Why is gold down?
 

You would think after this mess gold would be the new bank for Russians, EU and the world eventually.

Banks selling off gold for Bitcoins.

I wanted to say Bitcoins also :))))

It is down due to manipulation. People are running to it but the price is not moving. I don't know about the rest of the world but in Asia right now (China, India, SE Asia) there are lines out the door at many gold shops with people stocking up while it's down.

I stood outside of one today and told a few older Chinese people they were wasting their money and Bitcoins were where it was at. They didn't find it amusing. OK, I didn't really do that but they would probably kick me in the balls and eat my cat if I did.

That is pretty interesting. I wonder what % of the world market they are?

Not sure but most Asians look at gold differently than westerners do. It has always been important to them and it is given for wedding presents, religious holidays, and so on. Husbands give even gold to parents to pay the dowry on his wife. It's DEEPLY rooted into Asian culture and is used to keep their wealth instead of cash. You can even buy things with gold, such as homes and cars a lot of the time. It's always been this way and it always will be.

That said, they do not generally use silver like westerners do. We can get raw silver ingots here for cheap (freshly mined) because the locals are not interested in them other than for making cheap jewelry made my hill tribe people. But for wealth protection, it's all about gold for them and it stems from the Chinese.

It could have something to do with Germany taking all of its gold back from the federal reserve....just a guess?

gotta be the bitcoins.

You need to get with your people at the PBBC to get to the bottom of this.

bitcoins lol, there is a really good reason the person/persons who started bitcoin do not come out and admit to it. They don't wanna have their heads cut off when the crash comes.

Supposedly there is a bail out deal for Cyprus in the works. Will be interesting tomorrow when banks open there. The 2 main banks aren't opening.

Its not creator's fault that people decided to give real value to his play money :)

On the other hand you are right - if people are stupid enough to give real value to play money than they won't be smart enough to realize it was their fault, not creator's fault.

the day investors run to bitcoins instead of gold when they're skeered the sky is falling is a long, long way off, if ever.

:1orglaugh:1orglaugh:1orglaugh

where do you come up with such hilarity?

i mean, it's obvious, you are butthurt over bitcoins for some reason but to extrapolate from that butthurt that every single person holding a part of the current ~$600 million in bitcoins is as you described is funny to read.

Mr t Sold his Necklace collection?

The US Stock market is hitting all time highs, so institutional investors are moving away from gold into stocks to enjoy the bull run.

I will consult with them. You should have a meeting of the minds with your Harem of ladyboys. And when they are done jizzing in your asshole, let me know what you guys come up with and we will compare notes.

The economy is improving. Crazy god loving conservatives will never be able to admit it.

DWB How much can you get 10 oz bars for? Delivered to the states? :thumbsup

When you look at the historic chart, does it look like other bubble markets? If it starts making lower lows, watch out.

infomine(dot)com/investment/metal-prices/gold/all/

fucker, I was about to post the exact same image :1orglaugh

I don't know why some webmasters in this Forum give Byte-Coin so much Buzz... seriously.

It's not even a bubble. It's nothing.

I asked how was the mining process and nobody could answer me. So you dont even know how bitcoin are supposedly generated?...

I would not even put a single dime into that "pseudo-bubble"...

what do you mean it's not even a bubble?

there's tons of sites that explain how they're generated, expecting someone here to explain to you what you should research on your own then blaming those here for not explaining it to you is silly.

Price smashing by the cartel... it's literally criminal the way they manipulate but nothing ever gets dont about it of course...

:1orglaugh:1orglaugh:1orglaugh

i read somewhere, its because of cyprus and eu thing.

PBBC did a study on how bitcoin could possibly take over gold, and it looks like it might come true.

Im surprised you read until the last post, and until the last line of every post, but you dont understand anything.

blaming for not explaining? lol.. I dont fucking care..

You didn't get the point. There is no value in bitcoin, no real value, maybe you don't understand basic economy at all.

The only value is given by people actually following it and thinking they have money in their hands, when they have absolutely nothing.

There is nothing backing up the fictional currency. You really need to read some basic economy.

attack the argument, not the person.

nevertheless, i asked you wtf you meant by bubble.

moreover, you take a jab at me for not understanding economies then state that nothing is backing up the fictional currency?


