What is cryptocurrency mining used for?

[DrMacintosh]

Just now, jolygoodday said:

You can make money lots of ways with very little effort

But these are legitimate ways. The stock market is real and the whole world uses it. Crypto Currency is not legitimate. 

[DrMacintosh]

1 minute ago, jolygoodday said:

I can use YEN to buy gum at my local gas station

YEN is a real currency and has an equivalent value in the US because YEN has a nation backing it, that nation also does business with the US. 

 

Crypto-Currency has nothing backing it yet is allowed to be converted into real money. 

[jolygoodday]

Just now, DrMacintosh said:

But these are legitimate ways. The stock market is real and the whole world uses it. Crypto Currency is not legitimate. 

How is it not legit? you sound like a old dude who keeps yelling "you don't know what the real world is" are you living in a dream state? Is this a Dream?

 

Are you complaining how it is not backed by a government? That is one of the reasons it has value. 

 

I would never argue that Bitcoin will last forever, however I can attest that crypto will be here to stay for a long time.

[Enderman]

8 minutes ago, DrMacintosh said:

The GPU is doing work, you are not. You should not get paid for doing nothing.

Nice, so now you try to change your stance because you didn't know what work is.

 

Do you know what investing is?

You make some decisions and do a bit of "work" and when done correctly you start making money.

 

You're not doing "nothing" because you put in effort at the start and made some decisions and investments, lost money in the process, but then make it back if you made the correct decisions.

 

Just because you're not actively physically or mentally exerting yourself at a task does not mean that there was no work or effort put into the device/machine making you profit.

 

[jolygoodday]

Just now, DrMacintosh said:

YEN is a real currency and has an equivalent value in the US because YEN has a nation backing it, that nation also does business with the US. 

 

Crypto-Currency has nothing backing it yet is allowed to be converted into real money. 

One of the points of crypto is to break away from governments. 

[DrMacintosh]

Just now, Enderman said:

Nice, so now you try to change your stance because you didn't know what work is.

 

Do you know what investing is?

You make some decisions and do a bit of "work" and when done correctly you start making money.

 

You're not doing "nothing" because you put in effort at the start and made some decisions and investments, lost money in the process, but then make it back if you made the correct decisions.

 

I love how you could even fathom that the stock market is anything like Crypto Currency mining. The similarities end with what you said last. You spend money to earn money. That is it. 

 

 

[DrMacintosh]

Just now, jolygoodday said:

is to break away from governments.

Yeah there is a word for this. 

 

Anarchy. 

[jolygoodday]

Just now, DrMacintosh said:

I love how you could even fathom that the stock market is anything like Crypto Currency mining. The similarities end with what you said last. You spend money to earn money. That is it. 

 

 

You risk capital on the bet that a asset will have more value in the future. It is pretty much 75% the same. 

[Enderman]

Just now, DrMacintosh said:

I love how you could even fathom that the stock market is anything like Crypto Currency mining. The similarities end with what you said last. You spend money to earn money. That is it.

Yes and both don't require you to actively physically or mentally exert yourself doing a continuous task.

 

With mining, you put in

1) computer hardware

2) power costs

3) time to set up the software

4) time to monitor the price charts and correctly invest in one coin or another and know when to buy or sell.

 

It's very similar to investing, just with less profit and also less chance of going bankrupt.

[DrMacintosh]

Just now, jolygoodday said:

on the bet that a asset will have more value in the future

But in the real world that asset has actual value, Crypto Currencies do not have actual value. 

[DrMacintosh]

Just now, Enderman said:

With mining, you put in

1) computer hardware

2) power costs

3) time to set up the software

4) time to monitor the price charts and correctly invest in one coin or another and know when to buy or sell.

 

It's very similar to investing, just with less profit and also less chance of going bankrupt.

Ok, lets assume that you are correct, and that Mining is a legitimate form of work.

 

Where is the money coming from? 

[jolygoodday]

Just now, DrMacintosh said:

But in the real world that asset has actual value, Crypto Currencies do not have actual value. 

