Bitcoin - online fad or the future?

Hoggums

Well-known member
Jan 24, 2006
2,174
877
123
#2
All it takes is a security scare whether real or not, but the threat of being able to steal or make bit coins out of thin air will destroy the currency's value.
 

Shakone

Well-known member
Feb 27, 2009
2,458
665
123
#6
can someone explain in layman terms how it works,thanks
It seems from what i've read that you get bitcoins by 'mining' which essentially means you put software on your computer and run calculations to solve very complicated numerical problems. Once the software has solved a particular problem, you receive a bitcoin (or a fraction of a bitcoin).

At first I thought that there was some practical use in solving these functions, i.e. perhaps companies needed these things solved and were eseentially paying for computing power, but it seems they don't. They're just created and solved for the purpose of bitcoins.

There are groups that link up to solve these complicated numeric problems, called 'blocks'. The bitcoin, or fraction of it then goes in your personalised wallet, and you can either buy things with it or trade it for dollars. I've read that people in charge of IT departments are running this software on dozens, perhaps hundreds of computers making extra money, so it would be hard to compete with that.
 
Apr 10, 2006
2,949
1,282
173
Valletta
#8
I've read that people in charge of IT departments are running this software on dozens, perhaps hundreds of computers making extra money, so it would be hard to compete with that.
There's something mildly amusing about company employees paid to ensure the security and efficiency of their employers IT infrastructure using it to pop up a pyramid scheme for a few bob.

It gives me a feeling of enormous well being.
 
Oct 11, 2006
8,072
1,301
223
#10
Sounds almost as dodgy as carbon credits.