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| "All money is based on trust. (Aside from the people who prefer to base the value of their assets on gold.)" |
Bitcoin is just a simple software, so it can't affect your computer more than other software. However, mining makes your computer do a lot of calculations, therefore it consumes electricity and generate heat. Just like the Folding@Home projects actually. Governments will get frustrated when they find out that its impossible to put taxes on Bitcoins. Gaming PC implies that you spent money based on performance meaning you'd need a good GPU. Though while NVidia cards are superior in technology and rendering, AMD cards are better for mining because of the architecture and technology behind it. They can hash out more calculations at faster rates. This is why there is a disparaging difference between the two chipsets. I'll try to elaborate. The program itself is free and there are many of them to choose from. CGMiner is probably the most lightweight of them all, if you want a starting point. GPU (aka graphics card processing units) are the most effective to mine bitcoins looking at it from standard PC hardware. In this fashion, electric supply vs. profit is turnout is low. There are however specific hardware options specifically made to mine which use minimal power and gain significantly better performance.
Bitcoins are just a balance stored in a public ledger, and this public ledger is shared between all Bitcoin users. What matters is that nobody can create as much bitcoins as they want and that transactions are secure. Bitcoin does that. Bitcoins are really just numbers just like the money in your bank account. To create bitcoins, just need to do Bitcoin mining, which is indeed very resource consuming and not necessarily profitable. Basically something encrypted that has value because it can't be decrypted. It can thus be transferred to others. Money is just something abstract that we have decided has value. The same can be done by encrypted data as long as it can't be forged. Just like you transfer from bank to bank today without becoming physical money. Bitcoin, however does not use banks and is thus decentralized. You can send money from person to person like it was physical money, but is in fact digital money.
Many people are just starting to hear about Bitcoins even though they have been aroung. They are a very new "currency" and will allow you to profit without ANY fees of transfer, any freezing of funds, doesn't require banks and is currently feared by established financial institutions to the way of trying to ban it. There are a group of clever developers are working on a tool that will allow people to make bitcoins every single day! The idea is not stupid at all. Actually, even bitcoin.org makes it clear that Bitcoin is still experimental and its price is too volatile to be used to keep your savings for example. It is however a safer payment network then anything we are using today. The idea behind Bitcoin is that it can be trusted because it is the only payment system that doesn't need to be trusted. Bitcoin suceeded to create a payment network that implements pure transparency.
Many say that it fails to explain the legal source, authority, the security and the value mechanism for Bitcoin. In fiat currency we know the source and the authority and what and when we can claim at source if the intermediary or issuer hits a wall or is digested by acidity of its economic mismanagement.
Many say that it fails to explain the legal source, authority, the security and the value mechanism for Bitcoin. In fiat currency we know the source and the authority and what and when we can claim at source if the intermediary or issuer hits a wall or is digested by acidity of its economic mismanagement.
Anonimity as a Threat to public stability
Do you really think that Bitcoin is less anonymous than cash if criminal uses special steps to hide it (using anonymity network, changing IP address or computers and etc)? I don`t think that bitcoin system is more safe from criminal activities and illegal criminal trafficking, because criminals will never let an opportunity to make some special steps in order to be incognito. The opposite is in fact true. Cash is nearly impossible to trace (at least in small amounts) and bitcoins are hard, but not impossible to trace (unless special steps are taken by user to hide, like using TOR anonymity network.)
Cash is MORE anonymous than bitcoins.
Are Cash (e.g. several dollars) a system of using cash? Is a system in which you get money (legal salary) is called cash? And is there ability in this system to make a crimes (like trafficking in human beings, drug trafficking and etc.) and usually to be undetected? I don`t speak about things which comes without any saying: if you use cash for bad things, it`s criminal without any doubt, but other people who doesn`t commit crimes doesn`t support your criminal activity. Yes, and bitcoin itself is form of money. But their systems are different (a little at least). And as I know users of cash is hard to trace, but users of bitcoin is impossible to trace. Hackers and good informatics should know very well why - how system of using bitcoins makes it`s users incognito. But I didn`t hear anything about impossibility to trace people who are using cash (physical tracing includes too), only about difficulties.
