Bitcoin is not market money
- Thread starter guerilla
- Start date
@lukep
what exactly is bitcoin? A bunch of crypto and hash??? I get the idea, its virtual money like facebook money and so. But how do they limit it to 20mill bitcoins? Does that mean these 20 mill bitcoins was already developed/made/created long time ago in some code or number combination and all the miner does is actually trying to decode it like buying the loterry?
what exactly is bitcoin? A bunch of crypto and hash??? I get the idea, its virtual money like facebook money and so. But how do they limit it to 20mill bitcoins? Does that mean these 20 mill bitcoins was already developed/made/created long time ago in some code or number combination and all the miner does is actually trying to decode it like buying the loterry?
a bit too much. this XXXX shows up every night with softball questions for lukep to put down? seriously??
its like jay leno with the same old manufactured guests.
Dogecoin has been very profitable, but I can't see it going much higher at all, for reasons I outlined very well in the dogecoin thread.
It can be overwhelming even for young folks... Don't sweat it, only the most brilliant programmers and economists absorb the whole idea of bitcoin quickly... Took me half a year to invest!
"A" bitcoin is 1 unit assigned to you on a central ledger. This article explains what it is very well:
https://medium.com/future-of-currency/73b4257ac833
Facebook money would be a ledger that facebook executives control, only facebook members have access to, and is only worth jack squat as long as facebook is popular.
Bitcoin is a ledger that NOBODY controls, everyone has access to, and is worth something because its' properties are far superior to everything else out there that tries to do the same job. (Yes, it is literally far superior to the dollar and even to gold. Most people just haven't figured this out yet.)
[ame=http://www.youtube.com/watch?v=AVdKgQ0jmH8]The Truth about Bitcoin and Alternative Currencies - YouTube[/ame]
At it's core, the software that we all have to download in order to send and receive bitcoins, is made of about 100 lines of python code. This code is open-source, which means that unlike microsoft windows, everyone can see inside the code and exactly what it says.
And what it says is a hard limit on 21 Million coins, which are mined at a very set rate, rewarding the miner who mined it every 10 minutes like clockwork with a batch of 25 bitcoin as they are being brought into existence.
That number started out at 50 bitcoins, and gets cut in half every 4 years... So the natural progression of inflation is very predictable, which is ideal for money. (And we've never had before.)
Miners do try and decode something like a lottery, but it's impossible for new coins to be generated any faster than 1 reward block every 10 minutes. (Again, we call all see that in the code.)
The first reward block was mined on Jan 3rd, 2009, and those 50 bitcoins will forever be known as "the genesis block." Ever since then, every 10 minutes, new coins come into being until the year 2140. So far, we've mined just over half, or 12 Million coins, which we can see on the blockchain residing in about 1.2 Million different bitcoin wallets, all over the world.
@Drave: Nobody trolls that slowly, bro. It's fine.
bitcoin
@lukep
Hey luke thx for taking your time to reply and clearing up my confusion. I have watched and read the links you posted. It helps alot in my understanding of bitcoins.
I think everyone knows bitcoin is new form of "currency/crypto currency" "trade" "virtual money" and maybe in 300 years down the road, we can imagine people carrying around e-wallet in the wet market to actually purchase something physical right on spot.
But before that, alot of questions and confusion still pops in my head like any other guy that has been introduced to bitcoin. And I believe, in order for bitcoin to grow, survive or revolutionize, it much depends on the volume acceptance of users, merchants and being actually embrace world wide. Acknowledge for transaction.
Just like the olden days when the first paper currency was introduced, or so called bank notes. With that being said, it goes on to be a far bigger topic which include economy and much more complicated stuff.
I won't deny that there's a huge possibility for bitcoin to exist in the virtual world and being used for transaction means. As long as trades continue to embrace this idea, it will survive.
1.But what about the rural areas that does not have internet access or computer? so for now we are looking at bitcoin to being limited to developed nation and economy which are able to embrace this crypto currency.
