Quote from: devansh1991 on July 18, 2013, 05:10:25 PM

Quote from: inrbtcad on July 18, 2013, 04:54:49 PM

What makes the price go up or down?

buysellbitco.in sounded as if der is some "magic" trick up every experts' sleeve Tongue

I know abt supply and demand and confidence but fail to understand how an expert will be able to judge dese 2 factors correctly and use it to his advantage.

The answer to that can be found in an old contest posted and hosted by ~~Benson (I guess??)~~ Buysellbitcoin.in himself

Here is my response :

Quote from: legendster on May 03, 2013, 08:41:41 PM

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1) what makes the prices of bitcoins go high and low, i just didnt understand the concept??

I will try to keep things SIMPLE and in retrospective of a common man especially in INDIA who knows a little bit about how a currency works and how a normal forex trading works.

First why price rises : The price for any given currency won't remain the same.

Lets say I have 100 Green colored bucks (not mentioning any particular currency) AND lets say I want to sell these and get 120 RED colored bucks NOW because you are buying it from me and I am demanding a profit (of +20 red colored bucks).
THIS Profit level is determined by me as I am the seller and this is what I think I can make off of my green colored bucks.
KEEP IN MIND that initially the green & the red bucks were equal in value but as soon as I sell it at this price my Green Bucks become +20 more valuable than the buyer's Red bucks.
FOR the price of the currency to actually move up (or for me to actually sell my green bucks at this profit) there needs to be MORE BUYERS WITH RED BUCKS than sellers like me with GREEN BUCKS... ONLY THEN the price of my Green bucks move UP.

NOW why does the price of a currency fall ?

Simple if there are more sellers than buyers for my currency the price will fall.

The same logic can be applied to the Bitcoins as well considering the fact that Bitcoins are also a CURRENCY.

SINCE Bitcoins are fairly 'new' as a 'self sustaining currency' there are a lot of speculations that play into the factor of rising it's value or crashing it, market speculations etc etc.. JUST like a normal currency.

Remember that Buyers are people that want something that is in a limited supply. So when the demand is High AND the supply is low (or constant) the price rises higher.

In Bitcoins case the supply is always limited atleast till 2140 so it's value can be comparable to Gold.

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And what is bitcoin address, is it our physial home address, or some email address ??

No not a physical home address but YES a lot alike and almost similar to an email address. Only difference here is that you get only payments as transaction and no 'emails'. These addresses can easily be generated by a Bitcoin wallet for free of cost. And you get your very own personal Bitcoin wallet that you can host on your computer from www.bitcoin.org

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Where can I use these bitcoins?
Do Indian shoping websites accept them??

You can spend these bitcoins at any merchant's store that accepts Bitcoins. Currently there are a very few number of international websites where you can buy with bitcoins but no Indian ones.
Its almost like paypal that is until RBI banned them. It is new it will take time to find acceptance.

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I mean tell what is the real advantage and use of buying them???

To be honest there is no real advantage in buying one currency against another unless you know that there is a huge boost to the value of that particular currency coming in the near future. With Bitcoins the Price has risen from mere cents to $200+ over the small life time it has lived so far and there is still more to come. But if you really get to the core of the coins then I can say bitcoins are great because there is no Third-Party Seizure which means that even the governments cant freeze someones wealth, and thus the Bitcoins owners will have complete freedom to do anything they want with their money. The next great thing about bitcoin is that there are No Taxes here, other than voluntary donation; there is also no way to track a transaction other than a publicly announced bitcoin wallet address that links the owner of the wallet to all the transactions that occur on it.

But the most alluring fact to any merchant should be that in the bitcoin world there are No Risk of Charge backs.

I mean isnt this the reason why people / merchants hate Paypal or credit cards ?? Grin

I think these reasons are more than enough to describe how cool Bitcoins really are.

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2) please help me understand the exact role of bitcoin in daily life and how can it replace currency notes and its functioning

I personally dont think Bitcoins will ever replace the paper currency. I mean just because the Internet exists doesnt mean no one uses the SW radio or the Post or paper-mail (bills/home posted bank statements/letters etc) .

But it WILL take over the online world very very soon. Just imagine you can send your money from one country to another without paying ANYONE in between not even the governments. This way if you want to buy something in USA being in India, you will be paying for the EXACT price of that commodity & nothing extra (other than the shipping offcourse Tongue

)

But again in terms of a common man : An Indian worker working in Dubai can send money directly to his home without paying ANY KIND OF TAXES.

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3) 1st What is Bitcoin ?

Bitcoin is the future of finances online and perhaps offline.

Quote me if you want to.

I m going to quote www.bitcoin.org

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Bitcoin is a digital currency, a protocol, and a software that enables

Instant peer-to-peer transactions
Worldwide payments
Low or zero processing fees
And much more!

Bitcoin uses peer-to-peer technology to operate with no central authority; managing transactions and the issuing of bitcoins is carried out collectively by the network. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment systems.

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