http://gamingtrend.com
October 31, 2014, 02:26:36 PM *
Welcome, Guest. Please login or register.

Login with username, password and session length
News:
 
   Home   Help Search Calendar Login Register  
Pages: [1]   Go Down
  Print  
Author Topic: Bitcoin explained  (Read 735 times)
0 Members and 1 Guest are viewing this topic.
farley2k
Moderator
Gaming Trend Senior Member

Online Online

Posts: 3286



View Profile
« on: January 30, 2014, 03:59:40 PM »

saw this on IMGUR and it helped me understand what bitcoin is so I thought I would post it here to help anyone else who wonders.

Original link

Logged

Punisher
Gaming Trend Senior Member

Offline Offline

Posts: 1743



View Profile
« Reply #1 on: January 30, 2014, 05:48:40 PM »

I still don't get it... icon_confused
Logged
Caine
Gaming Trend Senior Member

Online Online

Posts: 10304


My cocaine


View Profile WWW
« Reply #2 on: January 30, 2014, 06:03:51 PM »

Quote from: Punisher on January 30, 2014, 05:48:40 PM

I still don't get it... icon_confused

public ledger to track transactions and an incentive to maintain it.  I'm not sure how the mining aspect works as it doesn't seem like mining in the traditional sense, but I get the first part about having a unified currency with no middle man to handle the transaction.
Logged

Blackjack
Gaming Trend Senior Member

Offline Offline

Posts: 10886



View Profile
« Reply #3 on: January 30, 2014, 06:18:23 PM »

I don't see how Bitcoin's "public ledger" is any less vulnerable to hacking, fraud and everything else in the news today than any other currency or payment system  (if that's what it is). If the selling point is a synched public ledger, I just don't quite understand how that's more secure than other systems or how users won't eventually find a way to "game" the system. I think the moment anyone tries a system that's equivalent to a new currency, from day 1, users will look for holes and ways to take advantage of it. An unfortunate aspect of human nature...

And like Punisher, I still don't get it  confused, apple metaphors or not. Maybe cheese slice or cookie metaphors would work better for my tiny mind.  icon_razz
Logged

Playing
PC
-Wasteland 2 (post-apoc, turn-based squad strategy/RPG )
-Grim Dawn
-Gauntlet (4 player co-op dungeon arcade brawling)
wonderpug
Gaming Trend Senior Member

Offline Offline

Posts: 11487


hmm...


View Profile
« Reply #4 on: January 30, 2014, 06:30:43 PM »

Quote from: Blackjack on January 30, 2014, 06:18:23 PM

And like Punisher, I still don't get it  confused, apple metaphors or not. Maybe cheese slice or cookie metaphors would work better for my tiny mind.  icon_razz

If you try to manage digital transactions privately, there's lots of room for secret corrupt things to happen.  But if you make it so all digital transactions go through Mr. Universe, you can't stop the signal and people will find out about the corrupt things happening.
Logged
Punisher
Gaming Trend Senior Member

Offline Offline

Posts: 1743



View Profile
« Reply #5 on: January 30, 2014, 06:51:26 PM »

Let me elaborate... I "think" I understand the concept of the ledger system, but I still don't "get" what a bitcoin is or how it has value. Or the mining stuff I hear about..
Also, I don't see how the security works.. If the universal ledger says we each have 100 bitcoins, at some point I would earn more bitcoins and that would be a single entry until it propagates... Sort of like DNS changes. With DNS changes they start on one server until they spread to the universal DNS "ledger.
« Last Edit: January 30, 2014, 06:55:21 PM by Punisher » Logged
rittchard
Gaming Trend Senior Member

Offline Offline

Posts: 4019


View Profile
« Reply #6 on: January 30, 2014, 08:17:22 PM »

I thought Bitcoin was that thing you do to launder your drug money. 
Logged
Teggy
Gaming Trend Senior Member

Online Online

Posts: 8723


Eat lightsaber, jerks!


View Profile
« Reply #7 on: January 30, 2014, 09:50:39 PM »

I think if you break open AMD video cards bitcoins fall out or something.
Logged

"Is there any chance your jolly Garchomp is female?" - Wonderpug
Ironrod
Gaming Trend Senior Member

Offline Offline

Posts: 3402



View Profile WWW
« Reply #8 on: January 30, 2014, 11:41:17 PM »

Quote from: Punisher on January 30, 2014, 06:51:26 PM

I still don't "get" what a bitcoin is or how it has value.

