Bitcoin Currency Tops $1 Billion In Total Value

Are we living in a video game? Quartz writes:

Digital currency bitcoin continues its remarkable and somewhat inexplicable run. It’s up 152% this month, and today the total value of all outstanding bitcoins topped $1 billion for the first time before settling back down.

That’s quite a milestone, considering bitcoin isn’t backed by any real asset or faith in any government. What makes bitcoin so maddening to explain—no, there’s no central bank; yes, it really is just a bunch of people creating money out of thin air—is precisely what makes it so powerful.

The estimated margin on “mining,” or creating, new bitcoins has already recovered from December, when the rate at which new bitcoins could be minted was cut in half, part of the currency’s intentionally deflationary design. Anyone, from hobbyists to bankers to thieves, can mine bitcoins, which requires raw computing power dedicated to solving cryptographic puzzles.

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  • http://www.zoboprepublic.wordpress.com/ zobop republic

    I read about this Bitcoin in the latest Bloomberg Businessweek magazine. If Bloomberg is writing about this, then it must be serious money.

    • Daniel Gill

      the problem with bitcoin is that it is just money. its a bag of hot potatoes. after you trade a bitcoin, and then trade it again, and then it gets traded again, someone else is still holding a bag of hot potatoes. they don’t own anything or have anything of value. when you trade something like a MTG card, it settles, you’re not giving someone a hot potato, you’re giving a valuable to someone, that they won’t have to trade for something else. eventually someone takes the card and will put it in a binder, appreciate it, or put it in a deck.

      • Montgolfier

        It does have value. Its value is in its anonymity, lack of central controlling agency, and ability to cross borders with little or no charges. What value does a lump of gold have if you are marooned on a desert island?

        • Daniel Gill

          I think you are over exaggerating calamity, but yes a MTG can also cross borders undeclared, and holds a lot of value, and the upside is that people around the world value MTG cards way higher than “bitcoin”. and before anyone calls MTG a fad, its been a 20yr fad this year. there are also old board games liek Dune that are a good investment as well, and yeah there is other real stuff like helium that will be way more valuable unless it is mined on the moon or some shit than currency. bitcoin is still a currency. you cant eat it. you cant fuck it. you cant procastinate and play games with it. its just a currency. it isn’t valuable. its an exchange thing.

  • howiebledsoe

    I could never put my trust in a currency that is not backed on any value whatsoever, minted out of thin air. It’s value is illusory, and only works if people actually believe that it has value. I’ll stick to my trusty greenbacks, thanks. (sarcasm….)

    • arlindaatkinson

      my neighbor’s mom makes $81/hr on the laptop. She has been unemployed for eight months but last month her pay check was $16017 just working on the laptop for a few hours. Read more on  Ask25.c­om

      • Calypso_1

        ]-[34/¥ ‘//][%4|2[) ; ©j¶}{3® (_+°[)[)35Z $]-[3 (v)µ§+ |33

    • Daniel Gill

      listen to this smart man. the rest of you are idiots.

      • Spasmodius

        I think you might need to check that bit in parenthesis.

        • Daniel Gill

          I think the sarcasm was only meant for the U.S. dollar comment
          I would never accept bitcoin as a store of value if someone were to pay me for something

          • Manuel de Moustache

            well thats stupid, because i doubled my store of value in 2 weeks.

  • Daniel Gill

    Just buy MTG cards instead. Seriously. They’re not bound by any governmental system, they are compact and easy to transport.. consider a single Black Lotus is worth over $1000. A single Tarmogoyf is worth over $100. Bitcoins are valueless. No matter what value people attribute to a single bitcoin, the actual bitcoin has no value. Magic the Gathering and other collectibles, hold inherent value. They serve a function, are useful, in and of themselves. What are you going to do with digital coins? Think about that

    • Calypso_1

      …can’t breath…the power of the dork side….aaaaagggghhh. God what a heinous vision of dank basements suffocated with cheetos dust & smegma.

      • ParanoidCoast

        Speaking of smegma and dorks: Every smeg in Red Dwarf – http://www.youtube.com/watch?v=NTMINrFtPlU

        • Calypso_1

          Sweet

      • Daniel Gill

        I know people who have sold only portions of their mtg card collections.. these are people who years ago bought cases or boxes and boxes of sets liek alpha beta or antiquities or whatever.. they bought a boat a new house and a sports car, and now who’s laughing? i’ve also known people who have opened up their own stores with their collections, and get clients on a nightly basis dropping hundreds and thousands. who’s laughing?

        • Calypso_1

          I’m not laughing. I was choking.

          What is of value to a microcommunity does not translate to specie with greater effectiveness simply because of its scarcity or value to the group. You always need a buyer also within that community or one who is engaged in trade solely for speculation which alters the dynamics & attribution of intrinsic value by the community. You still have to trade the item for an accepted currency that has value above & beyond that of your in-group commodity.

          You are limited by the items, the size of the market & complete lack of value outside of that market.

          Somewhere there is a guy with the world’s greatest collection of Amazonian Lip Plugs. Probably worth big $$$ to the right buyer.

          I would not suggest you try and corner the market no matter how vague the winds of fashion blow.

          • Daniel Gill

            My point was simply that even within a community of enthusiasts, the actual bitcoins are useless they cannot do anything with them. If these people were serious they’d be buying precious things whether they be metals or jewelry or collectibles etc.

          • Calypso_1

            Your point was clear, but you advocated, Seriously, that others outside said community might benefit from participation in such currency.

            The monetary, commodity, value choices you are delineating are Econ 101.

    • http://twitter.com/BenBen_Atum Bené

      the only difference between these cards and the bitcoin is that you can physically hold a card in your hand. people place value into whatever they want.

      • Daniel Gill

        i used MTG cards as an example. its a good example because of the reserved list. there are cards that are worth $300 now that will never be reprinted ever, that can be used in competition for prizes, and those cards hold a future better than some digital currency. buy oil, buy helium, buy gold or silver, buy real stuff.

        • http://twitter.com/BenBen_Atum Bené

          true… i feel you on that. it says on U.S. money “in G.O.D. we trust” that just means gold, oil, and diamonds. and we’re silly enough to fight over paper.

  • ParanoidCoast

    Bitcoins = Tulip Bulbs

    • Calypso_1

      At first glance I always imagine your avatar is a posterior head shot of a Stranger.

      • ParanoidCoast

        LOL. I was thinking about that movie the other day!

        • Calypso_1

          Sometimes I think that movie thinks about us.

  • http://twitter.com/TedHeistman Ted Heistman

    If you can buy cocaine with it its obviously worth something. I mean blow jobs can but cocaine and they are worth something right?

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