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The New York Stock Exchange has shed almost 1,500 points in the last month.  (Source: How Stuff Works)

Bitcoins, though, have suffered even deeper losses, and aren't a good investment to turn to.  (Source: Bitcoin Forum)

Treasury bonds are a far better investment that bitcoins in recessionary climates.  (Source:
Cybercurrency is intriguing premise, but has seen a flurry of recent devaluation

I've recently heard a couple of advertisements on satellite radio suggesting, of all things, that customers dive into bitcoins as a "stable" investment in the midst of the troubled U.S. economy.  In the midst of a seemingly impending recession, some might be tempted to try such a scheme.  Let's be perfectly clear -- while bitcoins are a worthy pursuit to dabble in, considering them as a place to put your nest egg is a pretty poor decision.

I. Bitcoins are in a Recession Themselves

After a meteoric rise to prices of up to $30 USD/bitcoin at their peak, the crypto-currency has plunged down to around $8 USD.  This alone should be enough to convince any logical investor to stay away.  But it's also important to consider the currency's strong current connection to the USD.

Over the last 30 days 82,099.28€ (Euros), $133,353.44 CAD (Canadian dollars), £119,336.29 (British pounds), and 607,234.53 PLN (Polish zloty) in Bitcoin have been traded on international exchanges.  At current rates, that's approximately $659K USD in volume.  By contrast, the top four USD-based exchanges managed $14.521M USD in trades, or roughly 22 times as much volume.

With approximately 95 percent of trades being in USD, the fortune of the USD intimately affects the fortune of the bitcoin.

When you combine the aspects that bitcoins are tied to the fate of the U.S. economy and that they've been on a downward plunge even sharper than the U.S. economy, the outlook is not pretty for bitcoins as a serious investment bid.  Even amid the stock market's huge losses (with today's $300+ USD decline, the New York Stock Exchange is at its lowest level since December 2010), bitcoins are still not a solid alternative to guaranteed securities like treasury bonds, or a diverse portfolio.

II. Bitcoin Mining is in the Midst of a Correction

Another issue with bitcoin looms on the mining end.  Bitcoin is trying to condense the natural creation of a non-commodity currency to just a couple decades, so it relies on initial seeding of wealth (similar to how people laid claim to natural resource stakes, which in turn gave rise to non-commodity wealth).

But the seeding is hitting a roadblock, as it's no longer advantageous to mine.  With difficulty soaring, it's now impossible for most video cards to break even.  The fastest graphics cards by Advanced Micro Devices, Inc. (AMD) still stand a chance to break even, but they require more than a year of work.

Meanwhile, the difficulty continues to rise at an unforgiving pace.

For those who already have money sunk into bitcoin hardware, they may keep mining for a time, but it may be unsurprising if they start to sell off their stockpiled hardware.

In the long term the market will thus correct itself as, in theory, computation gains will outpace the rate of mining.  However, now is simply not a great time to enter the market as a miner.

III. The Big Picture

Returning to the original point, given the current climate bitcoins are not a much safer investment than stocks, as some purport them to be.  They're actually much worse, at present.

This picture may change, when and if:
  1. Bitcoin trade in foreign currencies picks up, allowing a truly independent currency.
  2. Bitcoin mining difficulties stabilize.
  3. Bitcoin exchange prices stabilize.
Until these corrections fall into place, the currency is simply not a viable investment.

Fans of bitcoin may react negatively to this analysis, but it's hard to argue the hard facts.  Bitcoin is a terrific concept, and one worth supporting.  But when it comes to your money, an investment in bitcoins today, is essentially throwing away a chunk of your money, or perhaps breaking even in the case of mining (given hardware depreciation).

So as the U.S. faces a potential "double dip" recession, consider building a diverse portfolio of bonds, commodities, and stock from highly stable companies (GOOGAAPLIBM, etc.) as a way to guard your assets -- and avoid the bitcoins.

