Bitcoin and cryptocurrency

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Birdiekiller

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Is anybody on here smart enough to explain how this stuff works? I’m usually pretty aggressive in my investments, but can’t get my mind wrapped around this stuff. It just seems like it’s bound to blow up soon- and millions of people of people will be significantly disappointed and in some cases, broke.

Not looking for results on how much money you have “made”, but want an explanation on how it works, and why it’s sustainable in the future.
 
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Urban_Hunter

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It is not sustainable. It is really a novelty that does nothing that is worth exactly what someone will pay for it and is backed by nothing. Right now it is popular and worth a lot more than it was a while back, but just last week Bitcoin lost 30% of its market value within minutes of opening and many currency traders had to freeze all trades to keep it from imploding, at which point it rebounded. It is like playing a slot machine IMO, and if you play you better hope you stop while you are ahead... and by stop I mean sell not hold what you got
 
RobbyW

RobbyW

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I can’t explain it but worked with a guy that bought a bunch when it was $30.


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poorhunter

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It's not legitimized by anything. It's not traceable, that's why terrorists use it. Lots of bitcoin traders are in jail for fraud. Many stories of not being able to cash out for the going rate. What's behind it is very secretive, so it can't be vetted. Can you buy and make money? Maybe so, but more likely you'll lose. Will it ever be legitimate? Maybe.
 
fairchaser

fairchaser

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You can read about it online and there are some YouTube videos as well. But, basically it is a new currency which is decentralized and does not go through any banking system. That is the appeal! Since it cannot be traced or controlled it can be used to buy anything that will take it. There is a maximum number of 21 million in the case of bitcoin. It can be bought or mined. To mine it requires earning it through high speed computers doing heavy duty number crunching. Those who own it, verify the authenticity of transactions through something called a block chain. This keeps it from being duplicated or counterfeited. I don’t see how any Governments can allow cryptocurrencies to get too large because they can’t control them. Although at this point it’s not even a rounding error.
 
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bowhunterfanatic

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fairchaser":1j5zkd8h said:
You can read about it online and there are some YouTube videos as well. But, basically it is a new currency which is decentralized and does not go through any banking system. That is the appeal! Since it cannot be traced or controlled it can be used to buy anything that will take it. There is a maximum number of 21 million in the case of bitcoin. It can be bought or mined. To mine it requires earning it through high speed computers doing heavy duty number crunching. Those who own it, verify the authenticity of transactions through something called a block chain. This keeps it from being duplicated or counterfeited. I don’t see how any Governments can allow cryptocurrencies to get too large because they can’t control them. Although at this point it’s not even a rounding error.

Best simplified explanation I've seen! Thanks!
 
Wildcat

Wildcat

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One sad thing is ever Paypal accepts it.

To me I see it as a "black market" currency used instead of the official govt currency in different countries.
 
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BMan

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bowhunterfanatic":283v1h36 said:
fairchaser":283v1h36 said:
You can read about it online and there are some YouTube videos as well. But, basically it is a new currency which is decentralized and does not go through any banking system. That is the appeal! Since it cannot be traced or controlled it can be used to buy anything that will take it. There is a maximum number of 21 million in the case of bitcoin. It can be bought or mined. To mine it requires earning it through high speed computers doing heavy duty number crunching. Those who own it, verify the authenticity of transactions through something called a block chain. This keeps it from being duplicated or counterfeited. I don’t see how any Governments can allow cryptocurrencies to get too large because they can’t control them. Although at this point it’s not even a rounding error.

Best simplified explanation I've seen! Thanks!
Yep.

If you need any bitcoin or carbon credits give me a shout; I'll print you some up fresh at a discounted price... ;)
 
fairchaser

fairchaser

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Smo":262dge6l said:
Scam!

I had just as soon invest in Chucky Cheese tickets.

In the long run you would probably get more in return.

It’s not a scam in that it’s real, but it’s very speculative and it’s real value is questionable because regulation could cause it to either go away or legitimize it. It’s too uncertain and too volatile for me. It’s not like you can call your broker and buy or sell it although there are futures contracts now that bet on the future price. It’s fun to watch but I’m steering clear.
 
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Urban_Hunter

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South Korea just announced it would be regulating with the intent to discontinue in-Country trading of any private currency due to volatility, which apparently resulted in around a 15% decrease in Bitcoin value just since the announcement. It is crazy to watch. I think it's just a bunch of people sitting around trying to buy on a climb and sell on a fall thinking they are playing the stock market like a lottery game... which I guess is a pretty accurate description
 
BamaProud

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fairchaser":8qebdahi said:
You can read about it online and there are some YouTube videos as well. But, basically it is a new currency which is decentralized and does not go through any banking system. That is the appeal! Since it cannot be traced or controlled it can be used to buy anything that will take it. There is a maximum number of 21 million in the case of bitcoin. It can be bought or mined. To mine it requires earning it through high speed computers doing heavy duty number crunching. Those who own it, verify the authenticity of transactions through something called a block chain. This keeps it from being duplicated or counterfeited. I don’t see how any Governments can allow cryptocurrencies to get too large because they can’t control them. Although at this point it’s not even a rounding error.