Yes and for this I don`t talk about physical payment method, because it goes without saying, that if you use cash for bad things, it`s criminal. But other people who uses this way of payment doesn`t support criminal activities if they doesn`t commit crime, because system in which you get money protects from that (and any webpages from black market can`t use e-bank system without big risk to be detected as I know). What many may not understand is that crime can be done with cash, so why don't protest cash? It does not have 'protections from crime' and black market uses it, so why don't you complain about cash? Bitcoin is if anything less anonymous than cash and can be used for legitimate purposes as well as crime.
But if there is many protections from crime, then how can it be, that owners and users of webpages, where you can easily get anything you want from the black market (I mean drugs, human, illegal guns, ordered the murder or sth. else from that kind) uses bitcoin in order to do their works freely and because there is no ability to detect them? If bitcoin is more save from criminal activities than regular cash or at least is the same, then it is ok. But if not, then it`s not ok. :)
You can't detect a criminal with the current system when you aren't using a controlling agency such as a bank (criminals like cash). The physical payment method that is used now isn't protected in any way. The only way that protection against usage in criminal activity was added was when people started using the digital version of the current system. Which is also flawed due to the centralized control a bank has over these systems (bank gets hacked and all your money disappears in thin air).
If you are using cash, you are responsible for that how do you use it and for what. So you are personally responsible for your own works in this situation. But if you use anything what is made like a system which lets to do crimes and hide this activity perfectly, then you support those, who engage in pornography, human trafficking, drug trafficking, killing for money, prostitution and etc. So in this way you become responsible too for crimes which are being committed by other people.
Using cash and creating a system which hides all financial and criminal activities too are two different things. If there would be any ability to create such system which woks in 100 or 99 percent of perfectness (this means that criminals become incognito and not caught to police or any other person who would like to know who did or bought sth.) from dollars or from the way how each person gets it (as it is with BTC), then using cash would be supporting criminal activities.
Mining computers use a cryptographic algorithm to solve a problem that can only be solved by doing a lot of computer work. This is used to protect integrity of the bitcoin network and prevent double spends and controls rate of new bitcoin creation. It is a bit complicated, but I am sure you can understand how it works if you read into it a little more. One source is the original white paper on Bitcoin written by Satoshi Nakamoto himself. The paper describes how it works.
Don't even bother with super computers. There are avalons coming out now worth 30k$ which will mine all the coins. Even if u have a super computer u got no chance. If bit coin is hoarded by a few, it will never get the influence it wants to have. It will be similar to fiat money, Only now, It is even more volatile because it is vulnerable to hacking and no one knows who is behind it. If it's anonymous then who is running the website? Somethings fishy abt bit coin and i wud stay far away. If you're not using bitcoin to make transactions then yes, you're only benefiting the miner or the person who invested before you. However, if you are making bitcoin transactions, then the miners are benefiting you because you're not paying them anything to verify your transactions. Essentially, you're using the miner's hardware for free in order to verify your transactions... pretty neat, right?
If you're not using bitcoin to make transactions then yes, you're only benefiting the miner or the person who invested before you. However, if you are making bitcoin transactions, then the miners are benefiting you because you're not paying them anything to verify your transactions. Essentially, you're using the miner's hardware for free in order to verify your transactions... pretty neat, right?
Bitcoin is a monetary system managed by NOBODY. Fixed.
You mean everyone? Name a modern country's currency, ANY modern country's currency, that isn't based on gold, and is centralised via a national reserve or institution.
Cash is MORE anonymous than bitcoins.
Are Cash (e.g. several dollars) a system of using cash? Is a system in which you get money (legal salary) is called cash? And is there ability in this system to make a crimes (like trafficking in human beings, drug trafficking and etc.) and usually to be undetected? I don`t speak about things which comes without any saying: if you use cash for bad things, it`s criminal without any doubt, but other people who doesn`t commit crimes doesn`t support your criminal activity. Yes, and bitcoin itself is form of money. But their systems are different (a little at least). And as I know users of cash is hard to trace, but users of bitcoin is impossible to trace. Hackers and good informatics should know very well why - how system of using bitcoins makes it`s users incognito. But I didn`t hear anything about impossibility to trace people who are using cash (physical tracing includes too), only about difficulties.
