Sooooo bit coins anyone?

[Makebank1]

So I'm curious exactly how Bit coins make any sense whatsoever. I've always thought currency had to be backed up by gold or silver but bit coins are an online currency with a specific signature to prevent duplication. But my question is how does it make any sense? I read recently that someone actually bought a Tesla with bit coins.
I have read a little bit about it but it honestly just doesn't make sense at all to me.. Anyone else understand it and maybe wants to explain it to me? lol

[Blanz420]

BitCoins are crypto currency, doesn't have to be backed by gold or silver.
You mine the BitCoins using your CPU/GPU.

You'r basically helping solve really hard hashes.
That's why you get paid.

There are many other crypto currencies out there.

[Makebank1]

It's still confusing to me, I understand why they get paid now but what's still confusing is who decides the currency is actually worth anything? If its not backed by literally anything then I could basically just create my own currency in which I have people solve rediculous things to earn it? But it'd be difficult thus giving it value?

[Jwlz]

It's still confusing to me, I understand why they get paid now but what's still confusing is who decides the currency is actually worth anything? If its not backed by literally anything then I could basically just create my own currency in which I have people solve rediculous things to earn it? But it'd be difficult thus giving it value?

Nobody "Decides" how much the currency is worth, its based on actual values that people accept for it.

For example, when the "Crypto-currency" of bitcoin began, they were generally worthless. They slowly started to become worth something, when people started to accept them as actual currency. People we're selling things for bitcoins, essentially setting their "own price" for their items.

Because they we're being accepted for items, they began having an actual value. As more and more people allowed payments through bitcoins, again price's rose.

Now companies like Zavvi, etc accept BitCoin, it is essentially those companies setting the price, as now a company is accepting BitCoins, no one can really try to beat their prices, so its based on what they accept.

[Mish]

Price of bitcoins is mainly determined by emotion. They're worth as much as people think they're worth. That's why it's an unstable currency and a risky investment.

You could argue that it's backed up by the cost of electricity, though.

[jmagz]

To be honest if it wasn't for all of the illegitimate uses of Bitcoin and how easy they are to launder I doubt they'd have been adopted as widely as they so far have.

The currency is unstable, you can Google for graphs and charts showing it's fluctuations and you can't really mine them anymore with normal computers, you need some special little devices or some monster power systems to even break even at some point and as others have said they are a speculative currency, meaning, their worth is determined by what people think they're worth and some people do have a hard time selling them to get other more legitimate currency back.

[NeeP]

You could argue that it's backed up by the cost of electricity, though.

I think that's not true. Bitcoins are generated by the power of electricity and thus the costs for this affect the bitcoin value aswell (at least it should) but backing up a currency means you have some item/material or anything that still exists when the currency's value vanishes (sorry my english isn't perfect), some sort of "counter-value". But since this electricity is already used you can't really back it up, also probably the electricity costs are pretty small for 1 single bitcoin.

[Mish]

I think that's not true. Bitcoins are generated by the power of electricity and thus the costs for this affect the bitcoin value aswell (at least it should) but backing up a currency means you have some item/material or anything that still exists when the currency's value vanishes (sorry my english isn't perfect), some sort of "counter-value". But since this electricity is already used you can't really back it up, also probably the electricity costs are pretty small for 1 single bitcoin.

The part I had written before that extract was the quintessence of my statement. All in all I agree with you, though.

The "backing up" thing is not that simple.
Let's pretend the dollar is backed up by gold. What is the gold backed up by then? It does not have a high value, because aside from jewellery and a few other applications it's not too useful.

The price is not that high because of its real value, but because people think it's worth that much.

It's especially questionable if you consider the fact that it might be possible to artificially create gold more efficiently (because less costly) someday.

[Makebank1]

Yeah I've read in numerous places that the idea of bit coin being tied in with electricity is a common misconception. I guess I see where jmagz is going with it. I know there was a website (due to come back online) called silk road or something that allowed u to buy illegal drugs via the internet and they sent it in old gaming systems, and weird shit like that but the currency they accept is bit coin. Its a weird concept to me but I'm starting to understand, thanks everyone :D

[Jwlz]

Yeah I've read in numerous places that the idea of bit coin being tied in with electricity is a common misconception. I guess I see where jmagz is going with it. I know there was a website (due to come back online) called silk road or something that allowed u to buy illegal drugs via the internet and they sent it in old gaming systems, and weird shit like that but the currency they accept is bit coin. Its a weird concept to me but I'm starting to understand, thanks everyone :D

The guy who was running that website was caught and is/has been charged.

He managed to make 9.5 million BitCoins, in sales which equated to 600,000 bitcoins for the creator.

Ross Ulbricht is his name if your interested.

[jmagz]

The guy who was running that website was caught and is/has been charged.

He managed to make 9.5 million BitCoins, in sales which equated to 600,000 bitcoins for the creator.

Ross Ulbricht is his name if your interested.

