Need an explanation on LTC mining.

[peachtopus]

Every time I try to explain it, it sounds illegal.

[miyabwah]

you mine litecoins using an AMD GPU to make litecoin and it can be sold for money and transferred to usd.

[Denned]

Donate GPU power, get moneyz.

 

Now it sounds like black magic instead

[peachtopus]

I mean like what's being decrypted, why it's being decrypted, where the "coins" come from, where are the codes coming from?

That stuff....

[Theo]

read the sticky!

This http://linustechtips.com/main/topic/10886-introduction-to-bitcoins/

[Ciccioo]

actually i never understood it either, and a 10 mins googling couldn't make it clear for me when i looked for some more clearity

so, the things that are not explained in the topic linked up here are

 

- where does the value come from? i am a total monkey when it comes to economy, but as far as i'm concerned to know, when i keep cash in my hands, i am only holding something that represents the value which sits in a bank, under form of gold or something. i think that who invented bitcoins couldn't just come out and say "hey look, i invented 21 million things and they're worth a bagillion dollars". so where does their value come from?

 

- what do they pay me for? for hashing stuff that is used for transactions? so, they pay me to make it possible for other people to be paid after having made it possible for someone else to get paid after...? payception

so, basically there is the biggest supercomputer which happens to be a worldwide network of 7950s and 290s with a scary amount of computational power, and nobody is using it in any productive way? it's just there to make money flow? i would feel offended if they wasted my gpu cycles like that

except NSA and NWO, who is using our gpus? what are they using it for? folding, for instance, is a smart thing to do. but mining? i'm confused

 

 

 

edit: nevermind, i posted these same questions in the correct topic http://linustechtips.com/main/topic/11026-bitcoin-q-a-ask-me-anything/?p=1387642