I have to be honest. In a perfect world, I would not even be considering using Bitcoin. I do not match the first adopter profile (and in fact, I am not a first adopter. I probably count as second or even third tier). In terms of investing, I would be far happier with an investment of bonds making a safe 4 percent a year. I would be perfectly happy sitting in an office working towards a secure retirement, doing my best to provide value to my employer. I would be perfectly happy trusting the institutions of our society, governmental and financial, etc., to operate with high ethics in the interests of the general public.
Silk Road had been in operation since 2011, and had grown to a size of 957,000 users transacting a total of 9.5 million Bitcoins, the equivalent of over $1 billion. Ulbricht is alleged to have made more than $20,000 per day from running the site.
Bitcoin paper Wallet generator markets dropped sharply in reaction to the news. On BTC-e, the exchange rate between Bitcoins and USD dropped from 124 to a low of 75 in a period of two hours, and on MtGox, the exchange rate dropped from 139 to a low of 110 in the same period of time. The exchange rates have come up significantly from their lows as of this writing, but have not returned to their former levels.
Governments are going to introduce regulations to regulate virtual currencies, and Tradehill is already compliant with the regulations and will be proactive. We have more lawyers than engineers right now, so we’ll be on top of that. As long as people are proactive, the government will see we’re working within their realm. A lot of people thought Paypal was going to get shut down, and it definitely didn’t happen. I think you will see companies trying to get around the regulations that will get shut down. Governments will make it more difficult to comply.
In 2008 the exchange rate was 3 Argentine Pesos to 1 U.S. Dollar (USD). While the USD was not universally accepted, convertibility into Pesos was no problem. What I immediately noticed was how Bitcoin Paper Wallet cheap certain things were like beef and public transportation. I felt like I could get a substantial meal with wine in a restaurant for a very reasonable price, and this was in a big city. Prior to their economic problems, the exchange rate was 1:1.
Other details released on Wednesday show that the Fed’s expansion of the monetary supply is not having their desired effect of increasing prices at a rate of 2 percent per year, with their latest projections predicting increases of 1.2-1.3 percent for 2013, 1.5-1.7 percent for 2014, 1.7-2.0 percent for 2015, and 1.9-2.0 percent for 2016. The projected annual growth in gross domestic product (GDP) for 2013 and 2014 was revised downward from the June projection, with the 2013 projection dropping to 2.0-2.3 percent from 2.3-2.6 percent, and the 2014 projection dropping to 2.9-3.1 percent from 3.0-3.5 percent.
This is a huge boost and advantage to everybody as what you see is what you get without any interferences of unexpected turn of events. This also serves as a win win situation as it enables all traders to manage their risk and execute their orders within seconds if they wish to prevent further losses during trading.
Disadvantages associated with Bit coins: 1.Since bit coins are also the way of private payment these currencies are also used for purchasing illegal things. 2. purchasing of bitcoins are usually not so easy. 3. There is also no refund when you buy bitcoins. 3. Since payment with bitcoins do not need name, address and information of purchaser, hence if any fraud happens then it is not easy to find that person. 4. In many countries bit coins are banned hence you cannot use it worldwide.