Yes and for this I don`t talk about physical payment method, because it goes without saying, that if you use cash for bad things, it`s criminal. But other people who uses this way of payment doesn`t support criminal activities if they doesn`t commit crime, because system in which you get money protects from that (and any webpages from black market can`t use e-bank system without big risk to be detected as I know). What many may not understand is that crime can be done with cash, so why don't protest cash? It does not have 'protections from crime' and black market uses it, so why don't you complain about cash? Bitcoin is if anything less anonymous than cash and can be used for legitimate purposes as well as crime.
But if there is many protections from crime, then how can it be, that owners and users of webpages, where you can easily get anything you want from the black market (I mean drugs, human, illegal guns, ordered the murder or sth. else from that kind) uses bitcoin in order to do their works freely and because there is no ability to detect them? If bitcoin is more save from criminal activities than regular cash or at least is the same, then it is ok. But if not, then it`s not ok. :)
You can't detect a criminal with the current system when you aren't using a controlling agency such as a bank (criminals like cash). The physical payment method that is used now isn't protected in any way. The only way that protection against usage in criminal activity was added was when people started using the digital version of the current system. Which is also flawed due to the centralized control a bank has over these systems (bank gets hacked and all your money disappears in thin air).
If you are using cash, you are responsible for that how do you use it and for what. So you are personally responsible for your own works in this situation. But if you use anything what is made like a system which lets to do crimes and hide this activity perfectly, then you support those, who engage in pornography, human trafficking, drug trafficking, killing for money, prostitution and etc. So in this way you become responsible too for crimes which are being committed by other people.
Using cash and creating a system which hides all financial and criminal activities too are two different things. If there would be any ability to create such system which woks in 100 or 99 percent of perfectness (this means that criminals become incognito and not caught to police or any other person who would like to know who did or bought sth.) from dollars or from the way how each person gets it (as it is with BTC), then using cash would be supporting criminal activities.
Mining computers use a cryptographic algorithm to solve a problem that can only be solved by doing a lot of computer work. This is used to protect integrity of the bitcoin network and prevent double spends and controls rate of new bitcoin creation. It is a bit complicated, but I am sure you can understand how it works if you read into it a little more. One source is the original white paper on Bitcoin written by Satoshi Nakamoto himself. The paper describes how it works.
Don't even bother with super computers. There are avalons coming out now worth 30k$ which will mine all the coins. Even if u have a super computer u got no chance. If bit coin is hoarded by a few, it will never get the influence it wants to have. It will be similar to fiat money, Only now, It is even more volatile because it is vulnerable to hacking and no one knows who is behind it. If it's anonymous then who is running the website? Somethings fishy abt bit coin and i wud stay far away. If you're not using bitcoin to make transactions then yes, you're only benefiting the miner or the person who invested before you. However, if you are making bitcoin transactions, then the miners are benefiting you because you're not paying them anything to verify your transactions. Essentially, you're using the miner's hardware for free in order to verify your transactions... pretty neat, right?
If you're not using bitcoin to make transactions then yes, you're only benefiting the miner or the person who invested before you. However, if you are making bitcoin transactions, then the miners are benefiting you because you're not paying them anything to verify your transactions. Essentially, you're using the miner's hardware for free in order to verify your transactions... pretty neat, right?
Bitcoin is a monetary system managed by NOBODY. Fixed.
You mean everyone? Name a modern country's currency, ANY modern country's currency, that isn't based on gold, and is centralised via a national reserve or institution.
Bitcoin has no masters.
So each transaction block needs a SHA-256 hash of the block header which needs to be lower than or equal to the 'target'. The target is a 256 bit integer shared by all nodes in the network and determines difficulty, and the target is lowered as the network gets faster to make block generation more difficult. The network aims for 1 block every 10 minutes. So when a block of transactions in the bitcoin network is validated, the first miner to successfully prove their work to the network rewards itself with 25 bitcoins (originally 50, it algorithmically adjusts for speed improvements). This is how new bitcoins are generated.
There's about 1 block every 10 minutes, but the chances of hitting the jackpot and getting 25 bitcoins are slim, so most miners these days work in pools and the money is distributed if any of them validate.
The mining app is free to download, meanning anyone cand have it, but it runs buy your computer, the process of minning is the "work" of the computer in the process, this generate the bitcoins.