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Financial advice from DT?
By ZmaxDP on 8/8/2011 7:40:22 PM , Rating: 3
Don't get me wrong, I think your analysis of Bitcoins is spot on, but Bonds aren't what they are cracked up to be in this economy either. we got less than a day from defaulting, some states are in a state of default on certain bonds. The better way to say this is - there is no magic safe haven in our economy. Diversity is your best bet - and in that sense having a little money in bitcoins isn't the end of the world. Putting it all there is dumb in any economy.

RE: Financial advice from DT?
By ClownPuncher on 8/8/2011 7:47:55 PM , Rating: 6
"When I needed financial advice, I decided to enter the 36 chambers and step to the muhfukkin Wu, where they told me to diversify my bonds. Now I'm makin' stacks and drinkin' 'gnac every day!"

RE: Financial advice from DT?
By amanojaku on 8/8/2011 9:17:04 PM , Rating: 2
RE: Financial advice from DT?
By johnsonx on 8/9/2011 12:11:32 AM , Rating: 2
lol, classic!

RE: Financial advice from DT?
By StevoLincolnite on 8/9/2011 4:00:43 AM , Rating: 2
there is no magic safe haven in our economy.

Was/Is it really that bad?
During the global financial crisis... Things here in Australia weren't to bad as we saw continued growth through the entire thing, so I really didn't pay much attention to it.

Might be a good time to start looking at investing in the up and coming powerhouse called China perhaps.

RE: Financial advice from DT?
By The Raven on 8/9/2011 10:49:21 AM , Rating: 2
During the global financial crisis... Things here in Australia weren't to bad as we saw continued growth through the entire thing, so I really didn't pay much attention to it.
I think they are talking about the US in particular (though the principles apply everywhere). So I'm sure what you speak of is where Austrailia picked up what the US dropped. I don't know much about Austrailia, but the limited knowledge I do have indicates that you guys have better policies than the US. I can't imagine anybody being any worse than us. Nor could I imagine stupider people at the helm (and no I'm not just referring to Pres. Obama). I'm talking about maybe 95% of the population of DC.

RE: Financial advice from DT?
By jeepga on 8/9/2011 9:01:11 AM , Rating: 3
We weren't close to defaulting. I'm so sick of hearing that nonsense. Cuts would have had to be made, but we wouldn't have defaulted on our loan obligations. That was just scare tactics from the media and POS politicians.

RE: Financial advice from DT?
By The Raven on 8/9/2011 10:57:30 AM , Rating: 2
Your're right. We wouldn't have defaulted. We would've just started printing money like crazy to pay our debts. HYPERINFLATION!!! Oooo boogey boogey!!

But no one would believe that, so the networks just say that we would default. Because THAT is scary ;-)

RE: Financial advice from DT?
By The Raven on 8/9/2011 10:58:17 AM , Rating: 3
We would've just started printing money like crazy
Correction: "continued printing money like crazy"

RE: Financial advice from DT?
By Ringold on 8/9/2011 11:47:00 AM , Rating: 3
Exactly; we've been printing billions, they've just called it "quantitative easing." Not going to be pretty when we have to pay the piper for all of that.

RE: Financial advice from DT?
By NellyFromMA on 8/9/2011 9:27:55 AM , Rating: 2
Meh. We didn't default. All is paid on time. There is a lot of overreaction going on right now. The internet takes us in each direction of extreme by higher magnitutdes and what you're seeing is just that. What I mean is, our highs are higher and lows lower and as a society, globally, we are learning how to to adjust to a much father reaching, more integrated life with internet than ever before. Politicians are feeling accountability in ways they never have before. We'll see what happens, but don't start the panic bus already

RE: Financial advice from DT?
By The Raven on 8/9/2011 11:00:57 AM , Rating: 2
Politicians are feeling accountability in ways they never have before.
Yeah but it doesn't help if they are accountable to more and more morons who just want money from Obama's stash or money to invade sand countries X, Y and Z.

RE: Financial advice from DT?
By skirvmi on 8/9/2011 2:40:16 PM , Rating: 2
Bitcoins are a speculative market at best. Anyone who puts there entire nest egg in any one place, much less speculating on something like this, is asking to be burned.

