, the same applies to bitcoin. As Tim says, merely market forces determine the price/value.
Tim,
Sorry, I never answered your question in my previous post.
You can buy bitcoin via several services. The largest being Coinbase and Circle among many others.
Mr. Mister: Thank you for your comments…it is appreciated.
Download the Mycelium app. Post the ‘address’ (which is 30ish random numbers and letters, (capitalization counts!)), and I’ll send you $2 worth, my treat.
of all making a profit. My conclusion is the majority of these cloud mining companies is they have no purchasing ability, the hardware mining industry is extremely cut-throat and it is trying enough to earn a profit from mining as an end user let alone attempting to make money after these middlemen try to get in-between. When you look at most of the cloud mining contracts available the they are rather unattractive especially when some easy mining profitability calculations are carried out. This is down to one or all factors far fetched predictions, lack of knowledge of Bitcoin mining (increase of the difficulty), and maybe just wanting to be part of the community.