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View Poll Results: What do you think of BitCoin?
It's a new form of currency that I've chosen to invest in. 7 15.56%
It's a new form of currency that I have not chose to invest in. 5 11.11%
It's a useless bubble of invisible cash that people believe has value. 26 57.78%
What's BitCoin? 7 15.56%
Voters: 45. You may not vote on this poll

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Old Jan 03, 2014, 07:14 PM
DJO
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Originally Posted by BE77 Pilot View Post
Thanks. So why aren't setting up rooms full of computers running programs to make coins?
Oh trust me they're here, we aren't hearing about a LOT of them though:

http://dealbook.nytimes.com/2013/12/...es-of-iceland/

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There, more than 100 whirring silver computers, each in a locked cabinet and each cooled by blasts of Arctic air, are the laborers of the virtual mines where Bitcoins are unearthed. The custom-built machines, running an open-source Bitcoin program, perform complex algorithms 24 hours a day, seeking to win a block of 25 new Bitcoins from the virtual currency’s decentralized network.
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Old Jan 03, 2014, 07:20 PM
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Originally Posted by srt8madness View Post
Meh.
Well said.
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Old Jan 03, 2014, 07:24 PM
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Originally Posted by BE77 Pilot View Post
Someone please explain how a computer running some crazy program can 'make' bitcoins?
Think of it this way. There are a limited number of Bitcoins. Around 20+ million. Only half have been mined. It becomes harder and harder to mine new bitcoins as the supply diminishes. Think of gold. It was easy to find gold in the beginning, but as more gold is mined it becomes harder to find new gold. If you run a certain computer program for a long time, it will come up with the right sequence of numbers, which earns you a fraction of a bit coin.

The less bitcoins that are available the harder and longer the computer has to operate to mine (discover) new coins. Thats why a popular scam today is for hackers to break into your computer and use it to run pieces of their mining program. If you manage to get thousands of computers hacked and running the program, the hacker can make quite a bit of money off of you. Hope I didn't make you more confused. It's just a very rough outline of how it's done.
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Old Jan 03, 2014, 11:36 PM
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Originally Posted by DJO View Post
Each coin is just made up of a certain pattern of numbers. A computer can solve the algorithms to find that pattern of numbers to find a set of coins.

That's as simple as I can explain it.
I get that part. Once it's found then it goes in the blockchain which is a record of all the bitcoins. I like that it is limited and can't be inflated. One argument against it is that it could be sensitive to deflation, but proponents say it can be subdivided very small to compensate. I really like that it doesn't rely on inflationary moonbat policy to exist like central bank controlled fiat toilet paper.

People criticize it, but what is it? It's a way to move value around the world without Goldman Sachs or Visa or some other crook taking a middle man fee. You're already paying a fee to be on the internet and to pay an extra fee just because it is money your sending and not an email is One reason why it has appeal on the internet. Fees can get expensive.
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Old Jan 04, 2014, 12:57 AM
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I wasn't aware that you could mine your own bitcoins. Just like mining gold. It really is fascinating
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Old Jan 04, 2014, 10:03 AM
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Originally Posted by DenverJayhawk View Post
I wasn't award that you could mine your own bitcoins. Just like mining gold. It really is fascinating
One of the things some people are using it for now is to buy drugs on the internet. Illegal weapons are another thing they like it for. No way to trace the sale. One can arm a small army with anything you can think of.
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Old Jan 04, 2014, 10:28 AM
DJO
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Originally Posted by DenverJayhawk View Post
I wasn't aware that you could mine your own bitcoins. Just like mining gold. It really is fascinating
Exactly, but the chances nowadays of getting a 25 BTC block by yourself ($20,000 +) are very slim unless you pay for very, very expensive ASIC systems.

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Originally Posted by Sonny McGhee View Post
One of the things some people are using it for now is to buy drugs on the internet. Illegal weapons are another thing they like it for. No way to trace the sale. One can arm a small army with anything you can think of.
Cash can buy weapons as well. Cash is anonymous if dealt with in person, and there's no way to trace it either. BitCoin is just done over the internet, that's what scares people like you.



Dan
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Old Jan 04, 2014, 10:56 AM
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Originally Posted by DJO View Post
Cash can buy weapons as well. Cash is anonymous if dealt with in person, and there's no way to trace it either.
Soooo, serial numbers are useless?

mw
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Old Jan 04, 2014, 10:58 AM
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United Kingdom
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Bitcoin will crash and burn in time
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Old Jan 04, 2014, 11:00 AM
DJO
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Originally Posted by ENGINETORQUE View Post
Bitcoin will crash and burn in time
Suit yourself. But 1/2 a coin today and it may turn into tens of thousands of dollars in the next few months to a year. It's unpredictable, but I find it more than obvious that it's rising steadily, and more people than enough use it to make sure that it doesn't "crash and burn".



Dan
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Old Jan 04, 2014, 11:07 AM
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Originally Posted by DJO View Post
Suit yourself. But 1/2 a coin today and it may turn into tens of thousands of dollars in the next few months to a year. It's unpredictable, but I find it more than obvious that it's rising steadily, and more people than enough use it to make sure that it doesn't "crash and burn".



Dan
Was listening to a finance expert on the BBC only a week or so back

'Crash and burn' he confidently stated - then admitted he'd bought a small stake 'just in case'
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Old Jan 04, 2014, 11:10 AM
DJO
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Originally Posted by ENGINETORQUE View Post
Was listening to a finance expert on the BBC only a week or so back

'Crash and burn' he confidently stated - then admitted he'd bought a small stake 'just in case'
Haha exactly, I mean, why not? When it takes over you'll be glad you did
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Old Jan 04, 2014, 11:58 AM
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Quote:
Originally Posted by DJO View Post

Cash can buy weapons as well. Cash is anonymous if dealt with in person, and there's no way to trace it either. BitCoin is just done over the internet, that's what scares people like you.



Dan
What made you decide that I am scared of the internet???
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Old Jan 04, 2014, 12:29 PM
turn, turn, turn.
Athol, Massachusetts
Joined Oct 2005
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Originally Posted by War is Peace View Post
Pseudo currencies do show promise. What I would worry about is if they become too successful, the Government will confiscate them claiming nobody other than the Federal Government has the legal authority to issue currency. Then if you put up too much of a stink, the Government will charge you with violating Treasury laws. Wait and see, it is destined to happen.
as well it should happen.
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Old Jan 04, 2014, 12:31 PM
turn, turn, turn.
Athol, Massachusetts
Joined Oct 2005
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Originally Posted by DJO View Post
Exactly. There's nothing that the government can confiscate or take over... decentralized, precisely.
I have much more faith in our government, than that.
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