If you buy 1,000 shares of Amazon and the company gets shut down due to Anti-Trust issues, your stocks are worthless.

 

If the USA falls $USD would be worthless.

 

If people stop using bitcoin it will be worthless. 

 

 

[WWicket]

10 minutes ago, DrMacintosh said:

YEN is a real currency and has an equivalent value in the US because YEN has a nation backing it, that nation also does business with the US. 

 

Crypto-Currency has nothing backing it yet is allowed to be converted into real money. 

Cryptocurrency is just a media of value in the same way that a banknote/paper currency is... the source of the value will depend on the specific cryptocurrency. 

 

One like bitcoin is in effect a fiat currency but is backed by an established community rather than a traditional government. The value comes only from the fact that people are willing to accept it as having value, just like any other fiat currency (for example the USD). Mining is the process of 'minting' the currency. The work done during mining is used both to cover the processing overhead for handling the currency and as an artificial means of restricting production to control inflation etc.

[DrMacintosh]

Just now, jolygoodday said:

If people stop using bitcoin it will be worthless.

The existence of a country >> people using a made up currency based on worthless math 

[jolygoodday]

2 minutes ago, DrMacintosh said:

Ok, lets assume that you are correct, and that Mining is a legitimate form of work.

 

Where is the money coming from? 

Transaction costs,

 

I want to transfer you 10 bit coins? I must pay .01 bit coins. The miner who processes the transaction makes those .01 bit coins. There is a central bank much like every single government which is allowed to distribute bit coins out as well.

[jolygoodday]

Just now, DrMacintosh said:

The existence of a country >> people using a made up currency based on worthless math 

Get off your computer and these forums then, all of it is worthless math. 

[DrMacintosh]

Just now, jolygoodday said:

Transaction costs,

 

I want to transfer you 10 bit coins? I must pay .01 bit coins. The miner who processes the transaction makes those .01 bit coins. There is a central bank much like every single government which is allowed to distribute bit coins out as well.

So the whole thing is arbitrary then. 

 

Nice!

[Enderman]

6 minutes ago, DrMacintosh said:

Ok, lets assume that you are correct, and that Mining is a legitimate form of work.

 

Where is the money coming from? 

I don't think you understand how currency works.

 

The currency itself holds 0 value.

It only has value because people are willing to pay for it or exchange it for goods and services.

 

It's almost the same as real currency, except not exactly because the material of bills and coins holds a few cents of value.

Gold is a completely different story.

[DrMacintosh]

Just now, jolygoodday said:

Get off your computer and these forums then, all of it is worthless math. 

There is a difference between using a computer and getting paid for it, and turning one on to let it do calculations and you demanding money for its work. 

 

 

[WWicket]

5 minutes ago, DrMacintosh said:

The existence of a country >> people using a made up currency based on worthless math 

What is the existence of a country? Just a concept. How do countries exist? By consensus.

 

Exactly like bitcoin's value.

3 minutes ago, DrMacintosh said:

So the whole thing is arbitrary then. 

 

Nice!

Just like every other fiat currency.

[DrMacintosh]

Just now, Enderman said:

currency itself holds 0 value.

Tell that to the cashier at McDonalds 

[jolygoodday]

1 minute ago, DrMacintosh said:

So the whole thing is arbitrary then. 

 

Nice!

Never heard of tax........................................................................................

 

You need to like take economics 101. 

 

[DrMacintosh]

Just now, jolygoodday said:

Never heard of tax

Its an imposed tax to regulate an illegitimate currency. 

 

Adding systems of economics to something that isn't recognized by any nation as having any value doesn't make it legitimate. 

[jolygoodday]

Just now, DrMacintosh said:

Tell that to the cashier at McDonalds 

If I work at McD's and you paid me double the amount in bit coins I would accept it in a <3beat. 

[WWicket]

1 minute ago, DrMacintosh said:

Tell that to the cashier at McDonalds 

http://bitcoinrestaurants.net/