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Why Bitcoin will jump to $100-$200 over the next 6-12 months.

For those of you that don't know, bitcoin is a decentralized crypto currency that is not regulated by governments or banks.

Bitcoins are created by a process called mining, which is nothing more than figuring out the answer to a mathematical puzzle. This is done by testing many possible answers as fast as possible, until finally finding the combination that works. When the correct answer is found, bitcoins are rewarded to the node who solved the puzzle.

Up until just recently, the fastest way to mine bitcoins were with GPU's from powerful graphics cards, which mined at a rates of 80-200 M/hs(million hashes per second). Many bitcoin miners would set up "rigs" of these machines full of these graphics cards to get the highest rates possible.

And for the most part, this was good, as it gave people with not so great hardware a chance to get in the game and try mining some bitcoins, without the fear of any one person or group possessing all the hashing power.

Introducing ASIC:
ASIC stands for Application Specific Integrated Circuit; in other words, it is a computer chip that is designed to do a very specific task, very well. There are currently a small group of manufactures getting ready to release asic chips designed specifically for bitcoin mining that is going to blow the current mining technology out of the water. Some of these units are processing upwards of 80 G/Hs(GigaHashes (i.e. 1000 M/hs = 1 G/hs), which means that the rate bitcoins are going to be generated is going to quadruple over the next 12 months.

And because of the way bitcoin was designed, there will only ever be a total of 21 Million bitcoins in existance. This was hard-coded into the design to prevent inflation, and devaluation. Once the last coins are mined, the value of them is going to skyrocket.

Also, lets take a look at what bitcoin has done lately:

If you had invested just $100 6 months ago, the average price of bitcoins were $10.30, which would have bought you 9.708737864 bitcoins.

Come to today, the closing price on mtgox.com was $33.81. Those bitcoins today would be worth $328.25. That a return of over 200% in just 6 months.

Combine this with the fact that bitcoins are becoming more popular. MtGox, the worlds largest bitcoin exchange has just announced its partnering with CoinLab here in the US to service the increase demand from US based customers. Also, just by looking at the average volume over the last 6 months should tell you something; In Oct-2012, there were an average of 34,676 transactions per day. Today, in March of 2013, there are approximately 66,255 transactions per day.(data by blockchain.info) so popularity is steadily increasing.

So as you can see, impending scarcity, greater acceptance and usage, combined with a devaluing dollar, is creating a perfect storm for bitcoin to surge unlike anything ever seen before in the next 6-12 months. If you have a few hundred in federal reserve notes you can afford to invest, I highly suggest you buy a few bitcoins and hold on to them for the ride.



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Great post!

Very informative.

My only reservation about Bitcoin is that I can't physically hold it, and in a scenario where the government shuts down the internet, I have no access to it.

Check out the Laissez-Faire Journal at LFJournal.com


"The State is a gang of thieves writ large." - Murray Rothbard

I share your concern...

That's why I store my wealth in Gold and Silver but in all cases where I can transact in Bitcoins instead of dollars I do. Remember, I am advocating Bitcoins as a currency, Not as a store of wealth.

I'm glad you are receptive to the Idea of Bitcoins... Keep digging... you will come to realize how valuable of a tool it is for the cause of Liberty!

I'm kicking myself...

for not buying them at $5.00!

But back then, I had no idea where they were going.

Check out the Laissez-Faire Journal at LFJournal.com


"The State is a gang of thieves writ large." - Murray Rothbard

Multiple downvotes?

What is so damn offensive about this comment, please do tell me.

Bitcoins are now $34 a piece, would you not regret missing the opportunity to buy at $5?

Check out the Laissez-Faire Journal at LFJournal.com


"The State is a gang of thieves writ large." - Murray Rothbard

Misinformation

Bitcoin is a distributed, global, transaction network (capital 'B'). Transactions are made with bitcoins (lowercase 'b') - a pseudonymous digital currency.

Mining is the process of auditing or verifying transactions on the network. In exchange for the 'work' required to audit transactions, miners/auditors are rewarded with new bitcoins and transaction fees. The introduction of ASICs will not increase the reward rate. The Bitcoin protocol self-adjusts to 10 minutes per audit block no matter the processing power behind the network. The currency will reach its maximum circulation of 21 million bitcoins in 2140.

Bitcoin is not a ponzi scheme. In a Ponzi Scheme, the founders persuade investors that they’ll profit. Bitcoin does not make such a guarantee. There is no central entity, just individuals building an economy. Anyone promoting Bitcoin as a way to profit is doing you a disservice.

