Dogecoins and other Digital Currency

[Bronyette 835]

I've been researching many different types of digital currency but this one certainly sticks out the most in my mind:

 

http://dogecoin.com

 

Yes it's legit, and fast on the rise in popularity. The value of it has increased largely in the few months since it's creation, December 8th. Unlike other digital currency, these are used to "tip" people with good content. Since it's still worth almost nothing, it's not a big deal to shell out 1 or even 100 of them to people.

 

https://www.idigdoge.com

 

It's so easy that if you go to the above page you can mine for them.

 

What are your thoughts of an internet "tipping system" and other online currencys like bitcoin?

Edited March 13, 2014 by Bronyette

[Scootalove 10,689]

I love the artistic vision of people who create their own currency, it's like letting your creativity run wild. The internet's tipping system sounds wonderful.

[PsychedelicPony 440]

I think online currency may be the future, if proper securities are put into place. 99% of the world's daily transactions occur online so it makes sense to have the currency also be electronic.

[SparklingSquirrels 21,341]

It would certainly be an easier way of making online purchases for many people, if the security was done right. That's why I think digital currencies like the Bitcoin will gain popularity in the future. The Dogecoin? Not so much XD 

Edited March 13, 2014 by SparklingSwirls

[Mr F 1,522]

It seems like a nice thing to do if you have any spare graphics cards and cheap electicity. xD

I don't see how this will make anything easier, considering it is often cheaper to put "government controlled" money into buying things, donations and all that stuff. Well dogecoing looks pretty kewl, may try it sometime.

[Tigerpop198 696]

I'm not that big on digital currency, when I pay for something it's usually right up and center. It would be convenient to some though.

[Nine 707]

Bitcoin's implimentation was elegant. Create a currency that begins valueless, giving anyone and everyone the opportunity to adopt it at no significant risk or expense - thus allowing an equitable distribution of coins among early volunteers, then add value to those coins by increasing the mining difficulty as more people come on board during the widespread realization that the coins now have value.

 

The protocol has faced some criticisms over it's inherently deflationary cap on the number of coins, possible double-spending if a "51% attack" becomes viable (allowing a majority mining pool to dictate entries to the blockchain ledger), non-reversibility of transactions, and naturally some security concerns, to say nothing (and I mean nothing) about the calls for regulation ..

 

But what I really like about the ideology behind it (Bitcoin being a very romanticized financial invention by libertarian types), is that it gave people frustrated by "the system" an actual, practical way to register their displeasure with it, and threaten to circumvent it. Remember the Occupy protests? I do. I remember how impotent I thought they were. World pissing you off? Time to set up dirty camps and carry signs, like that'll do anything (I don't believe it does). On the other hoof, cryptocurrency has given people the means to "strike" against governments and central banks, minting their own coins, and trading among one another in relative secrecy, in part depriving the architects of their dissatisfaction of tax revenues and legal authority.

 

My personal interest in crypto .. I like trend analysis as a hobby, and I have real world money on the BTC-e exchange, trading Bitcoin and Litecoin for fun (and profit, on good days). I think it's a marvelous thing to take part in, and follow as it develops, even during the dark times, like the very recent MtGox exchange default and closure. It has forced more attention by national governments the world over than any amount of petitioning or protesting ever would, and besides that, if prices stabilize, Bitcoin could become a reliable store of value allowing for very inexpensive money transfers from anywhere to anywhere in the world.

 

So I pretty much think it's great, is what I'm saying.

[Bronyette 835]

I love the idea, but honestly it's super hard to get bitcoins unless you have a ton of money invested into it. A normal mining system is worth more than 1000 dollars.

 

Dogecoins so far are easy to get because of how new they are, so I'm starting with them

 

((Yes, I'm replying to my own topic. ))

Edited March 14, 2014 by Bronyette

[Koelath 445]

Bitcoin is garbage. Can't speak for this new thing but the fact that it's named for a meme pretty much tells me it'll end up garbage in time too.

Digital currency as a whole is worthless unless everyone is willing to accept it anyway.

[Katana 298]

The fall of Mt. Gox is going to really shake the value and faith of the currency for quite some time.

If I ever figure out how to self-manage a wallet, rather than putting my whole faith in some website, then I may get involved. One thing that I hear BTC is very good for is making simple transfers between people. Like, for instance, my roommate owes me $100 so we're even with our bills. He could withdraw $100 in cash but that's kind of a big hassle, especially when it's so cold out. He can write me a check, but I still have to cash it, and we both feel like there should be a digital way to do it. A bank transfer would actually include a ridiculously high fee, but from what I understand, Bitcoins would take little or nothing to do it - the only major hassle would be if the receiver really wanted to get cash straight away from it.

[Zhortac 1,474]

Biggest problem with these, is the mining that is almost required to get your worth out of it, but there's the chance your video card will die in the process. Not worth the risk IMO.

[Bronyette 835]

Bitcoin is garbage. Can't speak for this new thing but the fact that it's named for a meme pretty much tells me it'll end up garbage in time too.

Digital currency as a whole is worthless unless everyone is willing to accept it anyway.