Assuming the article is spot on and you don't buy into any of the other more publicized uses for bitcoins, there would still be value in the trade of these coins. The transactional fee's to buy and sell the coins are much lower than buying typical market funds (even non-managed funds). If the correlation was indeed true, it could be a easy way to play in the market without paying all of the broker fees.

RE: Financial advice from DT?
By TSS on 8/9/2011 4:30:55 PM , Rating: 2
I've been following and other financial websites since the start of the 2008 crisis and if theres one thing that taught me it's that financial "experts and analysts" don't know jack sh!t about investing and the economy either. According to them america's been out of the recession for more then a year now. Right....

Simplest example: CNN had a overview on analyst expectations on apple earnings after they came out. 8 of the top 10 spots out of 30, where people correctly or came close to predicting the earnings where held by bloggers and amateurs. All the other "professionals" didn't even come close.

Honestly DT's as good a place if any to get financial advise. Atleast here you'll have a community with a certain amount of reason discussing the articles. Opposed to CNN's trollers, spammers and general ignorant audience.

As for the comming crisis... if the world really goes to hell your safest investment is a gun. You try protecting your house from looters with a bond.

What the F**&*&*^&*^?????
By tayb on 8/8/2011 10:08:08 PM , Rating: 2
Who the hell is seriously considering investing in Bitcoins? The only thing to invest in right now is GOLD. I've always been told to never put all your eggs into one basket but I'll be damned if I haven't been investing almost every penny I earn (minus expenses) into gold the past several months. The ROI is insane and I can't imagine it dropping in value for the forseeable future. Invest in gold. Invest BIG in gold.

By IcePickFreak on 8/8/2011 11:18:37 PM , Rating: 2
All the internet market pros have been screaming invest in gold ad nauseum for a few years now, so much so that I can't wait til that bubble bursts. Then miraculously all the internet market pros will be screaming "I told you idiots not to lol" and quickly change the subject.

RE: What the F**&*&*^&*^?????
By thurston2 on 8/8/2011 11:48:36 PM , Rating: 1
Don't forget to stockpile food too.

RE: What the F**&*&*^&*^?????
By Gondor on 8/9/2011 6:21:11 AM , Rating: 3
Food and ammo. Tin (cans) and lead (ammo) might just get much more valuable than other metals when SHTF.

RE: What the F**&*&*^&*^?????
By Ringold on 8/9/2011 11:50:38 AM , Rating: 2
Yeah, in a SHTF scenario, even golds worthless when no one has use when store shelves are empty. I've got a mosin nagant, been thinking about buying a whole crates of ol' surplus Soviet ammo, either for when the zombies come or years of fun at the range, the stuffs dirt cheap at times.

RE: What the F**&*&*^&*^?????
By Flunk on 8/9/2011 7:43:03 AM , Rating: 2
Commodity trading is very risky, I seriously hope this post is a joke. It would be sad to see a lot of poorly informed people lose their shirts the next time the gold market corrects itself.

RE: What the F**&*&*^&*^?????
By stilltrying on 8/9/2011 10:32:11 AM , Rating: 2
go ahead keep buying paper. just be ready for qe3, qe4, qe5 and the non stop inflation and the gold bugs can keep saying i told you so.

RE: What the F**&*&*^&*^?????
By The Raven on 8/9/2011 11:16:06 AM , Rating: 2 do know that gold holds intrinsic value right? Fiat money is intrinsically useless (maybe you can use it for rolling more doobies because you are smoking something if you think gold will lose all value). So me and my gold will be each have a nice Beefy-T when you are lying in a pile of useless money on a park bench somewhere.

Will those of us with gold be millionaires (well probably after serious inflation lol...but you know what I mean)? No. But it is called a hedge. Like insurance. If you want something safe don't expect to make money off of it. Have you ever made money off of car/homeowners insurance? That is what hedging in gold is like. Though incidentally people who got into gold early ARE actually rolling in fiat currencies right now. Those who get in it now will merely be protecting themselves from total loss.