:1orglaugh:1orglaugh:1orglaugh:1orglaugh:1orglaugh :1orglaugh:1orglaugh

jesus fucking christ.

i noticed you go from not knowing a fucking thing about this to lecturing people on it.

i'm still loling at your backed up currency comment though. fuck, that's funny!

where'd ya go? i'm ready for my next economies lesson from the new expert.

jst acouple days ago, you were in the dark on this

funny how the wiki does in fact explain it.
http://nicktumminello.com/wp-content...vZ-300x189.png


http://en.wikipedia.org/wiki/Bitcoin
Protocol
Summary

Bitcoin is a solution to the double-spending problem of using a peer-to-peer network to manage transactions. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record or chain that cannot be changed without redoing the proof-of-work. The longest chain of records (called blocks) not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of computing power. As long as a majority of computing power is controlled by nodes that are not cooperating to attack the network, they'll generate the longest chain of records and outpace attackers.

The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone.[1][2]
Bitcoins

A bitcoin is defined by its chain of ECDSA digital signatures. Each owner transfers the coin to the next by digitally signing a hash of the previous transaction and the public key (or address) of the next owner and adding these to the end of the coin. A payee can verify the signatures to verify the chain of ownership.
A diagram of a bitcoin transfer.

Although it would be possible to handle coins individually, it would be unwieldy to make a separate transaction for every cent in a transfer. To allow value to be split and combined, transactions contain multiple inputs and outputs. Normally there will be either a single input from a larger previous transaction or multiple inputs combining smaller amounts, and at most two outputs: one for the payment, and one returning the change, if any, back to the sender.

It should be noted that fan-out, where a transaction depends on several transactions, and those transactions depend on many more, is not a problem here. There is never the need to extract a complete standalone copy of a transaction's history.
Hashes and signatures

Two SHA-256 hashes on top of each are used for transaction verification; however, RIPEMD-160 is used on top of a SHA256 hash for bitcoin digital signatures or "addresses". A bitcoin address is specifically the hash of a ECDSA public key, computed this way:

Private-key hash = Version concatenated with RIPEMD-160(SHA-256(public key))
Checksum = 1st 4 bytes of SHA-256(SHA-256(Key hash))
Bitcoin Address = Base58Encode(Key hash concatenated with Checksum)

Example of double-SHA-256 encoding of string "transaction", as in the case of a bitcoin transaction:

transaction
2cf24dba5fb0a30e26e83b2ac5b9e29e1b161e5c1fa7425e73 043362938b9824 (first round of sha-256)
9595c9df90075148eb06860365df33584b75bff782a510c6cd 4883a419833d50 (second round of sha-256)

For hashing bitcoin public key signatures or "bitcoin addresses" using RIPEMD-160, this would give:

"Private-key or password"
2cf24dba5fb0a30e26e83b2ac5b9e29e1b161e5c1fa7425e73 043362938b9824 (first round is sha-256)
Public-key: b6a9c8c230722b7c748331a8b450f05566dc7d0f (with ripemd-160)

Timestamps

The bitcoin specification starts with a timestamp. A timestamp server works by taking a SHA256 hash function of a block of items to be timestamped and widely publishing the hash, such as in a newspaper or Usenet post. The timestamp proves that the data must have existed at the time, obviously, in order to get into the hash. Each timestamp includes the previous timestamp in its hash, forming a chain, with each additional timestamp reinforcing the ones before it.
Bitcoin mining

To implement a distributed timestamp server on a peer-to-peer basis, bitcoin uses a proof-of-work system similar to Adam Back's Hashcash, rather than newspaper or Usenet posts.[2] This is often called bitcoin mining.

The mining process or proof-of-work process involves scanning for a value that when hashed with SHA-256, the hash begins with a number of zero bits. The average work required is exponential in the number of zero bits required and can be verified by executing a single hash.

For the bitcoin timestamp network, it implements the mining process or "proof-of-work" by incrementing a nonce in the record or "block" until a value is found that gives the block's hash the required zero bits. Once the hashing effort has been expended to make it satisfy the proof-of-work, the block cannot be changed without redoing the work. As later records or "blocks" are chained after it, the work to change the block would include redoing all the blocks after it.
The main chain (black) consists of the longest series of transaction records from the genesis block (green) to the current block or record. Orphaned records (purple) exist outside of the main chain.