By now, for generate a sustancial amount of bitcoins you would need a really big investment in a powerfull computer, Is no longer worthy to use a personal computer to do this, cause it will never produce an important amount of Bitcoins. Mining does produce bitcoins but the point of mining is to establish a transaction history for the bitcoin network, the block chain. Without the block chain, theres nothing to prevent a user from sending the same bitcoin to two different places.
The reward for mining is simply to introduce predictable inflation and to reward people for helping the network (it wouldn't work without miners). By now, for generate a sustancial amount of bitcoins you would need a really big investment in a powerfull computer, Is no longer worthy to use a personal computer to do this, cause it will never produce an importan amount of bitcoins
It's math.
So each transaction block needs a SHA-256 hash of the block header which needs to be lower than or equal to the 'target'. The target is a 256 bit integer shared by all nodes in the network and determines difficulty, and the target is lowered as the network gets faster to make block generation more difficult. The network aims for 1 block every 10 minutes. So when a block of transactions in the bitcoin network is validated, the first miner to successfully prove their work to the network rewards itself with 25 bitcoins (originally 50, it algorithmically adjusts for speed improvements). This is how new bitcoins are generated.
There's about 1 block every 10 minutes, but the chances of hitting the jackpot and getting 25 bitcoins are slim, so most miners these days work in pools and the money is distributed if any of them validate.
The mining app is free to download, meanning anyone cand have it, but it runs buy your computer, the process of minning is the "work" of the computer in the process, this generate the bitcoins.
By now, for generate a sustancial amount of bitcoins you would need a really big investment in a powerfull computer, Is no longer worthy to use a personal computer to do this, cause it will never produce an important amount of Bitcoins. Mining does produce bitcoins but the point of mining is to establish a transaction history for the bitcoin network, the block chain. Without the block chain, theres nothing to prevent a user from sending the same bitcoin to two different places.
The reward for mining is simply to introduce predictable inflation and to reward people for helping the network (it wouldn't work without miners). By now, for generate a sustancial amount of bitcoins you would need a really big investment in a powerfull computer, Is no longer worthy to use a personal computer to do this, cause it will never produce an importan amount of bitcoins
It's math.
You have a cryptographic private key on your computer, when a coin is transfered to you, its signed with your public key (your wallet address is the short version of this) so only your private key can decrypt this and the bitcoin network validates the whole transaction (miners).
This history of every transaction is stored on every computer in the network and is called the block chain, so you dont need to be connected 24x7 to get money. If you lose your wallet (key) you lose your $.
The techies love it. And people with businesses that exchange internationally (especially computer tech businesses) are seeing the value. Once their are more escrow systems in place for people to trade with trust, bitcoin will become the norm. Was this a bubble? Yes, a small one. Was it a crash? No. It is currenlty growing at a rate of 4.8% per day. Now that is the kind of steady growth we need. Chill out grandma! . :P
What do you expect, a couple of months ago BTC were worth $20. Just a bunch of speculators hoping that the person after them would be the greater fool.
On the way up, everyone with half a brain cell knew it was a bubble and was just trying to make that profit before it dropped. Some people seemed to think pointing out this self evident truth made them clever.
When you have people buying shitloads who've never even heard of the currency and don't understand it, you know it's a bubble.
There are Application Specific something something ASICs that run on hardly any power and boast hash rates of 5 GPUs for much cheaper than 5 GPUs...oh wait the manufacturers are charging an arm and a leg for them and not delivering. What else can you do with an FPGA? I might buy one, and use it for whatever@home or something if buttcoin dies.
I think you might be a little confused as to what it means to control bitcoin: owning (a lot of) bitcoins is not the same as controlling bitcoin. The kind of control Rothschild was talking about was the ability to issue money, not simply having money. The only thing that people with a lot of hashing power can do is try to engineer a 51% attack on Bitcoin: it will either result in a successful double-spend or a crash of Bitcoin. And if they have Bitcoin holdings they will lose A LOT of value!
I disagree in part with your assessment,since free market can be influenced by cartels.I would have to spent my entire life mining for nothing , if cartels mined with their own supercomputers.That means you would have to either buy or earn bitcoins from those monopolies,early starters had a mining advantage and bitcoin supply is finite,or somehow inflate them.Lets not forget that the Goverment holds the exclusive right to issue money and can pass a law to control or outlaw Bitcoin Exchanges.
