Bitcoin, how it works?

Started by killer-curry May 5th, 2016 7:15 PM
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  • 2 replies

killer-curry

Oro.........?

Age 24
Male
Malaysia
Seen February 26th, 2021
Posted November 1st, 2020
2,521 posts
7.8 Years
Well, Bitcoin is beginning popular in the Internet and it is sort of virtual mining for data. I am not sure about this investment, but I would not think it is an easy way to get cash fast. But I would like to know more how it works.

Do you know well about this?

KetsuekiR

Ridiculously unsure

Male
Somewhere you couldn't possibly know.
Seen November 24th, 2021
Posted June 24th, 2020
2,493 posts
9.2 Years
From what I know;
Bitcoin is the first decentralized online currency and so it's not issued by banks. It's "produced" by computers performing various mathematical functions, and this is called "mining". The functions are set up in a way such that it gets progressively harder to mine as you collect more bitcoin. As for how profitable it is, it isn't very. Not unless you're using quite a powerful computer dedicated for mining it 24/7. The network self-monitors itself and processes all requests practically autonomously.

As for Bitcoin itself, it's very volatile, and even though it's at around $450 per Bitcoin right now, it's been known to jump around frequently, falling as low as $70. On the other hand, since it's independent of any banks/governments, it's not effected by economies and no bank can issue a large amount of it and devalue it. You can also transfer it and use it without any transaction fees or the likes, and without going through a bank, which makes it an increasingly popular option in illegal operations such as money laundering and illegal item purchases.

All in all, it's a pretty interesting system that just goes to show how incredible our technologies are right now. That said, the current BTC system is somewhat fragile and dangerous to use, considering how volatile the value of it is, so I'd advice against using it. You could put $1000 into it and if it drops suddenly, as it often does, you could end up losing a lot of it. Then again, as is the case with most of the Internet, something better and more stable will most likely come around soon enough. :P
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JJ Styles

The Phenomenal Darling

Male
NCR
Seen November 10th, 2019
Posted November 10th, 2019
3,924 posts
8.4 Years
Honestly, the first time i heard of bitcoins was from all those videos about Deep Web Browsing. If people don't know what browsing the deep web is or what the heck is the Deep Web, then you need to make a topic out of that.

Its how most deep web based transactions work. That's how shady people get to buy their stuff such as drugs, guns, and even hired assassins.