Bitcoin

[kelvinhall05]

What is it? From what I understand, I let my computer run day in and day out, then make money from that. Is that pretty much it, or am I completely missing the point? Is it even legal? I'm just curious what this whole deal even is.

[Jamtoad]

Well using a computer will get you like no bitcoins lol.

 

But you have your harwear solve math equations and you make Bitcoin from it.

 

You really need an ASIC setup to make it profitable 

[kelvinhall05]

22 minutes ago, Jamtoad said:

Well using a computer will get you like no bitcoins lol.

 

But you have your harwear solve math equations and you make Bitcoin from it.

 

You really need an ASIC setup to make it profitable 

 

Speak english?

[Jamtoad]

13 minutes ago, kelvinhall05 said:

Speak english?

Okay sorry Mr perfect I misspelled one word

 

Hardware* happy now? 

[SansVarnic]

53 minutes ago, kelvinhall05 said:

What is it? From what I understand, I let my computer run day in and day out, then make money from that. Is that pretty much it, or am I completely missing the point? Is it even legal? I'm just curious what this whole deal even is.

1. Bitcoin is electronic currency, no physical medium involved.

2. Back in the day - about 7-9 years ago you could harvest bitcoin on your pc - today yeah no, your wasting your time as you will need to invest in an ASIC and even then you most likely wont be profitable. ASIC are exspensive and you wont recoup you investment.

3.It is legal,if it was not LTT would not have a section on miming in the forum.

4. The whole deal is a waste of time if you did not get involved at least 7 years ago.

[kelvinhall05]

32 minutes ago, Jamtoad said:

Okay sorry Mr perfect I misspelled one word

 

Hardware* happy now? 

 

No, like, I have no idea what "ASIC Setup" means, I have no idea what solving math equations has to do with digital currency

[SansVarnic]

14 minutes ago, kelvinhall05 said:

No, like, I have no idea what "ASIC Setup" means, I have no idea what solving math equations has to do with digital currency

Quote

 application-specific integrated circuit (abbreviated as ASIC)

https://en.bitcoin.it/wiki/ASIC

 

Everything about Bitcoin;

https://en.bitcoin.it/wiki/Main_Page

 

Why math is invovled:

Quote

 

The Computationally-Difficult Problem

Mining a block is difficult because the SHA-256 hash of a block's header must be lower than or equal to the target in order for the block to be accepted by the network. This problem can be simplified for explanation purposes: The hash of a block must start with a certain number of zeros. The probability of calculating a hash that starts with many zeros is very low, therefore many attempts must be made. In order to generate a new hash each round, a nonce is incremented. See Proof of work for more information.

The Difficulty Metric

The difficulty is the measure of how difficult it is to find a new block compared to the easiest it can ever be. It is recalculated every 2016 blocks to a value such that the previous 2016 blocks would have been generated in exactly two weeks had everyone been mining at this difficulty. This will yield, on average, one block every ten minutes. As more miners join, the rate of block creation will go up. As the rate of block generation goes up, the difficulty rises to compensate which will push the rate of block creation back down. Any blocks released by malicious miners that do not meet the required difficulty target will simply be rejected by everyone on the network and thus will be worthless.

Reward

When a block is discovered, the discoverer may award themselves a certain number of bitcoins, which is agreed-upon by everyone in the network. Currently this bounty is 25 bitcoins; this value will halve every 210,000 blocks

 

 

Edited January 10, 2017 by SansVarnic

[Jamtoad]

4 hours ago, kelvinhall05 said:

No, like, I have no idea what "ASIC Setup" means, I have no idea what solving math equations has to do with digital currency

Google ASIC then very simple task to do.

 

And that's what your computer does to get bitcoin. That's how you are awarded bitcoins by solving so many equations. 

 

It's not like you have to solve them, just your computer though the mining program does that all on its own.

 

So the better the hardware the faster it can solve X number of equations the more bitcoins you get awarded.

 

 

That's like very very basic from how I understand it 

 

[Mooshi]

Bitcoin is a dead meme