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Does anyone know what Bitcoins are?

Discussion in 'Off-topic Zone' started by Supercowboy1986, May 3, 2013.

  1. Supercowboy1986

    Supercowboy1986 Well-Known Member

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    I recently just heard about this digital currency called "Bitcoins" which you could convert to actual money. I was doing some reading of it online and from my understanding the way it works is you install some sort of client (or program) and establish a "Wallet", and this client solves math equations which generates "Bitcoins" that you can exchange for actual currency. Apparently it uses your PC's CPU and GPU to solve these equations. Has anyone heard of this before and can anyone tell me if any of this information is true?
  2. CashMan

    CashMan Well-Known Member

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    From what I gather, it sounds like a new way to buy illegal things(drugs, black market items), but not be able to get caught.
  3. Denim Chicken

    Denim Chicken Well-Known Member

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    You are very misinformed. It is simply a digital, finite currency which is based on a predisposed algorithm which adds controlled amounts to what is in circulation.
  4. martyogelvie

    martyogelvie New Member

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    Bitcoin is a fairly legitimate fiat currency. It is a digital currency and to describe it here would take up too much space and time. Do a Google search and you will find more info on it than you desire.

    The price fluctuates too much for my taste and I personally think the train has left the station for those wanting to get rich quick. It is also somewhat difficult for US buyers to get money on any market to purchase Bitcoin directly... you can purchase via ebay but you will pay a premium.
  5. Hoofbite

    Hoofbite Well-Known Member

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    I had heard about it but never really looked into until a little while back just to see what the attraction was.

    Looks like you just turn processing power into money. The problem seems to be that the processing power required is ridiculous. Some people have found ways to get the most bang for their buck from certain rigs but a lot of the hardware parts are expensive as all hell.

    On top of that, as time goes by the computing power needed to generate one "bit" or whatever they call it is also rising. So while you might be able to get a setup that might be able to generate a few hundred bucks per month, that same system will start falling behind and you'll be generating less and less.

    Additionally, people have basically turned smaller areas into farms. They'll rig up a couple dozen of these small machines and make good money on it. Problem here is that small users who may want to have 1 machine or whatever are working with limited resources and the life cycle of their product is diminished as these power users are cranking out processing power at an ever increasing rate.

    Lastly, the price of electricity to run some of this stuff is pretty high. Imagine your computer running full bore nonstop.

    It's an interesting idea. You should check YouTube for some of the setups people are running. At this stage in the game though I don't think it would be worth trying without a specialized machine and there's no guarantee that it won't be too slow to do anything with shortly down the line.
  6. Phoenix

    Phoenix Well-Known Member

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    Those crazy Anonymous guys are always bringing this thing up. I continue to ignore them on it. :)
  7. Eric_Boyer

    Eric_Boyer Well-Known Member

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    I have a problem with calling bitcoins fiat currency.
  8. muck4doo

    muck4doo Well-Known Member

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    Ask Alex Jones.
  9. CowboyMcCoy

    CowboyMcCoy Business is a Boomin

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    Uh Oh. EB has a problem.
  10. Kangaroo

    Kangaroo Active Member

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    It has skyrocketed in price since the Eurozone and cyrpus bank trying to take peoples money. Before that they did not go up much but they basically went from 10$ to about 100$ over night after the Cyrpus stuff went down.

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