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And if the derivatives bubble is going to pop, you'll be too busy surviving to worry about your money.
i'm really glad you brought this up. i've been meaning to talk about this.
miscreanity calls gold an asset as do i. i believe that gold as an asset can inflate just like any other asset via USD inflation. the derivatives mkt is no different. as is the gold derivatives mkt. gold pundits argue that if we get a gold derivatives implosion there will be a scramble for physical gold which will drive it to the moon. but you have to ask yourselves: what were those derivative positions funded with? Answer: USD's. so if anything, a gold derivatives implosion should cause a scramble for USD's (or a shrinking of the virtual USD's depending on how you like to think about this) causing a further skyrocketing of the USD. if THAT happens, what becomes of the physical gold price?
Gold can only inflate if the supply times the velocity (speed at which it changes hands) increases faster than the value of goods in the economy. I don't see that happening, but that's just my opinion.
If there is a massive shrinking of the USD supply, the USD price of gold will go down to nearly nothing. But that's irrelevant. Everything will go down in USD price, so I will be able to buy just as much for my gold. However, there is another more interesting aspect to this scenario. If there are no dollars, there's no trade in dollars. People will trade is a different currency, or barter.
USD price for gold is pretty much irrelevant, if you use gold as a store of value. The USD isn't exactly stable either. Besides that, I'm talking about gold that you can actually touch. Not paper gold.
you'd best read this entire thread.
my point with this thread is to make sure everyone here has the tools and in depth understanding of how the deflation works so that IF i'm right and gold starts heading down you won't be confused, disoriented and doing stupid things like catching a fallen knife. i DID this in 2008 with gold stocks and it was brutal.
but that was only the opening shot of this huge deflationary deleveraging wave we're about to commence. you can't afford to make mistakes.
Thanks for the warning. I'm sorry to hear you've made a bad call in 2008. However, you were buying paper gold, I'm buying actual gold that I can hold in my hand. If gold goes down against the dollar, everything else is going down as well. And if the derivatives bubble is going to pop, you'll be too busy surviving to worry about your money.
If you're right, and gold starts going down, I'll sell at my break even point. But that's a long way down...
But in the end we all have to think for ourselves.
Sorry if this has been said before, I didn't read the entire thread.
@cypherdoc:
I think you're wrong, gold still is a good buy. I'm still buying metals. Here's just a few reasons why:
- Just over a month ago, GS said the price of gold is going to $2500 by the end of this year.
@cypherdoc:
I think you're wrong, gold still is a good buy. I'm still buying metals. Here's just a few reasons why:
- Just over a month ago, GS said the price of gold is going to $2500 by the end of this year.
since when have they been trustworthy? they don't even make good calls anymore.
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- Everywhere I look I see small companies popping up that buy your old jewelry. That means these people think gold is still an extremely good buy.
its amazing how diff ppl see the same things but interpret them differently.
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- The FED and the ECB are printing lots of money, meaning the euro and the dollar are going down in value.
The book "The Creature from Jekyll Island" explains a lot about the global money system. It's an excellent read, I suggest you pick up a copy...
The book "The Creature from Jekyll Island" explains a lot about the global money system. It's an excellent read, I suggest you pick up a copy...
i've read it twice. and it IS a fantastic book. i just don't agree about the one world currency thing though. nor the gold part at this pt in history.
To quote you: its amazing how diff ppl see the same things but interpret them differently
I tend to agree with Bill Stills when it comes to currency: it doesn't have to be gold. It can be anything, even BTC. However, since gold has been money for a long time, in different empires, I'm going for gold right now.
As long as big central banks are printing money and the public is NOT buying gold/silver en masse, I'm buying.
Sorry if this has been said before, I didn't read the entire thread.
@cypherdoc:
I think you're wrong, gold still is a good buy. I'm still buying metals. Here's just a few reasons why:
- Just over a month ago, GS said the price of gold is going to $2500 by the end of this year.
- Everywhere I look I see small companies popping up that buy your old jewelry. That means these people think gold is still an extremely good buy.
- The FED and the ECB are printing lots of money, meaning the euro and the dollar are going down in value.
The book "The Creature from Jekyll Island" explains a lot about the global money system. It's an excellent read, I suggest you pick up a copy...
@cypherdoc:
I think you're wrong, gold still is a good buy. I'm still buying metals. Here's just a few reasons why:
- Just over a month ago, GS said the price of gold is going to $2500 by the end of this year.
- Everywhere I look I see small companies popping up that buy your old jewelry. That means these people think gold is still an extremely good buy.
- The FED and the ECB are printing lots of money, meaning the euro and the dollar are going down in value.
The book "The Creature from Jekyll Island" explains a lot about the global money system. It's an excellent read, I suggest you pick up a copy...
Mining costs are only indirectly related to the value of bitcoins.
When the value of bitcoins drops below the cost of mining, it makes no economic sense to mine. So people who mine for profit should stop mining. This means it will become cheaper to mine again, and there should be an equilibrium.
However, there are also people that mine for other reasons than economy, or who expect that the price of bitcoins will rise enough to get them out of the costs.
(replace bitcoins with gold, and you'll see what has been done in gold-based economies for thousands of years)
When the value of bitcoins drops below the cost of mining, it makes no economic sense to mine. So people who mine for profit should stop mining. This means it will become cheaper to mine again, and there should be an equilibrium.
However, there are also people that mine for other reasons than economy, or who expect that the price of bitcoins will rise enough to get them out of the costs.
(replace bitcoins with gold, and you'll see what has been done in gold-based economies for thousands of years)
Create your own pool ?
Use the opensource pool software pushpool:
http://forum.bitcoin.org/index.php?topic=10321.0
Thanks! I'm going to play with this for a while.. Use the opensource pool software pushpool:
http://forum.bitcoin.org/index.php?topic=10321.0
If you factor in your time, it is generally not profitable (unless you can do nothing but minimum wage work, which I assume is not the case)
Factor in your time? You do know that there is no human work involved in the mining for bitcoins. You dont literally swing a pick axe. It is true that electricity costs can cut into profits. But time? Just have the computer mine when you don't need to use it.
If you factor in your time, it is generally not profitable (unless you can do nothing but minimum wage work, which I assume is not the case)
Sorry for being harsh, I had assumed this was a one-shot thread. Since you're here though-- a little edumacation for ya'.
The time it takes out of your personal day to run your GPU/CPU miner is 0. Maintenance might be required once in a while, but if your error handling is keen-- 0.
The time it takes to set up such a machine in the first place-- assuming the hardware is there, but without drivers or miner app?
3 minutes flat. Raise that to 6 if you aren't satisfied with default settings.
I recently finished version 2.1.22 of my AlgoCalc solutions program. Basically, you pop in a thumbdrive and if autorun is in place, 3 minutes later you've got a silent miner that continuously runs on startup, runs invisibly, only uses non-used CPU/GPU (per miner plugin) with the option for delete protection (kind of like spyware cannot be 'deleted').
Get my app and the licensing it requires (per install), and you can have an install CD/Thumbdrive/fileset that you can put on any computer anywhere and it will act as your personal miner from then on. It is secure because it will not allow incoming connections, but it will connect to my algocalc database to make sure it is licensed, the same database that holds all of your pool mining login information for your convenience.
So this time you're talking about.... since I can add 500 computers a day (if I can find them), and each one can make $1 a day.. what time? You'd be stupid to stop mining. But then again, stupidity is just the lack of education. So I'm educating you.
Assuming you're not paying for the electricity of the computers running those stealth installations, that's theft.
You're making other people pay for your profit, without telling them.