Off Topic Bitcoin.

Last sale of Bitcoin on Independent reserve AUD$3,750 .

Minermike wrote:Last sale of Bitcoin on  Independent  reserve   AUD$3,750 .

Impressive

I really wish that I had some spare cash on Jan. 1 st. I would have bought some at AUD$1300 or there abouts. It can still go up a long way yet. Japan has made it legal , so that could be the cause of the present price rise. If India starts using it , the price could go up more . Read as much as you can about it . You can go mining for Bitcoin but that is another story !!!!

To go Bitcoin mining , you need to buy an Antminer S 9. It will cost about $3,000 . Like gold detectors you have to buy the best. It produces a lot of noise from the fans and also heat. It also uses a lot of electricity about $60 per week, running 24/7 . In the USA they use the heat to warm the house in winter time. You also need to join a pool , so that you are all working in a group and share the profits. You could get 0.5 Bitcoin or more per month. I did look into it but things have changed. With the new high price of Bitcoin it looks more profitable . You can also mine other cryptocurrencies .

Seems to me that those Bitcoins can Byte you on the bum if you are not careful.

On 11 th. of May my friend bought $2,500 of Ethereum at $127 . Last sale to -day was $328.98 . That's how you make money !

How do you use bitcoin to buy a 7000?

Open an account with Independent Reserve in Sydney . Transfer some money from your bank account , then you can buy Bitcoin or Ethereum . Buy when the price is low and sell when it is high. You can watch the daily movements . They charge 0.5 % for each trade. You can set what ever price you want for buying or selling. When you have sold your Bitcoin you can ask them to transfer the money back to your bank account.
I hope to sell my 30 t. excavator in the next 2 weeks , that should give me a bit of spare cash to buy Bitcoin and Ethereum. At the moment I am short of spare cash, other wise I would have bought some before now.

If bitcoin is not shares or any kind of solid commodity or product; How does it increase in value.?
Can I only trade it with Independent Reserve?

If I open an account with IR and send them say, 2000 dollars and they give me in return 2000 dollars worth of bitcoin on my hard drive and then somebody sticks my HD in the microwave, Have I lost my bitcoin and my 2000 dollars?.....Is it recoverable in the same manner as if I loose my Bank Card I still have my money and can prevent anybody who finds the card, from using it.....Or in other words. It sounds like ny money would be safer in a bank or in shares than on a HD?

With Bitcoin there is a maximum of 21 million, at the moment there are about 16 million in circulation. You get an instant transfer with no bank fees. A few months ago, the NAB charged me $12 for an EFT transaction to the other side of the city. Reason was , I only have a pass book and not internet banking. I could not wait and paid the fee. I have now set up internet banking.
Independent reserve will hold your Bitcoin or cash in your account. You can set up a Bitcoin wallet away from Independent reserve . For extra security , a stick can be set up so that no trans action can take place unless the stick is plugged into your computer. Read all of Independent Reserve web site. There are others but they can have higher fees and limits.
Provided you have your IR account number and can prove who you are , you should get your money back if your hard drive dies.

Google up Bitcoin and have a read, some people say it will go to $50-100, 000 per coin.

I guess at 100,000 per coin only a very limited number of people could afford it.

So if my 2000 dollars worth of bitcoin went to 100,000 dollars. and I want to sell it. Will the IR put 100k into my bank?....Or just 100k worth of bitcoin?

adrian ss wrote:I guess at 100,000 per coin only a very limited number of people could afford it.

So if my 2000 dollars worth of bitcoin went to 100,000 dollars. and I want to sell it. Will the IR put 100k into my bank?....Or just 100k worth of bitcoin?

The structure of Bitcoin is 1 bitcoin can be broken down into sub bitcoins called Satoshi's . For example $100 can be 100 x $1 or broken down to 1000cents.
Each bitcoin (BTC) is divisible to the 8th decimal place, so each BTC can be split into 100,000,000 units. Each unit of bitcoin, or 0.00000001 bitcoin, is called a satoshi. A Satoshi is the smallest unit of Bitcoin thus 1 bitcoin can be broken down to 100,000,000 Satoshi. Think of satoshi as cents.

If your 2k of btc went to $100,000 and you have your btc in a reputable digital currency exchange company, then you can have that $100k paid directly into your nominated bank account as dollars. Keep in mind the ATO will tax you on it and the exchange company will charge a fee for the digital exchange.

The dark days of BTC being some sort of dodgey currency are long long gone. With acceptance being gained in more and more countries around the globe. e.g Japan accepting it as legal tender and more , Russia about to do the same , China going hard at present to enforce strict control on btc exchange's which in turn will see it more than likely accept it as legal tender, the big world money players now heavily investing in btc, well only one way this puppy is going.

I hate to say it but, for the average punter the chance to make serious dollars on btc has long long gone. Forget mining, you'll never make your money back on your machine/s. The only way to make some wins is to play the market and play the volatility of bts buy and sell.

You can buy any part of a Bitcoin , down to $50 worth, I think. If you look at the last page of sellers on IR there is a guy that has one for sale at $135,000 and another one at $137,400.

You are buying and selling like shares. So you put your Bitcoin or part of up for sale at the price you want. Your cash is then held at IR until you ask them to buy more Bitcoin or send the cash to your bank account. Banks are against Bitcoin as it is doing them out of fees. [good !] The price will keep going up ,so you can only loose if you sell it for less than what you paid. After ,say, 6 months you could take some of your money out . Then you are just playing with the profit.

