So WTF is bitcoin?

[threadysparrow]

All I know is that you use some CPU and GPU power to mine coins. You can then use those coins for buying things.

 

My problem is, what backs the coins? What regulates the coins? Why do you have to mine them? Is part of your mining going to something productive? How can bitcoins be worth a few dollars one month, and thousands of dollars the next month? Honestly, that sounds kind of like how a scam works.

 

I read the Maximum PC article about them, I read the wiki about them, and none of them answers anything as to the question, "WTF is bitcoin?"

[pspfreak]

It's a form of currency not controlled by any governments. 

[Assassin]

All you can know about bitcoin

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

Bitcoin is an experimental, decentralized digital currency that enables instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate with no central authority: managing transactions and issuing money are carried out collectively by the network.

[alexxis98]

I am so idiot , i still dont get it !

[Jeroen1322]

I am so idiot , i still dont get it !

For what i understand Bitcoin is virtual money

[Art Vandelay]

It's basically a virtual untraceable currency which are created through solutions to massive equations. I've never looked into how this currency stays legitimate, but somehow it can't be duplicated.

 

Basically, it's used for buying illegal goods (silk road), money laundering, and VPNs. I don't really see any other use for them.

[alexxis98]

Ok, all i get is that its virtual money and use some GPU AND CPU power , or something like that to mine coins..

But can you actualy use them and buy something?

[alexxis98]

It's basically a virtual untraceable currency which are created through solutions to massive equations. I've never looked into how this currency stays legitimate, but somehow it can't be duplicated.

 

Basically, it's used for buying illegal goods (silk road), money laundering, and VPNs. I don't really see any other use for them.

hmm ty !

[threadysparrow]

So in other words, it is worthless yet worth a bunch of money at the same time.

[Art Vandelay]

So in other words, it is worthless yet worth a bunch of money at the same time.

Well, every type of currency is basically worthless. The thing about bitcoins is that they aren't based on anything, so they are extremely volatile, and really only worth it if you want to go buy some illegal material on the internet.

 

 

Ok, all i get is that its virtual money and use some GPU AND CPU power , or something like that to mine coins..

But can you actualy use them and buy something?

CPUs are too inefficient to mine bitcoins, and since those ASIC GPUs came out, I doubt anyone would want to mine bitcoins on a normal GPU anymore. At this point, it's really not worth it to get into mining; it was only profitable a few years ago, unless you're running a huge operation.

[RuecanOnRails]

All I know is that you use some CPU and GPU power to mine coins. You can then use those coins for buying things.

 

My problem is, what backs the coins? What regulates the coins? Why do you have to mine them? Is part of your mining going to something productive? How can bitcoins be worth a few dollars one month, and thousands of dollars the next month? Honestly, that sounds kind of like how a scam works.

 

I read the Maximum PC article about them, I read the wiki about them, and none of them answers anything as to the question, "WTF is bitcoin?"

 

 

First I'd like to refer you to the Bitcoin and cryptocurrency section of the forums. http://linustechtips.com/main/forum/37-foldinghome-boinc-and-coin-mining/ It's located together with the folding and boinc section.

 

The question of "wtf is bitcoin" no one can answer that except yourself through many hours of reading, learning, and research into it's potential. It's still new enough that the *book* on the subject is still being written and new innovations are thought up each day.

 

Couple things you should read to help a basic understanding of what it is and why it's changing the world of currency.

http://evoorhees.blogspot.ca/2012/04/bitcoin-libertarian-introduction.html

http://www.coindesk.com/information/

 

Here's a few common myths and misconceptions.

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

 

Bitcoin is a self regulating, decentralized global currency with little to no fees, able to be sent anywhere at anytime and cannot be locked down, withheld, or seized. It's comparable to the internet in the early 90's, or the introduction of email.

 

Bitcoins are released into the world at a very steady predictable rate. Right now it's 25 bitcoins every 10 minutes those are given to the miner who solves a block of transactions. Every 4 years that amount cuts in half until the max cap of 21 million is reached.

In order to keep the flow of Bitcoins on the correct release path, every two weeks the difficulty of the algorithm changes to either increase with more miners, or decrease if some leave. Currently the difficulty is jumping up at unbelievable rates due to not only specialized mining hardware, but also the popularity of Bitcoin throughout the world.

 

 

The act of mining, while many feel that it's wasted potential, those people often don't understand it's importance. When you are "mining" you are adding to the network security and sustaining the entire infrastructure while keeping it decentralized. Miners gather, verify, and compile every transaction that occurs and checks it against the public ledger to ensure it's a legit transaction (the blockchain). Eliminating the need for any cumbersome third party payment verification. The miners are rewarded Bitcoins when they successfully compile a block of transactions.

 

 

Once you've read up and begin to gather a basic understanding of what it is and how it works, please come by the bitcoin section of the forum and ask more indepth specific questions. Broad and vague questions are nearly unanswerable, yet specific details in general can be answered with fair ease. Similar to explaining what the internet is as a whole versus how does a domain work.

