DHS Urged by Congress To Restrict Bitcoin

Discussion in 'The Bar' started by newcastlefan, Aug 16, 2013.

  1. newcastlefan

    newcastlefan גֵּרְשֹׁם VIP

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  2. fletchman71

    fletchman71 Well-Known Member

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    Can you explain this whole bitcoin thing to me? I am not sure what it is.
     
  3. Dave

    Dave Active Member

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    what?
     
  4. Dave

    Dave Active Member

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    ohhhh hohoho you got me
     
  5. newcastlefan

    newcastlefan גֵּרְשֹׁם VIP

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    It would take a book to explain how it operates, and I'm not sure of all of it, but its supposed to be a currency that is not based upon any commodity or nation (unless you consider the Internet = a nation). It's value relative to other currencies is constantly cueing recalculated based only on supply and demand. Bitcoins are created by calculating or "mining" numeric solutions to an exceptionally complex algorithm that has a rare number of possible but infinite solutions, so it takes a lot of computational power and time to generate valid bitcoins, which are the "supply" and which are traded on Internet commodity exchanges which register the "demand" and calculate the relative value.

    basically it is money that doesn't have a built in method of regulation, which scares governments.
     
  6. Lemmy

    Lemmy Douchebag Extraordinaire Gold

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    Having a second thread about this doesn't make it more interesting.
     
  7. harlock

    harlock ancora imparo Gold

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    where do you get them? i assume i would convert dollars to them somewhere :dontknow:
     
  8. DrivenByDemons

    DrivenByDemons Spinoff Jesus Staff Member

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    Saw this coming.
     
  9. DrivenByDemons

    DrivenByDemons Spinoff Jesus Staff Member

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    They get created every 10 minutes by computers dedicated to "mining" them. You used to be able to mine them on a normal PC but its much more complicated now.
     
  10. fletchman71

    fletchman71 Well-Known Member

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    So if I am reading correctly it is self regulating which in essence is Capitalism correct? I can see why the governments are scared, they can't get their cut.
     
  11. DrivenByDemons

    DrivenByDemons Spinoff Jesus Staff Member

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    It's the perfect system for currency. Built in inflation control, distributed transaction verifications, it all makes so much sense. Which is why we can't have it.
     
  12. fletchman71

    fletchman71 Well-Known Member

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    Looking at the opposite side this bitcoin thing reminds me of the carbon credit that Al Gore and other environmental wacko-liberals were trying to instill a few years ago as a way to make money off of industry in the guise of "saving the environment".
     
  13. harlock

    harlock ancora imparo Gold

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    why would somebody accept something that i created on my PC as payment?
     
  14. sinistar

    sinistar Member

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    Is this what people mean when they say "Thanks, that will be 2 internets"?
     
  15. Stew Nod

    Stew Nod Hello VIP

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    Why would someone accept a paper bill rolled off a machine by Uncle Ben Bernenke? Perceived value
     
  16. DrivenByDemons

    DrivenByDemons Spinoff Jesus Staff Member

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    Thank you for answering. This is correct. Something like bitcoin is the future. I suggest people google it and how it works. It genius.
     
  17. DarkFriday

    DarkFriday Fired as a MOD...Twice. Gold

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    Its fake money/credits with no financial security for nerds :secret:

    [​IMG]
     
  18. Xhorder

    Xhorder \m/ VIP

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    Are there any legitimate uses for it though? Isn't it currently used almost entirely for silkroad?
     
  19. MatthewT

    MatthewT Awaiting The Rapture VIP

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    without the power to manipulate their own fiat currency, debt suddenly matters
     
  20. MatthewT

    MatthewT Awaiting The Rapture VIP

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    why would people buy into ponzi schemes?