Also as mentioned, you could invest in stocks as a way to safeguard yourself. But which ones will be safe can be tricky when you are making an assumption that the US dollar and/or economy will be tanking. And I'm not saying that you have to believe that it will tank, but you'd have to if you are taking such defensive precautions.

RE: What the F**&*&*^&*^?????
By The Raven on 8/9/2011 11:42:24 AM , Rating: 2
Not to mention if you invested in gold at the height of the last "gold bubble" you would've actually DOUBLED your investment by now (albeit in fiat US currency). 1979:~$800 NOW:~$1700

But you certainly wouldn't be broke. And that is the point.
It is not people trying to get rich off of tech stocks in the 90s or people trying to get the house of their dreams in the 00s. People investing in gold want safety.

RE: What the F**&*&*^&*^?????
By Integral9 on 8/10/2011 10:48:33 AM , Rating: 2
actually, if you bought something in 1979 for $800, it would cost you almost $2500 in 2011. So you would have lost money on that investment.

RE: What the F**&*&*^&*^?????
By The Raven on 8/10/2011 11:05:44 AM , Rating: 2
If you HAD $800 in 1979 and held on to that instead of buying gold with it THEN it would've been an opportunity cost of $2500. The inflation referred to is inflation of the $ and not gold.

Do you see where you are totally mistaken now?

RE: What the F**&*&*^&*^?????
By Integral9 on 8/10/2011 11:54:51 AM , Rating: 2
it's not a mistake. it's called inflation and it's always a poor decision to investment at the top of a market. the buying power of $800 in 1979 = the buying power $2500 in 2011. So if you make an $800 investment in 1979, you better get more than $2500 out of it if you sell in 2011, or you are loosing money.

in your example, buying it at the peak of the gold market in 1979 is such a poor idea, that the original investment won't even keep up with inflation as it is only worth $1700 today, only 68% of it's original value. In contract if you had invested $800 in Exxon in 1979, it would be worth $143,000 today and doesn't even count dividends. Does gold pay you dividends? Nope.

Exxon was trading @ 3.08 on 1/2/1979 (
$800 gets your roughly 260 shares. due to stock splits you would have over 2000 shares today @ $71.64 ea = $143,000.00.

Do yourself a favor and give me your money. You are going to loose it anyway.

RE: What the F**&*&*^&*^?????
By The Raven on 8/10/2011 6:24:09 PM , Rating: 2
lol I see where I was mistaken there. The value (in USD) did not double.

You are correct except that I am not trying to make money in this instance. Yes, I know loss is a possibility. As I said...
But you certainly wouldn't be broke. And that is the point. It is not people trying to get rich off of tech stocks in the 90s or people trying to get the house of their dreams in the 00s. People investing in gold want safety.

The cost would not be $2500. It would be $2500-$1700(the value of the gold that you can cash out now)=$800. If I had $800 in '79 bought gold and it is now worthless then that would be a loss of $2500. The current value of the gold needs to be in the calculation.

On the other hand this does not include the opportunity cost of not investing in something like Exxon (or maybe even BTC ;-) But these options do not provide safety. At least with gold you end up with $1700 today. But investing in Pan Am (or maybe even BTC ;-) could leave you with nothing.

And also we are talking about buying gold at the worst possible time. Because as you said, it is unwise to buy high. But in this case you STILL end up with money in the bank.
But then again, in this scenario, we might be selling at the BEST possible time too. Five years ago the cost would be greater.
But as part of a long-term strategy there is nothing wrong with buying the gold at the height of a bubble and selling at the height of a bubble. With the uncertainty going on right now, I wouldn't doubt gold climbing up to $2500. As we have pointed out...It essentially happened in 1979.

So I certainly won't be buying at that price ;-)

I'm not sure if you think I believe people should put everything into gold or not, so let me clarify that I agree with Wu Tang Financial because you should definitely diversify. I'm only addressing the merits of gold as an investment.