This. If it can't be converted to US dollars or euros or some other common currency, how is it ultimately worth anything? Can a bitcoin billionaire pay the rent with them?
Logged

Curio City Online - Weird stuff you can buy
Curious Business - The Curio City Blog
Teggy
Gaming Trend Senior Member

Online Online

Posts: 8723


Eat lightsaber, jerks!


View Profile
« Reply #9 on: January 31, 2014, 12:25:30 AM »

Quote from: Ironrod on January 30, 2014, 11:41:17 PM

Quote from: Punisher on January 30, 2014, 06:51:26 PM

I still don't "get" what a bitcoin is or how it has value.

This. If it can't be converted to US dollars or euros or some other common currency, how is it ultimately worth anything? Can a bitcoin billionaire pay the rent with them?

There is a market for them but the price is extremely volatile. We're talking hundreds of dollar swings within a month.
Logged

"Is there any chance your jolly Garchomp is female?" - Wonderpug
morlac
Gaming Trend Senior Member

Offline Offline

Posts: 2779



View Profile
« Reply #10 on: January 31, 2014, 01:15:18 AM »

Quote from: Ironrod on January 30, 2014, 11:41:17 PM

Quote from: Punisher on January 30, 2014, 06:51:26 PM

I still don't "get" what a bitcoin is or how it has value.

This. If it can't be converted to US dollars or euros or some other common currency, how is it ultimately worth anything? Can a bitcoin billionaire pay the rent with them?

Mostly black market stuff initially but is gaining main stream traction.
http://money.cnn.com/gallery/technology/2013/11/25/buy-with-bitcoin/3.html
https://spendbitcoins.com/places/

I find it fascinating.
Logged

morlac00 on PSN
Lee
Gaming Trend Senior Member

Offline Offline

Posts: 3365


View Profile
« Reply #11 on: January 31, 2014, 06:48:12 AM »

Quote from: Ironrod on January 30, 2014, 11:41:17 PM

Quote from: Punisher on January 30, 2014, 06:51:26 PM

I still don't "get" what a bitcoin is or how it has value.

This. If it can't be converted to US dollars or euros or some other common currency, how is it ultimately worth anything? Can a bitcoin billionaire pay the rent with them?

It's the same as the dollar bill you have in your pocket, if everyone recognize that it has value and will accept it as a thing of value, it's worth something. There are enough people backing it at this point and willing to accept it as money that it's slowly becoming more accepted.

I have been heavily into the stock market the last few years, and stocks have more than enough volatility for me. I can't imagine playing with bitcoins that fluctuate in value like crazy without any real driver for those changes. I guess there is a lot of money to be made, but I don't have the confidence to risk it.
Logged
Turtle
Gaming Trend Senior Member

Offline Offline

Posts: 9429



View Profile WWW
« Reply #12 on: January 31, 2014, 10:04:01 AM »

So far from what I've read, here's my comments.

The reason why it's a bit more resistant to fraud is that there's a lot of ledgers that are synced and tracked together. To commit fraud on the system, you have to commit such a good fraud that you convince 51% of the ledgers to accept your input all at once. Also each coin and transaction has a very long tail of tracking information attached to it. It's not impossible, and as bitcoin becomes more commonly used (assuming it doesn't collapse)

Another big thing is that Bitcoin can be used as a money transfer system that goes everywhere in the world, and doesn't involve fees and skeezy companies, while still protecting yourself from the wild fluctuations of bitcoin. Sadly I don't know exactly how it does this, but imagine a world where you didn't have to deal paypal's fees and shoddy business practices. There still might be fees for doing so, but they are considerably less.

I suspect that bitcoin's best future use will be to supplant paypal for worldwide use.

Other than that, I really don't know that much about bitcoin, but I can see its usefulness. Money is a shadow on the wall in this world, only a promise value whispered by the country that issued it. Bitcoin is no different, but it's whispered promise is that it's useful outside the current system.
Logged
Autistic Angel
Gaming Trend Senior Member

Offline Offline

Posts: 3634


View Profile
« Reply #13 on: January 31, 2014, 12:49:21 PM »

I love Bitcoins!

More specifically, I love Bitcoins in the same way that I love EVE Online: two impenetrable hobbies that other people are investing hundreds of hours and *thousands* of dollars into pursuing.  And every once in a while, everything blows up.

When something happens in EVE Online, it's something like 4,000 players engaging in a single massive space battle that takes five hours to complete and costs over $300,000 -- that's real-world American dollars -- in lost assets.  I also enjoyed reading up on that time the SomethingAwful forum successfully infiltrated the executive board of EVE's biggest corporation and dissolved the whole thing, causing a mass scramble to fill the power vacuum.

