There are many people speculating about the future price of Bitcoins in 2014, and indeed some are making a serious attempt at predicting a realistic price that Bitcoin will rise to in the coming year. I have put much effort into studying, obviously not all, but many of those predictions, and then tempering or combining the more realistic ones with the projected state of the world economy in a systematic study if you will, and while some of the wilder speculations are for a price of $100,000. or more, I have reached the most conservative low estimate of $2000. each with a high of $5000. My conclusion is Bitcoins will close out the year 2014 with a price between two thousand and five thousand dollars each, and most likely close to $4000. This is assuming there is no USD crash, and in that case, all bets are off and the sky is the limit. I would enjoy hearing readers thoughts. Happy 2014 to all Bitcoiners!
Bit Donations: 18MdrcxiD27eV43q9seHyGkVvVPMw7j4j3
Tuesday, December 31, 2013
Thursday, December 12, 2013
Wall Street About to pour Billions in Bitcoins
Wall Street is getting ready to dive into Bitcoin, pouring vast amounts of institutional and investor money into the digital currency that has been labeled a “bubble” by former Federal Reserve chairman Alan Greenspan and which not long ago was seen as the sole preserve of crypto-geeks, monetary-theory wonks and anti-government types.
So says Barry Silbert, founder and chief executive of SecondMarket, the online platform that allows its users to trade private company stocks. “We’re three to six months away from Wall Street dollars moving into Bitcoin in a big way,” he says.
Silbert should know: Earlier this fall, he launched the Bitcoin Investment Trust, the first investment vehicle allowing institutional investors to put money into the Bitcoin market while avoiding the hassle of personally holding the currency. The trust is open only to accredited investors, and the minimum investment is $25,000.
Speaking on Tuesday night at a private dinner for Bitcoin cognoscenti in New York, Silbert said he was astonished by the BIT’s performance. “We launched six weeks ago and we’re up to $70 million. That blows my mind. We were hoping to get to $10 million by the end of the year.”
Thursday, December 5, 2013
Bitcoin Economy
Bitcoins emerged in 2008, designed by a programmer or group of
programmers going under the name of Satoshi Nakamoto, whose real
identity remains unknown. The currency isn’t regulated by any government
or central bank. New Bitcoins can only be created by solving complex
problems embedded in the currency, keeping total growth limited.
While Bitcoins could be used for nefarious purposes, they can also be a “legal means of exchange,” and policies need to be crafted to regulate their use, the U.S. Justice Department said at a U.S. Senate committee hearing last month.
The growth in mobile Bitcoin apps is also being driven by the spreading ubiquity of mobile devices. Global shipments of mobile phones and tablets will exceed personal-computer shipments this year by more than six times, according to researcher Gartner Inc.
Bitcoin Economy
“That’s going to be the big game, on mobile,” Nicolas Cary, CEO of mobile Bitcoin app provider Blockchain.info, said in an interview.
The market for mobile payments is projected to be $235.4 billion in total transaction value in 2013, up 44 percent from the prior year, according to Gartner. Because Bitcoins can lower or eliminate money-transfer and other banking fees, the digital currency could potentially compete with Ebay, PayPal, Visa Inc., Google and others offering mobile payments.
Jennifer Hakes, a spokeswoman for PayPal, didn’t respond to a request for comment.
About a third of people who own Bitcoins are initiating transactions from a mobile device, according to Crone. “In three years, it could easily double,” he said.
Makers of mobile apps report rapid growth. Bitcoin Wallet, or Multibit Wallet are used to store and pay Bitcoins, is adding more than 5,000 users a day, up from about 500 at the beginning of the year, according to its developer, Andreas Schildbach.
While Bitcoins could be used for nefarious purposes, they can also be a “legal means of exchange,” and policies need to be crafted to regulate their use, the U.S. Justice Department said at a U.S. Senate committee hearing last month.
The growth in mobile Bitcoin apps is also being driven by the spreading ubiquity of mobile devices. Global shipments of mobile phones and tablets will exceed personal-computer shipments this year by more than six times, according to researcher Gartner Inc.
Bitcoin Economy
“That’s going to be the big game, on mobile,” Nicolas Cary, CEO of mobile Bitcoin app provider Blockchain.info, said in an interview.
The market for mobile payments is projected to be $235.4 billion in total transaction value in 2013, up 44 percent from the prior year, according to Gartner. Because Bitcoins can lower or eliminate money-transfer and other banking fees, the digital currency could potentially compete with Ebay, PayPal, Visa Inc., Google and others offering mobile payments.
Jennifer Hakes, a spokeswoman for PayPal, didn’t respond to a request for comment.
About a third of people who own Bitcoins are initiating transactions from a mobile device, according to Crone. “In three years, it could easily double,” he said.
Makers of mobile apps report rapid growth. Bitcoin Wallet, or Multibit Wallet are used to store and pay Bitcoins, is adding more than 5,000 users a day, up from about 500 at the beginning of the year, according to its developer, Andreas Schildbach.
Wednesday, December 4, 2013
What is Bitcoin?
What is Bitcoin?
Bitcoin is a purely digital currency also referred to as a crypto currency. Its denominations are referred to as bitcoins or BTC for short. It was created by Satoshi Nakumura (a pseudonym) in 2008. Bitcoin is a peer to peer currency that is not controlled or facilitated by any central government, bank or any single entity. It provides anonymous transactions and is being widely accepted worldwide for anything from products at physical stores, online services and more. Anyone can accept bitcoin payments very simply. Using a BTC wallet, the user is provided with a unique transaction code to accept payments.
