BitCoins - WHAT do we get them FOR?

aspe_heat · Dec 7, 2013

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!

bdmedia · Dec 7, 2013

dont try to mine. unfortunately you missed that wagon already. It is extremely complicated now. Focus on BC as an investment opportunity.

jazzc · Dec 7, 2013

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).

aspe_heat · Dec 7, 2013

bdmedia said:
dont try to mine. unfortunately you missed that wagon already. It is extremely complicated now. Focus on BC as an investment opportunity.

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

bdmedia · Dec 7, 2013

aspe_heat said:
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

Haha no it is Tony :beach2:

Teeheeindeed · Dec 8, 2013

They might be using your computer power like coin generation did. At least I think they did

icysfx · Dec 8, 2013

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.

virtualpurity · Dec 8, 2013

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..

jaron002 · Dec 8, 2013

virtualpurity said:
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..

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.

SPQR · Dec 8, 2013

virtualpurity said:
The train is long gone... they have become very very unstable

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.

kideze · Dec 11, 2013

WoozyBluff said:
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.

Exactly. The currency is here to stay. Crypto Currencies will be here for awhile.

twistedtrick · Dec 11, 2013

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.

Numbuh362 · Dec 11, 2013

twistedtrick said:
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.

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.

kideze · Dec 12, 2013

Numbuh362 said:
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.

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.

BitCoins - WHAT do we get them FOR?

aspe_heat

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bdmedia

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jazzc

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aspe_heat

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bdmedia

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Teeheeindeed

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icysfx

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virtualpurity

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jaron002

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SPQR

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kideze

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twistedtrick

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Numbuh362

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kideze

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