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 If I were to ask you for something you own, and you agreed to sell it to me, you would probably attach a price. After some negotiations, I would then hand you a stack of notes worth the amount we have determined. I take your goods, you take my paper money. You could then go drop your paper money into the bank, or you could just spend it in cash form. It's pretty much the basics of commerce (something for something). But what if I got out my smartphone, asked you for an ID number, and then sent you virtual currency? A virtual currency, backed by math (not a deficit) that could be cashed out over the web for paper money? This is BitCoin. Wikipedia posted:Bitcoin is a digital currency created in 2009 by Satoshi Nakamoto. The name also refers to the open source software he designed that uses it, and the peer-to-peer network that it forms. Unlike most currencies, Bitcoin does not rely on trusting any central issuer. Bitcoin uses a distributed database spread across nodes of a peer-to-peer network to journal transactions, and uses cryptography to provide basic security functions, such as ensuring that bitcoins can only be spent by the person who owns them, and never more than once. What the gently caress? Why would you use this? Wikipedia posted:Bitcoin's design allows for anonymous ownership and transfers. Bitcoins can be saved on a personal computer in the form of a wallet file or kept with a third party wallet service, and in either case bitcoins can be sent over the Internet to anyone with a Bitcoin address. Bitcoin's peer-to-peer topology and lack of central administration make it infeasible for any authority, governmental or otherwise, to manipulate the value of bitcoins or induce inflation by producing more of them.[1] So basically, BitCoin is an anonymous currency system used over the internet for goods and services. Still confused? Here's some help: https://www.youtube.com/watch?v=Um63OQz3bjo Ok, seriously, now I'm kinda clear on it. People known as miners "dig" for BitCoins by setting up powerful home PC's that try to pull off from the algorithm that makes BitCoins. Then, those BitCoins are transferred around the web to BitCoin generators and users. It's math money. But what do people think about this? LAUNCH posted:Bitcoin is a P2P currency that could topple governments, destabilize economies and create uncontrollable global bazaars for contraband. (...) After month of research and discovery, we've learned the following: Ben Laurie posted:Also, for what its worth, if you are going to deploy electronic coins, why on earth make them expensive to create? That's just burning money - the idea is to make something unforgeable as cheaply as possible. This is why all modern currencies are fiat currencies instead of being made out of gold. Could this really be the beginning of a New World Order? Is it just a nerdy waste of money? Recently, one BitCoin was valued at over $6 USD per BitCoin. What do you think? Further Reading Boing Boing April 9, 2011: Bitcoin: an open-source cryptocurrency that's actually used! May 15, 2011: Bitcoin: a new "peer-to-peer currency" May 17, 2011: Bitcoin - the cryptographic currency that won't take off (but really, really should) May 21, 2011: BitCoin skeptics and boosters debate Wikipedia We Use Coins BitCoin (USER WAS PUT ON PROBATION FOR THIS POST)
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May 23, 2011 19:56
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Autism Kroners.
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May 23, 2011 19:57
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LAUNCH posted:Bitcoin is a P2P currency that could topple governments, destabilize economies and create uncontrollable global bazaars for contraband. (...) After month of research and discovery, we've learned the following: Sounds like a rigorous scientific study
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May 23, 2011 19:59
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So does BitCoin pay you in real money or their virtual currency to advertise for them?
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May 23, 2011 19:59
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Asperger's-based fiat currency sounds like a terrible idea.
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May 23, 2011 20:02
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IShallRiseAgain posted:So does BitCoin pay you in real money or their virtual currency to advertise for them? I receive payment in the form of a small basket of sandwiches. But the people who make these surprisingly well-made videos and websites are paid in BitCoins.
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May 23, 2011 20:03
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So basically you're doing this for company scrip, except there's no company store. Good to know!
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May 23, 2011 20:06
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I'll take one human liver and six kilos of cocaine please. You accept BitCoin right?
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May 23, 2011 20:07
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Vincent Van Goatse posted:So basically you're doing this for company scrip, except there's no company store. The company store would be the world economy, if these damned Big Government Regulations wern't stomping on our faces.
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May 23, 2011 20:07
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This really could lead to a revolution if only 99.5% of the people in the world wouldn't immediately say "oh so I can't pay my mortgage with this? gently caress you." Thanks for the headsup and to know to avoid anyone who deals in BitCoins, though, I guess.
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May 23, 2011 20:08
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Seriously, what the gently caress is this supposed to do? It's even more useless than other dumbass private currencies because it doesn't even exist in the real world.
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May 23, 2011 20:08
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There's a thread in BFC full of people making fun of these guys and their hilarious belief that their internet nerd money is going to survive the coming economic apocalypse.
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May 23, 2011 20:09
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Welcome to Snow Crash.
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May 23, 2011 20:09
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So is anyone actually making real-life money off this?
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May 23, 2011 20:09
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Has anyone called them buttcoins yet? Am I the first to do that?
