BitCoin loses 50 Percent of its Value overnight. :)

[syntaxmachine]

I just don't know if it's "Bitcoin" but it's going to be a cryptocurrency for sure.

Well, the discussion is about Bitcoin, not cryptocurrencies more generally. And seemingly, its utility at present is solely as a speculative vehicle from which to derive cash and dopamine surges -- not as a store of value. It still isn't clear to me what makes people think its rise is inevitable: for example, won't governments' (primarily the USG) rejecting bitcoin and shutting it out of the traditional financial system inherently limit its growth? How can we be so sure this won't happen?

Greenspan and government research from back in the 1960's to when the Internet Bill of 1991 was implemented signaled a digital currency for the future. Th e GAO in fact insists the government start using more technology driven procedures to reduce transaction costs and the treasury dept. must make a currency in the future that is "accesible to all" (blind handicapped, etc.)

Do you have any links/references to the above-mentioned information?

[The True Adonis]

why does the description of bitcoin and its processes' have to be so lengthy

if it was legit it should be easily understandable in 2-3 small paragraphs

This is an excellent point!

[FitnessFrenzy]

This is an excellent point!

most coherent post from the Falcon in a long while.

[avxo]

This is an excellent point!

[Note: I'm not saying that bitcoin is "legit" - I have only read a few things on the topic and, although I understand some of the cryptography behind it, I don't know if it's "legit" or what that even means in this context.]

Right... because things that are "legit" are easily understandable in 2-3 small paragraphs. Such is the case with quantum mechanics, computational fluid dynamics, vector spaces, lambda calculus, external polyphase mergesort, and so on. But onwards...

If you really wanted the 30 second executive summary, how about the following (slightly edited) intro from wikipedia, which is only one paragraph:

Bitcoin is a peer-to-peer payment network and digital currency with a public transaction log introduced in 2009. It is sometimes called a cryptocurrency because it uses public-key cryptography. When paying with bitcoin, no actual exchange takes place between buyer and seller. Instead, the buyer requests an update to a public transaction log, the blockchain. This master list of all transactions shows who owns what bitcoins currently and in the past and is maintained by a decentralized network that verifies and timestamps payments using a proof-of-work system. The operators of this network, known as "miners", are rewarded with transaction fees and newly minted bitcoins.

This accurately describes what happens, at a high enough level of abstraction for just about anyone.

[El Diablo Blanco]

Right... because things that are "legit" are easily understandable in 2-3 small paragraphs. Such is the case with quantum mechanics, computational fluid dynamics, vector spaces, lambda calculus, external polyphase mergesort, and so on.

Besides, if you really wanted the 30 second executive summary, how about the following (slightly edited) intro from wikipedia, which is only one paragraph:

This accurately describes what happens, at a high enough level of abstraction for just about anyone.

the fact China is throwing a shit load of hardware and people to mine this is enough to stay out.

[avxo]

the fact China is throwing a shit load of hardware and people to mine this is enough to stay out.

It's my understanding that the point at which mining became no longer viable without massive investments is well in the past. From a couple of quick back-of-the-napkin calculations, buying the coins outright seems significantly cheaper than mining them.

[The True Adonis]

Here is my summary.

Bitcoin is for morons who think they will get rich but most likely won`t.

[macos]

Can someone please explain bitcoins to me?

[avxo]

From my previous post, here's the 30 second executive summary, from the slightly edited intro from the wikipedia article:

Bitcoin is a peer-to-peer payment network and digital currency with a public transaction log introduced in 2009. It is sometimes called a cryptocurrency because it uses public-key cryptography. When paying with bitcoin, no actual exchange takes place between buyer and seller. Instead, the buyer requests an update to a public transaction log, the blockchain. This master list of all transactions shows who owns what bitcoins currently and in the past and is maintained by a decentralized network that verifies and timestamps payments using a proof-of-work system. The operators of this network, known as "miners", are rewarded with transaction fees and newly minted bitcoins.

In addition to the Wikipedia article you may find this page of use, since it includes an infographic that seems pretty explanatory: http://www.ibtimes.com/best-bitcoin-explanation-infographic-weve-seen-yet-1486416

[Marty Champions]

[Note: I'm not saying that bitcoin is "legit" - I have only read a few things on the topic and, although I understand some of the cryptography behind it, I don't know if it's "legit" or what that even means in this context.]

Right... because things that are "legit" are easily understandable in 2-3 small paragraphs. Such is the case with quantum mechanics, computational fluid dynamics, vector spaces, lambda calculus, external polyphase mergesort, and so on. But onwards...

If you really wanted the 30 second executive summary, how about the following (slightly edited) intro from wikipedia, which is only one paragraph:

This accurately describes what happens, at a high enough level of abstraction for just about anyone.

its funny how you are always wrong

you could explain how a car works in 2-3 paragraphs
same with being a carpenter
plumber
ect

the problem is alot of people dont know how to write good enough to teach

[Marty Champions]

ok this makes 'some' sense youre getting warmer avxo, i like your style man , ruthless , condescending , angry, hardworking to make your point even if youre not right you put in the work, i liked this quote about bit coins was a pleasant read thanks for posting

Bitcoin is a peer-to-peer payment network and digital currency with a public transaction log introduced in 2009. It is sometimes called a cryptocurrency because it uses public-key cryptography. When paying with bitcoin, no actual exchange takes place between buyer and seller. Instead, the buyer requests an update to a public transaction log, the blockchain. This master list of all transactions shows who owns what bitcoins currently and in the past and is maintained by a decentralized network that verifies and timestamps payments using a proof-of-work system. The operators of this network, known as "miners", are rewarded with transaction fees and newly minted bitcoins.