It could be better to think of its units being virtual tokens rather than physical coins or notes.
With this in mind, as with all currencies its value is determined by how much people are willing to exchange it for.
So how do they come into existence?
Bitcoins are generated by a process called "mining". Think of it as physically mining for gold, however in this case the mining is computational. This involves a computer solving a difficult mathematical problem with a 64-digit solution.
Each problem solved generates one block of bitcoins, at this time a block is 25 Bitcoins. In exchange for expending processing time, the miner is rewarded with new Bitcoins.
This method of mining provides an incentive for people to provide computer processing power to solve the equations.
Each time a block is generated the difficulty of the problem is adjusted to compensate for the growing power of computer chips, as well as the increasing number of miners, to ensure a stream of approximately 3,600 new bitcoins per day.
At the time of this article there are over 12 million Bitcoins in existence.
To exchange bitcoins each user must have a Bitcoin address, a string of 27-34 letters and numbers, which exists as a kind of virtual postbox from which the bitcoins are sent and received.
Bitcoin is anonymous
No registry exists of these addresses which personally identifies people. There is however a history of all transactions called a blockchain, the blockchain is publicly available.
The Bitcoin addresses are stored in wallets which are used to receive and send the coins.
In many ways they operate like privately run bank accounts, with the exception that if the data is lost, so are the bitcoins owned.
Bitcoin is a purely digital currency also referred to as a crypto currency. Its denominations are referred to as bitcoins or BTC for short. It was created by Satoshi Nakumura (a pseudonym) in 2008. Bitcoin is a peer to peer currency that is not controlled or facilitated by any central government, bank or any single entity. It provides anonymous transactions and is being widely accepted worldwide for anything from products at physical stores, online services and more. Anyone can accept bitcoin payments very simply. Using a BTC wallet, the user is provided with a unique transaction code to accept payments.
It could be better to think of its units being virtual tokens rather than physical coins or notes.
With this in mind, as with all currencies its value is determined by how much people are willing to exchange it for.
So how do they come into existence?
Bitcoins are generated by a process called "mining". Think of it as physically mining for gold, however in this case the mining is computational. This involves a computer solving a difficult mathematical problem with a 64-digit solution.
Each problem solved generates one block of bitcoins, at this time a block is 25 Bitcoins. In exchange for expending processing time, the miner is rewarded with new Bitcoins.
This method of mining provides an incentive for people to provide computer processing power to solve the equations.
Each time a block is generated the difficulty of the problem is adjusted to compensate for the growing power of computer chips, as well as the increasing number of miners, to ensure a stream of approximately 3,600 new bitcoins per day.
At the time of this article there are over 12 million Bitcoins in existence.
To exchange bitcoins each user must have a Bitcoin address, a string of 27-34 letters and numbers, which exists as a kind of virtual postbox from which the bitcoins are sent and received.
Bitcoin is anonymous
No registry exists of these addresses which personally identifies people. There is however a history of all transactions called a blockchain, the blockchain is publicly available.
The Bitcoin addresses are stored in wallets which are used to receive and send the coins.
In many ways they operate like privately run bank accounts, with the exception that if the data is lost, so are the bitcoins owned.
Tuesday, December 3, 2013
Future Possibilities of Bitcoins
Cryptocurrencies, like the ever popular Bitcoins, and perhaps Litecoins and others, as anonymous digitally-driven payment mechanisms, are here to stay. There is a demand for such a financial product from many quarters and is inevitable that something steps in to fill the demand.
Bitcoins could become the standard digital currency, but there are some difficulties to overcome before this can happen. First, and perhaps most importantly, the extreme volatility in bitcoin prices damages their value as a currency. If this volatility can be reigned in and a stable market established, bitcoins could well become the credit cards of the 21st century, except much easier to use and with, to date, no transaction fees. Second, bitcoins must be accepted by governmental financial institutions as well as the shadow banking industry, and Bove argues this process is already underway.
Bitcoins could become monopolized by a foreign power such as China, and argues this is a real possibility. If this happens, the Chinese will have gained control of an international transaction device that can be utilized outside of the dollar and the control of the United States government. This is strongly desired in multiple nations and would not be good for the United States.
Wednesday, November 27, 2013
**URGENT** Bitcoins bought with Credit Cards
~~~~~~
Hi Dean!
I have a problem :(
The credit card processor closed my account because they think I am
high risk for them. I read similar stuff on the internet that happened
to different people in the US with their bank accounts when they used to
deal with anything related to bitcoin.
The processor gave me 2 options (email attached below):
1st - Wait 3 months to get my funds
2nd - Issue you a refund and seek different payment option
I can't wait for my money 3 months, so I will issue you a full
refund and kindly ask you if you can pay me cash or bank
transfer for today's sale.
Sorry for the trouble. Thank you very much.
Peter
~~~~~~
I'm issuing this blog post today just as a precaution to others that may be considering using credit cards -- you may have your accounts blocked or closed. I guess the credit card companies realize Bitcoins have the potential to take over their business and reduce eliminate all those billions in profits from credit card transaction fees, so they will give people that try to buy Bitcoins a hard time!
If some other Bitcoiners find this site helpful or interesting, a small donation of Bitcoins will be appreciated! (even as little as .001) To this address:
18MdrcxiD27eV43q9seHyGkVvVPMw7j4j3
And thanks in advance!
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