Lastly, Bitcoin supports what libertarians believe in - a limited, market-driven currency free from government manipulation. The fact that you decide to conduct transactions with it is completely up to you. I could care less what you think of Bitcoin - It works for me.

Exactly what I've been saying but just more eloquently stated..

If there is anything in life which really bothers me it is intellectual dishonesty and hypocrites.

Libertarians who diss bitcoins but continue to use dollars are hypocrites. When you point out to them that they are actually contributing to empower the people they fundamentally are against by not using bitcoins they revert to intellectual dishonesty...

Fuck! If we can't even get Libertarians to further the cause of Liberty then we are screwed.

If you use dollars instead of Bitcoins you are part of the problem people! You are part of the sheople!

Milk will be $100 a gallon

Milk will be $100 a gallon soon too.

So...

I'll be able to buy 1 gallon of Milk with one Bitcoin or less...

So.. Bitcoins appreciating in value...Dollars losing Value

So wait... Why are you still using dollars?

Bit(ch) coin is for covetous worms and hypocrites.

Here's where they make the promise of miraculous profits, and promise you it is the wave of the future.

When you lose everything, don't go crying for justice. Bit(ch) coin traders getting robbed of their money IS JUSTICE.

Actually

Transacting in Bitcoins instead of Dollars has allowed me buy 6 x the silver. Keep on using your Fiat central banker empowering currency. I'll use Bitcoins. Keep on aiding the Bankers, I'll work on the side of liberty.

Bit(ch) coins and FRN are all

Bit(ch) coins and FRN are all born from the same scam, and I can't help noticing you always try and value your Bit(ch) coin in Federal Reserve Notes.

You shouldn't be able to buy ANYTHING with a FRN or Bit(CH) coins. I don't trade something for nothing, and the fact that you're promising Bit(ch) coins will be worth even more in the future doesn't make them a store of value, it demonstrates that you believe the scam will offer you profit based on demand, not stored value.

It's like a pyramid scheme, the only value you can create or store is the value created by the victims of your scam, and eventually people stop traders with scammers like you, so you will lose everything, because that's what a Bit(ch) coin represents; NOTHING.

I do not know the truth about

I do not know the truth about bitcoin and believe there is never a "sure thing" when investing.

I will say though that I disagree with your assessment that a bitcoin represents nothing.

Mises argued that in a commodity backed system it does not matter what the size of the unit of account is. He was not concerned about deflation if the economy expanded and there was not central bank inflation because as the medium of exchange became more valuable people were free to transact in smaller units.

Bit coins do have a tangible physical existence. They exist as 1's and 0's on a hard drive. Now you may say this is almost as close to nothing as you can get and I would agree. It may be next to nothing, but it is not technically nothing. This is interesting to think about in the context of austrian theory because with ecommerce there is no mathematical limit to the divisibility of a bitcoin where there are practical limits on the divisibility of gold.

This characteristic gives it qualities that no other currency could have. It allows it to be exchanged instantaneously and practically anonymously. It allows users to transact OUTSIDE of the federal reserve system.

The market values goods AND SERVICES. I think you are discounting bitcoins service value. The value of bitcoin in my opinion is not in its infinitesimally small commodity value but in the value of bitcoin as a service. How much does the market value the service of transacting in a medium out side of federal reserve and governmental control? What is the price of a bitcoin?

The service is real. you really can buy and sell bitcoins and trade those bitcoins for real products. This is not a scam. If the market decides that this is not a reasonable medium of exchange then the service quality of bitcoin would return to zero and it would have only its commodity value (next to nothing.)

If you want to store your value in something with limited risk, buy precious metals. If you want to participate in ecommerce outside of the fed/gov monopoly, use bitcoins. try doing that with silver.

hmmmm, who's right?

the brand new member who talks about "Bit(CH) coins" and "I see Murray Rothbard as a kind of David Icke character"

or

the 5+ year member educating about Mises, deflation, central bank inflation, medium of exchange, austrian theory, divisibility of gold, bitcoin as a service and ecommerce outside of the fed/gov monopoly.

Official Daily Paul BTC address: 16oZXSGAcDrSbZeBnSu84w5UWwbLtZsBms
Rand Paul 2016

Are you using dollars or Bitcoins?