Free markets have only one rule: "Supply and Demand".If there is demand and you control supply,you control the price.It was Mayer Amschel Bauer Rothschild who said it best: "Give me control of a nation's money supply and I care not who makes it's laws".If bitcoins are finite and those with the most computer power,or those who started mining early, have the most,then there is no free market.They will control those Bitcoins already mined as well as new supply.At least thats the way i see it.
I have a question.If the number of bitcoins that can be made,through the use of a miner,depends on processing power,then what is to stop a Goverment,or a private entity, with many supercomputers,from acquiring all the new Bitcoins for itself thus monopolizing the new currency.After all there is only a finite amount of Bitcoins that can ever be mined.The solution of course would be to make the few remaining Bitcoins infinitely divisible,thus inflating them,but then you have a fiat currency.
Well the rules of the free market tells us that no non-coercive entity can gain a monopoly without government intervention through tax breaks, subsidies, etc... A government could not gain an absolute monopoly on the mining of bitcoins unless it owned all the processing chips in the world, which would seem virtually impossible. What is more likely to happen is there being several large bitcoin mining agencies on market, each with there own array of supercomputers. Don't worry, it takes 3 days of reading and 3 weeks of understanding to get how bitcoin works. Then it takes 3 months to understand you can trust it.
So just keep reading and reading. Pay special attention to posts with discussion in comments, where bitcoin users are trying to explain others why it is not a scam. first u create a wallet, it will be stored in your smartphone or computer, after completing the wallet setup, you secutre it with a strong password, than you are ready to receive or to send bitcoins, you see it just like banking, but peer to peer. Google for sellers or get them from a friend..... and ur transactions can take place. . .and start collecting the free mBTC (micro coins ) day after day. The benefit of solving the mathematical problem is to provide proof of work that the miner actually verified the transactions which they were asked to verify. Without the progressively challenging mathematical problem, the network can be attacked by anybody with a lot of CPU power (e.g. a botnet). If anybody wants to make an attack on BItcoin today (aka the 51% attack), they'd have to have more than 30 times the processing power of the top 500 supercomputers in the world!
Brilliantly defined!
Yes!
An anonymous group started this.
People in the beginning could mine very easy and earn lots of bitcoins.
The people from now on are told that they can earn coins, but in reality it is getting so hard that just the guys with render farms and the groups gaming bitcoin with loads of these gpu-renderfarms can make moeny. And botnets have been created to take advantage of it. It is used by loads of criminals for moeny laundring and it also wastes lots of energy for the mining.
I learned from others that a small part of the mining done is used to helping with the transactions in the swarm (in some way). And you don't have to be a frantic miner to use them(that also will get slower and slower and stop in 2040). The biggest problem is all the criminal activity that is helped from the mining. Lots of money laundring, sites selling drugs for bitcoins and other not so great activities. And an unknown group of people who started all this.. Contiunued...
And the money made by this money is just air money. You must have create some type of real value other than pure trust. I mean real gold when mined have several uses in itself, for example. And how much of the BC are used in daily transactions to help the real economy instead of making a very small minority very rich? There is one guy that owns 25% of all bitcoins, for example. According to wikipedia there have been a couple of cases with botnets that mine bitcoins.
But the verification part must be a miniscule part of the problem solving. The rest of the time it just is sitting wating energy. Looking at the curve of the rise in value for BC right now, it just have to crash, sooner or later. Yes, money will fluctuate, but have you seen the dollar rise this fast, having a crash in the last two years (after another big "hause"). To mee this looks like energy wasting on somthing that benefits the few early adopters. One person owns 25% of the bitcoins f.e.
BTC will rise in value in the long term. After all coins are minted, they can only be lost forever, driving the remaining ones up in price. "Early adopters have a large number of bitcoins now because they took a risk and invested resources in an unproven technology. By so doing, they have helped Bitcoin become what it is now and what it will be in the future (hopefully, a ubiquitous decentralized digital currency). It is only fair they will reap the benefits of their successful investment."
Bitcoin seems to be a good investment but I prefer more physical sylver since I know that it's a highly industrialised metal. Sylverware, jewelry and in many other applicacitions silver is used, also is real money. There is much more gold than silver and silver is at an incredible bargain right now. At a rate of 56 to 1 compared to gold right now, this is an incredible opportunnity. Sadly, lots of people forgot that physical silver and gold is real tangible money, you c'ant print them. Not enough. In a real bad situation, you might get what you need by bartering or bribing some guy who has something you want or get you to safety with some gold or silver whereas he might go WTF is bitcoin..,if you can even access them.
