What's up with this BitCoin thing?

Discussion in 'The Guru's Pub' started by naike, Jun 15, 2011.

  1. naike

    naike Ancient Guru

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    BitCoins, just read about them.
    It sounds to work at first glance but I'm sure there is some trick to it, like the pyramid game. Nothing similar but something, just sounds too good to be true.
    Anyway, how can it ever work, what is this currency based on? Apparently it is limited to 21million BTC (BitCoins), where does it all come from? Does it just appear out of thin air.
     
  2. chispy

    chispy Ancient Guru

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  3. naike

    naike Ancient Guru

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    Every article just tells the basic concept and how to do it, but not what actually happens, like where does all that computing power go? Are they cracking some bank account passwords or what lol. Sounds easy with tens of thousands of PCs working together?
    Is there anyone who has extensive knowledge of marketing and currency stuff here?
    Just sounds a bit suspicious and the fact that it's of American origin makes me doubt it even more.
     
  4. chispy

    chispy Ancient Guru

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    ROFL :bugeye: LOL at your comment as im American and proud of it :bigsmile:
     

  5. naike

    naike Ancient Guru

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    Good for you, Americans always try to come up with ways of stealing money instead of actually making it.
     
  6. chispy

    chispy Ancient Guru

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    :stewpid: ,
     
  7. dukedave5200

    dukedave5200 Ancient Guru

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    Wow... :3eyes:
     
  8. Chillin

    Chillin Ancient Guru

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    Fad, it will pass just like previous internet monies did.
     
  9. naike

    naike Ancient Guru

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    Care to elaborate on those previous internet currencies?
     
  10. Jeremy

    Jeremy Ancient Guru

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    If it's too good to be true.. it is.
     

  11. Stukov

    Stukov Ancient Guru

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    The idea is that the creators wanted to make a decentralized digital currency. Decentralized so that the free market dictates prices, not governments or banking institutions that could manipulate the currency. The reason it is digital as we "live" in a digital age and a bitcoin works similar to cash does out in the physical world, as there is essentially no mechanism to track who/what is trading.

    Bitcoins are created similar to how gold and other precious metals are found, mining. The purpose of "creating" them is so that there is work involved in their creation (in the case it costs GPU power, time, and electricity) so that there is worth derived from that time and money spent creating the currency (rather than the Fed which just creates it out of thin air).

    The only part that is "pyramid like" is that any early adopters had an easier time to mine bitcoins as it is designed to get more difficult as time goes on. The point they say of this is to seed it early on so that adoption can occur and also the processing power increases overtime so it is a built in deflationary measure. (It used to be only CPUs were used and with introduction of the 6900 series you have power that is like 100-1000x more powerful than what CPUs were capable of mining).

    I learned about it and tried doing it last week but it is awfully slow work. Recently the difficulty increased dramatically, but the prices also shot up (at mt gox they were like $30+ a Bitcoin). It is worth it if you have a computer with an ATI card sitting around doing nothing as long as you have cheap electricity you can payoff your card in a few months (you can make anywhere from $200-1000 a month depending on the amount of hardware you have).
     
  12. Stukov

    Stukov Ancient Guru

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    Btw, the MT Gox (place where you can exchange btc for real money) was semi-hacked. But the Btc themselves are still secure (far as I know they are secure with AES256 or higher). And btw I have like .20 BTC so I'm not like an advocate or anything.
     
  13. Chillin

    Chillin Ancient Guru

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  14. Stukov

    Stukov Ancient Guru

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  15. crushilista

    crushilista Ancient Guru

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    Congratulations! You've learned Capitalism!
     

  16. XL_ence

    XL_ence Maha Guru

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    well i just started mining for bitcoins last night. and from what i can see seems, you really need a modern AMD card in order to make any sort of gains at all. in about 5-6 hours, i made .12 bitcoins. which translates to $225/mo at the current exchange rate of bitcoins to usd. this doesn't include the amount of money spent on energy.

    i'll let you guys know more if this actually works out. from what i see, even if it is a scam, i can't really lose anything except for money spent on energy bills.

    and hopefully my computer's not calculating the key to human destruction.
     
  17. Li4m79

    Li4m79 Ancient Guru

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    so whilst our GPU's are folding/cracking high security systems/ what what what........if it sounds too good to be true, it probably is, there will be a catch somewhere, or you wont even earn enough to cover the electric bill..

    Stick to online surveys and *link removed*, the safest ways to make money on the internet!!
     
    Last edited by a moderator: Jun 23, 2011
  18. XL_ence

    XL_ence Maha Guru

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    SPAM. Trying to make money through referrals eh? :no:
     
    Last edited by a moderator: Jun 23, 2011
  19. Li4m79

    Li4m79 Ancient Guru

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    lol...forgot it was a referral link..... But i di highly recommend quidco, in the past year i have had just over £300 cashback, free money ain't bad when it works!
     
  20. Saad

    Saad Master Guru

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    its real guys..do your homework...my new sandybridge rig, bitcoin mining using a single 6950 paid for it..for more information check out the wiki or the bitcoin forum
     

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