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May 23, 2011 20:11
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Cyril Sneer posted:So is anyone actually making real-life money off this? The founders and early adopters mined a shitload of the low-hanging bitcoins at the beginning evidently, so they stand to become fabulously wealthy if it ever takes off.
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May 23, 2011 20:11
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Cyril Sneer posted:So is anyone actually making real-life money off this? Yes, believe it or not. As long as people are buying/using bitcoins, they have some value. If you bought them when they were cheaper you will have some unrealized gains, potentially. This is also where the term "speculative bubble" becomes relevant.
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May 23, 2011 20:11
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I just picked up like 130 bitcoins in Super Mario Bros. 3.
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May 23, 2011 20:12
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swolf posted:The founders and early adopters mined a shitload of the low-hanging bitcoins at the beginning evidently, so they stand to become fabulously wealthy if it ever takes off. That and people selling on the spikes created by suckering in more bitcoin users don't do too badly.
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May 23, 2011 20:12
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Wait, so can I just "mine" a bunch of bitcoins and sell them for real people money?
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May 23, 2011 20:14
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One thing I've recently been interested in; given the total lack of regulatory oversight, what's stopping me from taking advantage of some of the more unscrupulous parts of capitalism via BitCoin? For example, say I purchase $100k worth of BitCoins, and then subsequently start a small company and issue $1m USD of worth of BitCoins in credit. At the same time, I hedge any potential BitCoin collapse by shorting BitCoins with some OTC futures or something else similar, just like Goldman Sachs did by betting against their mortgage derivatives. Esentially, what's stopping me from somewhat easily--$100k in capital honestly really isn't that much--recreating parts of the GFC for personal profit? Note: I have no idea what the hell I'm talking about, and may have my head totally up my rear end. edit: Reading more about this thing now, I'm way over my head it looks like. Oh well, nevermind.
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May 23, 2011 20:15
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Vincent Van Goatse posted:So basically you're doing this for company scrip, except there's no company store. You "mine" sixteen coins and whaddaya get? Another day older and deeper in debt. Ayn Rand is gonna love me, but what does that show? Can't buy Doritos with BitCoins, oh no!
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May 23, 2011 20:15
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Stephen Harper posted:I just picked up like 130 bitcoins in Super Mario Bros. 3. MMO currency is actually a pretty interesting example of an alternative currency. WoW players aren't attempting to topple the world's economic system, however.
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May 23, 2011 20:15
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So, seriously, what the gently caress is the point of this.
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May 23, 2011 20:16
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This is a terrible currency because it's so unstable your money could be worth twice as much or half as much overnight (or over the space of a few hours) and theres already so many people bitcoin mining for their pretend money that they had to raise the difficulty of hashing a block by 50% last week. Also the bouts of hyperinflation and hyperdeflation is hilarious. The value of bitcoins has gone from 1 dollar to 9 dollars, then back down to 5 dollars, then up to 8 dollars in the space of about 2 weeks at this point. And the thing is is that this is solely because the russian mafia used it for money laundering and bought like 50,000 bitcoins. edit: kazmeyer posted:There's a thread in BFC full of people making fun of these guys and their hilarious belief that their internet nerd money is going to survive the coming economic apocalypse. This reminds me, in yospos it was pointed out that there is literally no accountability in bitcoins whatsoever. If someone sells you something on the line and charges in bitcoins, and you give them the money but then they don't ship you the goods or just vanish completely there is nothing whatsoever you can do about it. You can't even put forward proof that the transaction even occurred because as I understand it the transactions are untraceable unless you are the one making it.
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May 23, 2011 20:16
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Benminnn posted:One thing I've always been interested in; given the total lack of regulatory oversight, what's to stop me from taking advantage of some of the more unscrupulous parts of capitalism via BitCoin? The truly horrifying part is the amount of BitCoin Market trackers, that report in real time how much the coins are worth. The fact that they're about to hit 2 years old is quite amazing. The fact that something like this is still around after 2 years means there is an audience for them. I really don't get it, but I think it's fun. I'm not a miner, I don't see how people are paying off these rigs. But a quick youtube search will show up people praising and demonizing this poo poo.
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May 23, 2011 20:19
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ReverendFaux posted:The fact that something like this is still around after 2 years means there is an audience for them. Yeah, and Timecube has been around for more than a decade. Invest in CubeCoins now!
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May 23, 2011 20:21
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Benminnn posted:One thing I've recently been interested in; given the total lack of regulatory oversight, what's stopping me from taking advantage of some of the more unscrupulous parts of capitalism via BitCoin? That sounds like the whole point of BitCoin. "Technotarians" should have been a clue to that.
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May 23, 2011 20:21
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So is there a big overlap between people who use bitcoins and people who mine WoW gold/space spreadsheets/whatever the latest sperg game is?
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May 23, 2011 20:21
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This is sadly hilarious. "You can even purchase or rent pre-made systems specially designed for mining: Bitcoin Rigs", and that links to this: http://www.bitcoinrigs.com/ It's the new Alienware! Edit: quote:The best place to find products and services available for Bitcoins is the Trade page on the Bitcoin Wiki.