It's bad enough we have monopoly money but now it's imaginary almost as kind of a beta phase for a one world currency. Some say bitcoin could be a bubble. It's not that I'm against bitcoin but I wouldn't trust everything with it. Diversifying's the way to go.
This history of every transaction is stored on every computer in the network and is called the block chain, so you dont need to be connected 24x7 to get money. If you lose your wallet (key) you lose your $.
The techies love it. And people with businesses that exchange internationally (especially computer tech businesses) are seeing the value. Once their are more escrow systems in place for people to trade with trust, bitcoin will become the norm. Was this a bubble? Yes, a small one. Was it a crash? No. It is currenlty growing at a rate of 4.8% per day. Now that is the kind of steady growth we need. Chill out grandma! . :P
What do you expect, a couple of months ago BTC were worth $20. Just a bunch of speculators hoping that the person after them would be the greater fool.
On the way up, everyone with half a brain cell knew it was a bubble and was just trying to make that profit before it dropped. Some people seemed to think pointing out this self evident truth made them clever.
When you have people buying shitloads who've never even heard of the currency and don't understand it, you know it's a bubble.
There are Application Specific something something ASICs that run on hardly any power and boast hash rates of 5 GPUs for much cheaper than 5 GPUs...oh wait the manufacturers are charging an arm and a leg for them and not delivering. What else can you do with an FPGA? I might buy one, and use it for whatever@home or something if buttcoin dies.
I think you might be a little confused as to what it means to control bitcoin: owning (a lot of) bitcoins is not the same as controlling bitcoin. The kind of control Rothschild was talking about was the ability to issue money, not simply having money. The only thing that people with a lot of hashing power can do is try to engineer a 51% attack on Bitcoin: it will either result in a successful double-spend or a crash of Bitcoin. And if they have Bitcoin holdings they will lose A LOT of value!
I disagree in part with your assessment,since free market can be influenced by cartels.I would have to spent my entire life mining for nothing , if cartels mined with their own supercomputers.That means you would have to either buy or earn bitcoins from those monopolies,early starters had a mining advantage and bitcoin supply is finite,or somehow inflate them.Lets not forget that the Goverment holds the exclusive right to issue money and can pass a law to control or outlaw Bitcoin Exchanges.
Free markets have only one rule: "Supply and Demand".If there is demand and you control supply,you control the price.It was Mayer Amschel Bauer Rothschild who said it best: "Give me control of a nation's money supply and I care not who makes it's laws".If bitcoins are finite and those with the most computer power,or those who started mining early, have the most,then there is no free market.They will control those Bitcoins already mined as well as new supply.At least thats the way i see it.
I have a question.If the number of bitcoins that can be made,through the use of a miner,depends on processing power,then what is to stop a Goverment,or a private entity, with many supercomputers,from acquiring all the new Bitcoins for itself thus monopolizing the new currency.After all there is only a finite amount of Bitcoins that can ever be mined.The solution of course would be to make the few remaining Bitcoins infinitely divisible,thus inflating them,but then you have a fiat currency.
Well the rules of the free market tells us that no non-coercive entity can gain a monopoly without government intervention through tax breaks, subsidies, etc... A government could not gain an absolute monopoly on the mining of bitcoins unless it owned all the processing chips in the world, which would seem virtually impossible. What is more likely to happen is there being several large bitcoin mining agencies on market, each with there own array of supercomputers. Don't worry, it takes 3 days of reading and 3 weeks of understanding to get how bitcoin works. Then it takes 3 months to understand you can trust it.
So just keep reading and reading. Pay special attention to posts with discussion in comments, where bitcoin users are trying to explain others why it is not a scam. first u create a wallet, it will be stored in your smartphone or computer, after completing the wallet setup, you secutre it with a strong password, than you are ready to receive or to send bitcoins, you see it just like banking, but peer to peer. Google for sellers or get them from a friend..... and ur transactions can take place. . .and start collecting the free mBTC (micro coins ) day after day. The benefit of solving the mathematical problem is to provide proof of work that the miner actually verified the transactions which they were asked to verify. Without the progressively challenging mathematical problem, the network can be attacked by anybody with a lot of CPU power (e.g. a botnet). If anybody wants to make an attack on BItcoin today (aka the 51% attack), they'd have to have more than 30 times the processing power of the top 500 supercomputers in the world!
