Anyone know much about Bitcoin?

Discussion in 'Finance, Investments, and Careers' started by BillsCarnage, Mar 5, 2013.

  1. AsUpRoDiGy

    AsUpRoDiGy Magnanimous

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    No one actually knows who created it...it was created under an alias of a person/group that actually doesn't exist on paper. If you look up the definition of bitcoin mining...it literally makes no sense...other than some hacker sitting on a computer for hours writing codes. It's such a volatile "asset" -- I don't even really see how it has any relevance.
     
  2. BillsCarnage

    BillsCarnage Registered

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    Miners both approve transactions and 'mine' for new coins by answering math problems. The catch is that the more miners the more complex the math problem. It's actually the computer doing the work, which is why you see vast networks of computers mining and in some instances certain websites using your processor via the browsers mining. The Pirate Bay got dinged for this recently.

    Whoever answers the problem first gets a coin.

    The whole system is essentially an honor system in the sense that if someone were trying to trick or lie about their worth or amount of coins the entire network of miners would need to be tricked; virtually impossible. Peer-to-peer in a sense.

     
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  3. gmabel830

    gmabel830 It's football season!!

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    I am thinking of dipping my toe in the water with the same mindset... a few months late, but still very early in its lifecycle

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    Last edited: Nov 30, 2017
  4. gmabel830

    gmabel830 It's football season!!

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    Big would be a significant disruption to the traditional financial system. I see blockchain technology having this impact, and perhaps a cryptocurrency that the banks control, but not the existing unregulated cryptocurrency out there. It is still a fraction of a fraction of a percent of the overall monetary system, and I just don't see it totally replacing the current banking system in its current incarnation like some die-hards do.

    Bitcoin's scarcity makes it an intruiging investment opportunity, and I think there's still lots of room to grow with cryptocurrency, but it will always be niche without the financial system on board.

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  5. puckhead

    puckhead Waxing Gibbous Contributor

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    https://www.reuters.com/article/uk-...-u-s-regulator-approves-futures-idUSKBN1DV4XI
     
  6. Dback Jon

    Dback Jon Killer Snail Contributor

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    https://motherboard.vice.com/en_us/...ty-consumption-ethereum-energy-climate-change

    One Bitcoin Transaction Now Uses as Much Energy as Your House in a Week
    Bitcoin’s surge in price has sent its electricity consumption soaring.

    Bitcoin's incredible price run to break over $7,000 this year has sent its overall electricity consumption soaring, as people worldwide bring more energy-hungry computers online to mine the digital currency.

    An index from cryptocurrency analyst Alex de Vries, aka Digiconomist, estimates that with prices the way they are now, it would be profitable for Bitcoin miners to burn through over 24 terawatt-hours of electricity annually as they compete to solve increasingly difficult cryptographic puzzles to "mine" more Bitcoins. That's about as much as Nigeria, a country of 186 million people, uses in a year.
     
  7. Dback Jon

    Dback Jon Killer Snail Contributor

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    https://motherboard.vice.com/en_us/...g-transaction-electricity-consumption-bitcoin

    Ethereum Is Already Using a Small Country’s Worth of Electricity
    The entire network could be using slightly more than the country of Cyprus.

    Digital currency ethereum's massive price spike has sparked an online gold rush. The price per token has topped $300 lately, soaring from around $10 at the outset of 2017. Amateur miners worldwide are jumping into the action from home, using computer graphics cards to generate new ether (units of ethereum) and secure the blockchain, the public ledger of transactions.

    This mining frenzy has a side effect: Ethereum is now consuming a small country's worth of electricity.



    A new real-time index from Alex de Vries, founder of cryptocurrency analysis site Digiconomist, shows that each ethereum transaction could now represent as much as 45 Kilowatt-hours (kWh) of electricity spent mining. That's about as much juice as the average American household uses in a day and a half. For comparison's sake, De Vries has estimated that a Visa transaction requires 0.00651 kWh. The entire network could be using as much as 4.2 Terawatt-hours (tWh), or slightly more than the country of Cyprus.
     
  8. Russ Smith

    Russ Smith The Original Whizzinator Contributor

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    You can actually trade in Bitcoin without buying it, there's an ETF of sorts called GBTC that's publicly traded. It's incredibly volatile like Bitcoin, up over 9% yesterday, down 8% today. It trades at a premium to the underlying Bitcoin because of ease of trading it.

    Even that said the volume is not very high on it which always makes me concerned what if you own it and want to sell how easy is it to sell?

    In january it was 108.50, today it's at 1650.
     
  9. Southpaw

    Southpaw Provocateur aka Wallyburger Contributor

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    Bitcoin has just as much relevance as Federal Reserve notes. :devil:

    As long as someone takes your dollar or bitcoin as exchange it is relevant.

    Neither one is backed up by anything except good faith.
     
  10. Mainstreet

    Mainstreet Registered User Contributor

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    I need an even lower level. :p

    Seriously, I know this stuff is out there but is it only real because people do mathematical equations to verify it. Sounds like astronomy.

    Maybe bitcoin is in it's infancy but I prefer something that is based upon something tangible.
     
  11. Southpaw

    Southpaw Provocateur aka Wallyburger Contributor

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    "We know exactly how many bitcoins there are in existence today (12,446,725) and how many there will eventually be in total: when the 21 millionth bitcoin is minted, the plates automatically self-destruct. (This is a metaphor, of course."

    Imagine that the creators of bitcoin ( digital currency ) were a printing press like the Treasury Department. Originally (supposedly) U S currency was backed by gold. That finite quantity ceased long ago when we went off the Gold Standard. Now Congress authorizes debt and Federal Reserve Notes are printed ( ad infinatum ).

    Bitcoins are crypto currency. I would imagine that once the 21 millionth bitcoin is mined they will split, just like "stock".
     
  12. puckhead

    puckhead Waxing Gibbous Contributor

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    I think it would be interesting for someone to research and write a detailed paper or book about the origin, evolution, and current status of bitcoin. Then I'd like to see the exact same analysis of the dollar. I wonder how they would compare?
     
  13. Southpaw

    Southpaw Provocateur aka Wallyburger Contributor

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    Thinking in the abstract
    Abstract thinking is the ability to think about objects, principles, and ideas that are not physically present. It is related to symbolic thinking, which uses the substitution of a symbol for an object or idea. A variety of everyday behaviors constitute abstract thinking.

    The mysterious inventor of Bitcoin planted the seed and mining is similar to an IPO available to those who had the ability to solve the mining puzzle.
     
  14. Mainstreet

    Mainstreet Registered User Contributor

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    I understand the idea but I would have more confidence in bitcoin if a company, country or some financial institution stood behind it.

    Instead we have a bunch of miners using up electricity. :wink2:
     
  15. BillsCarnage

    BillsCarnage Registered

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    All this surge in price will be its own worst enemy.

    http://gametyrant.com/news/bitcoin-is-no-longer-supported-in-steam

     

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