[El Diablo Blanco]

It's my understanding that the point at which mining became no longer viable without massive investments is well in the past. From a couple of quick back-of-the-napkin calculations, buying the coins outright seems significantly cheaper than mining them.

Not when it comes to China.  They pay nothing to the workers, they build everything themselves, all homegrown computers.  The cost to them is next to nothing in hopes of controlling bitcoin. The shitty part is they may already own the majority but there is no way to tell.

[avxo]

Not when it comes to China.  They pay nothing to the workers, they build everything themselves, all homegrown computers.  The cost to them is next to nothing in hopes of controlling bitcoin. The shitty part is they may already own the majority but there is no way to tell.

You're missing the point. It's not an issue of how much it costs to pay workers. It's the cost of the hardware. You can no longer effectively mine without using custom-designed application-specific integrated circuits that are submerged in high-end specialized non-conductive cooling fluids and are typically deployed by the thousands in a data-center. Take a look at this article.

[The True Adonis]

Skeet Ball tickets are worth more than Bitcoins.

[Marty Champions]

so in order to mine new bitcoins, the math "problems"/equations/algorithms get progressively longer

in order to acheive new bit coins one must solve each progressively longer equation to unlock new bitcoins

these math problems are so unimaginably long that you need tons of super computers running and linked up.

it creates a demand for stronger computers and networking and resources to solve these math problems

Is that it?

[The True Adonis]

so in order to mine new bitcoins, the math "problems"/equations/algorithms get progressively longer

in order to acheive new bit coins one must solve each progressively longer equation to unlock new bitcoins

these math problems are so unimaginably long that you need tons of super computers running and linked up.

it creates a demand for stronger computers and networking and resources to solve these math problems

Is that it?

Dumb as shit isn`t it?  All Obama would have to do is take a few drones and blow up the "Bitcoin" centers.  Then there will be no more Bit Coin.

[The True Adonis]

Microsoft Points are more valuable than Bitcoins.

[Marty Champions]

Dumb as shit isn`t it?  All Obama would have to do is take a few drones and blow up the "Bitcoin" centers.  Then there will be no more Bit Coin.

it sounds like a scam if its not a scam then its really dumb as shit to do all them calculations, people will just give up trying to compute longer and longer equations

[macos]

From my previous post, here's the 30 second executive summary, from the slightly edited intro from the wikipedia article:

In addition to the Wikipedia article you may find this page of use, since it includes an infographic that seems pretty explanatory: http://www.ibtimes.com/best-bitcoin-explanation-infographic-weve-seen-yet-1486416

Thanks bro

[Voice of Doom]

Interestingly enough, I just checked one of my gold 1oz coins...and, yep, it weighs exactly the same as it did before Bitcoin crashed.  Can exchange it for around the same amount of goods too...weird.

[The Showstoppa]

Bitchcoins is the new trend.

[Ganuvanx]

Yes, the price of converting fiat dollars to bitcoin dropped. The question is, are you smart enough to get in on it? The price dropped because the Chinese government hand-cuffed its citizens from converting to bitcoin, similar to them banning citizens from owning gold in the past. Meanwhile Denmark came out this week by stating it will put no restrictions on bitcoin. Germany has deemed it private money with no restrictions. China will come around eventually. Bitcoin isn’t a fad. It’s faster, safer, easier, cheaper and exponentially more powerful than any other currency. It is the logical evolution of currency. Its here to stay some might say with perfect timing. All debt based fiat currencies have a limited lifetime. The US dollar is at that limit. Overstock.com just announced they will be accepting bitcoin next year. Word on the street is Paypal, Amazon and Ebay will be accepting bitcoin in the not so distant future.  My prediction; over 1 million equivalent fiat units for one full unit of bitcoin. At that price bitcoin will be extremely stable. Nobody will be flipping it; they’ll be trading it for goods and services. There are some smart dudes on this board. Do your research but don’t take too long. Buy it. You haven't seen anything yet as to where the price is headed.

[Ganuvanx]

and to those concerned, Bitcoin isn't a ponzi

[avxo]

Yes, the price of converting fiat dollars to bitcoin dropped. The question is, are you smart enough to get in on it? The price dropped because the Chinese government hand-cuffed its citizens from converting to bitcoin, similar to them banning citizens from owning gold in the past. Meanwhile Denmark came out this week by stating it will put no restrictions on bitcoin. Germany has deemed it private money with no restrictions. China will come around eventually. Bitcoin isn’t a fad. It’s faster, safer, easier, cheaper and exponentially more powerful than any other currency. It is the logical evolution of currency. Its here to stay some might say with perfect timing. All debt based fiat currencies have a limited lifetime. The US dollar is at that limit. Overstock.com just announced they will be accepting bitcoin next year. Word on the street is Paypal, Amazon and Ebay will be accepting bitcoin in the not so distant future.  My prediction; over 1 million equivalent fiat units for one full unit of bitcoin. At that price bitcoin will be extremely stable. Nobody will be flipping it; they’ll be trading it for goods and services. There are some smart dudes on this board. Do your research but don’t take too long. Buy it. You haven't seen anything yet as to where the price is headed.

As I said before, as a computer scientist, I find Bitcoin technologically and theoretically interesting. As a practical person, I don't find it compelling as a store of value or a medium of exchange, at least for me and for the time being. Your mileage may vary.

[The True Adonis]

Have fun with that.