Brilliantly defined!
Yes!
An anonymous group started this.
People in the beginning could mine very easy and earn lots of bitcoins.
The people from now on are told that they can earn coins, but in reality it is getting so hard that just the guys with render farms and the groups gaming bitcoin with loads of these gpu-renderfarms can make moeny. And botnets have been created to take advantage of it. It is used by loads of criminals for moeny laundring and it also wastes lots of energy for the mining.
I learned from others that a small part of the mining done is used to helping with the transactions in the swarm (in some way). And you don't have to be a frantic miner to use them(that also will get slower and slower and stop in 2040). The biggest problem is all the criminal activity that is helped from the mining. Lots of money laundring, sites selling drugs for bitcoins and other not so great activities. And an unknown group of people who started all this.. Contiunued...
And the money made by this money is just air money. You must have create some type of real value other than pure trust. I mean real gold when mined have several uses in itself, for example. And how much of the BC are used in daily transactions to help the real economy instead of making a very small minority very rich? There is one guy that owns 25% of all bitcoins, for example. According to wikipedia there have been a couple of cases with botnets that mine bitcoins.
But the verification part must be a miniscule part of the problem solving. The rest of the time it just is sitting wating energy. Looking at the curve of the rise in value for BC right now, it just have to crash, sooner or later. Yes, money will fluctuate, but have you seen the dollar rise this fast, having a crash in the last two years (after another big "hause"). To mee this looks like energy wasting on somthing that benefits the few early adopters. One person owns 25% of the bitcoins f.e.
BTC will rise in value in the long term. After all coins are minted, they can only be lost forever, driving the remaining ones up in price. "Early adopters have a large number of bitcoins now because they took a risk and invested resources in an unproven technology. By so doing, they have helped Bitcoin become what it is now and what it will be in the future (hopefully, a ubiquitous decentralized digital currency). It is only fair they will reap the benefits of their successful investment."
Bitcoin seems to be a good investment but I prefer more physical sylver since I know that it's a highly industrialised metal. Sylverware, jewelry and in many other applicacitions silver is used, also is real money. There is much more gold than silver and silver is at an incredible bargain right now. At a rate of 56 to 1 compared to gold right now, this is an incredible opportunnity. Sadly, lots of people forgot that physical silver and gold is real tangible money, you c'ant print them. Not enough. In a real bad situation, you might get what you need by bartering or bribing some guy who has something you want or get you to safety with some gold or silver whereas he might go WTF is bitcoin..,if you can even access them.
It's bad enough we have monopoly money but now it's imaginary almost as kind of a beta phase for a one world currency. Some say bitcoin could be a bubble. It's not that I'm against bitcoin but I wouldn't trust everything with it. Diversifying's the way to go.
Please also tell the part that it gets logarithmically harder over time to earn up to that 50 BitCoins.
The way it is now it makes people think they can earn 4500 U.S dollars in no time.
In reallity, just the render farm people may reach this. Loads of GPU power.
Loads of wasted energy. No solving of problems that would benefit people (like the math problems that the @home projects do)
And for what?
Virtual money and a currency that fluctuates and may crash at any time.
Stupidity defined!
But this seem like a scam sheme. It seems to get easy at first, but then it gets logarithmically harder over time.
The only people that may benefit are the ones with loads of GPU power or even render farms.
And I get mad that they don't use it for protein folding or something that could benefit man.
Now it just put more strain on global warming (a lot of energy consumed) without doing anything good, just solving a useless math problem generating virtual money. Which may crash any minute.
Apparently those who bought BitCoins last year when their value was only about $5, then they saved hundreds, maybe even thousands of BitCoins then jsut recently sold them. Let me give a example. Ok last year let's say I Mined 100 BitCoins. And I completely forgot about them. Now I recently sold my 100 BitCoins for $100.00 each. I made $100,000 just for leaving my computer on for a week, or a month. You can do the same. For FREE. 1 minute of your time. Can result in millions.