[Chatzev]

The funny thing is, the vast majority of all money is "virtual". It is all stored in accounts and there is surprisingly little cash/coins.

"Only 8% of all money is in cash"

This means that 92% of all money is virtual and bit coin is just an economy/money maker based solely around digital money

[Godlygamer23]

So in other words, it is worthless yet worth a bunch of money at the same time.

All form of currency is worthless. Money bills are simply paper(or clothy like material) that says numbers on them. They are given value. There's a special name for the money. In this video from Vsauce, you'll find more information about the different types of currency.

[threadysparrow]

All form of currency is worthless. Money bills are simply paper(or clothy like material) that says numbers on them. They are given value. There's a special name for the money. In this video from Vsauce, you'll find more information about the different types of currency.

watched and learned. Thanks for the link!

[pGuerrerox]

All I know is that you use some CPU and GPU power to mine coins. You can then use those coins for buying things.

 

My problem is, what backs the coins? What regulates the coins? Why do you have to mine them? Is part of your mining going to something productive? How can bitcoins be worth a few dollars one month, and thousands of dollars the next month? Honestly, that sounds kind of like how a scam works.

 

I read the Maximum PC article about them, I read the wiki about them, and none of them answers anything as to the question, "WTF is bitcoin?"

 

As many members already said, Bitcoin is a Crytocurrency.

 

What backs the coins?  It gets its value from different factors, the physical ones are electrical power and hardware, them comes the especulation, availability and demand, and many other factors that affect the market of Bitcoin.

 

What regulates the coins? It is not regulated by any government or institution, how fast/slow and how many bitcoins are produce is regulated only by the Bitcoin network itself, nobody can regulated bitcoin, they can only regulate the transactions (maybe).

 

Why do you have to mine them? In reality all the bitcoins are in the blockchain, and nobody really have any bitcoins, what people really have is a key to access their bitcoin in the blockchain. So you have to mine them to find keys to access the coins in the blockchain...

 

Is part of your mining going to something productive? Well it depends what you call productive or productive to whom.... because if you get bitcoins i guess its something productive for you. So i think  mining does something productive. 

 

How can bitcoins be worth a few dollars one month, and thousands of dollars the next month? Well it all starts with speculation, demand, offer and many other things also depends on other crytocurrencies, so its like any other good in a trade it can go high or down.

 

 

It's basically a virtual untraceable currency which are created through solutions to massive equations. I've never looked into how this currency stays legitimate, but somehow it can't be duplicated.

 

Basically, it's used for buying illegal goods (silk road), money laundering, and VPNs. I don't really see any other use for them.

Basically, it's used for buying illegal goods (silk road), money laundering, and VPNs. So in the end it can do the same things that any other currency (ex. dolar, euro, pesos, etc.) 

 

 

Well, every type of currency is basically worthless. The thing about bitcoins is that they aren't based on anything, so they are extremely volatile, and really only worth it if you want to go buy some illegal material on the internet.

 

CPUs are too inefficient to mine bitcoins, and since those ASIC GPUs came out, I doubt anyone would want to mine bitcoins on a normal GPU anymore. At this point, it's really not worth it to get into mining; it was only profitable a few years ago, unless you're running a huge operation.

can you tell me what is behind the USD apart from the trust of the users? (and apart from a big dept to china)?

 

also ASIC's are not GPU, ASIC's are processors programmed to do only one thing, in this case "mine Bitcoins"

[Art Vandelay]

Basically, it's used for buying illegal goods (silk road), money laundering, and VPNs. So in the end it can do the same things that any other currency (ex. dolar, euro, pesos, etc.) 

Well, normal currencies can be traced and this one can't, so what good is it really, apart from using it for illegal purposes, other than the novelty of it.

[threadysparrow]

Well, normal currencies can be traced and this one can't, so what good is it really, apart from using it for illegal purposes, other than the novelty of it.

Are you an importer/exporter? LOL

 

But anyways, it seems like bitcoin might be something of a fad. Do you guys think so?

[pGuerrerox]

But anyways, it seems like bitcoin might be something of a fad. Do you guys think so?

 

what is "FAD"??

[threadysparrow]

what is "FAD"??

it kind of means something that is really popular for about a year and then nobody cares about it after that. I'm no expert, but I honestly don't think bitcoins are going to be as big of a deal in a year from now.

[pGuerrerox]

it kind of means something that is really popular for about a year and then nobody cares about it after that. I'm no expert, but I honestly don't think bitcoins are going to be as big of a deal in a year from now.

oh ok,,,

 

I think Bitcoin is not a fad, it was launch in 2008, so its been out there for 5 year already, the coin had some ups and downs but it has found its way up again, at the moment of this opinion its valued at ~120 USD per coin.

[AK0490]

It's basically a virtual untraceable currency which are created through solutions to massive equations. I've never looked into how this currency stays legitimate, but somehow it can't be duplicated.

 

Basically, it's used for buying illegal goods (silk road), money laundering, and VPNs. I don't really see any other use for them.

I got a great use for it, I just traded some LTC for BTC, then moved it to coinbase. I then sold it for USD and used it to pay my bills.