Can someone explain this to me?
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@doctor-phibes said in Can someone explain this to me?:
@klaus said in Can someone explain this to me?:
@george-k said in Can someone explain this to me?:
"Bitcoin mining?" WTF is that.
It's the Bitcoin way of how to deal with the initial distribution of currency and the growth of the money supply. The idea is that you can create new Bitcoin by solving computationally expensive problems.
It seems to me that there's a fundamental flaw with a currency that requires you to do something completely pointless and damaging to the environment in order to create wealth.
Then again, I guess you could say the same thing about gold mining.
I doubt that the inventor of mining had the current situation in mind when he came up with the idea.
If you leave off the unfortunate ecological consequences, the idea of mining is pretty interesting. I wouldn't know a better way to control initial distribution and growth of the money supply in a different way that is both decentralized and "fair" in a certain sense.
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@klaus said in Can someone explain this to me?:
I doubt that the inventor of mining had the current situation in mind when he came up with the idea.
Software engineers aren't engineers.
Proud supporter of Plan 2525. Everything you think, do and say will be in the pill you took today.
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@axtremus said in Can someone explain this to me?:
Is/was the inventor of Bitcoin an engineer?
Nobody knows....
https://en.wikipedia.org/wiki/Satoshi_Nakamoto -
@doctor-phibes said in Can someone explain this to me?:
Software engineers aren't engineers.
Indeed, whenever I get tech support on a piece of software that's not behaving, the person says, "I'll relay this to the engineers."
It takes all of my self-restraint to not ask what kind of locomotive...
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@doctor-phibes said in Can someone explain this to me?:
I'm none the wiser after reading all that.
And for @Catseye3 , how about this description:
Bitcoin is a type of "crypto currency". Aka digital money you can't hold, and that isn't owned by anyone or any government.
It's internet money. Enough people have decided it's real enough that they use it like real money to buy/sell things, and so the "equivalent dollar price" of what a bitcoin is worth has gone up based on the demand to have one.
Every time a bitcoin is created or used, it updates this magical internet ledger so every transaction and every bitcoin ever is tracked using the internet.
To create a bitcoin, which 99.999% of bitcoin users do not do because it's so expensive, you have to run lots of computer actions that conform to the bitcoin software rules.
Right now the energy it takes to run all of those computer actions is approximately the same energy used by a US household for 53 days.
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@mik said in Can someone explain this to me?:
I'm taking the Buffett approach - if I don't really understand it I don't invest in it.
Ok how about this.
Let's pretend every post by @George-K is a Cheddarcoin, tracked by the post ID. How much money would you spend to own a Cheddarcoin? Once enough people buy his Cheddarcoins, @Klaus announces that TNCR officially supports the use of Cheddarcoin in TNCR transactions. For example, it might cost 5 Cheddarcoins to see a picture of @Doctor-Phibes drink a non-alcoholic beer, or 10 Cheddarcoins to force @mark to buy a Dell off of a Best Buy shelf. Or maybe 50 Cheddarcoins to see a picture of @Aqua-Letifer 's sister, but 100 Cheddarcoins to remove it. How many Cheddarcoins would you pay to watch @Larry wear a BLM shirt or for @Jolly to hire someone to chop down a small maple tree?
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Incidentally, I've been drinking alcohol free beer for the last two weeks.
That makes no sense, either.
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@89th said in Can someone explain this to me?:
And for @Catseye3 , how about this description:
Thanks, 89th. That's the clearest explanation I've gotten yet.
I'm no economist (eyes rolling here), but it seems to me that bitcoin's supposed advantage is its greatest weakness -- that government backing of a country's currency is what makes it "go", whether you like it or not. Why all the mention of a "strong dollar" like it's THE desirable thing -- with which everyone in the developed world agrees, and everyone relies on.
Something kinda Monopoly money-ish about bitcoin, it seems to me. And it relies on everyone's participation. If enough people drop out, where does that leave you?
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@catseye3 said in Can someone explain this to me?:
it's THE desirable thing -- with which everyone in the developed world agrees, and everyone relies on.
Don't listen to 89th, he's a sucker. Bitcoin was so 2019.
It's 2021, son, NFT is where it's at! You best get in the game!
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@aqua-letifer Nix! Don't do this to me! I want no parts of a same-only-different from bitcoin! Having enough trouble as it is. Not to mention that I don't even care that much!
Reading over my last post, I'm embarrassed to feel like Captain Obvious. "Government backing is important?" Really???
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@aqua-letifer said in Can someone explain this to me?:
@catseye3 said in Can someone explain this to me?:
it's THE desirable thing -- with which everyone in the developed world agrees, and everyone relies on.
Don't listen to 89th, he's a sucker. Bitcoin was so 2019.
It's 2021, son, NFT is where it's at! You best get in the game!
I really think NFTs is the long term value here btw. Being able to "guarantee" ownership of digital property is the way of the future.
The way of the future.
The way of the future.
The way of the future.
The way of the future.
The way of the future.
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@catseye3 said in Can someone explain this to me?:
Something kinda Monopoly money-ish about bitcoin, it seems to me. And it relies on everyone's participation. If enough people drop out, where does that leave you?
Pretty much!
Although one could argue that could happen even with the US Dollar, but at least for the next few decades that doesn't seem even close to possible.
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@catseye3 said in Can someone explain this to me?:
@89th said in Can someone explain this to me?:
And for @Catseye3 , how about this description:
Thanks, 89th. That's the clearest explanation I've gotten yet.
Something kinda Monopoly money-ish about bitcoin, it seems to me. And it relies on everyone's participation. If enough people drop out, where does that leave you?
And this is different from the regular economy how?
Me/rry/Christmas
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@lufins-dad said in Can someone explain this to me?:
@catseye3 said in Can someone explain this to me?:
@89th said in Can someone explain this to me?:
And for @Catseye3 , how about this description:
Thanks, 89th. That's the clearest explanation I've gotten yet.
Something kinda Monopoly money-ish about bitcoin, it seems to me. And it relies on everyone's participation. If enough people drop out, where does that leave you?
And this is different from the regular economy how?
That's the difference I mentioned in the first response. All currencies rest on agreement that they are valuable, and that agreement in turn rests on something else. The dollar rests on the threat of violence, while bitcoin rests on the inertia of wide adoption and the fact that it's not a fiat currency that depends on the threat of violence.
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Liz Warren to the rescue!
Sen. Elizabeth Warren: Crypto markets might need bailout someday without proper regulation
What a slime bag.