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May 23, 2011 20:22
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zeroprime posted:So is there a big overlap between people who use bitcoins and people who mine WoW gold/space spreadsheets/whatever the latest sperg game is? Probably not. The WoW/EVE/whatever miners have a non-zero potential return on their investment because MMO players.
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May 23, 2011 20:22
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White Van Man posted:Welcome to Snow Crash. Aw man. I was hoping the future would be better written. 
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May 23, 2011 20:23
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Also it should be noted that the rate of bitcoin creation is constant, so the more mining you do via massive rigs of CUDA enabled sli card setups to massively (and wastefully) hash blocks the less money you actually make. If everyone on earth suddenly had a pressing need to get bitcoins no one would actually get any. Oh also the massive bitcoin rigs are enough to get the police knocking on your door with a search warrant for weed, because of the stupidly large electricity bills.
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May 23, 2011 20:23
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Cyril Sneer posted:So is anyone actually making real-life money off this? I made about $50 by buying when the coins were $1 and selling when they were $6. But I'm 100% certain that this is a bubble and the price will crash down within weeks, so I wouldn't recommend others trying to do the same.
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May 23, 2011 20:24
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Paradox Personified posted:This is sadly hilarious.  The text at the bottom is what really gets me. Mt Gox charges a small fee (0.65%) for each trade. I have no idea whether thats .65% of the USD or the BTC And this: https://www.youtube.com/watch?v=FThX1cDg-tg From this dude: Bitcoin Mining Guy posted:Bitcoin Mining Video. Got bitcoins? Got an ATI 5970? Buy a copy of this computer's hard drive from me for 150 BTC and have it tomorrow anywhere in the US, ready to boot just like you see here. USPS Express Mail shipping included. This is a demo of a hard drive I prepared with Ubuntu that mines Bitcoins using two ATI Radeon 5970 video cards. For more information about Bitcoin see Bitcoin.org.
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May 23, 2011 20:25
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IShallRiseAgain posted:So does BitCoin pay you in real money or their virtual currency to advertise for them? I think there's an interesting question, here. On the one hand, US Dollars and other such currency are accepted by more people by several orders of magnitude, and so they're "better" currency at the present, in the sense of being better able to provide the time-shifting and divisibility and so forth that currencies exist to provide. On the other hand, it's kind of frustrating to feel like weird forces you don't understand manipulate the values of currencies in ways that you could not possibly do, even if you did understand (because you are not a government and are not insanely wealthy). So, I can see why people would be willing to put some time into a scrip project, even if it's mostly just for fun. Perhaps Bitcoins will end up being like a tech version of this.
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May 23, 2011 20:26
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ymgve posted:I made about $50 by buying when the coins were $1 and selling when they were $6. But I'm 100% certain that this is a bubble and the price will crash down within weeks, so I wouldn't recommend others trying to do the same. Nah its gonna be kept up by idiotic libertarians and the russian mafia, who need some bullshit untracable online currency to launder money with now that flooz is gone.
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May 23, 2011 20:26
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Drone_Fragger posted:Oh also the massive bitcoin rigs are enough to get the police knocking on your door with a search warrant for weed, because of the stupidly large electricity bills. Someone on Slashdot did some math when the astroturf rolled out there, and apparently figured out that the amount of money spent on electricity for those machines handily outstrips the value of any coinage they 'mine'.
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May 23, 2011 20:27
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Drone_Fragger posted:This is a terrible currency because it's so unstable your money could be worth twice as much or half as much overnight (or over the space of a few hours) and theres already so many people bitcoin mining for their pretend money that they had to raise the difficulty of hashing a block by 50% last week. If it's being used in illegal transactions this alone tells me world govts will take it down. There's no way they'll allow something used by drug cartels and mafia groups to run unimpeded. I'm sure someone will cry out..."THE GOVERNMENT CAN'T TAKE DOWN OUR OPEN SOURCE COINS IT IS IMPOSSIBLE!", but everyone said you could never stop P2P stuff like Napster and the government does, one at a time. It still goes on, but nowhere near the way it did with Napster, Limewire, Kazaa, etc. For curiosities sake, if I had an average or older computer running 24/7 on my cable internet, how long would it take to make 1 coin? How much would it slow down other computers in my house? Or is the money to be made the way ymgve did, just speculating?
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May 23, 2011 20:28
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ejstheman posted:I think there's an interesting question, here. On the one hand, US Dollars and other such currency are accepted by more people by several orders of magnitude, and so they're "better" currency at the present, in the sense of being better able to provide the time-shifting and divisibility and so forth that currencies exist to provide. On the other hand, it's kind of frustrating to feel like weird forces you don't understand manipulate the values of currencies in ways that you could not possibly do, even if you did understand (because you are not a government and are not insanely wealthy). So, I can see why people would be willing to put some time into a scrip project, even if it's mostly just for fun. The US dollar is also good because it's too large to buy up a large majority of the market to manipulate it with. Like what is happening with bitcoins. right now.
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May 23, 2011 20:28
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