Even with all the reports of untraceable theft and loss? Also, who's to say they won't just make more Bitcoins, causing massive inflation? That's the problem with pretending something is rare when it really isn't.

That would be my concern, Abge (inflation), though I don't know much about them.

It is no possible to automatically create more currenct unless you are tue central bank of the bitcoin, and they don't want to devalue their currency and so stop people using it...

Confidence in the currency is the only thing which makes it valuable, and what is the point in making lots of new coins if that would make them all valueless.

I'm not a big fan of the idea, I don't see it ever catching on more then it has right now simply because of the knowledge needed to to understand it, set it up, etc. It just seems beyond most users skill level. I also agree with agbe's point, from what I understand there isn't anything legally keeping them from making more.

Untraceable tueft and loss seems weird, considering the currency model is one of tracing coins by their transaction history...

If that has happened then the algorithim has been gamed and needs some imprpvement... Not a safe investment today.

'I'm not a big fan of the idea, I don't see it ever catching on more then it has
right now simply because of the knowledge needed to to understand it, set it
up, etc. It just seems beyond most users skill level.'

A webservice, like facebook, adopting them and making them easily available would break this barrier to entry.

Anybody ever used the "Silk Road"? it has me curious......

@orathaic, I'm curious, do you actually use and collect them or do you just like them in theory. I haven't tried them out, curious to hear from someone who has.

Well, once all the coins have been minded, then it won't really require any skill, will it? People will just buy coins with real money and then use it online.

There are a number of reports of tens or hundreds of thousands of dollars in Bitcoin investment banks being "hacked" or otherwise disappearing with no recourse for investors.

It's not immediately obvious to me why Bitcoin makers would want it to fail. What if someone just didn't like it and offered them a lot of money to inflate the market? There are all kinds of reasons, which aren't important. The point is it can be manipulated without any physical restraints.

Hm, interesting idea that I hadn't heard about before but I'm still a little confused by it. Is there any value in math problems being solved or are they simply there to control inflation?

"safe to transfer electronically..." lol that's hillarious. What is the purpose of Bitcoins other than to do transactions "under the table". Bitcoins have been linked to "nefarious" activity, at best. If I'm going to logon and buy bitcoins - and unregulated currency - so I can go spend them somewhere else, why not jut go somewhere else to begin with and use my credit card, which (if I'm smart) has some sort of fraud protection attached. Bitcoins don't have a reasonable argument to exist *other* than to avoid taxation / government oversite, etc.

So, reading into this more, it seems the software is programmed to distribute Bitcoins in a geometric series which should last until around 2140. So, big changes would be noticed, but again, there's nothing anyone could do. Small changes, however, would probably go undetected.

@Yonni

AFAIK, there is no value to the problems being solved. They are just made so that their difficulty can be adjusted based on the needs of the Algorithm.

Regardless of the mechanism - what is the purpose of them that would entice you to use them as opposed to "legitimate" cash via credit card, or PayPal?? How do you account for currency discrepancies between nations, etc.? Is Bit Coin updating their purchase/sale value daily with currency markets? Doubtful...

@jmo, i jist like them in theory, don't usually spend money when i can afford it...

@ora

http://en.wikipedia.org/wiki/Bitcoin#Theft_and_fraud

^I think krellin manned up

@red

I would kindly ask you to stick to the OP or leave. Save your personal problems for someone else's thread.

@abge

lol. Neaux

@krellin

Honestly, I would trust Bitcoin over Paypal any day. Other than that, I agree with you though. I suppose there's some appeal to having a currency that is of-the-Internet. But, most people probably use it to bypass laws.

I am not a user of Paypal except for my Microsoft Live once a month -- what are the issues with PP? (Other than frequent phishing emails...)

Not sure why a currency "of the internet" has any inherent value. Via the internet, I have shown my kids live alien dissections, videos of ghosts, proof that bigfoot exists....plus, via the internet, supposedly "secure" banks and other institutions we would expect to have a *high* level of security frequently get hacked. So...some "third-world" internet coinage is hardly an appealing concept...But, I'm an old fart, so what do I know...

I've read a few articles about the more nefarious uses of BitCoin...perfect for drug trade...

"A webservice, like facebook, adopting them and making them easily available would break this barrier to entry."

Facebook already has its own currency, which is coincidentally much more popular and widespread than Bitcoins because it solves an actual problem, that of creating a platform on which a single means of payment integrates the whole industry (in this case casual gaming). Integrating the various virtual currencies will be the next big thing on the internet the way I see it. Bitcoins, e-gold and such are just toys for wannabe abolish-the-FED types that will never gain prominence.

@Krellin

PayPal has a very bad history of not honoring payments, seizing money under very suspicious circumstances and enacting complicated and quickly changing fees without proper warning.

@ulytau - plus, creating your own "in-service" currency means you get to skim the profits...

Much like the Federal Gov'ment... :P

Abge - Ahhh...thanks. I was unaware. I shall aviod them. That beign said, I am owed cash-ola from Yahoo Sports for a baseball Pro-League I placed in and have yet to receive my payment!!!

That's why carving out the biggest share on the e-currency market will be the next big thing like I said.

ulytau - No it won't. Once it's gets too big - and governments risk losing tax revenue - regulations will quash them.

States already lose billions of revenue from out-of-state internet sales - it's a growing problem that I have no doubt will soon be addressed.