The majority decision is represented by the longest chain, which has the greatest proof-of-work effort invested in it. If a majority of computing power is controlled by honest nodes, the honest chain will grow the fastest and outpace any competing chains. To modify a past block, an attacker would have to redo the proof-of-work of the block and all blocks after it and then catch up with and surpass the work of the honest nodes. The probability of a slower attacker catching up diminishes exponentially as subsequent blocks are added.[2]

To compensate for increasing hardware speed and varying interest in running nodes over time, the proof-of-work difficulty is determined by a moving average targeting an average number of blocks per hour. If they're generated too fast, the difficulty increases.[2]
Process

The steps to run the network and generate or "mine" bitcoins are as follows:[2]

New transactions are broadcast to all nodes.
Each node collects new transactions into a block.
Each node works on finding a difficult proof-of-work for its block.
When a node finds a proof-of-work, it broadcasts the block to all nodes.
Bitcoins are successfully collected or "mined" by the receiving node which found the proof-of-work.
Nodes accept the block only if all transactions in it are valid and not already spent.
Nodes express their acceptance of the block by working on creating the next block in the chain, using the hash of the accepted block as the previous hash.
Repeat.

Nodes always consider the longest chain to be the correct one and will keep working on extending it. If two nodes broadcast different versions of the next block simultaneously, some nodes may receive one or the other first. In that case, they work on the first one they received, but save the other branch in case it becomes longer. The tie will be broken when the next proof-of-work is found and one branch becomes longer; the nodes that were working on the other branch will then switch to the longer one.

New transaction broadcasts do not necessarily need to reach all nodes. As long as they reach many nodes, they will get into a block before long. Block broadcasts are also tolerant of dropped messages. If a node does not receive a block, it will request it when it receives the next block and realizes it missed one.
Mined bitcoins

By convention, the first transaction in a block is a special transaction that starts a new coin owned by the creator of the block. This adds an incentive for nodes to support the network,[2] and provides a way to initially distribute coins into circulation, since there is no central authority to issue them.

The steady addition of a constant of amount of new coins is analogous to gold miners expending resources to add gold to circulation.[2] In this case, it is computing power and electricity that is expended.

The incentive can also be funded with transaction fees. If the output value of a transaction is less than its input value, the difference is a transaction fee that is added to the incentive value of the block containing the transaction. Once a predetermined number of coins have entered circulation, the incentive can transition entirely to transaction fees and be completely inflation free.[2]
Local system resources

Once the latest transaction of a coin is buried under enough blocks, the spent transactions which preceded it can be discarded in order to save disk space. To facilitate this without breaking the block's hash, transactions are hashed in a Merkle tree, with only the root included in the block's hash. Old blocks can then be compacted by stubbing off branches of the tree. The interior hashes need not be stored.

A block header with no transactions would be about 80 bytes. Supposing that blocks are generated every 10 minutes, 80 bytes × 6 × 24 × 365 = 4.2MB per year. With computer systems typically selling with 2GB of RAM as of 2008, and Moore's Law predicting current growth of 1.2GB per year, storage should not be a problem even if the block headers need to be kept in memory.

hey Dr. economy professor,

which currencies are backed up these days again?

The stock market is high because they printed a bunch of money and gave it to instituations that invest in the market... so not only is the general populations money devalued by this act but their relative ownership of the stock market is reduced.

I heard it because of bitcoins.

It's all the same price no matter where you get it. Thai gold (96.5% purity) has their own system, but it generally follows international standard gold prices.

Just so we're on the same page, there will be no sharing of the ladyboys in my harem. No offense, but there is no telling what sort of STDs you carry around.

This is an interesting read:

http://www.moneynews.com/MKTNews/bil...source=taboola

This is true of gold, paper money and seashells so not like bitcoins are paving any new territory.

I agree with this long term. Gold and Silver are done. I was just surprised it wasn't up after some pretty serious news as to the risks of to Euros in the bank.

gold and silver way over valued. soon gold will be synthesized for less than half of what they're asking, then it will be practically worthless.

you can tell there's a panic by the way Apmex is hawking their shit all over the net now, trying to dump that shiny metal

The rich get richer and the general population really does pays for it.

.

LOL! Hellz yeah! A-TEAM!

:1orglaugh:1orglaugh:1orglaugh
:1orglaugh:1orglaugh:1orglaugh

Seriously... :1orglaugh:1orglaugh:1orglaugh

I thought you were older. Gold was a bad investment for 20 years. Went down every year. Now that it has gone up for 10 doesn't really mean it is a good deal. It is cyclical so more then likely it is near a top and will start the painful drop again.

Bitcoins are the future :)

Yea, but that was before. What was going on 20 years ago is not relevant to what is going on today.

When countries and central banks are stocking up on it still, you should wonder what they know that everyone else does not.

I'm not a big gold bug, but countries and banks are not stocking up for shits and giggles.

Probably another good reason for gold right now...

Cyprus bail-out: savers will be raided to save euro in future crises, says eurozone chief

http://www.telegraph.co.uk/finance/f...one-chief.html