Bitcoin - Part 2

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Belz... said:
What rank hypocrisy. You're the one who came back to this thread to gloat about hitting the mark a year later, when your prediction was for 2013.
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See, you just confirm my diagnosis of you.
 
wrs said:
Boom, as predicted, $150 for ****coin.

Edited by jhunter1163: 
Edited for Rule 10 breach. Do not swear in your posts.


Sorry about that, I guess I thought the software would bleep it anyway.
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I learned the hard way that the software is good enough to only bleep full word it knows.
make sense too otherwise the software would bleep scuntthorp the town for example.

So if you take a swear word and attach it to a normal world it does not bleep it.
 
remirol said:
Any predictions I didn't include in here? I only hit the highlights, and I don't think Belz made a prediction. jhunter is already paying off his most recent one.
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I've already paid mine (the week's up). Next time, I'll take my cue from the psychics and be a little less specific. Chalk it up as a lesson learned.
 
jhunter1163 said:
I've already paid mine (the week's up). Next time, I'll take my cue from the psychics and be a little less specific. Chalk it up as a lesson learned.
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You're not as big a jinx as I am. Bitcoin prices had been rising steadily and rapidly right until I made my $2000 prediction. Since then the prices haven't stopped falling and they took out MtGox along the way (even BitStamp has run into difficulty).

I wonder if I should do bitcoin holders a favour and predict a price of less than $1 by the end of the year?
 
Aepervius said:
I learned the hard way that the software is good enough to only bleep full word it knows.
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Nope. It can be set to bleep the word if it is part of a compound word. In fact, it is currently set to do just that; but with another word, not that one.

I requested once that Darat set that particular word to bleep as part of a compound word as well, like the other word is... but I believe he told me to ** **** *******. :D

You gave a good example of why another word is not set to do that, but I'm not so sure what the reasoning is behind not setting that one to do it.

(We are a bit off topic discussing it here but I wanted to respond to your post. I will try and find the related FMF post and just report us for a split later if we continue this discussion here.)
 
Francesca R said:
The American dollar has pretty much done that. Maybe over a couple of days.
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Recently ? 20% ? That would be like the dollar hitting $1.80/£ in a couple of days. I'm not doubting you but I don't remember falls that big and my google-fu isn't up to much this morning.

Even if the dollar does behave in that way, the hundreds of millions of domestic users of the dollar could continue to transact in those dollars whereas it seems to me, as an only somewhat interested observer, that there doesn't seem to be the same kind of chains of bitcoin transactions.

So with dollars someone transacts with dollars with someone to takes those dollars and transacts with someone else in those dollars and so on. Some dollars are saved/hoarded and some are converted into other currencies but dollars seem to continue to circulate.

OTOH IMO bitcoin chains seem to be much shorter. You transact with a merchant in bitcoins but that merchant converts bitcoin to another currency so that they can buy new stock and so forth or you buy from a bitcoin enthusiast so they just hoard the bitcoin instead of spending it.

I may of course be very wrong and bitcoins are circulating happily outside the core demographic of drug dealers, child pornographers and the terminally paranoid. :D
 
jhunter1163 said:
If I'm a merchant, why would I take such a "currency"?
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....and how do I reflect them in my accounts ?

I presume that if I fully transact in bitcoin (rather than just immediately converting the value of bitcoin purchases to local currency) then in my accounts I have to provide mark to market valuations of my bitcoin assets and liabilities (as far as I know I cannot submit accounts in bitcoin) which could result in some wild fluctuations, in some cases so wild that they could threaten my banking covenants.
 
There are a few merchants who now take Bitcoin; Overstock.com, Dell, and eBay come to mind. But they're not holding on to those BTC; they're cashing them out via Coinbase as fast as they can. And if I'm a venture capitalist, and I'm watching cash going out the door and BTC coming in, but the BTC has lost a third of its value in the last two weeks... well, it's not going to take me too long to pull the plug on that business.
 
The Don said:
....and how do I reflect them in my accounts ?
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That's the easy bit. It would be the dollar value of the goods and services traded for bitcoins that would be the measure of your bitcoin holdings.

The taxation implications would be more difficult. Bitcoins could be subject to capital gains tax (although you would get a deduction for capital losses ATM?). Worse, it could be subject to GST or VAT. Since a business could not add VAT to the price of bitcoins when he sells them he would have to pay the tax out of his own pocket.

The Don said:
I presume that if I fully transact in bitcoin ............
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That is most unlikely. Absent a currency crash, bitcoins would never be more than a very small fraction of cash receipts.
 
psionl0 said:
That is most unlikely. Absent a currency crash, bitcoins would never be more than a very small fraction of cash receipts.
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Sorry, I worded that in a clumsy fashion.

I didn't mean that 100% of my business was transacted in bitcoin but rather that when I received bitcoins that I spent them on goods and services as bitcoins rather than coverting them.

My assumption was the same as yours, that I would need to account for bitcoin assets and liabilities by converting them to local currency. That could wreak havoc on my accounts. I guess the same is true if I was doing business a few years ago in Zimbabwe Dollars.
 
The Don said:
My assumption was the same as yours, that I would need to account for bitcoin assets and liabilities by converting them to local currency. That could wreak havoc on my accounts.
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I doubt that is the case. Bitcoin would just be another stock item for a business and the price you get for selling stock can vary between wide limits.
 
psionl0 said:
I doubt that is the case. Bitcoin would just be another stock item for a business and the price you get for selling stock can vary between wide limits.
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Really ?

Obviously it depends on how much of your assets are tied up in this stock but AKAIK there are some pretty sensible rules about how you write down/off the value of that stock.

If my business is supposedly underpinned by the value of my bitcoin assets or liabilities and these can vary by as much as +/- 20% in a day or -75%/+1000% in a year then I think my bank manager and shareholders are going to want to have words with me.
 
OnlyTellsTruths said:
Nope. It can be set to bleep the word if it is part of a compound word. In fact, it is currently set to do just that; but with another word, not that one.

I requested once that Darat set that particular word to bleep as part of a compound word as well, like the other word is... but I believe he told me to ** **** *******. :D

You gave a good example of why another word is not set to do that, but I'm not so sure what the reasoning is behind not setting that one to do it.

(We are a bit off topic discussing it here but I wanted to respond to your post. I will try and find the related FMF post and just report us for a split later if we continue this discussion here.)
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Off topic, but I don't see the reasonning behind bleeping *any* word whatsoever anyway.
 
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