Oh Captain my Captain :'(


Yeah I've read in numerous places that the idea of bit coin being tied in with electricity is a common misconception. I guess I see where jmagz is going with it. I know there was a website (due to come back online) called silk road or something that allowed u to buy illegal drugs via the internet and they sent it in old gaming systems, and weird shit like that but the currency they accept is bit coin. Its a weird concept to me but I'm starting to understand, thanks everyone :D

The website itself is back online and that is it's name, and yes it deals with illegal drugs via the internet, sending in old gaming systems? That's called stealth packaging but I don't know who would send it in an old gaming system but that would be well hidden, each vendor has their own method.

Hope this helped

[Jwlz]

Oh Captain my Captain :'(

Very interesting story actually.

[jmagz]

Very interesting story actually.

Yeah, I've kept very up to date with it, an admin on the previous SR just got bail for one million dollars.

[Jwlz]

Yeah, I've kept very up to date with it, an admin on the previous SR just got bail for one million dollars.

Ouch.

That equates to what, 100,000 bitcoins?
Thats his work and time down the pan !! :)

[jmagz]

Ouch.

That equates to what, 100,000 bitcoins?
Thats his work and time down the pan !! :)

Haha well I heard his family had to use the house/mortage and pensions as collateral to afford it, I think if he had had any bitcoins left they probably were seized as proceeds of criminal activity.

No idea what he's being charged with though, probably various conspiracy to commit offences :p

[Jwlz]

Haha well I heard his family had to use the house/mortage and pensions as collateral to afford it, I think if he had had any bitcoins left they probably were seized as proceeds of criminal activity.

No idea what he's being charged with though, probably various conspiracy to commit offences :p

Probably some serious charges. Theres lots that will go along with a Crime like this, not to mention the obvious ones like Supplying Class A/B/C Drugs, drug trafficking etc.

Very naughty boys ! :D

[Makebank1]

Damn that is ridiculous... Yeah I'm sure hes being charged with some pretty bad shit lol

[Asus]

http://www.weusecoins.com/en/

[jmagz]

That awkward moment where I just actually went and bought £250 worth of bitcoins (0.47 of a coin) :rolleyes:

[Makebank1]

Haha what do you plan on using it on?

[raiQi]

Haha what do you plan on using it on?
Why would he use it on anything, its more like an investment. If he holds onto it for like a year or so im sure the value will have raised quite alot.

[smeg]

Why would he use it on anything, its more like an investment. If he holds onto it for like a year or so im sure the value will have raised quite alot.

It's purely speculating that the value will increase. People that buy bitcoins as an investment are basically gambling that they can sell it to someone else in the future for more money. Other than an increasing demand with exceeds the increase in supply I don't see how you could call it an investment. I would rather call it gambling if you look at the volatility of bitcoins, lol.

[jmagz]

Why would he use it on anything, its more like an investment. If he holds onto it for like a year or so im sure the value will have raised quite alot.


Haha what do you plan on using it on?


I'm not going to lie, I bought a lot of drugs.


It's purely speculating that the value will increase. People that buy bitcoins as an investment are basically gambling that they can sell it to someone else in the future for more money. Other than an increasing demand with exceeds the increase in supply I don't see how you could call it an investment. I would rather call it gambling if you look at the volatility of bitcoins, lol.

Usually though the only way is up for currency and inflation and Bitcoins recently took a burst when China banned them however the US Senate discussing them as a legitimate currency and saying that they one day could be mainstream led to a recovery and the prices should just slowly rise now.

If I'd have kept my Bitcoins from last year though I'd have tripled my money :(

[HonkaPonka]

I went on Silk Road to check it out a month ago or something. I scrolled through some of it, basically people selling shit loads of ecstasy, lsd, speed paste and weed. Then I checked the fake copy section and it was just some people selling forged utility bills and shit like that. I can remember the drugs were always over 1 bit coin, around 1,3 to up to ridiculous amounts 3,0 etc etc. Pretty fucked up shit.

[jmagz]

I went on Silk Road to check it out a month ago or something. I scrolled through some of it, basically people selling shit loads of ecstasy, lsd, speed paste and weed. Then I checked the fake copy section and it was just some people selling forged utility bills and shit like that. I can remember the drugs were always over 1 bit coin, around 1,3 to up to ridiculous amounts 3,0 etc etc. Pretty fucked up shit.

They're not. I've got no idea what you saw or remembering seeing but that must've been some error, they're usually priced pretty well, sometimes better than street price and the quality is almost always better.
Take another look and check, you can also get lifetime accounts to Netflix and other sites and such for a relatively small amount :P

[Asus]

I heard of you have a really good PC you can make the BITCOINS is that true ? :D I've been searching for a while and I noticed people investing in good PC and getting $2k/ a month who knows if that's the true story :D so anyone knows :D <3 ?

[HonkaPonka]

They're not. I've got no idea what you saw or remembering seeing but that must've been some error, they're usually priced pretty well, sometimes better than street price and the quality is almost always better.
Take another look and check, you can also get lifetime accounts to Netflix and other sites and such for a relatively small amount :P

Yeah, I forgot about that but it was usually in bulk, I don't really know of any people using any of these drugs except weed and hash that's pretty much it tbh. So no use in selling ecstasy and lsd and all this weird shit in Denmark hahaha

[Makebank1]

Why would he use it on anything, its more like an investment. If he holds onto it for like a year or so im sure the value will have raised quite alot.
I wasnt really thinking of it that way, kind of makes sense tho


I'm not going to lie, I bought a lot of drugs.
Haha I mean i appreciate the honesty!