2.Because bit coin is somewhat being pair-ed with certain currency through out the world to define its value, etc 500usd/1bitcoin. What's going to happen when the value keeps inflating and being constantly volatile. How are merchant pricing their item? Do they have script or someone constantly changing the price of their item each time bitcoin's value fluctuate? How is bitcoin going to stabilize its value and value only exist when its attached to something else or being compared to.
3.I have read into some articles which argue bitcoin is a deflating currency, it saves and increase your value overtime due to its scarcity. Value goes up which is good but from the economist's point of view, it actually decrease spending and encourage saving which is overall bad for any economy in the world.
What happens if someone accumulate a bunch of bitcoins and actually decided to manipulate the market by not trading or using any of it in the market. Not flowing out a single bitcoin to create a greater scarcity. Is that what big players right now are actually doing to drive the "price or value" up? Has it becomes another commodities for people to make money from? Has bitcoin actually evolved into a need to be recon as commodities? or could this be like the dot com bust, before things are actually refined better to actually work.
What actually happens if majority of bitcoins owners actually decided to save up their bitcoins like an investment waiting for its "value" to grow more? Will it turn out to be a dead market where business suffer and dies etc like during recession? And there's no QE to actually stimulate or encourage the flow to keep going.
4.I have not actually look into it more technically or maybe I did and there are many questions which I have yet to be able to understand. Could it be too complicated or technical for people to comprehend and accept? Or should I believe this is a crypto-currency is built for the future younger generations which are more familiar with tech.
@lukep
Hey luke thx for taking your time to reply and clearing up my confusion. I have watched and read the links you posted. It helps alot in my understanding of bitcoins.
I think everyone knows bitcoin is new form of "currency/crypto currency" "trade" "virtual money" and maybe in 300 years down the road, we can imagine people carrying around e-wallet in the wet market to actually purchase something physical right on spot.
But before that, alot of questions and confusion still pops in my head like any other guy that has been introduced to bitcoin. And I believe, in order for bitcoin to grow, survive or revolutionize, it much depends on the volume acceptance of users, merchants and being actually embrace world wide. Acknowledge for transaction.
Just like the olden days when the first paper currency was introduced, or so called bank notes. With that being said, it goes on to be a far bigger topic which include economy and much more complicated stuff.
I won't deny that there's a huge possibility for bitcoin to exist in the virtual world and being used for transaction means. As long as trades continue to embrace this idea, it will survive.
1.But what about the rural areas that does not have internet access or computer? so for now we are looking at bitcoin to being limited to developed nation and economy which are able to embrace this crypto currency.
2.Because bit coin is somewhat being pair-ed with certain currency through out the world to define its value, etc 500usd/1bitcoin. What's going to happen when the value keeps inflating and being constantly volatile. How are merchant pricing their item? Do they have script or someone constantly changing the price of their item each time bitcoin's value fluctuate? How is bitcoin going to stabilize its value and value only exist when its attached to something else or being compared to.
3.I have read into some articles which argue bitcoin is a deflating currency, it saves and increase your value overtime due to its scarcity. Value goes up which is good but from the economist's point of view, it actually decrease spending and encourage saving which is overall bad for any economy in the world.
What happens if someone accumulate a bunch of bitcoins and actually decided to manipulate the market by not trading or using any of it in the market. Not flowing out a single bitcoin to create a greater scarcity. Is that what big players right now are actually doing to drive the "price or value" up? Has it becomes another commodities for people to make money from? Has bitcoin actually evolved into a need to be recon as commodities? or could this be like the dot com bust, before things are actually refined better to actually work.
What actually happens if majority of bitcoins owners actually decided to save up their bitcoins like an investment waiting for its "value" to grow more? Will it turn out to be a dead market where business suffer and dies etc like during recession? And there's no QE to actually stimulate or encourage the flow to keep going.
4.I have not actually look into it more technically or maybe I did and there are many questions which I have yet to be able to understand. Could it be too complicated or technical for people to comprehend and accept? Or should I believe this is a crypto-currency is built for the future younger generations which are more familiar with tech.
