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Bitcoin Definition?

Discussion in 'BlackHat Lounge' started by festeris101, Feb 26, 2014.

  1. festeris101

    festeris101 Regular Member

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    I'm kinda old and kinda confused about this whole Bitcoin concept. Is real currency, is it virtual? Is it Monopoly money?

    Could someone break it down for me in a few sentences or less?

    Thanks for helping out the pre-elderly...
     
  2. kaushalkanodia

    kaushalkanodia Junior Member

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    it is a virtual currency !
     
  3. bondart

    bondart Junior Member

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    id like to know the answer to this incredible mistery two!
     
  4. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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  5. Freyr

    Freyr Newbie

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    There's another very good explanation on the web. Google for "Explain Bitcoin Like I'm Five" (I'm not allowed to post links, would post the URL otherwise)
     
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  6. soreman

    soreman Newbie

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    The way I see it is that BTC is "intangible asset". Sure it does have some properties of money (currency), but it does not comply with all of the requirements to be money...
    It is similiar to a buying data in a sense, as if you would buy data from someone.
     
  7. Freyr

    Freyr Newbie

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    Yes. It's more similar to limited assets like gold than to fiat currencies. It's basically like gold that you can transfer over the internet.

    By the way, fiat money is also 90% digital. It consists mainly of some database entries at the central banks. The "tangible" money (banknotes and coins) represent only 10% of the whole circulated amount. The biggest part already flows through digital networks.

    The biggest difference between BTC and fiat are:
    - There is only a limited amount of BTC
    - BTC is decentralized
     
  8. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

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    Money is simply a means of transferring wealth. Every commodity can qualify as money, so long as it is used as such. That 's why historically, even shells have been used as money.