Bitcoin

jordanmills

TGT Addict
Sep 29, 2009
4,713
113
Pearland, TX
I meant to post this a few days ago before a lot of the publicity, but I got busy.

Say you were selling a gun and I offered to pay in bitcoin. What would you think and tell me? Of course I'm willing to let you examine proof that I'm an adult resident of Texas and have never been convicted of a felony.

Edit:

This kind of turned into a Q&A, then a point/counterpoint, and got some random trolling mixed in. I really would like to hear the initial reaction and opinion of some regular users who have no need to be very technical. Even if I think it's incorrect, it helps me understand how non-tech people see it and are inclined to interact with it right now.
 
Last edited:

Southpaw

Forum BSer
TGT Supporter
Mar 30, 2009
17,034
113
Guadalupe Co.
I don't even do PayPal so, probably not. But I'm no techie, so that doesn't say much.

Seems a bit unstable still to me, didn't the value of 1 bitcoin just double it's value over the course of a few weeks? Would suck to be on the opposite end of that event.
 

IXLR8

TGT Addict
TGT Supporter
May 19, 2009
3,477
83
Republic of Texas
I find it difficult to believe that anyone unfamiliar with Bitcoin would accept it. I would estimate that 2% of firearm purchasers would accept it as a form of payment. Then, settling on an amount would be difficult. The exchanges I have found will sell you a Bitcoin for $220.00 but only offer you $20.00 US for one.
A few weeks ago I tried "mining" for Bitcoins. The Titan graphics card in my PC has 2048 processors, hashing 350mil/hashes a second. In 48 hours I earned 9 cents, with a single Bitcoin being the smallest amount I could withdraw from a collective of Bitminers. It would have taken years to earn one. The electricity was far more expensive. I gave up....
 

jordanmills

TGT Addict
Sep 29, 2009
4,713
113
Pearland, TX
I don't even do PayPal so, probably not. But I'm no techie, so that doesn't say much.

Seems a bit unstable still to me, didn't the value of 1 bitcoin just double it's value over the course of a few weeks? Would suck to be on the opposite end of that event.
I don't do paypal at all. It's too easy to get screwed over. A nice thing about bitcoin is that transactions can't be reversed. Well, it's nice as long as you know what you're getting into. If there is less trust between two parties, there are plenty of individuals and services that perform escrow for a fee.

It's definitely volatile. The recent volatility is due to US senate hearings about its legitimacy (senators claim to be excited about it in a good way) and a new exchange opening up in china leading to a huge demand for more of the finite supply.

It's designed to be deflationary, though, so increase in value with time is expected, in general.
 

jordanmills

TGT Addict
Sep 29, 2009
4,713
113
Pearland, TX
I find it difficult to believe that anyone unfamiliar with Bitcoin would accept it. I would estimate that 2% of firearm purchasers would accept it as a form of payment. Then, settling on an amount would be difficult. The exchanges I have found will sell you a Bitcoin for $220.00 but only offer you $20.00 US for one.
A few weeks ago I tried "mining" for Bitcoins. The Titan graphics card in my PC has 2048 processors, hashing 350mil/hashes a second. In 48 hours I earned 9 cents, with a single Bitcoin being the smallest amount I could withdraw from a collective of Bitminers. It would have taken years to earn one. The electricity was far more expensive. I gave up....
I would encourage anyone not familiar with it to not accept it. It's just asking to get screwed over. The point of the thread is more to gauge how likely people here are to be familiar with it enough to accept it. I've been trying to get my LGS interested in selling online and accepting it for a year or two now.

Mining is not going to be easy for an individual. The GPUs in video cards are nowhere near as efficient as the FPGAs and ASICs soon used by big mining operations. People used to mine on CPUs (which got them about 0.1-0.5 Mhash/sec), then on GPUs (5-500 Mhash/sec), and now on FPGAs (100-300 Mhash/sec), and some time soon on ASICs (1000-2000 Mhash/sec). Problem is that at the lower levels, they use a lot more power per hash, which is expensive. The reason it used to be profitable to mine with CPUs and GPUs is that the protocol adjusts difficulty (how many hashes on average need to be run to find a hash that meets the next block's requirements) based on how much mining is going on. So it's a constant arms race. Unless you're running a large company or pool, mining is not worth it.
 

Southpaw

Forum BSer
TGT Supporter
Mar 30, 2009
17,034
113
Guadalupe Co.
I'm glad you brought this up, because I did have a few questions and you guys seem to know. (pardon me as this is a bit above my pay grade)

I have read that there can only be an finite number available mined or created and it takes a significant investment to mine them with any efficiency. So, at some point, and possibly right now, wouldn't there wind up being a only a few entities or people that control the flow and price of it? And how would that differ from our currency today, in as far as manipulation of it, depending upon what would be good for the few that have that control?

The article I read said that a bitcoin is now worth around $600+, however a few weeks ago, it was half of that. That's a pretty drastic swing. Are you saying that it wasn't a jump rather a valuation that was inevitable with the exchange being set up and the publicity? Also, that it could not drop in value by that same amount at any given moment within the same time period?

And my mention of PayPal was really just a reference to me not being so savvy.. :green:


Thanks again for bringing this up.
 

ZX9RCAM

Over the Rainbow bridge...
TGT Supporter
Lifetime Member
May 14, 2008
46,876
113
The Woodlands, Tx.
All this talk of mining, how does the average person get Bitcoin?

I saw an article a few days ago about "Joe Blow" & his GF travelling the world using bitcoin.
 

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