I wouldn't say it's worthless per se, if there's people willing to transfer it into actual cash or items then it couldn't possibly be. There are plenty of vendors online that will let you buy stuff with bitcoins and even tales of people buying houses with them. It's not so much a digital currency as it is stock, sometimes the price increases and people want to get into that so then they start mining for themselves.

 

I would say at this point that bitcoin is so overpriced it's loosing it's value though, since no one in their right mind, hopefully, would buy a coin for 1000+.

 

I remember learning in History that in America people were very opposed to the idea of having paper money because instead of having some precious metal in their pockets, they had something that symbolized it in paper form. I think it's sorta the same way now with people. People don't want "fake digital money" because it's something that symbolizes value. (Even though that's all that money in itself is anyways, if you think about it. )

Edited March 14, 2014 by Bronyette

[Koelath 445]

I wouldn't say it's worthless per se, if there's people willing to transfer it into actual cash or items then it couldn't possibly be. There are plenty of vendors online that will let you buy stuff with bitcoins and even tales of people buying houses with them. It's not so much a digital currency as it is stock, sometimes the price increases and people want to get into that so then they start mining for themselves.

 

I would say at this point that bitcoin is so overpriced it's loosing it's value though, since no one in their right mind, hopefully, would buy a coin for 1000+.

Mining takes an eternity to actually be useful unless you're one of these enthusiasts who devise weird computer rigs to dedicate solely to mining 24/7. That, plus the price issue, makes the whole thing utterly pointless for most.

Edited March 14, 2014 by Koelath

[Bronyette 835]

Mining takes an eternity to actually be useful unless you're one of these enthusiasts who devise weird computer rigs to dedicate solely to mining 24/7. That, plus the price issue, makes the whole thing utterly pointless for most.

Yeah. I do understand that. I'm not a bitcoin person myself, for that very reason. I do know a few people in real life who do profit from it immensely, but they were in it at the beginning.

 

I get dogecoins basically and tip people who make good videos or drawings on other sites. X3 I'm not in it for the money.

[Koelath 445]

Yeah. I do understand that. I'm not a bitcoin person myself, for that very reason. I do know a few people in real life who do profit from it immensely, but they were in it at the beginning.

 

I get dogecoins basically and tip people who make good videos or drawings on other sites. X3 I'm not in it for the money.

Honestly, if I really wanted to make money out of it, I'd skip mining altogether and buy 'em outright while cheap then wait for a value inflation. Some guy made thousands on something like $200 that way. I wouldn't see the point in tipping with what is a valueless "currency" at the moment. They get my viewing, that's their tip.

 

 

[KrazyDashie 1,847]

I know bitcoin. which is crashing down...

[Bronyette 835]

I know bitcoin. which is crashing down...

I'm glad it is, a little bit. It was becoming too overpriced for a currency which derives it's value from trading.

[Apple Bloom 2,933]

There is so much confusion and misinformation surrounding virtual currencies. I don't know much about Dogecoin, or other "alt" coins, but I've been using Bitcoin for a while, so I'll try to debunk a few myths if I can.
 

1. You have to mine to get coins: False!

2. Bitcoin is expensive. You have to have a lot of money to buy it: Also false!

3. Even if you have money, it's difficult to buy. Mostly false.

 

First of all, you don't have to mine to get coins. In fact, at this point, mining is probably a very bad decision. The current difficulty is so high, you pretty much have to have custom, dedicated hardware to even start mining. If you want to get into it, you're better off buying, and if you don't have much money, no worries. You don't have to buy entire coins to acquire them. There are various exchanges such as Coinbase and Bitstamp that allow you to buy any fraction of a coin that you want. Also, I can't speak for Bitstamp, but Coinbase is relatively easy to sign up for. You have to have a bank account to transfer money and I believe you have to scan a few documents for security purposes, but besides that, there's nothing to it. You sign up, link your bank account, and start buying. That's it. It does take about a week to receive your funds, but the price you pay is locked in, so you don't have to worry about price fluctuations... which brings me to the next myth:
 

4. One Bitcoin costs {insert price here}: Most likely false.

 

Bitcoin works similarly to any other currency in that the price is constantly fluctuating and the value depends on the exchange you use. One Bitcoin may be worth $572 on Bitstamp and $573 on BTC-E, but in a few minutes, the price may be completely different.
 

5. Bitcoin is difficult to use. Paypal is much easier: True and false.

 

It really depends on the situation. If the merchant accepts Bitcoin, it's usually just a matter of  either scanning a QR code with a Bitcoin app on your phone or copying their bitcoin address, the amount you want to pay, pasting it in a Bitcoin client, and clicking send. With Paypal, you still have to enter a password and make sure the payment source is correct, so it usually takes just about as long.
 