Now I'm not sure if I misunderstood your initial comment or not but I thought you were saying that you would lose $2500. But I think we are now in agreement here on the numbers, though we may disagree on investment strategy. Please excuse my mistakes, I do get it wrong in these comments sometimes.

RE: What the F**&*&*^&*^?????
By Integral9 on 8/11/2011 9:20:52 AM , Rating: 2
wow, I'm such an a--. I think I thought you started the thread and so my comments should not have been directed to you. My bad. Respect.

but yeah, if guy who started this thread was my investor, I'd fire him faster than he could say gold.

RE: What the F**&*&*^&*^?????
By jeepga on 8/9/2011 9:03:37 AM , Rating: 2
The best thing to do when everyone is saying "jump" is to stand in the same place. Rely on tried and true savings methods, don't overspend, and ride it out.

RE: What the F**&*&*^&*^?????
By The Raven on 8/9/2011 12:40:37 PM , Rating: 2
tried and true savings methods

You mean holding gold right?

Basically people are saying "jump" into "tried and true savings methods."

Tried and true savings methods have been a thing of the past for quite sometime and that fact has has led us to where we are now. So you are right: get into gold if you aren't now.

RE: What the F**&*&*^&*^?????
By Integral9 on 8/10/2011 10:31:31 AM , Rating: 2
I would never invest in bitcoins (unless of sovereign 1st world nation made it their official currency). I would also never start investing in a commodity that's trading at record high prices. You'd be better off throwing $100 bills into a fire.

Don't take financial advice from Jason
By zpdixon on 8/9/2011 2:11:13 AM , Rating: 1

After a meteoric rise to prices of up to $30 USD/bitcoin at their peak, the crypto-currency has plunged down to around $8 USD. This alone should be enough to convince any logical investor to stay away.

Jason, you are not a finance guy, are you? Ever heard of "buy low, sell high"? Or "be greedy when others are fearful" from Warren Buffett? When a stock/currency/commodity is cheap, it is precisely the moment when smart investors should buy.

PS: I have made $10k+ by investing in Bitcoin so far. I laugh at people getting out at $8.

RE: Don't take financial advice from Jason
By Flunk on 8/9/2011 7:46:07 AM , Rating: 2
If you haven't cashed out how did you make 10k? What happens if it falls to $0.05?

By Pirks on 8/9/2011 11:22:05 AM , Rating: 2
That's simple, he made 10k when that famous $30 bubble burst, he just sold his large mined coin stash at once when exchange rate was $30, but now he won't make any more since the exchange rate is slowly but steadily going down, apparently because not enough people are interested in buying coins and there are too many miners around... I guess

RE: Don't take financial advice from Jason
By zpdixon on 8/9/2011 11:41:00 AM , Rating: 2
I bought and sold a few times. $30 was clearly a bubble. I didn't sell at the exact peak, but in the $20s and this is where I made most of my profits.

And look at this. Right now Bitcoin went from $8 to $10 overnight (mostly because a few large buyers recognized it was the right time to buy --I see at least a single buyer of 15000 BTC in the mtgox volume). If you had listened to me you would have made an instant 25% profit in 24h. If you had listened to Jason you would have made nothing. Lol.

RE: Don't take financial advice from Jason
By zpdixon on 8/9/2011 11:45:17 AM , Rating: 2
It is comparatively much easier to make money trading Bitcoin than, say, stocks... most people who know about Bitcoin are simple computer geeks, complete financial noobs dispensing wrong advice or behaving irrationally.

RE: Don't take financial advice from Jason
By Pirks on 8/9/2011 1:00:21 PM , Rating: 2
It is comparatively much easier to make money trading Bitcoin than, say, stocks
No it's not, predicting BTC exchange rate is not easier than predicting stock price, both go up and down all the time seemingly randomly and you have to have Buffet's level of market savvy to predict that correctly and how many Buffets we have around? That's why there are only 1-2 really rich guys, the rest just try to play along but they can't predict exchange rate swings most of the time so they lose and their money go to 1 or 2 Buffets who CAN predict it.

