It's pretty cool. No need to fiddle with accounts that require messy credit card transactions. No limits, arbitrary or not. It's fairly anonymous! The guys on the bitcoin forums speak very well about this service, as well. I hope to use it in the future.
Well, duh. MtGox has been having issues, and as of today, are pretty much down. MtGox is the biggest BTC trading site in all of existence. 80% of trading. So of course it's been going down. It's still not bad compared to what it's been the past 30 days though. IT's still higher than the average price this month!
I'm wondering however how with bitcoins people "prevent" copying of those "coins". How would the system notice if someone else creates/duplicates the data for a bitcoin? And how would it notice which ones are real and which are the copies? With banks you do have a controlling instantion (the governmental central bank has this task). Also they are not backup up by any real goods (gold/oil reserves or something), nor a country with a GBP, so I wonder what can prevent hyper inflation or deflation? When will extra bitcoins be printed?
Well. Just to start off, cryptocurrency is like nothing ever before. One does not simply "copy" a bitcoin. It doesn't work like that. it's nonsense. I can't explain why, because it's (relatively) complicated mathematics/cryptography syuff, but you should take a read their article of common myths as its related. https://en.bitcoin.it/wiki/Myths
One thing I do know, though, is this. Whenever you send money to someone, your transaction has to be verified by at least 6 other computers in the bitcoin network, and since everyone has access to a list of all the transactions that ever happened, ie the block chain, everyone knows if you're trying to fake a transaction because the address that is sending money didn't receive or mine money to begin with.
This kind of currency seems too flimsy and exploitable. So much opportunity for fraud, security threats, and collapse--- wayyyy too risky right now imo.
Fraud and security threats? As of yet, there has not been a single serious exploit in the bitcoin system to be found by even the most experienced hackers.
The only weak point here is ourselves. Bitcoins are mathematically impossible to cheat or fake, and, well, collapse? idk, but it's been doing nothing but going up. Just look at the graph. The only way for it to collapse is if suddenly all of that a significant portion of that 1-billion dollars worth of bitcoins were suddenly sold for something else, which is fairly unreasonable.
It doesn't rely on ANY physical note. It isn't regulated, controlled, or anything really by a central issuing authority like the federal reserve, the bank of england, or 日本銀行 (Bank of Japan), nor any government, company, or country in any way whatsoever. It is self-reliant!
If that one phrase doesn't set the alarm bells ringing and get you worried, then go ahead and use them. Me, I'll stick with my credit card and my bank account due to the fact that my bank IS ACCOUNTABLE for it's actions.
I'm not seeing the problem. Being regulated or controlled by a central issuing authority just makes traditional currency more vulnerable to attacks than cryptocurrency.
Your money in a bank is kept safe only at the mercy of the bank, it's workers, and if all else fails, the government, which has a history of failing as well.
I don't think you understand how cryptocurrency is held. It's not held by any "internet bank", it's held by you, in the form of encrypted data that forms a valid bitcoin on your computer's hard drive. The only one who ever, EVER can have access to the bitcoins is you. (Or someone else with your password) The only one who can send a bitcoin is you. The only one to be held accountable for errors is you, the human. The system as of yet is pretty much flawless in terms of security. The only risk of losing money is if the economy of the currency crashes down, which, considering the graph above, seems extremely unlikely.