Anyone know anything about Bitcoin?

[Grant Lamontagne]

I know nothing about Bitcoin, but I really feel like I should.  Can anyone give me any info on how it works, why it's different from Paypal etc?

I am reading about it, but I think I am missing the point.

Def

[dks]

it is some sort of online,  vague, pc mining based currency, that some companies accept...  think of currency used in games (or disney money), but also accepted out of the game

[Steinar]

Paypal is a service for moving money, Bitcoin is a block chain based currency. Apples and oranges. You can buy bitcoins for other currencies if you find a willing seller, or you could theoretically mine them (but AFAIK that is no longer cost efficient for at least most purposes).

A block chain is basically a shared, open ledger. https://en.wikipedia.org/wiki/Blockchain_(database)

So, when you have a block chain based currency, anybody can exchange money with anybody else, without any central, governing body and at the same time without exchanging any physical token. This is why this is a big deal, suddenly you don't need a bank to send money to your cousin in Australia, on the other hand, you can also move arbitrarily large amounts of money without the hassle of cash (or gold) without any governmental oversight. Which is why the big banks are very eager to understand how block chains can be used and why governments really don't like intrusion on their domain of currencies. Bitcoin, or a more mainstream sibling (which hasn't been bogged down by the great firewall of China), has vast potential as a disruptive technology.

Long story short, it's a non-physical currency. And it's worth is determined by what people thinks it's worth, like any other currency, and it has a safe mechanism for transaction.

I have tried explaining the basic ideas without getting too much into technical details, hope it helps.

[WhichDawg]

Our understanding is Bitcoin uses cryptographic proof of work (something that requires a lot of computer power to do the work but is trivial for anyone else to verify that the work is correct so lots to make but little work to verify) making it more difficult to create a fake ledger entry for an single individual so you can prove you own that bitcoin and making it easier to prove it is your own.

Which means it can be treated as a surrogate for money and therefore it can be treated as money. Remember "Scarce things have value in this world" including things that are hard to do and make and bitcoin is scarce, making it valuable.  You can use it as money with anybody who accepts bitcoin and specific services allow you to convert it to any currency in the world.

(these are mostly my GF words lol)

[shibafu]

If you don't mind a long-ish read, this is the clearest explanation I've seen:
http://www.michaelnielsen.org/ddi/how-the-bitcoin-protocol-actually-works/

[Ron Who]

Bitcoins are a highly valued currency for illegal activities on the deep web. Although some big companies accept them, they're far from mainstream.

[Syph007]

SciShow has a good video explaining how it works.

[Corwyn]

Bitcoins are a highly valued currency for illegal activities on the deep web. Although some big companies accept them, they're far from mainstream.

What he said... my deep hatred for Bitcoin comes from the time my PC got hit with a ransomewhere and they wouldn't give me the password to my own data if I did not transfer 2500 USD in Bitcoin to them... luckily it was my second laptop, with just Windows, some movies and some iold pictures so I could format it, but I still see bitcoin as the way hackers, arms dealers, hitmen and kidnappers get money and small crooks launder money.

[Mr. Whippy]

Most of these comments reflect what i know about bitcoin. If you had gotten in early, you could have made some money.  Riskier now.  I would say buying bitcoin now as an investment is akin to gambling

[Fortytwo]

Most of these comments reflect what i know about bitcoin. If you had gotten in early, you could have made some money.  Riskier now.  I would say buying bitcoin now as an investment is akin to gambling

I would say it was always akin to gambling. In the early days there was always the risk of the whole thing going bust, I believe at least a few of the copycats must be worth nothing by now, if they are even around at all.

[dks]

a few years ago we had a big advertising campaign here for the introduction of bitcoin, by a Brit. They opened an office , but soon after the man behind it disappeared and went to the UK, whilst owing money to several people. There is a warrant out for his arrest.

This gives a good indication of the stability of bitcoin, and some of the people behind it.

Here are two articles on the matter.

http://www.coindesk.com/cyprus-issues-arrest-warrant-neo-bee-ceo-danny-brewster/
http://www.coindesk.com/bitcoin-startup-ceo-resurfaces-2-year-disappearance/

[an0nemus]

So my officemate yesterday was very ecstatic about Bitcoin which she started to use last April. She and her son treats bitcoin like it's a blue chip stock in a stock exchange.


My other officemate on the other hand is wary of this currency as its the choice of human traffickers in Asia, she claims.


My questions are: is it ethically wrong to use bitcoin? is it still essentially like gambling if one converts to bitcoin and hope its value increases dramatically?

[Don Pablo]

So my officemate yesterday was very ecstatic about Bitcoin which she started to use last April. She and her son treats bitcoin like it's a blue chip stock in a stock exchange.


My other officemate on the other hand is wary of this currency as its the choice of human traffickers in Asia, she claims.


My questions are: is it ethically wrong to use bitcoin? is it still essentially like gambling if one converts to bitcoin and hope its value increases dramatically?

Is it ethically wrong to use cash or wear precious stones/metals? Both have blood on them as well, for far far longer than Bitcoin. Anything of value can be used for unsavory purposes, but that doesn't stop us from using them.

As for gambling on Bitcoin, it's like buying stock in a new company to me, though Bitcoin seems to have gotten past the extreme growth stage. 

Just my thoughts, i am interested in other people's thoughts too. 

[an0nemus]

So my officemate yesterday was very ecstatic about Bitcoin which she started to use last April. She and her son treats bitcoin like it's a blue chip stock in a stock exchange.


My other officemate on the other hand is wary of this currency as its the choice of human traffickers in Asia, she claims.