Bitcoin blowups involve fewer lasers or particle effects, but they happen more dramatically and a lot more frequently.  Hardly a month goes by without a Bitcoin bank suddenly winking out of existence...and taking everybody's "savings" with it.  Here's the last one I read about:

Quote from: Business Insider
A Chinese Bitcoin exchange that held up to $4.1 million in users' accounts has gone offline and everyone involved with it has vanished, according to CoinDesk.

The GBL exchange claimed to be based in Hong Kong but turns out to have been headquartered in China.


Quote from: Business Insider
Bitcoin banks and exchanges have a habit of disappearing, the WCT says:

Quote
Research conducted by Southern Methodist University assistant professor Tyler Moore and Carnegie Mellon University assistant professor Nicolas Christin found that 18 of the 40 Bitcoin trading platforms set up in the past three years had closed, including TradeHill, which was once the second largest in terms of transaction volume.

Moreover, 13 of the discontinued services closed without any prior notice, while the remaining five were forced to shut down following hacker attacks. Only six of them were known to have offered refunds to users.

Business Insider noted just a few days ago that an Australian Bitcoin bank, "Tradefortress," closed with $1 million in Bitcoin funds missing. The bank turned out to be operated by an 18-year-old boy who lived in a block of apartments in Hornsby, a suburb of Sydney.


Stealing "millions of dollars" worth of Bitcoins might sound like a big deal, my favorite is still that one guy who swiped a whole lot more:

Quote from: Business Insider
A person who allegedly robbed the web site Sheep Marketplace of 96,000 Bitcoins — about $100 million at current prices — is attempting to hide the heist by breaking up the massive online currency cache and repeatedly trading it through various "tumblers," which mix up and (supposedly) launder old Bitcoins for new.


I can't imagine what would inspire the average consumer to look at a marketplace that is routinely making headlines for massive levels of theft, fraud, and abuse, and decide it's worth pouring a bunch of actual money into.  It's *fascinating* to watch people line up to get scammed, though! nod

-Autistic Angel
Logged
morlac
Gaming Trend Senior Member

Offline Offline

Posts: 2779



View Profile
« Reply #14 on: February 02, 2014, 04:34:50 PM »

Quote from: Autistic Angel on January 31, 2014, 12:49:21 PM


I can't imagine what would inspire the average consumer to look at a marketplace that is routinely making headlines for massive levels of theft, fraud, and abuse, and decide it's worth pouring a bunch of actual money into.  It's *fascinating* to watch people line up to get scammed, though! nod

-Autistic Angel

So not that different than any other monetary system.
Logged

morlac00 on PSN
rittchard
Gaming Trend Senior Member

Offline Offline

Posts: 4019


View Profile
« Reply #15 on: February 03, 2014, 06:54:29 PM »

Quote from: Ironrod on January 30, 2014, 11:41:17 PM

Quote from: Punisher on January 30, 2014, 06:51:26 PM

I still don't "get" what a bitcoin is or how it has value.

This. If it can't be converted to US dollars or euros or some other common currency, how is it ultimately worth anything? Can a bitcoin billionaire pay the rent with them?

Nope but you can buy lots of drugz once you hit the Silk Road!!!

http://en.wikipedia.org/wiki/Silk_Road_(marketplace)

Logged
farley2k
Moderator
Gaming Trend Senior Member

Online Online

Posts: 3286



View Profile
« Reply #16 on: March 05, 2014, 09:21:54 PM »

The Non-Expert’s Guide to the Mt. Gox Fiasco 

I read it because I couldn't really figure out how people lost money.  Now I understand a bit better.
Logged

Mystic95Z
Gaming Trend Senior Member

Offline Offline

Posts: 527


View Profile
« Reply #17 on: March 06, 2014, 10:04:05 AM »

Saw a news story the other day where some guy in Wisconsin (IIRC) that is offering to sell his house for 100,000,000 Dogecoin...
Logged
MonkeyFinger
Gaming Trend Senior Member

Offline Offline

Posts: 3300



View Profile
« Reply #18 on: March 06, 2014, 02:35:10 PM »

And then there was this - "Bank" that claimed to solve Bitcoin’s security problem robbed, shuts down.
Logged

-craig

PSx: MonkeyFinger
XBx: MonkeyPhinger
Pages: [1]   Go Up
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2013, Simple Machines
Valid XHTML 1.0! Valid CSS!
Page created in 0.166 seconds with 61 queries. (Pretty URLs adds 0.059s, 2q)