Lower fees is enticing but common saying today is if you can't hold it, you don't own it. This is trading one digital based currency for another. If the net goes down due to an emergency, kill switch, cyber based attack, or any grid-down collapse scenario...the bitcoins disappear (or at least becomes inaccessible for a time). A stash of gold or silver, universally recognized as monetary metals for thousands of years, won't.
If a professional hacker can hack SHA 256, then say goodbye to the DoD, banks, nuclear plants and just about any major system these days, so losing your Bitcoin will be your LAST concern!
The ONLY thing hackers can do is attempt to steal the private keys which each person uses in order to sign Bitcoin transactions. The responsibility of guarding your private data is ENTIRELY up to you and there is absolutely no system that can protect you from your own inability to protect yourself.
Maybe, maybe not. They'd need a really beefy set of computers to solo mine. Most people mine in pools, where you get paid a certain amount of BTC based on how much hashing power you add into it.
But yes, if they had great PCs, and they joined pools, they'd probably make quite a sum. But at the same time, ASICs are computers specially designed for just this one task, and most corporations, let alone most people, don't have those--at least, not yet.
So basically even if the "network" prevented or restricted the creation of new "un-mined" cryptographic blocks if you gave IBM or Cray the problem and a few months they could likely put all future mining out of business, and end up repeating the old Cayman Island Tory-Trotskyite Boardroom-Bankster-Socialist "International Bankster Brotherhood of IMF-Manipulated Gold-Slavers, Local 666" experience for us all, all over again?
Labor Exchange Currency is the value of a nation's labors...
Nothing, apart from the fact that there are a limited total possible number of them, and they become harder and harder to find as more are discovered (there are a limited possible number of them total), and it requires lots of computer time to do it. But anyone can mine bitcoins by downloading and running a bitcoin mining program on their computer. Currently about 10 million of the 21 million bitcoins possible have been mined.
The miners validate transactions: remember that people want to add their transactions to the public ledger (transaction list), so they send their transactions in and somebody has to verify that they're valid. That's where the miners come in: they verify that the sender has sufficient balance, approve the transaction and allow it to be added to the ledger. They must also solve a complicated math problem, but that's just to ensure that the fastest miners are more likely to get rewarded.
When I started writing the script for the video at the beginning of 2011, Silk Road didn't exist yet, so the Bitcoin drug trade - as far as I knew at least - consisted of two or three people trying to trade on the forums and getting banned for it. Though I admit, even if Silk Road has existed, I probably still wouldn't have mentioned it. The press did their best to blow that aspect out of proportion even without my help.
And who decided the predictable and limited amount? Talk about a silly way of running your chips! Besides, Bitcoin is based on wasted computer-time while timedollars are based on neighbor Hours of labor owed. Which token would you rather have? But Bitcoin’s great global transfer software could also be used to transfer Hours of useful time instead of Hours of wasted computer time. Just around the corner, I’d think. wire transfer is impossible, because nobody want to reveal his real personal information. bitcoin should be anonymous. anything connected with personal information will discourage of using bitcoins. for example: i can buy bitcoins from an undercover agent. when i buy huge amounts of bitcoins, then someone from tax investigation can be interested, for what do i need to anonymize my money? or fbi can be interested if i need to pay my drugs on silkroad? wire transfer is reverse side of anonymity.
Bitcoin is money, it is a currency. There would be something fishy about it if you *didn't* have to exchange it for another currency (like $ or €). Just like you can't just simply get £ without exchanging your own currency for them, selling something for £ or working for somebody who pays you in £. You can look into Bitcoin mining to help generate bitcoins but that's quite complex and very difficult to make a profit of. And you'll also have to buy the computers and hardware for that somehow. Sure, if money is already not in the bank , then no one can steal the money. :D But this magic trick can be implemented in home as well. Just put some money into safe, then take them out and spent. Then assume, that they are still in the safe. Just do not check if they are really there - this is something that robber should realize, not you. It does indeed make sense....
Most exchanges accept wire transfers...that's probably how the majority of people fund their MtGox accounts and BitStamp accounts. You should check the exchanges for all the ways you can fund your accounts. How do you think people fund their exchange accounts? Furthermore, you can check with all the bitcoin brokers about how to buy bitcoin, e.g. BitInstant accepts cash deposits from Jewel, Duane Reade, Stater Bros, Albertsons, WalMart, etc.
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