1. Due to the increased amount of spam bots on the forum, we are strengthening our defenses. You may experience a CAPTCHA challenge from time to time.
    Dismiss Notice
  2. Notification emails are working properly again. Please check your email spam folder and if you see any emails from the Cantina there, make sure to mark them as "Not Spam". This will help a lot to whitelist the emails and to stop them going to spam.
    Dismiss Notice
  3. IMPORTANT! To be able to create new threads and rate posts, you need to have at least 30 posts in The Cantina.
    Dismiss Notice
  4. Before posting a new thread, check the list with similar threads that will appear when you start typing the thread's title.
    Dismiss Notice

Can someone explain Bitcoin?

Discussion in 'Random Discussion' started by Lock_S_Foils, May 29, 2021.

  1. Lock_S_Foils

    Lock_S_Foils Red Leader

    Joined:
    Feb 26, 2017
    Posts:
    3,238
    Likes Received:
    73,985
    Trophy Points:
    176,657
    Credits:
    54,203
    Ratings:
    +78,714 / 48 / -43
    I am struggling to understand what Bitcoin is, can someone explain it to me?
     
    • Like Like x 3
  2. Jedi Knight Fett

    Jedi Knight Fett Jedi General

    Joined:
    Mar 7, 2015
    Posts:
    471
    Likes Received:
    15,413
    Trophy Points:
    146,442
    Credits:
    5,696
    Ratings:
    +15,693 / 7 / -0
    Bitcoin is a currency created in the late 2000s if I am not mistaken. There is really nothing separating Bitcoin from other crypto currency other than it was first. They all use the blockchain which is what I will be talking about. The blockchain is basically just an extra secure way to keep track of something. Every transaction will be able to be traced back that’s how you know it’s legit and secure.

    Bitcoin was originally made as a currency, but most people now treat it as basically a stock in that you’ll hold onto it and eventually sell it for USD or CAD or whatever your local currency is. Hopefully for a higher price.

    There is more to it than that, but that’s a quick overview.

    If you want more than just this quick overview just type into YouTube “What is Bitcoin” you’ll probably get a better overview than I can provide.
     
    #2 Jedi Knight Fett, May 29, 2021
    Last edited: May 29, 2021
    • Like Like x 5
    • Informative Informative x 1
  3. Lock_S_Foils

    Lock_S_Foils Red Leader

    Joined:
    Feb 26, 2017
    Posts:
    3,238
    Likes Received:
    73,985
    Trophy Points:
    176,657
    Credits:
    54,203
    Ratings:
    +78,714 / 48 / -43
    thanks I still do not understand what you are buying or holding by “purchasing Bitcoin stock”

    I will do some research
     
    • Like Like x 3
  4. Addi Ras

    Addi Ras MASTER TEA MAKER
    Staff Member

    Joined:
    Oct 8, 2015
    Posts:
    4,586
    Likes Received:
    65,772
    Trophy Points:
    171,477
    Credits:
    31,512
    Ratings:
    +69,898 / 13 / -5
    can I join this club because I haven’t the foggiest about it either.
     
    • Like Like x 3
    • Funny Funny x 1
  5. Jedi Knight Fett

    Jedi Knight Fett Jedi General

    Joined:
    Mar 7, 2015
    Posts:
    471
    Likes Received:
    15,413
    Trophy Points:
    146,442
    Credits:
    5,696
    Ratings:
    +15,693 / 7 / -0
    My point was that most people buy or sell Bitcoin to make money. Or lose money if it goes down. Most people don’t treat it as a currency, but treat it as an investment. Hence why stock analogy. Most people buy into any crypto in the hopes that years down the line it will be worth thousands of dollars. However Bitcoin was originally made just to be a currency.
     
    • Like Like x 4
  6. Lock_S_Foils

    Lock_S_Foils Red Leader

    Joined:
    Feb 26, 2017
    Posts:
    3,238
    Likes Received:
    73,985
    Trophy Points:
    176,657
    Credits:
    54,203
    Ratings:
    +78,714 / 48 / -43
    That is scary as hell and not an investment I would be willing to make.

    Essentially you are "buying" nothing.

    Thanks.
     
    • Like Like x 5
    • Funny Funny x 1
  7. Jedi Knight Fett

    Jedi Knight Fett Jedi General

    Joined:
    Mar 7, 2015
    Posts:
    471
    Likes Received:
    15,413
    Trophy Points:
    146,442
    Credits:
    5,696
    Ratings:
    +15,693 / 7 / -0
    Correct it is nothing but computer code.
     
    • Like Like x 4
  8. daRinze

    daRinze Force Sensitive

    Joined:
    Oct 28, 2015
    Posts:
    1,693
    Likes Received:
    3,007
    Trophy Points:
    12,467
    Credits:
    3,184
    Ratings:
    +4,961 / 28 / -14
    Thank you to all who share their knowledge !
    I'm in the train of the bitcoins noobs :( (yeah, look, I'm there, standing at the last place. Really.)

    I understand one can buy a "stock" of bitcoin, for a certain amount of dollars, or euros, or everything else (really? can be exchanged with any 'real' currency in the world ? or are there some countries/currencies that do not apply ?) and resell such a stock later, making - or loosing - money depending on if the bitcoin gains value or is devalued.

    My question is : what is "mining" ? What does it consist in, precisely ?
    Does mining allow me to grow the "stock" I've bought before? In other terms, can mining give me more bitcoins, without buying them (kind of loan interest) ?
     
    • Like Like x 4
  9. Trevor

    Trevor Rebellion Arms Supplier
    Staff Member

    Joined:
    Oct 17, 2014
    Posts:
    3,815
    Likes Received:
    11,269
    Trophy Points:
    144,177
    Credits:
    13,745
    Ratings:
    +16,008 / 96 / -33
    Well, I'll wade in here....

    I'm one of those that has (and is) invested in cryptocurrency merely as a hobby, and one of my sons dabbles in day-trading crypto currencies, and we both have done well, and as the market swings, sometimes VERY WELL, ya' just need to know what type of currencies to look for.

    The VERY FIRST rule is to NEVER, EVER invest more money than you're willing to lose...in anything, but especially crypto, because it can be volatile and swing wildly up and down in value...sometimes daily.

    The best layman's description that I've given people is that it's really no different than investing in stocks, and generally I get the response "But it's nothing...not like a stock", but it actually is...it's just like a stock. People have the preconceived notion that a stock is something tangible that is a material thing, but is no more material than the company that issues it. If that business goes bankrupt by morning and locks the door, it's worthless.

    Most crypto is "decentralized", meaning that it's not issued by a government, and it's value is driven by GLOBAL supply and demand, and as soon as (if ever) fledgling currencies gain a foothold and are accepted as forms of payment for services and merchandise, it's as tangible as any other currency.

    In the 80's and 90's there was a lot of talk in the investment world about "Penny stocks"...some lost money, and some made people millionaires, which is really how one needs to approach crypto, as MANY did with Bitcoin....which is now worth over $40k per coin, and made millionaires and billionaires relatively fast, and WISH that I'd bought into it when I was asked....when it was worth five cents per coin...but no.

    Buy when its CHEAP....meaning .0000005 per share and leave it alone. I've watched my portfolio in crypto multiply 10x, and then recede 50%...it's not for the faint-hearted, but just treat it like a savings account....put small amounts in, and don't touch it.

    Standard disclaimer: I am not a financial advisor...make your own decisions on investing.
     
    • Like Like x 5
    • Cool Cool x 1
Loading...

Share This Page