1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

BitCoins - WHAT do we get them FOR?

Discussion in 'BlackHat Lounge' started by aspe_heat, Dec 7, 2013.

  1. aspe_heat

    aspe_heat Power Member

    Joined:
    Oct 7, 2010
    Messages:
    799
    Likes Received:
    595
    Gender:
    Male
    Hey guys (and cute girls of BHW!),

    I just recently started reading about BitCoin and I have to say that it's quite an interesting concept. But, there is one thing I don't really understand...One of the ways to generate the coins is to basically leave your computer on, right? So what do we get coins aka money for?

    I work in a company and they give me money for the product I make for them, which they later sell and profit from it. But what good does my computer do while it's on?

    I couldn't find the answer and I really want to know how it all works. I hope you understand the question :)
    Thanks!
     
  2. bdmedia

    bdmedia Jr. VIP Jr. VIP Premium Member

    Joined:
    Nov 12, 2008
    Messages:
    306
    Likes Received:
    102
    Location:
    Univerise
    dont try to mine. unfortunately you missed that wagon already. It is extremely complicated now. Focus on BC as an investment opportunity.
     
  3. jazzc

    jazzc Moderator Staff Member Moderator Jr. VIP

    Joined:
    Jan 27, 2009
    Messages:
    2,468
    Likes Received:
    10,148
    Imagine you want to find a way to distribute 21.000.000 bitcoins (that 's the maximum that will even be produced). How are you going to do it?

    You could for example, send them all to one random person. That wouldn't really work well though :)

    So, the creator of the currency came up with the idea of mining them. The mining process fulfils some functions that give BTC some of its useful characteristics. For example, the system is made in such a way that it is impossible for the market to get flooded with vast amounts of new coins (because of the adjusting difficulty).

    Think of the mining process as a dice with a trillion faces. You keep rolling the dice until you come up with a special number. When you do, you 've "mined" a BTC, it is yours. The process of rolling the dice just right is verified by other members of the network (imaging a million people looking over your shoulder).
     
    • Thanks Thanks x 1
  4. aspe_heat

    aspe_heat Power Member

    Joined:
    Oct 7, 2010
    Messages:
    799
    Likes Received:
    595
    Gender:
    Male
    Yeah, I wasn't going to do it anyway...my PC is too slow for that. I used some calculators and saw that I can make WHOLE 2 DOLLARS in a month!

    Anyway, is that you in the avatar? That guy looks like Tony Montana! lol
     
  5. bdmedia

    bdmedia Jr. VIP Jr. VIP Premium Member

    Joined:
    Nov 12, 2008
    Messages:
    306
    Likes Received:
    102
    Location:
    Univerise
    Haha no it is Tony :beach2:
     
  6. Teeheeindeed

    Teeheeindeed Newbie

    Joined:
    Jul 28, 2013
    Messages:
    14
    Likes Received:
    1
    They might be using your computer power like coin generation did. At least I think they did o_O
     
  7. icysfx

    icysfx Regular Member

    Joined:
    Jun 19, 2011
    Messages:
    263
    Likes Received:
    211
    Occupation:
    Student
    Location:
    London, UK
    Anyone who was sharp enough to play around with BC at the correct moments could have made some lovely money. It's only a matter of time before they are irrelevant.
     
  8. virtualpurity

    virtualpurity Jr. VIP Jr. VIP

    Joined:
    Nov 12, 2012
    Messages:
    462
    Likes Received:
    252
    Occupation:
    SEO, Hosting
    Location:
    /root
    Home Page:
    The train is long gone, everyone who got on it from the start made some nice cash.. Now mining is impossible since the difficulty level is very high ( except if you want to invest in some ASIC miners but if you dont get the miner in time you will lose your investment ) and playing with them on the market at this point is very risky since they have become very very unstable. For example just a couple days ago they were at 1200$ a coin, now they have dropped to 551 low - 870 High price..
     
  9. jaron002

    jaron002 Junior Member

    Joined:
    Jun 8, 2013
    Messages:
    122
    Likes Received:
    42
    Location:
    deluxe apartment in the sky
    I wouldn't call it risky since it didnt fall from 1200 all the way to 550, It stepped down. Who ever sold anywhere along the ride down and got back in anywhere from 550 to 650 is up and made decent money.
     
  10. SPQR

    SPQR Elite Member

    Joined:
    May 15, 2013
    Messages:
    1,634
    Likes Received:
    866
    Home Page:
    It is really a bummer when people are speaking away from Bitcoin, expecially if they have never even touched one. It is such, as the game 'telephone' does. One person publishes something, people read it, pass it along in new forms, etc. The 'train' is just nearing the station, in fact it is not even a train, it is a space shuttle. We are going to the moon.
     
    • Thanks Thanks x 1
  11. kideze

    kideze Elite Member

    Joined:
    Jun 23, 2009
    Messages:
    1,719
    Likes Received:
    330
    Location:
    the GRAND valley
    Exactly. The currency is here to stay. Crypto Currencies will be here for awhile.
     
  12. twistedtrick

    twistedtrick Power Member

    Joined:
    Aug 21, 2009
    Messages:
    654
    Likes Received:
    376
    Location:
    United States
    I feel like one of the alt coins will eventually take the place of Bitcoin as the forefront currency. Bitcoin was the first but has had some problems from the start that altcoins (well, some of them at least) try to address.
     
  13. Numbuh362

    Numbuh362 Elite Member

    Joined:
    Aug 22, 2012
    Messages:
    1,569
    Likes Received:
    462
    I partially agree with you, I feel like bitcoin with the sha256 mining "system" made it extremely unfair. Of course in the start anyone could mine it but now only people with lots of money and asic mining rigs can mine. I know that anyone can mine but whats the point of mining at 100 m hash if people are mining at 100g hash. One of the scrypt coins, like litecoin will eventually take over.
     
  14. kideze

    kideze Elite Member

    Joined:
    Jun 23, 2009
    Messages:
    1,719
    Likes Received:
    330
    Location:
    the GRAND valley
    Thats doesn't make it unfair its just you weren't an early adopter and now your discouraged. Bitcoin is awesome and the reason is because it is limited. Heavy demand, shorter supply, higher price. its paying off for the people that decided to dive in early.
     
    • Thanks Thanks x 1