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What is the point of this?

bmertler

bmertler

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Please answer the question as if I were a complete noob.

Why am I creating Bitcoins?

What are the bitcoins used for by the people im making them for?

Why is this even a good to decent idea?
 
You can sell the bitcoins for money or use the bitcoins as money at some places though those places are few and far between. It's only a good idea if the cost of the additional power need to farm the bitcoins doesn't outweigh the value of them. This can sometimes be a challenge but if you don't pay for your power then pure profit! ;)
 
bmertler said:
Please answer the question as if I were a complete noob.

Why am I creating Bitcoins?

What are the bitcoins used for by the people im making them for?

Why is this even a good to decent idea?
Click to expand...

1. You are giving them your Computer power which isnt in use. In return, you produce hashes, which will be payed in bitcoins.

2. they are a currency you get in return for your pc power you supply them. Its research data or whatever those people need your pc power for.

3. Instead of buying and building huge and new serverfarms, they use the power already out here.
 
so all in all bitcoins R waste of money unless your system is super good... gfx cards that is...
 
buzzerbeater said:
1. You are giving them your Computer power which isnt in use. In return, you produce hashes, which will be payed in bitcoins.

2. they are a currency you get in return for your pc power you supply them. Its research data or whatever those people need your pc power for.

3. Instead of buying and building huge and new serverfarms, they use the power already out here.
Click to expand...

This was exactly what i wanted to know, thanks.
 
is there a way for me to buy the bot with... you know... money? I don't want to give my computer to anyone. sounds like a scam to me....
 
cdn123 said:
is there a way for me to buy the bot with... you know... money? I don't want to give my computer to anyone. sounds like a scam to me....
Click to expand...

it sort of is a scam, but most currency is a scam. paypal is a scam, it's just linked itself to banks and credit cards and ebay. paypal is virtual money as well, but it's tied to exchange rates and banks, without their rules or safety nets.

bitcoin, like microsoft points, or wow gold, is a created arbitrary (imaginary) value you can exchange for money or credit or goods. usually one way.

you'd use bitcoins to stay anonymous, and to avoid paying tax when transferring goods with wire transfers. this may be more important in countries like egypt or cyprus or europe with GST/VAT, where euro/gbp prices are insane vs usd, or for buying goods in countries that have region locking like germany, canada, japan or uk, etc.

that said, it's probably:

the worst time to buy BTC due to the rapid inflation,

an average time to create/mine BTC, e.g. due to the difficulty which will increase over time/popularity, a $300 AMD graphics card will produce 0.03BTC/day, roughly $5/day at $140/BTC.
last year, the same card would produce maybe 0.3-0.5 BTC/day, 8 BTC a month. maybe $2/day.

so, apart from the cost of running a gaming PC for a month, it will probably pay for itself in 2 months, that you can spend on games or items or in exchange on sites like mtgox or for goods on bitmit or silk road.
there's other crypto-currencies like litecoin which earn more money (for now) but it's harder to set up.

it's generally a good time to sell BTC, if you think the value will plummet back to $10 = 1BTC after hitting $140 = 1BTC, which it could (somewhat unlikely, not impossible)

if you're ambitious, you can find and use BTC on sites like bitmit.net or the buddy store, but i'd suggest paying with cash/credit at the moment. the delay between buying and spending the coins may lead to losing money.
 
buzzerbeater said:
1. You are giving them your Computer power which isnt in use. In return, you produce hashes, which will be payed in bitcoins.

2. they are a currency you get in return for your pc power you supply them. Its research data or whatever those people need your pc power for.

3. Instead of buying and building huge and new serverfarms, they use the power already out here.
Click to expand...


this is false. l2cryptocurrency.
 
Nightcrawler12 said:
Bitcoins are probs just a ponzi scheme
Click to expand...
On what possible grounds do you assume that a currency that you can produce without giving out any money is a ponzi scheme, that requires all parts to contribute with money and create a piramid? Exactly?
Bitcoins are not a scam or a scheme, they are an indipendent currency created after an ideal of getting rid of the old world order of money management by banks etcetera.
Wrong or right that it might be, a bad idea or not, please inform yourselves before making such outrageously ignorant statements.

Aside from that, if you want to make money with Bitcoins, avoid investing in a gfx machine now, ASICs are coming out very soon and will destroy any chance of being productive. Either believe in Bitcoin and invest in them, like im considering doing, or find another gold pot.
 
Answer: Healthy, I manufactured most of our bundle on a degree Several persona which I happened to cost Stormwind in the beginner zone.
 
toliman said:
paypal is a scam, it's just linked itself to banks and credit cards and ebay. paypal is virtual money as well, but it's tied to exchange rates and banks, without their rules or safety nets.
Click to expand...


Yep, and the FCC and Supreme Court should place an injunction on them, if not regulate them as a Financial Institution since Paypal transfers millions of federal notes daily.
 
you could easily google.com for the info. howtogeek.com has nice articles on bitcoins. sorry if thats advertising. not sure on the intricacies of posting links
 
Albertcolen said:
when Bitcoin is correctly used with one address per payment, none of them will be the same.
Click to expand...

odd necro

but not entirely true.

bitcoin has an extensive history attached to every coin generated via the "lottery" process of mining.

the transaction chain is still attached to each generated address, so while one wallet can receive and send out multiple payments by using small inputs or larger ones, the equivalent of breaking a $5 note in pieces to send to 3 people, the bitcoin transaction that originally generated the coins, is in the header for each new transaction,

So, bitcoin, can be tracked. If one wallet user makes a purchase for ... sandpaper, from an account that also bought methamphetamines, it will be much easier to track the wallet user back to a location by looking at both vendors and seeing which one is going to give up the name first, who keeps better records of customer transactions, etc. and if that sandpaper vendor, goes and buys coffee with his bitcoins, he can also be tracked by his location and time of payment.

the only way to "anonymise" the payment in this case, is to use certain kinds of mining which put the generated address into the winning packet so there's no first transaction to track, e.g. eligius, or, use a mixing service which will "recycle/exchange" your money into a pool of random fractional payments, and pay you back in tiny fractional amounts. sort of like dropping $100 into a vending machine in an airport, it will drop out 400 to 599 random denominations in small clusters back, instead of 1000 dime's. or 400 quarters, or pesos, yuan, pence, whatever alternative form of denomination there is.

this, is also the secondary function of some satoshi dice/casino sites, fractional bitcoin laundering for bitcoin transaction.
plus or minus the actual "getting your money back" that isn't guaranteed in the satoshi dice/casino game.
 
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