Yea I got a clearer pic or understanding of this whole bit coin map from the link you posted. https://medium.com/future-of-currency/73b4257ac833
Still quite a bunch of theoretical and technical questions regarding bitcoins. (Sorry if I am all over the place)
Am I right to say, bitcoin only survive as long as the trades continues to accept bitcoins? The same as dollars, as long as the trades continue to accept the currency it going to be there forever. Which actually leads my curiosity.. trying to understand how bitcoin actually started out to be used/functional/flowing. Did someone offer to trade something really valuable for bitcoins which started the whole engine? Or a small community actually started agreeing to trade whatever they have with bitcoin to kick start or bring alive the usage of bitcoins before it started to roll bigger in the usage and value of it?
It look like a "currency" which is created by the people for the people sort of thing, trying to disengage from the normal trade using bank notes/dollar bill or revolutionize it. So the whole backing of this crypto currency is by the "people".
How do you actually view this whole bitcoin thing as? Something to invest in? The future of currency? A whole new level of virtual currency.. ? Where isit actually heading? How are the "people" defining or shaping this crypto currency?
What's your purpose with bitcoins? To gain more dollars? To encourage the use of it?
Here are some technical concern about the whole bitcoin idea for people who are not deeply familiar with programming codes or whatever it is.
My understanding of it is like a p2p software, etc bit torrent? And its seeded everywhere by users and miners? So how does this software work? It seems to me its like a "game" created with limited resources, etc like a starcraft map, can someone hack into and modify its value? Etc.. like starcraft or warcraft map again.. when someone hack into its money code and try to change the value of it, they'll be disconnected because the changed value does not match the other's party... like the ledger part that was explained in the link you posted... but what if,.. what if some guy could actually access and change both party value through the code.. etc.. me and you and changing our ledger together to match?
Sure .. it might involve alot more peers that are using this "currency system". Then again... does the software update? And lets say there is an update to the whole "currency system" software.. to change their previous code and add in 300million more of bitcoins to inflate the value alittle since more and more people are demanding and accepting the usage of it. Yes i understand it requires everyone to accept and update together in order for system to be updated, what happens when majority agree to run on the new system and the minority doesn't? or like whats happening more... dogecoin elite coin... is this more like a virtual currency with different clan?
Ah.. i hope my thoughts are not getting too complicated.. I am actually exhausted reading and questioning myself so much.
1. If its set to be "cracked"/mine only in every 10minute.. why are poeple buying asic/graphic cards and all sort of mining tools to speed up the process when the time is actually fixed? This is confusing
2.Yea I read about the reward being half-ed everytime it reach a certain number and the code gets hard to break.. which require pool mining or sort...
a)so the software actually automatically update in everyone's computer or storage when new coins are mined? How does it get updated in everyone's pc.. if its not from a centralized server? etc battle net?
b)How does the code gets harder to be mine? Are these random autogenerated algorithm? Or are these "question" "lottery" which was already set when it was created? If so.. can't the originator just crack a bunch of it quickly and reap some reward when the value of it inflated? If my understanding is not wrong.. it will look like a burglar with a set of keys, trying one each time on the lock until he gets the right key to unlock or mine the coins?
3. If the value inflation is well expected.. what truly is the purpose of bitcoin? Isit to actually suck a bunch of people world wide in to profit from? Or did the creator genuinely believe in a whole monetary system? Or he actually did but.. the crowd is shifting the whole idea of it. Like how flappy bird got out of control or swayed from the original intention?
I think the real question I should be asking is... should I try to buy some coins right now or mine some for the purpose to profiting or whatever the unexpected future might be? I am sorry that most question are subjectively from my thoughts and concern.. but it ll be great if I can connect.. to see where you're actually heading with this, its gotta be about the dollars right?
I pay 1000-3000 per month in Paypal fees...with bitcoin that can be damn near zero. Thinking about jumping on board with bitpay once market stabilizes. My point is that BTC/LTC is not just for a bunch of teenage boys so go fuck yourself bitch haters. All of you bashing bitcoins are a bunch of trolling faggots...