Very good description.

The original intent was to create an nontaxable/untraceable worldwide/Utopian style currency. Naturally that opened the door for all kinds of illegal activity. Despite the fact that it isn't backed by anything, the biggest problem with bitcoin right now is turning it back into US dollars(or any other standard currency). The way I understand it, is you can't simply instantly "cash out". You have to either set up triggers or price points(like stocks) to cash out or basically gamble on the exchange rate not tanking between the time you decide to cash out and your request is validated which can take days or even weeks.
 
Wildcat

Wildcat

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BamaProud":2n3kpzci said:
Very good description.

The original intent was to create an nontaxable/untraceable worldwide/Utopian style currency. Naturally that opened the door for all kinds of illegal activity. Despite the fact that it isn't backed by anything, the biggest problem with bitcoin right now is turning it back into US dollars(or any other standard currency). The way I understand it, is you can't simply instantly "cash out". You have to either set up triggers or price points(like stocks) to cash out or basically gamble on the exchange rate not tanking between the time you decide to cash out and your request is validated which can take days or even weeks.

Yep, like I said, black market currency. I'm on the market online all day, every day because I'm a "trader" and set back and have to laugh out loud at these liberals trying to "get rich" then finding out they "have to" get back into US Dollars and are losing their shirts trying to do that.
 
Wildcat

Wildcat

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Want it explained in a simple way??

Go to Netflix and watch, " Banking on Bitcoin."

I didn't know this until I watched it but they still haven't come up with who really was the first person to start it. They have his "name" but most people that are in the business think that's a fake name and then it was put on another person who never had anything to do with it. On top of that one of the starters is in prison and another is bankrupt and out of the business.

Turns out the main supporters are in it in search of utopia. Most of them supported the Occupy Wall Street movement, taking down the banks of Wall Street. In fact that's who they are trying to get around and replace with their BitCoin.

Look at it this way. They want to replace the "middle man". Say TnDeer is raising money to help some people. We know about PayPal and some of use it to send money to Ruger and PayPal takes the money out of our accounts, either bank check or credit card. Using BitCoin the "money" is inside "MY" PC. I send Ruger money in BitCoins from my PC straight to Rugers PC with no middleman like PayPal or the banks. Ruger now has his money in BitCoins inside his PC. How he gets it out and cashes it in the bank is a different store. He could simply use that to pay for a new gun from a TnDeer member by sending them the BitCoin to their PC. I still don't know how to get US Dollars from BitCoin the way they now have it set up.
 
huntinkev

huntinkev

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catman529":oimyesvh said:
http://youtu.be/4APcgsRdW6w


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[emoji1] yea, that's clear as mud. I understood bitcoin and pass key out of all that.

Sent from my SM-G930V using Tapatalk
 
WTM

WTM

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the bitcoin network is a peer to peer currency system. like wild cat said it was designed to cut out the banks fees and lax bank security. the underlying fundamental code is basically solving a complex math problem and taking the results, adding it the bitcoin block chain and passing it on, etc. the code only allows the creation of 22 million bitcoins so that there is inflation protections.

bitcoin creation is kind of like folding.(pc nerds know what im talking about lol). you take a powerful pc, usually chained AMD graphics cards, and solve complex math problems. the people in the network, miners, are doing the math processing for a bitcoin transaction to take place. then they are awarded bitcoins or processing fees for solving the math.

here is a simple example, lets say i have 2 authenticated bitcoins on my pc and want to buy something. i place my order, and the seller initiates the bitcoin transaction. that transaction is sent out over the bitcoin network. the bitcoin miners receive the transaction and start processing and validating the math. once the math is solved that transaction data is written to the bitcoin block chain and sent back to the seller. it is validated as a good bit coin and the seller sends the merchandise to the buyer.

every transaction that a bitcoin is used in is encoded on its block chain code and this block chain grows each time it is used requiring huge amounts of processing power. i know guys that have had thousand dollar electrical bills bitcoin mining so now it has moved to the data center. cheaper to rent processing services in a data center than own your hardware.

pitfalls, not backed by any monetary system, its electronic and like Bman posted if its deleted then its gone for good, when all 21 million bitcoins are in circulation the processing power needed to process transactions will be unreal(exponentially increasing each time they are spent).

there were a couple of other e currencies that were backed by gold but after their creators eere jailed for money laundering they pretty much flopped. dogecoin is the new trend. this currency was developed as a pay system for buying dog pics in japan, lol.
 
Wildcat

Wildcat

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One of the biggest backers of the Bitcoin is the Drug Cartels. If this goes mainstream it will be a super easy for them to get their drug profits back across the border.
 
WTM

WTM

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Wildcat":mlzck9wc said:
One of the biggest backers of the Bitcoin is the Drug Cartels. If this goes mainstream it will be a super easy for them to get their drug profits back across the border.

maybe intermediate dealers. for the cartels and an estimated 500 billion dollar operation, there wont be enough bi coins to cover it. plus bit coin can be traced, regardless of what folks think. monero currency on the otherhand is totally untraceable and by 2022 the software code will execute an almost endless supply.

but, you still have to have someone willing to convert it to cash.
 

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