So what's the big deal about coins with bite marks on them anyway . . . . now if they were 24 carat I could understand.
I've always thought of bitcoin as the digital equivalent of casino chips that eventually need to be cashed in to get "real" value from them. Somebody explain bitcoin to me like I'm 5 years old. TIA
link Perhaps because of 'regional issues' above URL does not load for me but it is reputed to be a good basic summary
Bitcoin has bad reputation in part because it is easier to use for laundering and illegal sales than fiat currencies that have (data-storing) banks in the loop. The printed US $100 bill of course is predominantly used for such shenanigans, but bitcoin innovated around some shortcomings. Intentionally or otherwise. == There are plenty of blogs on this topic but I do not have a firm basis to sort them on quality. Here is just one series though: The Bear Case for Crypto, Part II: The Great Bank Run – Preston Byrne
another introductory presentation emphasizing energy costs of bitcoin mining: Bitcoin: Seven questions you were too embarrassed to ask | Ars Technica
nobel prize winning economist joe stiglitz says 'bitcoin should be outlawed'. bitcoin owners say 'it can't be done'.
I haven't a clue what you just said, bisco. That shouldn't worry anybody unduly... I'm frequently clueless!
Stories about bitcoin's (computer) electricity consumption keep appearing. This made me curious. Bitcoining now takes about 39 terawatts per year. Global electricity production is about 24,000 terawatts per year. It should increase until about all of target 21 million bitcoins are created. Do not know by how much. Then go flat or decrease substantially. I really couldn't tell ya.
I'm no expert, bisco, but I believe it's a virtual electronic currency with a highly accurate account recording system. This makes it almost impossible to hack, because each serial entry is directly related to the previous ones and also the subsequent ones with a sort of checksum for verification. That makes it incredibly difficult to steal any, but there are no actual coins minted.
It does have to be "mined" by running the software to make the coins. There is a finite number of bitcoins, and the more out there, the more computing cycles for those coins.
I understand about the mining of bitcoin, but didn't think there were any actual coins involved. Was I wrong?
No physical coins. I was trying to clarify what is using electricity for bitcoins. The security protocalls require processor cycles, and each cycle uses so much electricity. Then the making/mining of new virtual coins uses cycles. Just saw on the news last night that there is an ATM in Philadelphia that you can buy bitcoins at, and there are some businesses local to it that accept them. I also know of a non-shady website that accepts them and another cryptocurrency. The owner is an American that recently moved to Australia. The virtual coins might be easier and/or cheaper to exchange to local currency than the US dollars they also take.
I'm sure that does, along with its use for other illicit activities. Part of that might have to do with the 'proper' banking systems and governments ignoring or disdaining it. I know it was designed to allow blind trading, but how can you even try track it, if you want it to just go away?
The very same can be said about US fiat currency. Those paper bills you have in your wallet are absolutely worthless in and of themselves. The only value they represent is the faith of the population using them. Paper money is relatively new and I am sure when it first came out there was similar skepticism about it as there is about cryptocurrency. In fact, your paper money has decreased in value (buying power) over the last 10 years and bitcoin has done just the opposite. I agree that it is not yet a currency, which needs to be stable in value. But that again may be just a transitional state of things. Also, there are multiple cryptocurrencies out there. Bitcoin is not the only one. Blockchain technology is excellent and is most likely the way of the future in money. Not sure what the bitcoin will do, but I think whatever ends up being currency will most likely be blockchain based and digital with no inherent value (just like fiat currency of today).
