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You obviously don't read other posts thoroughly. How does my explanation for the creation of new Bitcoins differ from yours? (Post #2)
My explanation focused on the mechanics of how Bitcoin works, which is what OP asked for. Yours was prefaced with a thorough trashing of Bitcoin, all but calling it a Ponzi scheme that only fools partake in. OP didn't ask for editorializing.
...The bitcoins are transferred from your digital wallet to his digital wallet. The transaction is entered into a public ledger. The data recorded there is encrypted, which keeps the details, names, and other info hidden from others...
The data on the ledger is not encrypted or hidden. The shared public ledger is visible to everyone.
Identities are represented by account numbers, so tracking funds movements by hand will be tedious but other software can track the activity and there are companies offering these type of services.
Creating a new account number can be done by anyone, and it is recommended to only use an account number once because of the tracking issues. Wallet software will generally help manage the many account numbers.
I have an idea how cryptocurrencies work but don't fully understand it. I get the purpose and understand a few things in between but when it comes to other functions, I'm confused and feel totally stupid. Especially with Bitcoin. I just need a laymans terms understanding of this world of cryptocurrencies I have recently been enthralled and obsessed with. I've watched many videos on how Bitcoins work but the whole mining thing for example, I don't fully understand. It's weird, there's things I understand and totally am scrambled by.
I know it can't be that hard to understand. I know people who aren't the absolute brightest people (not that I am obviously, so I can't judge too harsh) but they are all in the mix with cryptocurrency. I feel this is already big and will become even more prominent in the future, so I don't want to try playing catch up when this potentially becomes common place.
Any help would be highly appreciated, thank you so much!
This won't become common place because bitcoin is a virtual currency that's backed up by nothing, also if people are just now wanting to get into bitcoin that train has long left the station.
I first heard about bitcoin when I wanted a new graphics card and the prices for them were through the roof because they were being used in bitcoin mining and they was back in 2013/2014.
My explanation focused on the mechanics of how Bitcoin works, which is what OP asked for. Yours was prefaced with a thorough trashing of Bitcoin, all but calling it a Ponzi scheme that only fools partake in. OP didn't ask for editorializing.
And you have proof that it's not a Ponzi scheme?
You didn't answer my question: How did your explanation of mining differ from mine?
My understanding is that some Japanese computer programmer created a way for people to solve an algorithm (like a puzzle) which then creates a "Bitcoin" or fraction thereof. And if you, as a programmer, facilitate the exchange between two people, you earn a Bitcoin fraction. They call these activities "mining". In essence it is creating something supposedly of value out of nothing. However, the only value Bitcoin has is that some greater fool (presently) will pay more for it than you paid.
And the number of Bitcoins will supposedly be capped at 21 million; thus, some people are bidding it up because they think it will be a limited supply.
Many analysts believe Mr. Nakamoto is actually a real man --but his real name is Nick Szabo; I believe he's American of Hungarian descent but I could be wrong. It's becoming a widely-accepted axiom that Mr. Nakamoto was just a pseudonym.
To all: I eyeroll at cryptocurrency. Might I eat my words 6 months from now? 6 years from now? Perhaps! But I might be saying "I told ya so!" and anyway right now I'm eyerolling strong. . . . I'm more intrigued pondering how non-crypto blockchain might be able to help the world.
Between person A who owns some Bitcoins and person B who wants some Bitcoins (and possibly owns Bitcoins himself/herself) this is what I think is happening nowadays: a whole lot of bartering, and then Bitcoin is given/received. Reason: to make the transaction equitable,
because even in the year 300 B.C., full-barter deals were rarely equitable, which led to the genesis of receipts/money
You didn't answer my question: How did your explanation of mining differ from mine?
Get off your high horse. I think the OP asked about both the technical works of bitcoin and how it "works" when compared to a real currency. It is pretty obvious you actually don't understand the details of either. It is no more of a ponzi scheme than an economy based on an ever increasing amount of internal/public debt (like ours) - in such an economy, one run on the banks and it is all going to hell. In fact, 2008 kind of almost ended up being so and if it wasn't for the massive government bailouts, we would have been living in the 1850s all over again.
The idea of bitcoin as a currency is absurd. Let’s say I owed you $100,000. I want to pay you in bitcoin. Had I paid you back just a few days ago....it was over 19,000....today it’s 17,000. Last week, it was like 7,000 up to 11,000 down to 9,000. At the start of the year, around 800?
Would you accept debt payments in bitcoin? Lol.....please.
Last edited by Thatsright19; 12-11-2017 at 10:35 AM..
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