Bit Coin/s

Mr Fourex

State of Origin Rep
5,476
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What's the skinny on Bitcoins?

I seem to be reading about it a lot lately on how I can supposedly pay off all my debt and quit my job in a little under 5 yrs.

Naturally this interests me......

That said, I'm also by nature quite cynical and anything that sounds too good to be true usually is bullshit.

So......... what's the go and how does it work?
 

Mr Fourex

State of Origin Rep
5,476
3,450
I feel like I just entered the room ......and everyone stopped talking.
 

gordjw

NRL Player
1,756
784
Sunny Canberra
I don’t know if it’s already too late to get on the bitcoins, but yeah if you’d put $10k into them 5 years ago you’d be pretty much set for life now.

They’re an alternative currency (I think the ATO classes them as an asset instead) that can be exchanged for goods and services in a small number of legitimate online stores and a large number of illegitimate online stores.

They’re created by “miners” using large scale computing clusters to solve mathematical problems. 1 problem solved = 1 bitcoin, more or less.

Solutions, aka creation of a bitcoin, (and other types of transactions - payments, transfers) are published to a verifiable list, or ledger, called a blockchain.

Verification of the blockchain is done by consensus between all of the miners, if there’s a dispute over a transaction, whoever can get over 50% of miners confirming their version, wins.
That’s why there’s a big political issue with a lot of the mining being done in China.

The more bitcoins that are “mined”, the more difficult it becomes to “mine” the next one. The difficulty of solving the math problems keeps growing, making it more expensive (electricity and purchasing more GPU) as time passes.

Finally, Bitcoin is just one “brand” of blockchain, and the most well known. Kind of like how all clothes lines used to be known as Hills Hoists and how Americans call all tissues Kleenex.

In summary, the verifiable lists, aka blockchains, are really cool and have some really awesome applications outside of bitcoin.

Bitcoins themselves are very wasteful to produce, and kind of pointless outside the hacker/nerd space. I think we will end up with digital only currency in the mainstream, but it won’t be bitcoin, it’ll be bitcoin technology applied to the AUD (or more likely the USD or yuan).
 

Morkel

International Captain
Staff
20,883
17,215
There's a big frenzy on FB right now (and my sister is sucked right in) for people to jump on board now and how miraculous it is and X person made 140% profit in 140 days. And it's all a load of shit because the system they're spruiking is a thinly veiled pyramid scheme, at best a multi-level marketing scheme but with no actual product.
 

Nashy

International Captain
Staff
39,195
14,169
Brisbane
Good article on news.com.au yesterday about them. I don't pretend to know lots, but I know enough to know that BitCoin will crash, and many, many people will lose out.

The article talked about it being worse that the .com bubble bursting. If you don't remember that, it was a bit of fun. There is absolutely and utterly no way a single bit coin is worth $8500 USD or whatever they are today. They are meaningless, made up things.
 

soup

State of Origin Rep
7,330
5,208
T’ba
Good article on news.com.au yesterday about them. I don't pretend to know lots, but I know enough to know that BitCoin will crash, and many, many people will lose out.

The article talked about it being worse that the .com bubble bursting. If you don't remember that, it was a bit of fun. There is absolutely and utterly no way a single bit coin is worth $8500 USD or whatever they are today. They are meaningless, made up things.
Fucking annoying things! 5-6 years or so ago, a very reliable person in the know told me to jump on them. At that stage, they were about $10 each. If she hadn’t died last year, she’s be a millionaire now, and if I’d taken her advice, so would I...
 

Porthoz

International Captain
Staff
Good article on news.com.au yesterday about them. I don't pretend to know lots, but I know enough to know that BitCoin will crash, and many, many people will lose out.

The article talked about it being worse that the .com bubble bursting. If you don't remember that, it was a bit of fun. There is absolutely and utterly no way a single bit coin is worth $8500 USD or whatever they are today. They are meaningless, made up things.
I don't think it will go down very soon, as there are still a fair few Bitcoins to be mined (remember their amount is finite).

I'm in soup soup 's boat, and could've made a mint if I had taken the chance a few years ago, when a Bitcoin was less than a dollar.

If you're not afraid of taking a risk, it's still worthy of a gamble. But the chance of making a great profit is gone, and the risk of losing your investment is as great, if not greater than making a profit.

Still beats gambling though...
 

Renegade

NRL Captain
4,095
3,241
I get the impression the ship has sailed with bitcoin. I knew about it maybe 4-5 years ago but only in passing, I can't claim to have been a potential millionaire as I was never offered/in a position to buy them, had only read about them on forums etc.

Besides there's others out there now, litecoin, ethereum, etc. I am not sure how each crypto-currency is indexed per se and whether their values parlay into the others or whether they operate independently...
 

Nashy

International Captain
Staff
39,195
14,169
Brisbane
Yes....that's my quandary. Are they a thing you can turn into cold hard cash?
There are many places online to buy and sell them in whatever currency. They charge various fees and what not.

For all the negative talk about it being nothing, end of the day, cold hard cash is nothing too.
 

Morkel

International Captain
Staff
20,883
17,215
There are many places online to buy and sell them in whatever currency. They charge various fees and what not.

For all the negative talk about it being nothing, end of the day, cold hard cash is nothing too.
At least cash is backed by reserves. That’s the safety net of going through the traditional banking system.

Bitcoin is great for people who want to do illegal shit, so straight away I don’t like it. But it can be stolen via hacking, and if that then there’s no way to get it back or even trace where it’s gone.

And now, all these places that people are signing up to are third parties. How secure are they? What’s to stop one of the owners from disappearing with it all?
 

Nashy

International Captain
Staff
39,195
14,169
Brisbane
At least cash is backed by reserves. That’s the safety net of going through the traditional banking system.

Bitcoin is great for people who want to do illegal shit, so straight away I don’t like it. But it can be stolen via hacking, and if that then there’s no way to get it back or even trace where it’s gone.

And now, all these places that people are signing up to are third parties. How secure are they? What’s to stop one of the owners from disappearing with it all?
Nothing. That actually happened only recently. The FBI a few years back busted someone (I think it was the Silk Road guy), and they auctioned off his BitCoins.
 

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