Cypto currencies are here to stay. People will have a Bitcoin App. on their smart phone and wave it over the scanner to pay for their goods. Savings will be made on bank fees.

Thanks for your post Elrodeo.  You explain it better than me.

 I looked into Bitcoin mining ,  the thing that is in its favor is the high price  of Bitcoin now .  So it could be worth while to mine.

I also think India will take it up as most people do not have a bank account. It is difficult to tax until you change it into hard cash.

I looked at Bitcoin mining on 1 st. Sept . 2016 The price of Bitcoin was AUD$779 it is now AUD$3,394 . To go Bitcoin mining you need an Antminer S9 cost about $3,000. It uses electricity at the rate of 1 kw./hr. and has to run 24/7 . Cost of electricity for 1 month is about $200. It is reported that you should get 0.5 Bitcoin per month. You need to join a pool and the profits are shared. So, on to days price, that is important, you get $1697 per month. You have to deduct $200 for electricity and say, $200 for the loss of value of the Antminer. Net profit for the month $1297. You can see that if I had tried to do this last Sept. there would be little or no profit. The price of Bitcoin will keep going up, faster than the price of electricity. So you should make more profit. You can set up more than one Bitcoin miner , you just need a good electricity supply ! Why work ?

Bitcoin miners are noisy because of the fans. They need to be set up in a workshop or garage . They produce a lot of heat, in winter time it could be ducted into your house. Set up an in line 100 m.m. fan . This is what they do in the USA and save a lot of money on heating.

I agree with Elrodeo   that you can make a lot of money  buying and selling  Bitcoin or Ethereum  at the present time.    As Ethereum  has a lower value  , that is what I would be trading .  It is like the share market , the penny shares rise  and fall greater  , %  wise than the high priced  shares.  I am so frustrated that I cannot get in , I had to pay $100 interest last month on my credit card . Robbing rascals !

I put in a stronger word than rascals......

This came into my inbox this morning from MSN.

"There is a thriving bitcoin community in Australia. The governor of the RBA made bitcoin legal in 2013. From July 1st of this year, the Australian government will treat bitcoin “just like money” and it will no longer be subject to double taxation when spent. (On the flip side, this also means you need include all bitcoin-derived income in your tax return. You can find information on what you need to do here.)"

For those that are interested, the link is below but you will have to copy and paste it into your browser to get there.

http://www.msn.com/en-au/money/personalfinance/how-to-make-money-with-bitcoin-in-australia/ar-BBBCrfG?ocid=NL_ENAU_M0206_OM2-PID85799

Regards Axtyr.

Capital gains on physical gold, on the other hand, are much easier to hide from prying eyes.

Make money trading Bitcoin and buy physical gold.

Minermike wrote:I agree with Elrodeo   that you can make a lot of money  buying and selling  Bitcoin or Ethereum  at the present time.    As Ethereum  has a lower value  , that is what I would be trading .  It is like the share market , the penny shares rise  and fall greater  , %  wise than the high priced  shares.  I am so frustrated that I cannot get in , I had to pay $100 interest last month on my credit card . Robbing rascals !

  I put in a stronger word than rascals......

26 replies on this subject from you Mike, gives the appearance that your spruiking it.. even though you believe your not. IMHO
Sorry Mike, but someone who has to pay $100 interest on their credit card is no position to be giving financial advise to anyone.  Fairdinkum

If people are asking questions , I have been trying to answer them.

Minermike wrote:
  If people are asking questions , I have been trying to answer them.

I can't see how you can answer something about a product you've never bought, sold or ever made money on.

Looks like you are trying to knock me down. I am not going to get into a slanging match. On 5 th. Aug.2016 I bought 10.17730581 Bitcoin at AUD$791.90 . So how can you say that I have never bought them if you don't know the facts ? I needed them to pay a guy in the USA.

All my working life I have never been on the dole and I worked till I was 68, my choice. I have been flat broke with opal mining. I own my own unit in Sydney . I own my BMW and my MWB Landcruiser . It is just a short term thing that I owe on my credit card.

Minermike wrote:
 On  5 th. Aug.2016   I bought  10.17730581    Bitcoin   at AUD$791.90  .    

I apologise if I've missed one. So what fabulous profit did you make out of your 10.17730581 bits?

As I stated it was to pay a guy in the USA . He wanted payment in Bitcoin . I did not buy them to make a profit.

I have a zero interest and zero fees  bank account.
My account earns more in fees savings than the interest, if it was earning interest and I was paying fees.

But then again, my balance is always SFA. ....So I have nothing to worry about.

It has been interesting watching these posts. About 12 to 15 mths ago the son purchased 2 bitcoins for $150 each. From memory they have a id number on them and from memory were also holographic, to use but he has been hanging on to them for the reason you are talking about minermike. I havent asked him just lately but they have certainly made him a lot of capital gain. Purchased as a gamble back then, he just hanging onto them for a rainy day.

He should check on his "Bitcoins " . As far as I know you cannot get a physical Bitcoin. He might have been scammed .

never did like bitcoins .. or what ever you call em .. just 101010011110011111011010    to me being a techo  ..

cyber money .. has a probability of being hacked ..  what is it referenced up against ..

Guess it cant be any different than banks printing money out of thin air as they do ....

biggest criminals ever

sorry just venting here