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Economics Discuss Bitcoin more valuable than gold at the Political Forums; Bitcoin now more valuable than gold... Bitcoin value tops gold for first time Fri, 03 Mar 2017 - Demand for ...

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Old 03-02-2017, 10:58 PM
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Cool Bitcoin more valuable than gold

Bitcoin now more valuable than gold...

Bitcoin value tops gold for first time
Fri, 03 Mar 2017 - Demand for the digital cryptocurrency has soared since the beginning of the year.
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A unit of the digital cryptocurrency Bitcoin has exceeded the value of an ounce of gold for the first time. It closed at $1,268 on Thursday while a troy ounce of gold stood at $1,233. The current high is being attributed to surging demand in China, where authorities warn it is used to channel money out of the country. The past months' surge is a major reversal for Bitcoin, which plummeted in value in 2014 after the largest exchange collapsed.


Bitcoins

The value of Bitcoin has been volatile since it was first launched in 2009, and many experts have questioned whether the crypto-currency will last. Earlier this year, Chinese authorities cracked down on Bitcoin trading in an attempt to stop money flowing out of the country illegally. But the closer scrutiny from Beijing only briefly sent the currency lower. After it had soared to record highs in January, it has since picked its steady rise in value.

How Bitcoin works

Bitcoin is often referred to as a new kind of currency. Yet like all currencies its value is determined by how much people are willing to exchange it for. To process Bitcoin transactions, a procedure called "mining" must take place, which involves a computer solving a difficult mathematical problem with a 64-digit solution. For each problem solved, one block of Bitcoins is processed. In addition the miner is rewarded with new Bitcoins. To compensate for the growing power of computer chips, the difficulty of the puzzles is adjusted to ensure a steady stream of new Bitcoins are produced each day.


Verifying bitcoin transactions takes a lot of computer power

There are currently about 15 million Bitcoins in existence. To receive a Bitcoin, a user must have a Bitcoin address - a string of 27-34 letters and numbers - which acts as a kind of virtual post-box to and from which the Bitcoins are sent. Since there is no register of these addresses, people can use them to protect their anonymity when making a transaction. These addresses are in turn stored in Bitcoin wallets, which are used to manage savings.

Bitcoin value tops gold for first time - BBC News
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Old 03-02-2017, 11:10 PM
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Default Re: Bitcoin more valuable than gold

I didn't believe it when it began, what people were saying about a back up, black market currency. I do now-
-cuz the revolution.
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Old 04-07-2017, 12:20 AM
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Uncle Ferd wonderin' if we can make some money postin' posts?...

Kim Dotcom Announces New Bitcoin Venture for Content Uploaders to Earn Money
April 05, 2017 - Controversial New Zealand-based internet mogul Kim Dotcom plans to launch a Bitcoin payments system for users to sell files and video streaming as he fights extradition to the United States for criminal copyright charges.
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The German-born entrepreneur, who is wanted by U.S. law enforcement on copyright and money laundering allegations related to his now-defunct streaming site Megaupload, announced his new venture called 'Bitcontent' in a video posted on Youtube this week. "You can create a payment for any content that you put on the internet...you can share that with your customers, with the interest community and, boom, you are basically in business and can sell your content," Dotcom said in the video.

He added that Bitcontent would eventually allow businesses, such as news organizations, to earn money from their entire websites. He did not provide a launch date. Dotcom did not provide details on how Bitcontent would differ from existing Bitcoin operations or how it would help news organizations make money beyond existing subscription payment options.


Kim Dotcom, the founder of the file-sharing website Megaupload, comments after he was granted bail and released in Auckland, New Zealand

Bitcoin is a virtual currency that can be used to move money around the world quickly and with relative anonymity, without the need for a central authority, such as a bank or government. The currency's anonymity has however made it popular with drug dealers, money launderers and organized crime groups, meaning governments and the financial establishment have been slow to embrace it since the first trade in 2009. The currency's value hit record levels in 2017, trading at $1,145 on Wednesday, a fivefold increase in a year, amid growing interest globally.

A New Zealand court ruled in February that Dotcom could be extradited to the United States to face charges relating to his Megaupload website, which was shutdown in 2012 following an FBI-ordered raid on his Auckland mansion, a decision he was appealing. Dotcom, who has New Zealand residency, became well known for his lavish lifestyle as much as his computer skills. He used to post photographs of himself with cars having vanity plates such as "GOD" and "GUILTY", shooting an assault rifle and flying around the world in his private jet.

Kim Dotcom Announces New Bitcoin Venture for Content Uploaders to Earn Money
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Old 07-20-2017, 10:38 AM
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Question Re: Bitcoin more valuable than gold

Why Bitcoin risks becoming a victim of its own success...

Bitcoin swings as civil war looms
Thu, 20 Jul 2017 - The Bitcoin community must agree how to tackle a slowdown in transaction times to avoid a schism.
Quote:
The value of the virtual currency Bitcoin has always been volatile. Even so, there has been particular turbulence in recent days as fears of a "civil war" among its adherents first grew and then subsided, although they have not gone away altogether. On Sunday, the value of one bitcoin dropped to about $1,863 (1,430) before bouncing back to $2,402 on Wednesday, according to data from the news site CoinDesk - still some way off a June high of $3,019.

What's at stake?

Bitcoin risks becoming a victim of its success. The popularity of the financial technology has caused transactions to be processed slower, with some users complaining of having to wait three days or more for confirmation of trades when the backlog was at its worst, in May. Moreover, fees have also risen, hitting a high of $5 per transaction at the start of June. That makes it too costly to justify its use for some purchases, such as buying a pint of lager in a Bitcoin-accepting pub.


There are ways around the problem, but the cryptocurrency's community has been split over which solution to adopt. The risk is that Bitcoin could effectively split in two, with one type becoming incompatible with another, ultimately undermining confidence in the project altogether. Mining, by the way, has become a big business in its own right, with some companies investing in huge "farms" of computers dedicated to the activity. Several of the biggest are based in China.

In simple terms, why does this problem exist?

The issue is that Bitcoin's underlying technology has an in-built constraint: the ledger of past transactions, known as the blockchain, can have only 1MB of data added to it every 10 minutes. To understand why, it's helpful to first understand how Bitcoin works. To authenticate Bitcoin transactions, a procedure called "mining" takes place, which involves volunteers' computers racing to solve difficult mathematical problems. For each problem solved, one block of bitcoins is processed. As a reward, the successful miners are given newly generated bitcoins.


Buying bitcoins has become expensive in itself

An updated copy of the blockchain database is then copied to all the computers involved in the validation process, which are referred to as "nodes". Bitcoin originally did not have the 1MB/10min blockchain limit, but the feature was added to help defend the technology against denial of service (DoS) attacks, which might overwhelm the blockchain by flooding it with tiny transactions.

So, why not just raise the limit?
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