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Can someone explain this Bitcoin phenomenon?


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#1 +riahc3

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Posted 18 November 2013 - 08:50

Hello,

(First off, yes, I know this exists: http://en.wikipedia.org/wiki/Bitcoin )

Im just read the front page article about a motherboard being able to "mine" Bitcoins but can someone, who uses Bitcoins, explain the function of it. Why it exists, how do you use it, what is currently compatible, etc.....

Heard very few of it. I thought it was a WoW thing...


#2 goodbytes

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Posted 18 November 2013 - 08:58

Check out this amazing website: https://trybtc.com

 

It helped me a lot to understand bit coins and at the end you actually complete a bit coin transaction and end up with 0.0006 BTC in your wallet, which is roughly $0.07.

 

I've looked into mining and not understand it much but come to the conclusion it's not worth it these days? Something about computing power + electricity far out weights the financial gain from bit coins... however if anyone has any info on this i'd love to give it a try.



#3 OP +riahc3

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Posted 18 November 2013 - 09:03

Hello,

Check out this amazing website: https://trybtc.com
 
It helped me a lot to understand bit coins and at the end you actually complete a bit coin transaction and end up with 0.0006 BTC in your wallet, which is roughly $0.07.
 
I've looked into mining and not understand it much but come to the conclusion it's not worth it these days? Something about computing power + electricity far out weights the financial gain from bit coins... however if anyone has any info on this i'd love to give it a try.

Froze at the "Share" section :(

I understand it is virtual currency and all that but is there a way to turn this into a local currency where you can actually get out real paper money (such as Euro)?

#4 The_Decryptor

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Posted 18 November 2013 - 09:04

First you generate a random number, then somebody else says "Yep I like that number", so you both agree it's worth something.

Then you use it to buy drugs from Silkroad because that's all it's used for.

#5 OP +riahc3

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Posted 18 November 2013 - 09:05

Hello,

First you generate a random number, then somebody else says "Yep I like that number", so you both agree it's worth something.

Then you use it to buy drugs from Silkroad because that's all it's used for.


Yes, Ive read its used a lot in the criminal world but for us noncriminals? :p

#6 The_Decryptor

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Posted 18 November 2013 - 09:11

There's pretty much no use for non-criminals, the main draw of Bitcoin is that the transactions are extremely hard to trace, which most people don't care about.

Unless you got started with Bitcoin when it launched (When you could easily make them, they're like $550 for 1 BTC now) they're pretty much useless, unless you're trying to hide transactions (But the police or so could still see you transferred the money into bitcoin)

#7 HoochieMamma

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Posted 18 November 2013 - 09:34

I was also reading up about this at work today, I figured out that CPU/GPU make no sense so I looked into ASIC devices which I found this:

 

https://bitcointalk....?topic=299295.0

 

Now what I couldn't figure out was how much I can make if I was running this device that is punching out 2.6Gh/s for say8 hours a day? As 2.5W is nothing.



#8 D. S.

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Posted 18 November 2013 - 10:07

buttcoin-infograph.png

 

This is pretty much all you need to know. Everyone is trying to invent the next great mining rig. By buying them, you increase the computing power in the mining pool which in turn increases the difficulty to mine for everyone, which in turn decreases the financial returns of you buying that rig. And the cycle repeats. So the best choice is just sit back and laugh at all the scams.



#9 Aheer.R.S.

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Posted 18 November 2013 - 10:08

buttcoin-infograph.png

 

This is pretty much all you need to know. Everyone is trying to invent the next great mining rig. By buying them, you increase the computing power in the mining pool which in turn increases the difficulty to mine for everyone, which in turn decreases the financial returns of you buying that rig. And the cycle repeats. So the best choice is just sit back and laugh at all the scams.

I was thinking pyramid schemes, but your model's actually better



#10 D. S.

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Posted 18 November 2013 - 10:11

I was thinking pyramid schemes, but your model's actually better

 

Oh, there are a LOT of those going around. Google around for "Pirateat40", it's hilarious. The BTC community somehow thought it was wise to place an enormous amounts of funds with a guy that ran a clear ponzi scheme that promised ridiculous high yields. He then proceeded to run away with their pretend money. Who would've guessed?

 

Here's the SEC press release about it:

http://www.sec.gov/N...83#.UonnxeKtxTU



#11 Aheer.R.S.

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Posted 18 November 2013 - 10:14

Oh, there are a LOT of those going around. Google around for "Pirateat40", it's hilarious. The BTC community somehow thought it was wise to place enormous amounts of funds with a guy that ran a clear ponzi clear that promised ridiculous high yields. He then proceeded to run away with their pretend money. Who would've guessed?

 

Here's the SEC press release about it:

http://www.sec.gov/N...83#.UonnxeKtxTU

Takes all sorts.. I guess



#12 D. S.

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Posted 18 November 2013 - 10:18

The Venn diagram for those sorts and Bitcoin users is almost a concentric circle because a few months later another similar scam opened up. Same setup, same MO. But because he said upfront that he wasn't a scam, people put their money in. Guess what happened next.

 

It's like meth. Not even once.



#13 +zhiVago

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Posted 18 November 2013 - 10:24

Why it exists

 

It exists because there's a demand for alternative currency and payment methods (anonymous and decentralized) among some groups of people.

 

how do you use it

 

You use it just like PayPal.

 

I understand it is virtual currency and all that but is there a way to turn this into a local currency where you can actually get out real paper money (such as Euro)?

 

You can do it at an exchange. Also,...

 

World's first Bitcoin ATM goes live in Vancouver



#14 spikey_richie

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Posted 18 November 2013 - 10:27

Unless you're this guy, forget about it.

 

http://www.theguardi...orway-oslo-home



#15 JonnyLH

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Posted 18 November 2013 - 10:31

It's the P2P currency. More so a number system which has agreed value and gained traction due to illegal use.