informative article HERE from a systems admin who is using his schools pc's as a bitcoin mining farm. explains in simple terms the concepts and processes behind it.
the Mt. Gox Bitcoin Exchange has market rate at US$18.15
I forgot to mention earlier that the GLBSE Global Bitcoin Stock Exchange is up and runningFully self regulated and ungoverned, and operating without any licences or approvals etc etc.
Its the wild wild west over in BC world :cowboy: these guys are making it up as they go along, creating a virtual world to go along with their virtual currency....and yet somehow its working.
http://glbse.com/
Perhaps this virtual world has a virtual regulatory body with virtual watchdogs, marshals etc.
Now up to circa $26 per coin
Bitcoin has fallen from its 30 USD high last week to a more reasonable 15 USD...the recent 30 USD high attracted alot of main stream media attention, resulting in half assed reporting and the usual main stream media beat up...like this write up at CNN money.
Personally I think a reasonable rate is $0...so I suppose $15 is more reasonable than $30.
It got pretty close to 0 yesterday! Some large account got hacked on the biggest bitcoin exchange MtGox and sold off all the coins down to 0.01.
"The bitcoin will be back to around 17.5$/BTC after we rollback all trades that have happened after the huge Bitcoin sale that happened on June 20th near 3:00am (JST).
One account with a lot of coins was compromised and whoever stole it (using a HK based IP to login) first sold all the coins in there, to buy those again just after, and then tried to withdraw the coins. The $1000/day withdraw limit was active for this account and the hacker could only get out with $1000 worth of coins.
Apart from this no account was compromised, and nothing was lost. Due to the large impact this had on the Bitcoin market, we will rollback every trade which happened since the big sale, and ensure this account is secure before opening access again."
https://support.mtgox.com/entries/2...-due-to-a-compromised-account-rollback?page=3
EDIT: BTW the hacking didn't comprimise the security of the bitcoin network, just the site where they are traded.
This thread is very interesting on the bitcoin forum
http://forum.bitcoin.org/index.php?topic=20207.0
Someone managed to subpenny the 0.01 bids at 0.0101 and grabbed 250,000 bitcoins during the crash and posted their version of events.
The author of the that thread has made some interesting observations and accusations, worth a read for anyone interested in the story.
Sort of reminds me of May 6 flash crash dissection with nanex.
The site stopped responding completely for a while, probably from so many people hitting refresh to see what was going on. When I got back in, I saw in my account:
06/19/11 17:51 Bought BTC 259684.77 for 0.0101
I had just purchased over 250,000 bitcoins for $2613. At the trading price immediately before this large sell order happened, that number would have been worth nearly $5 million. After I regained my breath, I tried to figure out what to do. I wasn't sure what was really going on.
I think bitcoin will fail pretty quickly.
Now if only I can short bitcoin - the chart is looking like a classic bubble.
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