My questions are: is it ethically wrong to use bitcoin? is it still essentially like gambling if one converts to bitcoin and hope its value increases dramatically?

Is it ethically wrong to use cash or wear precious stones/metals? Both have blood on them as well, for far far longer than Bitcoin. Anything of value can be used for unsavory purposes, but that doesn't stop us from using them.

As for gambling on Bitcoin, it's like buying stock in a new company to me, though Bitcoin seems to have gotten past the extreme growth stage. 

Just my thoughts, i am interested in other people's thoughts too. 

Good points! 


Somehow I have this impression that Bitcoin is being run like a Ponzi scheme by some players.


I did install an app and converted a small amount to Bitcoins to see how it will perform 

[Don Pablo]

So my officemate yesterday was very ecstatic about Bitcoin which she started to use last April. She and her son treats bitcoin like it's a blue chip stock in a stock exchange.


My other officemate on the other hand is wary of this currency as its the choice of human traffickers in Asia, she claims.


My questions are: is it ethically wrong to use bitcoin? is it still essentially like gambling if one converts to bitcoin and hope its value increases dramatically?

Is it ethically wrong to use cash or wear precious stones/metals? Both have blood on them as well, for far far longer than Bitcoin. Anything of value can be used for unsavory purposes, but that doesn't stop us from using them.

As for gambling on Bitcoin, it's like buying stock in a new company to me, though Bitcoin seems to have gotten past the extreme growth stage. 

Just my thoughts, i am interested in other people's thoughts too. 

Good points! 


Somehow I have this impression that Bitcoin is being run like a Ponzi scheme by some players.


I did install an app and converted a small amount to Bitcoins to see how it will perform 

Whatever Bitcoin is, it's not a scheme to rob you of your money. (Nevermind that it IS money, I was taking liberties with my writing.  )
I can't speak for it's long term survival though, I'm not a fortune teller(or a fortune cookie).

There is a possibility that fake Bitcoin apps and programs could steal your money, in the same way the ATM machines can have things attached to them that can grab your card details. 
Stick with the apps/programs that everyone is using and it should be fine. 

SciShow has a good video explaining how it works.

If you don't mind a long-ish read, this is the clearest explanation I've seen:
http://www.michaelnielsen.org/ddi/how-the-bitcoin-protocol-actually-works/

[Don Pablo]

Just noticed Bitcoin ads. I didn't even do any googling or opening up any Bitcoin related websites. All I did was talk about it here. 

(The ads could have been there already in rotation, but it's more fun saying it this way.  )

[an0nemus]

Just noticed Bitcoin ads. I didn't even do any googling or opening up any Bitcoin related websites. All I did was talk about it here. 

(The ads could have been there already in rotation, but it's more fun saying it this way.  )

I suddenly see them Bitcoin ads as well all over the sites I visit

Thanks for the great tips and heads up

[Fortytwo]

So my officemate yesterday was very ecstatic about Bitcoin which she started to use last April. She and her son treats bitcoin like it's a blue chip stock in a stock exchange.


My other officemate on the other hand is wary of this currency as its the choice of human traffickers in Asia, she claims.


My questions are: is it ethically wrong to use bitcoin? is it still essentially like gambling if one converts to bitcoin and hope its value increases dramatically?

Is it ethically wrong to use cash or wear precious stones/metals? Both have blood on them as well, for far far longer than Bitcoin. Anything of value can be used for unsavory purposes, but that doesn't stop us from using them.

As for gambling on Bitcoin, it's like buying stock in a new company to me, though Bitcoin seems to have gotten past the extreme growth stage. 

Just my thoughts, i am interested in other people's thoughts too. 

Good points! 


Somehow I have this impression that Bitcoin is being run like a Ponzi scheme by some players.


I did install an app and converted a small amount to Bitcoins to see how it will perform 

Whatever Bitcoin is, it's not a scheme to rob you of your money. (Nevermind that it IS money, I was taking liberties with my writing.  )
I can't speak for it's long term survival though, I'm not a fortune teller(or a fortune cookie).

There is a possibility that fake Bitcoin apps and programs could steal your money, in the same way the ATM machines can have things attached to them that can grab your card details. 
Stick with the apps/programs that everyone is using and it should be fine. 

This, Bitcoin is in many ways a more transparent currency than "classical" currencies were banks can issue more currency. Don't think for a moment that banks need to have coverage for the money they lend out or for that matter hold for you. As for the ethics, everything can be used for evil if one so chooses, if there wasn't bitcoin then something else would show up to fill the gap.

[lister]

Another mass psychosis of the kind humans call money. 

[Syph007]

I guess if you use a Bitcoin for decision making you call a 0 or a 1 instead of heads or tails?   

[chrono]

Given that the amount of bitcoins is fixed, its unit price will theoretically increase over time. Those being in in the early stage who own tons of them will be overnight billionaires, at the cost of those coming in later. For the "traditional money", the more the government prints, the less value the top dogs have for their fortunes. "Traditional money" is also more affordable for the mass. I think:
- Bitcoin is similar to a Ponzi scheme, a bubble waiting to bust. If crooks can make counterfeit dollars, who can say Bitcoin is safe from a large-scale cyber crimial organization?
- Like a loan, you should buy Bitcoin with your dollars only if you can afford to lose them all (read "gambling")
- Gold is still a standard hedge to preserve your wealth. People of other parts of the world may not recognize your government money or bitcoin, but they more than likely recognize the shinny metal.

My 2c 

[Pacu]

Brick of gold sounds better than a sack of bitcoins.