RE: Don't take financial advice from Jason
By zpdixon on 8/10/2011 1:41:13 AM , Rating: 2
It is much easier than you think to profit from trading Bitcoins, mostly because the volume is very thin compared to any other market, and because Bitcoin traders are inexperienced.

In no specific order: I profited from obvious market manipulation attempts by others in early 2011; I profited from personal notifications of imminent interviews/articles to be published in main stream media in March/April; I profited from arbitrage opportunities between less well-known exchanges; I profited from exchange value collapses after being quickly alerted of big thefts of Bitcoins/major hacks.

By Pirks on 8/10/2011 1:44:10 PM , Rating: 2
Your method of profiting (getting access to information earlier than others) is going to work for stock market just the same as for Bitcoin one, so thanks for supporting my argument about no difference between stock and BTC trade ;)

Is that a little FUD I hear?
By CrazyBernie on 8/9/2011 9:19:35 AM , Rating: 1
Jason, you sound like all the gloom and doom nasayers on the Bitcoin Forums that are just trying to get rid of their competition. Do you secretly have a small Radeon server farm in your basement, hashing away?? >.>

Seriously though, you can't judge a market by a 30 day "recession." Check out the charts for the last year, and you'll see what was basically a bubble that burst and is now stabilizing back down to normal growth levels. Discounting this cryptocurrency's financial solidity based on a short-term fall is foolish, at best.

RE: Is that a little FUD I hear?
By Pirks on 8/9/2011 11:28:17 AM , Rating: 2
Check out the charts for the last year
where? Mtgox doesn't have a year long charts does it?

RE: Is that a little FUD I hear?
By Pirks on 8/9/2011 1:21:56 PM , Rating: 2
is now stabilizing back down to normal growth levels
You call steady decline of the BTC exchange rate from 30 to 8 a "normal growth levels"? You wanted to say "normal shrink levels" but you replaced "shrink" with "growth" for some reason. That's ok, ppl make mistakes, don't sweat too much ;)

By CrazyBernie on 8/10/2011 10:07:12 AM , Rating: 2
No, I meant what I said. You're making the assumption that the value of Bitcoins will just keep sliding. Keep in mind that bitcoins are growing in volume as well... and once people get over the "scare" of security issues and whatnot, BTC's will start to climb in value once again.

Here's the chart site you're looking for.

Dumb crap
By Etern205 on 8/8/11, Rating: 0
RE: Dumb crap
By The Raven on 8/9/2011 12:28:59 PM , Rating: 2
I can't figure out why people will believe in this dumb virtual currency

Because it is not susceptible to the whims of a central bank that is heavily influenced by the morons in gov't and the people who put them there. So you don't have to worry about inflation or certainly, hyperinflation. There are also no fees needed to transfer from one party to another. It is theoretically a solid way to hold monetary value, but as we can see, there my be speed bumps at the start.

Anyway, my response is not meant to to all encompassing. I just think you should take a look before you write it off. Comparing it to Monopoly money is just stupid. You would do better if you would compare the USD to Monopoly money.

RE: Dumb crap
By Pirks on 8/9/2011 1:16:21 PM , Rating: 2
you don't have to worry about inflation
Contradictory to your claims the BTC exchange rate is slowly dropping the last few months, which means inflation in terms of BTC. I.e. too many coins on the market.

Yeah you "don't have to worry about it", sure, who cares, but please don't pretend BTC inflation does not exist. It does and it's pretty severe at the moment, to be honest.

RE: Dumb crap
By The Raven on 8/10/2011 11:50:29 AM , Rating: 2
I agree and disagree.

When I say no inflation, I mean there is no central bank that can randomly choose to print bitcoins because of some political motivation (like the Fed). As long as there is bitcoin mining going on (which inflation is programmed into the protocol), there will be BTC inflation by design. But the supply of BTC is limited greatly (unlike the USD and other world currencies) and at the moment any inflation is countered by increasing demand for a currency with the stability of BTC.