I'll agree Gold and Silver is the best money and if there was a currency backed by it, that would be far Superior than Bitcoins. But there isn't and wont be until the power is taken back from the central bankers. So what do we have as a weapon? Bitcoins... All Im saying is that if you can use Bitcoins instead of Dollars then you are fighting for liberty. Right now the only Bitch around here is your sorry ass because you keep on using the central Bankers currency instead of one that supports liberty. You are the central bankers bitch.... Open wide from both ends and take it like the slut you are.

"All Im saying is that if you

"All Im saying is that if you can use Bitcoins instead of Dollars then you are fighting for liberty."

No, what you're doing is attempting to profit from a scam based on the fact the only option people have is to participate in a similar scam.

You are a scammer who's offering people profit off a scam, and when you lose everything, I'll be laughing my ass off knowing justice was served, and for those like you who perpetrated the scam offering profit, I say you deserve worse than losing your initial investment.

I say you should lose your liberty, because that's what you tried to take from people.

Wow, really?

How delusional are you man? The "scam" debate has been shredded a long time ago... Bitcoins are worth what they are because PEOPLE place that value on them.

To me, you sound like someone who is angry at himself for not understanding the technology, and wants everyone else to reject it so you don't feel inferior.

The "I say you should lose your liberty" comment tells us you probably have no business being here in the first place. No one is putting a gun to peoples heads forcing them to buy bitcoins. They are buying them because they have VALUE to that individual. For you to suggest someone should lose their liberty over this or that SHOWS US that you have no idea what Liberty is in the first place. That its endowed by our creator, and is an unalienable right that cannot be taken away. Its ok though, its normal for us to attack something we dont understand. But by attacking points that have been debated by folks more informed than us, just shows the lack of willingness to understand in the first place.

All in all you seem like a very negative and angry little person, and probably have issues in your life that reflect that; funny how angry, negative people always have some drama going on in their lives.

Anyways, you can sit there and stew, and get angry and call it a scam all you want, but the fact of the matter is that bitcoins are going to continue to rise in not only price but popularity as more people begin to use and understand them.

"To me, you sound like

"To me, you sound like someone who is angry at himself for not understanding the technology, and wants everyone else to reject it so you don't feel inferior."

Is that what I am; confused and inferior? It's always the same with these kind of scammers. When they get called out they try and make their opponent feel "confused and inferior". Notice who else does it?

The Ben Bernanke's and Paul Krugman's of the world do the exact same thing, try and make a simple scam seem complicated; too complicated for poor little me to understand or call out for what it is.

Get over yourself. You're nothing but POS LOOTER selling a scam hoping to profit off it.

"The "I say you should lose your liberty" comment tells us you probably have no business being here in the first place."

That's right. I don't do business with liars and scammers.

"No one is putting a gun to peoples heads forcing them to buy bitcoins."

Nobody is forcing people to buy snake oil either, but that doesn't stop me from advocating justice be served on those who knowingly sell snake oil. It make you no less a vicimizer.

Justice is coming for you Bit(ch) coin scammers, and there's nothing I could do to stop it for the same reason there's nothing you can do to stop me, other than to try and make me feel confused and inferior, which clearly, I'm not.

Understanding guys like you is as easy as 1 + 1 = 2.

My O My you're an angry

My O My you're an angry little man... aren't you?

You are the Scammer

You advocate using dollars, a currency that is inherently evil, Over one that is honest, open, and supports liberty. Profits? Yea.. big profits ill earn from my 150 bitcoins. No, Im not concerned about profits im concerned about liberty. Im concerned with ending the fed, im concerned with taking power away from the elite and returning it back to the people...

The only Scammer is you. You Dollar worshiping whore. NWO scum bucket.. Keep on using you Central Banker controlled FIAT dollars. I'll fight for liberty and use Bitcoins wherever possible.

Like I said, you are a liar

Like I said, you are a liar and a scammer, just like all the other Bit(ch) Coin traders. (and of course you're an Anarchist. Birds of a feather flock together.)

Show me where I advocate using FRN. Can't?

Oh that's right, you are a pathetic scammer and a liar. You shouldn't be able to trade ANYTHING for a FRN or a bit(ch) coin, and for the same reason, they represent NOTHING, and I don't trade something for nothing, and that's what makes you a scammer; you want to scam people by trading nothing for something, and thus profit off that scam. The more victims you scam, and the more profit you make, so here you are; selling the scam.

Justice is coming for you, and like I said, I'll be laughing my ass off when it does, and for guys like you, losing your money isn't justice enough. You should lose your liberty.

