Can Someone Tell me how Bitcoin Works Simply?

[nexcom28]

I have known about bitcoins for a while, I fist heard about bitcoin mining where hackers would illegally use your PC to mine for data.
Please could someone explain simply how it all works. Ive tried to understand but I don't get it.

How does a site allow payments by bitcoin and where do they come from?

[L-Pink]

Bitcoins, aka nerd currency, are created by computers that perform productive tasks. lol.

.

[mineistaken]

Find "how bitcoins work" (or something like that) video on youtube, there is about 40 minute long video that would explain you how fake money work. All though it would not explain why people choose to give value to play money.

[PSD]

[adultmobile]

Is like if you put your video card in bittorrent for others to dowload your GPU wasted work.

[notinmybackyard]

Originally Posted by nexcom28

I have known about bitcoins for a while, I fist heard about bitcoin mining where hackers would illegally use your PC to mine for data.
Please could someone explain simply how it all works. Ive tried to understand but I don't get it.

How does a site allow payments by bitcoin and where do they come from?

Bitcoins are the creation of grown up nerds that want to make something that resembles Dugeons and Dragons money. The concept is that it is an electronic non-real thing that exists only in the pokemon digital universe.

Unfortunately they do not see that they will loose their money if they drop their tablette in the kitchen sink by accident, some hacker at the train station downloads it off laptop and some Hindu will figure out how to counterfeit them using an old pong video console.

Not to mention all the problems with gouvernement super computer spy agencies being able to monitor and track every purchase and ruin someone's life by just "closing his account with a keystroke."

Virtual money is a stupid idea.

[- Jesus Christ -]

Smart people get rich.
Dumb people get mad.

The End.

[mayabong]

Originally Posted by notinmybackyard

Bitcoins are the creation of grown up nerds that want to make something that resembles Dugeons and Dragons money. The concept is that it is an electronic non-real thing that exists only in the pokemon digital universe.

Unfortunately they do not see that they will loose their money if they drop their tablette in the kitchen sink by accident, some hacker at the train station downloads it off laptop and some Hindu will figure out how to counterfeit them using an old pong video console.

Not to mention all the problems with gouvernement super computer spy agencies being able to monitor and track every purchase and ruin someone's life by just "closing his account with a keystroke."

Virtual money is a stupid idea.

Just about everything you use today is a product that started with a nerds idea in his moms basement. Nerds own you.

BTW the government cant close bitcoin accounts with a keystroke, thats the point.

[dyna mo]

it's funny watching people get emotional about it.

[nexcom28]

So is it like the virtual currency in second life?

Except it's created by your computers ram or whatever.

[DWB]

Originally Posted by mayabong

BTW the government cant close bitcoin accounts with a keystroke, thats the point.

No disrespect, but you're delusional if you really believe that. The US government can legally assassinate its own citizens, drop bombs on schools in other countries, kidnap and torture people and hold them without charge, and strong arm international banks around the world to hand over US account holders and then dictate how they operate. Shutting down a cyber currency, or at least severely disrupting it, that is used for money laundering and other illegal activities, will not be a reach should they really be inclined to do so.

The million dollar question is, WILL THEY? Because the answer to COULD THEY, is yes.

[Dirty F]

Originally Posted by notinmybackyard

Bitcoins are the creation of grown up nerds that want to make something that resembles Dugeons and Dragons money. The concept is that it is an electronic non-real thing that exists only in the pokemon digital universe.

Unfortunately they do not see that they will loose their money if they drop their tablette in the kitchen sink by accident, some hacker at the train station downloads it off laptop and some Hindu will figure out how to counterfeit them using an old pong video console.

Not to mention all the problems with gouvernement super computer spy agencies being able to monitor and track every purchase and ruin someone's life by just "closing his account with a keystroke."

Virtual money is a stupid idea.

Ah look, granddad who still pays in Shekels is upset again.
Poor guy.

[mechanicvirus]

To be honest I'm not sure, but PBBC hired over 20 experts and scholars to do studies on how it works. They posted some great articles about it!

[Vapid - BANNED FOR LIFE]

Originally Posted by DWB

No disrespect, but you're delusional if you really believe that. The US government can legally assassinate its own citizens, drop bombs on schools in other countries, kidnap and torture people and hold them without charge, and strong arm international banks around the world to hand over US account holders and then dictate how they operate. Shutting down a cyber currency, or at least severely disrupting it, that is used for money laundering and other illegal activities, will not be a reach should they really be inclined to do so.

The million dollar question is, WILL THEY? Because the answer to COULD THEY, is yes.

Those scenarios are all reliant on a single or a very few points of failure.
Download the full blockchain,
I'll wait.

[helterskelter808]

^ The US Government can do whatever it wants if it wants to, practically anywhere it wants, and there's nothing anyone can do about it.

They simply have to prohibit anyone from accepting or using bitcoins who lives in the US, has any business or other connection to the US or who wants to set foot on US soil at any point in time ever and it would immediately be rendered even more useless (as a payment system) than it is already.

The only reason anyone is showing any interest now is because of the nutty price they rise to, compared to five seconds earlier.

