I have to admit that I never really "got" Bitcoin, or any of the cryptocurrencies. I understood why someone might want an alternative currency, but the medium seemed hopelessly flawed and ponzi-like.
And now it appears the time for easy money is over.
The bitcoin mining rush is sputtering.Ebay is now flooded with around 1,600 used Bitcoin mining computers.
Speculators, known as miners, use powerful computers to solve complex software problems and verify transactions to unlock new bitcoins. They’re finding that the enterprise isn’t as profitable as it once was...
“If you mine at the moment, you have to be very lucky to get anything,” said Mehmet Vatansever, who bought $16,000 worth of mining computers in February to chase after new bitcoins. “It’s a very difficult business.”
The Bitcoin was never anything other than the sharing of a complex mathmatical problem.
The implosion of Mt. Gox along with 7% of all the Bitcoins seems to be the beginning of the end of Bitcoin.
The other day an investor group offered to buy Mt. Gox for one bitcoin.
Bitcoin was the worst investment in the entire world in the 1st quarter of this year, down more than 60% from its all-time high, and ponzi schemes don't tolerate that for long.
A Bitcoin ATM just opened on Capitol Hill.
More interestingly, a new Bitcoin ETF (Exchange-Traded Fund) will soon be approved.
This should match up nicely with the Bitcoin derivative. It seems fitting that there are already complex investment vehicle to a product that has not proven it is sustainable, or that it even exists.
I know what you thinking. "Darn, I missed getting in early to the Bitcoin Ponzi scheme."
Never fear. You aren't too late.
Because they are newer, designed differently and currently mined by fewer people, currencies such as Litecoin can be more profitable, according to CoinWarz, which tracks mining activity.Yes, you too can jump on the next Ponzi-scheme before it bursts. So run! Don't walk!
“The new rush right now is Litecoin,” Colin Lusk, a network engineer in Portland, Oregon, said in an interview.
While he once mined only bitcoins, Lusk now uses five of his eight machines to produce Litecoins and other virtual currencies.
1:08 PM PT: In Das Kapital Karl Marx writes:
"On the eve of the crisis, the bourgeois, with the self-sufficiency that springs from the intoxicating prosperity, declares money to be a vain imagination."
Doesn't this sound like Bitcoin?