If the merchant doesn't accept Bitcoin, it can be hassle though. The only way to use Bitcoin in this case is to somehow convert it to fiat (dollars, euros, etc.) and pay with that. There are various ways such as buying gift cards or transferring it back to your bank account, but in this case, Paypal or some other accepted source would be easier, and this brings me to another common complaint:
 

6. Why use Bitcoin? Almost no one accepts it: True... for now.

 

I like to look at the bigger picture. Virtual currency is in its infancy. Of course almost no one accepts it yet. It hasn't had time to catch on... but it's beginning to catch on, fast! A few major retailers are already accepting it, such as Tiger Direct and Overstock.com, and more businesses are accepting it everyday. If you just glance at the Bitcoin subreddit, almost every other post is "{insert business here} now accepts Bitcoin!".
 

7. Bitcoin is only used for illegal purchases: False.

 

As I stated above, this is completely false. Bitcoin is notoriously known for being used to purchase illegal goods, but that's mostly due to the media coverage of black market sites that only accept bitcoin due to its annonymous nature... which brings me to another myth:
 

8. Bitcoin is annonymous and cannot be traced: True and false.

 

I don't know enough about the protocol to get very technical here, but while Bitcoin isn't exactly tied to an identity, all transactions are logged in the blockchain, which acts as a public ledger, and they can be traced back to the owner's wallet, and from there, I believe they can be traced back to the exchange they originally came from. Of course, that doesn't mean that the original exchange account holder made the illegal purchase, and it's possible that the coins were mined and didn't go through an exchange at all, but still, my point is that they can be traced to some extent.
 

9. Virtual currency is just a fad. It isn't worth investing in.

 

That's a matter of opinion. Sure the market isn't very liquid at the moment and prices fluctuate worse than a roller coaster, but if you're like me, and believe that virtual currency is the future of money, then it's totally worth investing in. Just don't buy more than you're willing to lose, and you'll be fine no matter what happens. Just be sure to educate yourself about it if you're interested. There is a lot more to know than what I mentioned.
 
Also, just as a disclaimer, I want to mention that while it may look like it, I am not trying to encourage anyone to use Bitcoin, or any other virtual currency. In fact, if you don't want to lose your money, it may be a good idea to stay out for now. As I mentioned above, the currency is still in its infancy and the market is extremely volatile, which makes investments risky. While it may rise in value over the long run, it just as well may not. It's impossible to tell with any certainty, so unless you believe in the currency as I do, it may be wise to hold off buying until it matures into a stable market.
 

I'm glad it is, a little bit. It was becoming too overpriced for a currency which derives it's value from trading.

That's another thing. While I may be wrong here, I'm almost certain Bitcoin doesn't derive its value from trading. If it did, couldn't we say the same thing about all other currencies that people trade? The common, accepted belief is that Bitcoin derives its value from its scarcity, much how gold does. Gold is a scarce, finite resource. There is only so much of it in the world, therefore, the more people that want it, the less of it there will be to go around, and thus, the value will increase. The same can be said of Bitcoin. There are only so many Bitcoins that can be mined, and after that, they're just passed around. The more people that buy them, the less there will be to go around, and the higher the value will be. Of course, this is assuming that people actually want them. If enough people lose interest and start selling them, there will be plenty to go around and the value will fall.

[Rift enchanted 380]

Wait until the forums develop a currency.

 

Like not serious financing and sales I mean like I dunno get a forum coin per post or something

Edited March 26, 2014 by Rift enchanted

[Andaasonsan 3,205]

The big issue I see with these systems is it doesn't seem like anyone is actually using them as currency (well aside from drug cartels). It's all just speculators hoping they can sell right before the next bubble pops.

 

Maybe 50 years from now Crypto-Currency will actually replace our current systems, but I'm more than happy to let other far more braver pioneers invest in them.

 

Right now, this is what I think of when buying crypto-currency:

 

 

 

 

[Adente 1,000]

I don't like online currencies. They are a bubble, backed by nothing, (at least other fiat money is backed by the considerable economic might of countries such as the United States or unions like the EU, so they have a degree of legitimacy) and not liquid at all. They are extremely volatile and have absolutely no inherit value at all, so I don't trust them at whatsoever. 

[Apple Bloom 2,933]

The big issue I see with these systems is it doesn't seem like anyone is actually using them as currency (well aside from drug cartels). It's all just speculators hoping they can sell right before the next bubble pops.

 

Maybe 50 years from now Crypto-Currency will actually replace our current systems, but I'm more than happy to let other far more braver pioneers invest in them.

It is an unstable and speculative market right now, but cryptocurrency is still in its infancy, so that's to be expected. It's going to take widespread adoption to create a liquid market and reduce speculative investing. Will it happen any time soon? I don't know, but I do know that there are more and more businesses accepting it every day. Still though, the mainstream sentiment is exactly what you mentioned, that cryptocurrencies are used for illegal goods. I think for it to really take off, this sentiment is going to have to change. For now, I wouldn't recommend anyone buying just to use it as a currency. With the wild and unpredictable fluctuations in value, you could easily loose money... though it is also just as easy to make money. My advice for anyone interested is to treat it like a long term investment for now, and don't invest more than you're willing to lose. Basically what I'm doing is holding in hopes that it will increase in value. When it reaches a point that I feel comfortable with or when it finally stabilizes, I'll either sell or spend it as the currency it was meant to be. Until then, I'll hold most of it and keep a small amount set aside for spending.