[notinmybackyard]

Originally Posted by mayabong

Just about everything you use today is a product that started with a nerds idea in his moms basement. Nerds own you.

BTW the government cant close bitcoin accounts with a keystroke, thats the point.

Well let me think.
There is evidently the computer and a HD camera. But I am going to stop using the camera and returning to film this spring. (I am old I do not want to make or play with garbage anymore)

I do not have a microwave and my coffee maker is an old percolator
None of my cars were made after 1975. (I never buy new cars)
My telephone is a land line
My stereo plays records
My television is not flat screen but a big wooden console.
Obviously my old refrigerator and stove are increasing in value because lots of people want to buy them.

I understand my stuff is old but it all still works and looks good. (I take care of my things) I see no reason to spend money on junk I do not need only to impress other people.

So to respond to your commentaire. No nerds do not own me but I suppose they own you and virtual currency is still a stupid idea born from too much Dungeons and Dragons.

Originally Posted by Dirty F

Ah look, granddad who still pays in Shekels is upset again.
Poor guy.

Electronic text vanishes when you pull the plug. I therefore have as much emotional investment in it as I have changing the channel on my television.

As for calling me Grandfather. I told you before I want to know which whore was your grandmother and I want a blood test before I take financial responsibility for your family.

[Vapid - BANNED FOR LIFE]

Originally Posted by helterskelter808

^ The US Government can do whatever it wants if it wants to, practically anywhere it wants, and there's nothing anyone can do about it.

Originally Posted by helterskelter808

They simply have to prohibit anyone from accepting or using bitcoins who lives in the US, has any business or other connection to the US or who wants to set foot on US soil at any point in time ever and it would immediately be rendered even more useless (as a payment system) than it is already.

http://en.wikipedia.org/wiki/Executive_Order_6102

Executive Order 6102 is an Executive Order signed on April 5, 1933, by U.S. President Franklin D. Roosevelt "forbidding the Hoarding of Gold Coin, Gold Bullion, and Gold Certificates within the continental United States".

----^

Originally Posted by helterskelter808

The only reason anyone is showing any interest now is because of the nutty price they rise to, compared to five seconds earlier.

People want to know what it is, not why it is.

[woj]

Originally Posted by Monotony

Those scenarios are all reliant on a single or a very few points of failure.
Download the full blockchain,
I'll wait.

there is 10x simpler solution, just need to pass a law making bitcoins illegal...

[Vapid - BANNED FOR LIFE]

Originally Posted by woj

there is 10x simpler solution, just need to pass a law making bitcoins illegal...

What if I pass gas?

[Dirty F]

Originally Posted by woj

there is 10x simpler solution, just need to pass a law making bitcoins illegal...

And who will do that?

[CurrentlySober]

Originally Posted by Dirty F

And who will do that?

I will !

[dyna mo]

i think it's fair to say it is all speculation at this point, which to me, is where the value proposition lies. risk-reward ratio.

i do think bitcoins would have to reach a critical mass level, wtfever that is, before a government, any government, would try to legislate it away.

that means there's time for investment.

[Vapid - BANNED FOR LIFE]

Originally Posted by CurrentlySober

I will !

Obviously

[woj]

Originally Posted by Dirty F

And who will do that?

Any government, US, EU, etc... isn't it pretty clear that no government would want this "currency" to get too big?

[tony286]

Originally Posted by DWB

No disrespect, but you're delusional if you really believe that. The US government can legally assassinate its own citizens, drop bombs on schools in other countries, kidnap and torture people and hold them without charge, and strong arm international banks around the world to hand over US account holders and then dictate how they operate. Shutting down a cyber currency, or at least severely disrupting it, that is used for money laundering and other illegal activities, will not be a reach should they really be inclined to do so.

The million dollar question is, WILL THEY? Because the answer to COULD THEY, is yes.

well said my friend.

[Vapid - BANNED FOR LIFE]

Originally Posted by woj

Any government, US, EU, etc... isn't it pretty clear that no government would want this "currency" to get too big?

Laws necessitate a bad guy and a victim.

[dyna mo]

Originally Posted by mayabong

.

BTW the government cant close bitcoin accounts with a keystroke, thats the point.

Originally Posted by DWB

No disrespect, but you're delusional if you really believe that. The US government can legally assassinate its own citizens, drop bombs on schools in other countries, kidnap and torture people and hold them without charge, and strong arm international banks around the world to hand over US account holders and then dictate how they operate. Shutting down a cyber currency, or at least severely disrupting it, that is used for money laundering and other illegal activities, will not be a reach should they really be inclined to do so.

The million dollar question is, WILL THEY? Because the answer to COULD THEY, is yes.

what he is saying, i believe, is that since there is no issuer of the currency + it's all p2p, it's not easy as a keystroke, in fact, it is described as being quite difficult.

[woj]

Originally Posted by Monotony

Laws necessitate a bad guy and a victim.

I'm not quite sure what you mean... it's pretty easy to come up with a bad guy, I wouldn't be surprised at all if one day we'll hear phrases like this on the tv: "terrorist organizations are using bitcoins to launder money"... shortly followed by a ban on them...

[CamTraffic]