The exchange rate that is fluctuating now for BTC is kind of an IPO so to speak where people find out how much the commodity is actually worth through speculator trial and error. It may turn out to be worth more than people think it is like Netflix, or it may turn out to be a stinker like Divx.

But unlike a stock BTC does not have some CEO calling shots that would affect the value of the currency. Its value is only what the investors make of it. That is to say if everyone agrees that it is valuable then everyone will value it (like the USD since the paper actually has zero value). So in the early days it will fluctuate greatly I believe, but you can at least sleep soundly knowing that it isn't fluctuating because the President wants to be reelected or because we can't get out of Afghanistan or any other thing you can think of that would constitute a political influence on a fiat currency.

Not to mention that in this economy with Bernanke at the helm fluctuations of the BTC/USD x-rate have more to do with the weakening of the USD than anything. In fact, it the USD, Euro or what have you would stop losing value then people would have little interest in something relatively stable (as it is in theory since it is still to early to witness the stability) like BTC.

Sorry, I'm rambling a bit as I was only an international business major and not a formerly trained economist. But what I'm saying is:
1) there will be fluctuation AGAINST the USD (just like with gold)
2) inflation due to currency/commodity supply (like gold)
3) and change in demand as people flee to a theoretically safer currency (compared to fiat currency)
4) But my main point is that supply (affecting inflation rate) is not politically influenced. So it is not like the USD and the other unstable currencies of the world that are subject to hyperinflation.

Bitcoins up are 1000% since April
By stevenwagner on 8/9/2011 4:12:43 PM , Rating: 2
In april the prices were $1. Today it is $10. That sounds like a pretty good investment to me. The people who focus on when it hit $30 have a myopic view.

By Pirks on 8/9/2011 6:48:19 PM , Rating: 2
Where did you find the charts that go back this far? April wow
Mtgox doesn't have any I think, what site did you use?

Stable bitcoins are coming
By dacoinminster on 8/9/2011 2:25:48 PM , Rating: 2
There are a number of quite serious proposals floating right now to create new block-chains backed by bitcoin mining and trading which are similar distributed currencies pegged to various currencies and commodities. Soon, you'll be able to store your bitcoins denominated in U.S. Dollars, barrels of oil, ounces of gold, etc. There are a number of competing ideas on how to do it - my favorite is morpheus' goldcoin/stablecoin proposal:

The concept of pegged distributed currencies may sound impossible to you, but the concept of bitcoin itself probably sounded impossible to you a year ago. I think it is possible, and if it is possible, it will be HUGE.

I believe that bitcoins are going to change the world. I recommend that everyone read up about them. If you are interested in buying/selling bitcoins, I personally use and recommend - they have lower fees than the main exchange (mtgox), and their website seems more professional IMHO.

Also, I have a code that will get you 10% off trading fees there for life: TH-R1168


Setting things straight
By KBundy on 8/9/2011 3:43:02 PM , Rating: 2
Greetings all,

Woke up this morning and this is what I read on my google+ feed for bitcoin.

"Bitcoins, though, have suffered even deeper losses, and aren't a good investment to turn to. (Source: Bitcoin Forum) Treasury bonds are a far better investment that bitcoins in recessionary climates. (Source:"

Lets set some things straight here for all you who have been swayed by the opinions of this author.


1) Bitcoin is not tied to either Wall-Street, or the Federal Reserve which prints the U.S. Dollar, and is therefore in no way related to the financial crises that both are suffering right now.

2) Bitcoin in an idea whose time has come. Above all things, there is the power of an idea whose time has come. It cannot be resisted.

3) Investing in Treasury bonds at this time would be the same as buying shares in the a sinking ship, hoping the holes will seal themselves and magically rise to the surface again.

4) Bitcoin is not an investment, it is a currency, which will allow people to break away from the rule of the international banking system.

5) The more people believe in and support bitcoin, the better off we will all be.


By thurston2 on 8/8/2011 11:51:17 PM , Rating: 1
Don't worry I'm not.

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