Bitcoin
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What is the Bitcoin ?How it's used?
Why its being blocked in many countries?
What are the pros and cons? -
@lakshmana said in Bitcoin:
What is the Bitcoin ?How it's used?
Bitcoin is a form of currency or money. The major difference between Bitcoin/crypto currency is that the "value" is based on proof of work instead of a physical object like gold or silver.
It's used with a piece of software on a computer called a "wallet". This wallet is just a container that holds your personal bit coin address. https://blockchain.info/address/12t9YDPgwueZ9NyMgw519p7AA8isjr6SMw
This is also associated with an arbitrary amount of bitcoin that the entire network has agreed is your own.So if I were to send you .001 bitcoin, I would not send it to you, but your bitcoin address. So long as you keep any personally identifying information from being associated with the bitcoin address, this is completely anonymous.
The downside is that if you loose the wallet, you've lost all the bitcoin in said wallet.
Why its being blocked in many countries?
Bitcoin specifically got so large that no central government can buy enough CPU/GPU/ASIC processors to control it. So rather than attempt to control it, they attempt to ban it. Good luck with that.
What are the pros and cons?
Complete anonymous online financial transactions are now possible, like exchanging hard currency. All the same pros and cons.
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Government like banning something they cannot control, I bet the banks and governments are getting very concerned about Cryptocurrency.
It's similar to the internet at the minute, British government are already trying to look at ways of controlling it, our government has already made ISP's retain all internet history for up to a year for all uk residents for our main Providerers, all in the name of trying to say it will make us safer against terrorism, it's a load of shit.. its all about control.
We even have to buy a TV licence in the uk to watch live tv, that's sepperate fee from the tv providers like sky and virgin (cable), if you don't pay it you can be threatened with a hefty fine or prison.
My moral of my rant, if it's annoying the government, that does please me slightly...
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Difference between normal currency and Bitcoin is?
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@lakshmana said in Bitcoin:
Difference between normal currency and Bitcoin is?
Bitcoin is a form of currency or money. The major difference between Bitcoin/crypto currency is that the "value" is based on proof of work instead of a physical object like gold or silver.
Either one is better than a fiat currency, which is what America currently uses, where the value isn't based on any thing of value.
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What are the procedures to earn Bitcoin?
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@lakshmana said in Bitcoin:
What are the procedures to earn Bitcoin?
I haven't run the numbers in the past year to see if it's economical to mine your own or not currently. Basically, the first computer to figure out the next hash gets a certain amount of bitcoins. It's currently 25 per calculated hash, but is set to drop anytime now to 12.5. Ref: https://www.bitcoinmining.com/what-is-the-bitcoin-block-reward/
Generally, you'd enter into a pool to actually mine bitcoins. Instead of just trying to figure out the next hash yourself, you team up with lots of other people, and then split the reward when one of you "wins".
When bitcoin first started back in 2009, you could easily win a round with just a CPU working on it. It quickly changed to having to use the massively parallel GPU to have a chance at winning a round. Now it really doesn't make sense to use anything other than a custom ASIC to mine bitcoin. Most mining pools still around will pay out very little if you're not contributing at least custom ASIC time to the pool, CPU and GPU just doesn't work well anymore. This is all specific to Bitcoin, other crypto currencies have been founded that seek to address these issues, like Litecoin.
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It's pointless now to do your own, unless you build a warehouse of bitcoin mining servers.
Otherwise, you will always spend more to mine them than you make from mining them.
The only realistic way to get them at this point is to either buy them with real money, or sell something for bitcoins.
I honestly do not see any point of Bitcoin unless you are interested in illegal goods or activities.
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@tim_g - I partly disagree, It will get used for illegal transactions (just like cash does) but online transactions, like hosting, could be deemed a bit safer (like paypal) you will not have to disclose your bank cards, just your wallet address. I have noticed that many online stores are starting to accept Bitcoins.
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Changing Bitcoin into US dollars is illegal?
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@lakshmana said in Bitcoin:
Changing Bitcoin into US dollars is illegal?
It's perfectly legal. Bitcoins just tend to be used for illegal purposes. They are primarily for people hiding their identities.
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Why the people hiding the identities for using Bitcoin?
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@lakshmana said in Bitcoin:
Why the people hiding the identities for using Bitcoin?
Because of illegal activities.
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Whether the Bitcoin value is higher than US Dollar?
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@lakshmana said in Bitcoin:
Why the people hiding the identities for using Bitcoin?
The only reason this ransomware stuff is a conceivable idea is because of bitcoin. If everyone had to send money to someone's bank account, it wouldn't work out lol. Instead, the criminals can hide behind their bitcoin wallet a lot easier.
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If new one is opening wallet legally how safe wallet will be?How can individuals trust in the wallet portal?
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@lakshmana said in Bitcoin:
If new one is opening wallet legally how safe wallet will be?How can individuals trust in the wallet portal?
Each wallet has a universally unique ID. So a person can create a billion wallets, all with their own unique ID. But still controlled by a single person.
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Investing money in Bitcoin is good for individuals or risk in life?
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@lakshmana said in Bitcoin:
Investing money in Bitcoin is good for individuals or risk in life?
That's just a general Forex question. Two basic rules:
- ALL investing is a risk. It is the risk that makes profits possible.
- FOREX investing is fast risk.
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@lakshmana said in Bitcoin:
If new one is opening wallet legally how safe wallet will be?How can individuals trust in the wallet portal?
Not very safe. Bitcoin has announced that wallets made around this time might just vanish without warning, all money being lost.