You should be thrown in prison, just as I advocate justice be served on those who operate the fiat slave trade using FRN.

Well, then, wouldn't the best

Well, then, wouldn't the best time to buy them be in 8-12 months, once the supply has exploded? If so many are going to come into existence very fast, that would mean supply would go up and they lose value.

End The Fed!
BTC: 1A3JAJwLVG2pz8GLfdgWhcePMtc3ozgWtz

How would so many come into existence

It's obvious you do not know much about Bitcoins.

The article just said "ASIC

The article just said "ASIC stands for Application Specific Integrated Circuit; in other words, it is a computer chip that is designed to do a very specific task, very well. There are currently a small group of manufactures getting ready to release asic chips designed specifically for bitcoin mining that is going to blow the current mining technology out of the water. Some of these units are processing upwards of 80 G/Hs(GigaHashes (i.e. 1000 M/hs = 1 G/hs), which means that the rate bitcoins are going to be generated is going to quadruple over the next 12 months. "

and no, I'm not an expert but I understand the basics.

End The Fed!
BTC: 1A3JAJwLVG2pz8GLfdgWhcePMtc3ozgWtz

Obviously you dont...

That hardware just betters your chances that you will be the one to solve the algorithm. It's like buying 100 lotto tickets as apposed to 1... But this doesn't mean more Bitcoins will be mined. The algorithm adjusts in it's degree of difficulty to solve and keeps on track with it's time table of Bitcoin discoveries. Do some research, try and understand, It's ok to be ignorant, but not ok to speak down on matters you are ignorant on.

You are so smug, if you want

You are so smug, if you want people on your side be kind and not a dickbag. I'd be interested in talking more about this but you are just an unpleasent person.

Also, just because I'D be the one inflating the currency, doesn't mean the currency isn't currently in inflation. If there are a set number of Bitcoins possible, then inflation will occur until that number is reached.

End The Fed!
BTC: 1A3JAJwLVG2pz8GLfdgWhcePMtc3ozgWtz

You are probably right...

Sorry man, but you know how when you talk to a neocon or liberal and theyre so wrapped up in their propaganda that they refuse to see or even attempt to understand truth. Well, That's the same frustration I feel with talking to libertarians and Anarchist about Bitcoins. and we are supposed to be the intellectuals of society? How can so many libertarians be so intellectually dishonest about bitcoins. I'll accept arguements against bitcoins but not ones touted in lies and propoganda. Also, I cant stand hypocrisy... and if you rather use dollars than Bitcoins and are chanting "End the Fed" you are nothing but a hypocrite.

So again man, I apologize...Just frustrated

I know nothing about BC so

I know nothing about BC so please correct me if I am wrong...

Isnt BC just another fiat currency not backed by anything??

No

Definition of Fiat money : Currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves.

Bitcoin currency is not in the central control of anyone, it's backed by it's utility and the platform it uses. As of right now It is the best form of currency available.

No!

Mises Wiki:

"fiat money is in a wider sense any money declared to be legal tender by government fiat (ie law). In the narrower sense used here, fiat money is an intrinsically useless good used as a means of payment and a storable object."

The important ECONOMIC distinction of fiat money is that it is an INTRINSICALLY USELESS GOOD used as a means of payment and a storable object.

The key is distinguishing COMMODITY money from FIAT money. Commodities are intrinsically useful outside any use as money. Fiat money has zero intrinsic usefulness outside of use as a currency. Both commodity money and fiat can be declared by the Govt as the only valid money.

Bitcoin has zero intrinsic usefulness outside use as a means of exchange or as a storable object, Bitcoin is not a commodity (usefulness outside use for exchange [see Menger on how money is NOT a true commodity].

Bitcoin matches the Mises Wiki definition of "fiat" perfectly. Commodities are wealth (intrinsic usefulness - see Bastiat "What is money?"). Bitcoins are NOT wealth.

.
~wobbles but doesn't fall down~

Dude, you have no arguement...

Seriously, by Mises on definition it's not FIAT. No government has deemed it legal tender and no one will. Why? Because no one has central authority over it.

Look if you are going to argue what is money then there is no question about it.. gold and silver is the best form of money. But I'm not talking about money, I'm talking about currency. Gold and Silver suck as currency. Hence the reason fractional reserve banking even came about. Until there is a virtual commodity back currency, the best alternative is one that mimics one.

My arguement is not Metals vs Bitcoins it's Dollars vs Bitcoins.

If you rather use dollars instead of bitcoins you are part of the problem.