I heard of you have a really good PC you can make the BITCOINS is that true ? I've been searching for a while and I noticed people investing in good PC and getting $2k/ a month who knows if that's the true story so anyone knows <3 ?


I dont think it depends as much on the pc ( I'm sure you need to have one that works in order to obtain them ) but from what I gather it seems to be more about solving the hashes then computer power, but the whole thing is still a mystery to me lol

[Jwlz]

I wasnt really thinking of it that way, kind of makes sense tho


Haha I mean i appreciate the honesty!



I dont think it depends as much on the pc ( I'm sure you need to have one that works in order to obtain them ) but from what I gather it seems to be more about solving the hashes then computer power, but the whole thing is still a mystery to me lol

GPU is the main thing you need, so a very powerful graphics card is the main component needed.
However nowadays, unless your in a mining pool, your more likely to use more Electricity to mine the bitcoin, than the bitcoin is actually worth. Therefor loosing money.

[raiQi]

They're not. I've got no idea what you saw or remembering seeing but that must've been some error, they're usually priced pretty well, sometimes better than street price and the quality is almost always better.
Take another look and check, you can also get lifetime accounts to Netflix and other sites and such for a relatively small amount :P
I got my lifetime account to netflix for free :D
Anyways I agree with you the prices are pretty decent and the quality is pretty good, atleast on the shit i've tried.

[Asus]

I got my lifetime account to netflix for free :D
Anyways I agree with you the prices are pretty decent and the quality is pretty good, atleast on the shit i've tried.

Did anyone have tried on a shit PC is it worth mining ?

[Mish]

Did anyone have tried on a shit PC is it worth mining ?

Try something like this; http://assets2.motherboard.tv/content-images/contentimage/no-slug/54e1321abc15ea6e1e0cfd80c17eefe0.jpg

[Makebank1]

Try something like this; http://assets2.motherboard.tv/content-images/contentimage/no-slug/54e1321abc15ea6e1e0cfd80c17eefe0.jpg
Holy crap.. lol I stand corrected

[raiQi]

Did anyone have tried on a shit PC is it worth mining ?
Acording to wikipedia its not worth it unless u have free electricity and even then its barely worth it.

[HonkaPonka]

I have free electricity haha but I am not fucked to go and buy 40 pc's haha not even worth it xD For such little bit coins and my electricity would probably keep going off cause of overuse of the plugs.

[Jwlz]

I have free electricity haha but I am not fucked to go and buy 40 pc's haha not even worth it xD For such little bit coins and my electricity would probably keep going off cause of overuse of the plugs.


Free electricity? Tell me HOW!

[HonkaPonka]

Free electricity? Tell me HOW!

Employee pays my electricity, water, heat bills and my house rent and then also a certain percent of my internet and phone bill...

[Jwlz]

Employee pays my electricity, water, heat bills and my house rent and then also a certain percent of my internet and phone bill...

You have slaves?

[HonkaPonka]

You have slaves?

Only three :(

[Jwlz]

Only three :(

Sweet, we're they bought from Silk Road? :D

[HonkaPonka]

Sweet, we're they bought from Silk Road? :D

Obviously :D

[jmagz]

Yeah, I forgot about that but it was usually in bulk, I don't really know of any people using any of these drugs except weed and hash that's pretty much it tbh. So no use in selling ecstasy and lsd and all this weird shit in Denmark hahaha

Hehe well I prefer Psychedelics, I find them a lot stronger and better than most other drugs and even my friends have said I've partially ruined Mdma and Coke for them after giving them some acid.

Ah, the joys of the internet :)

[HonkaPonka]

Hehe well I prefer Psychedelics, I find them a lot stronger and better than most other drugs and even my friends have said I've partially ruined Mdma and Coke for them after giving them some acid.

Ah, the joys of the internet :)

I made a promise to myself never to do hard drugs, i'm fine with only weed but hey one mans joy is another mans nightmare

[Blanz420]

Here watch this video, it explains it all..


http://youtube.com/watch?feature=m-ch-fea&v=cFj72hrUZt4


Hehe well I prefer Psychedelics, I find them a lot stronger and better than most other drugs and even my friends have said I've partially ruined Mdma and Coke for them after giving them some acid.

Ah, the joys of the internet :)

Opiates and Benzos FTW.

Also you really can't compare MDMA and coke to phycs, there both totally different from each other and physcs.

[J.Dre]

My PC only gets 85 Mhash/s. Supposedly this means I should get a BitCoin every 2-3 weeks, on average. It isn't even worth it. It would only be worth it if you had a server farm mining.

[newbotter]

Bit coins mean you will not be able to save money again. Like credit you will use it or lose it. Like when you get a credit card and if you don't use the card it hurts your credit. Once they take away the ability to save money they take away the ability for you to stay out of debt, you can't save for anything so you always need to take out loans. Then if you lose the ability to make money like all the others you go to the debtor prison which is a much less popular topic.