Bit Coins

CorsetKat

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So, I always blew this off as silly nonsense.

Then I heard some stuff that peaked my interest. It was very interesting, but I couldn't wrap my brain around it fully and never got around to looking into it. I forgot about it over time. Then yesterday my boss brings up his stocks on it. He is very techy, also head of IT, and he really gets into the details of things. He also explains things very well. So I start asking him questions and holy fuck that shit is complex. I loved learning about it.

It's fucking evil.

I mean, I kinda want in, but I can't support that.
 

Iggy McLulz

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So, I always blew this off as silly nonsense.

Then I heard some stuff that peaked my interest. It was very interesting, but I couldn't wrap my brain around it fully and never got around to looking into it. I forgot about it over time. Then yesterday my boss brings up his stocks on it. He is very techy, also head of IT, and he really gets into the details of things. He also explains things very well. So I start asking him questions and holy fuck that shit is complex. I loved learning about it.

It's fucking evil.

I mean, I kinda want in, but I can't support that.
What exactly would you like to know about it? How it works or what it is exactly or maybe you want to know both?
 

Iggy McLulz

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Who created it?
A pseudonymous software developer going by the name of
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proposed bitcoin in 2008, as an electronic payment system based on mathematical proof. The idea was to produce a means of exchange, independent of any central authority, that could be transferred electronically in a secure, verifiable and immutable way.
To this day, no-one knows who Satoshi Nakamoto really is.
In what ways is it different from traditional currencies?
Bitcoin can be used to pay for things electronically, if both parties are willing. In that sense, it's like conventional dollars, euros, or yen, which are also traded digitally.
But it differs from fiat digital currencies in several important ways:
1 – Decentralization
Bitcoin's most important characteristic is that it is decentralized. No single institution controls the bitcoin network. It is maintained by a
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, and run by an open network of dedicated computers spread around the world. This attracts individuals and groups that are uncomfortable with the control that banks or government institutions have over their money.
Bitcoin solves the "double spending problem" of electronic currencies (in which digital assets can easily be copied and re-used) through an ingenious combination of cryptography and economic incentives. In electronic fiat currencies, this function is fulfilled by banks, which gives them control over the traditional system. With bitcoin, the integrity of the transactions is maintained by a distributed and open network, owned by no-one.
2 - Limited supply
Fiat currencies (dollars, euros, yen, etc.) have an unlimited supply – central banks can issue as many as they want, and can attempt to manipulate a currency's value relative to others. Holders of the currency (and especially citizens with little alternative) bear the cost.
With bitcoin, on the other hand, the supply is tightly controlled by the underlying algorithm. A small number of
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trickle out every hour, and will continue to do so at a diminishing rate until a maximum of 21 million has been reached. This makes bitcoin more attractive as an asset – in theory, if demand grows and the supply remains the same, the value will increase.
3 - Pseudonymity
While senders of traditional electronic payments are usually identified (for verification purposes, and to comply with anti-money laundering and other legislation), users of bitcoin in theory operate in semi-anonymity. Since there is no central "validator," users do not need to identify themselves when sending bitcoin to another user. When a transaction request is submitted, the protocol checks all previous transactions to confirm that the sender has the necessary bitcoin as well as the authority to send them. The system does not need to know his or her identity.
In practice, each user is identified by the address of his or her wallet. Transactions can, with some effort, be tracked this way. Also,
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has developed methods to
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if necessary.
Furthermore, most exchanges are required by law to perform identity checks on their customers before they are allowed to buy or sell bitcoin, facilitating another way that bitcoin usage can be tracked. Since the network is transparent, the progress of a particular transaction is visible to all.
This makes bitcoin not an ideal currency for criminals, terrorists or money-launderers.
4 - Immutability
Bitcoin transactions cannot be reversed, unlike electronic fiat transactions.
This is because there is no central "adjudicator" that can say "ok, return the money." If a transaction is recorded on the network, and if more than an hour has passed, it is impossible to modify.
While this may disquiet some, it does mean that any transaction on the bitcoin network cannot be tampered with.
5 - Divisibility
The smallest unit of a bitcoin is called a satoshi. It is one hundred millionth of a bitcoin (0.00000001) – at today's prices, about one hundredth of a cent. This could conceivably enable microtransactions that traditional electronic money cannot
 
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CorsetKat

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I'm not talking about how it does what it does, I'm looking at what it actually does then thinking about human motives and applying them in secenarios in my head.

Nothing good can come from it.
 

Gyroscope

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All I know is that since bitcoins were supposed to be untraceable a lot of people were using them to purchase drugs, weapons, and child porn online. From what I've read they've fallen out of favor because they fluctuate in value a lot and aren't as anonymous as once believed. Right now one bitcoin is about $6270, in December they were worth almost $19500.
 

Iggy McLulz

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After seeing this,
In practice, each user is identified by the address of his or her wallet. Transactions can, with some effort, be tracked this way. Also,
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has developed methods to
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if necessary.
personally I'd just leave it alone. Some people do well investing and others not so well. Plus protecting your wallet is a pain. I lost access to my wallet 3 times and I said fuck it. It's was probably only worth about $15 anyway. The worth of a Bitcoin constantly changes just like stocks do.
 
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CorsetKat

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I think collects encrypted passwords to everything.

Why?

They may not be able to now, but they will figure out those passwords.

Who are they?

What happens to all your "money" if the grid goes down?
 

Iggy McLulz

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I think collects encrypted passwords to everything.

Why?

They may not be able to now, but they will figure out those passwords.

Who are they?

What happens to all your "money" if the grid goes down?
I'm guessing the authorities would be the ones cracking passwords. Like gyro said, Bitcoin were/are heavily used for illegal services online, some legitimate services too. There used to be a website on the deep web, only accessible via Tor. Silkroad only accepted Bitcoins, it was shut down the owner got busted, probably some customers too. The internet has changed a lot over the last 5 years alone. I have no idea what happens to the money if Bitcoin just disappears one day.
 

offwidthe

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I invested in a couple cryptos years back because of a bookie friends recommendation. He made a lot of money and lost a lot of money. When I asked If he was bummed about losing millions of dollars over a couple of days he responded with, "I'm a fucking bookie, that was a drop in the bucket," I sold what I had and made a few bucks but morally I don't support it because of how much energy it takes to mine bitcoin and others like it.
 

offwidthe

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It's funny that you posted this. I have some email scammer trying to buy a timeshare that I don't own; they want all my blahblahblah so I said "to insure that you aren't scamming me I would like you to make your first deposit in Bitcoin and then I will send you my bank info." Fuck them, hopefully the will give me some money.