dr0p Posted June 6, 2011 Share Posted June 6, 2011 (edited) "Bitcoin is a peer-to-peer currency. Peer-to-peer means that no central authority issues new money or tracks transactions. These tasks are managed collectively by the network." Bitcoin is the first digital currency that is completely distributed. The network is made up of users like yourself so no bank or payment processor is required between you and whoever you're trading with. This decentralization is the basis for Bitcoin's security and freedom. Your Bitcoins can be accessed from anywhere with an Internet connection. Anybody can start mining, buying, selling or accepting Bitcoins regardless of their location. If you have Bitcoins, you can send them to anyone else with a Bitcoin address. There are no limits, no special rules to follow or forms to fill out. More complex types of transactions can be built on top of Bitcoin as well, but sometimes you just want to send money from A to B without worrying about limits and policies. Currently you can send Bitcoin transactions for free. However, a fee on the order of 1 bitcent will eventually be necessary for your transaction to be processed more quickly. Miners compete on fees, which ensures that they will always stay low in the long run. You don't have to be a criminal to wake up one day and find your account has been frozen. Rules vary from place to place, but in most jurisdictions accounts may be frozen by credit card collection agencies, by a spouse filing for divorce, by mistake or for terms of service violations. In contrast, Bitcoins are like cash - seizing them requires access to your private keys, which could be placed on a USB stick, thereby enjoying the full legal and practical protections of physical property. One BTC is currently worth ~$19. More info can be found at bitcoin.org As I am a big believer in Big Brother and don't overly enjoy the govt being in my business, I think bitcoins are great and hope that soon more retailers will start accepting them. In fact, the first physical incarnation of bitcoins have been released, although it seems they may be able to be counterfeited somewhat easily. So, I was wondering if anyone here has been keeping up with the bitcoin trend, uses them, or mines them? I'm about to buy a Radeon HD 5850 so that I can begin mining bitcoins. Edited June 6, 2011 by dr0p Quote Link to comment Share on other sites More sharing options...
Sitwon Posted June 6, 2011 Share Posted June 6, 2011 I think it's silly how people learn about bitcoin and think "I can make my own free money" because it currently costs more to mine bitcoins then the mined coins would be worth, and I am extremely skeptical that the value of bitcoins will ever increase enough to offset that loss. Quote Link to comment Share on other sites More sharing options...
Sitwon Posted June 6, 2011 Share Posted June 6, 2011 If you're going to be serious about mining, you should probably checkout http://cuttingedgegamer.com/ If you upgrade your card every 2-3 months you'll save a lot of cash with these guys. Quote Link to comment Share on other sites More sharing options...
dr0p Posted June 6, 2011 Author Share Posted June 6, 2011 (edited) I think it's silly how people learn about bitcoin and think "I can make my own free money" because it currently costs more to mine bitcoins then the mined coins would be worth, and I am extremely skeptical that the value of bitcoins will ever increase enough to offset that loss. Err, no it doesn't. Low end minig rig that can output 600MH/s is ~$500. You can make $15-20 per day mining with the current value of bitcoins. Even with electricity costs, you're still making money. And in any case, mining isn't the reason I'm into bitcoin. I like that no one central authority has power over it. Edited June 6, 2011 by dr0p Quote Link to comment Share on other sites More sharing options...
Mr-Protocol Posted June 6, 2011 Share Posted June 6, 2011 I want to know what it does with all the cycles... Quote Link to comment Share on other sites More sharing options...
dr0p Posted June 6, 2011 Author Share Posted June 6, 2011 Basically it computes thousands of SHA hashes per second. Quote Link to comment Share on other sites More sharing options...
Mr-Protocol Posted June 6, 2011 Share Posted June 6, 2011 For what purpose? Quote Link to comment Share on other sites More sharing options...
dr0p Posted June 7, 2011 Author Share Posted June 7, 2011 To ensure the validity of bitcoin transactions. The miners use their computing power to solve (bruteforce) complex cryptographic problems that allow for the validity of the bitcoin transactions to be verified so users can't send coins that don't exist. Quote Link to comment Share on other sites More sharing options...
Mr-Protocol Posted June 7, 2011 Share Posted June 7, 2011 I guess i just dont get the point of it. Is there any stores that use it as currency? Quote Link to comment Share on other sites More sharing options...
dr0p Posted June 7, 2011 Author Share Posted June 7, 2011 At the moment, very few because of its current volatility. Mostly stores with online services such as hosting, etc. but there are some sites that sell physical goods such as electronics. Full list can be found on the wiki. Quote Link to comment Share on other sites More sharing options...
Sitwon Posted June 10, 2011 Share Posted June 10, 2011 Bitcoins are the new tulips. Quote Link to comment Share on other sites More sharing options...
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