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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

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    I am struggling to understand what Bitcoin is, can someone explain it to me?
     
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  2. Jedi Knight Fett

    Jedi Knight Fett Jedi General

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    Bitcoin was originally made as a currency, but most people now treat it as basically a stock in that you’ll hold onto it and eventually sell it for USD or CAD or whatever your local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

    Lock_S_Foils Red Leader

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    thanks I still do not understand what you are buying or holding by “purchasing Bitcoin stock”

    I will do some research
     
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  4. Addi Ras

    Addi Ras MASTER TEA MAKER
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    can I join this club because I haven’t the foggiest about it either.
     
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  5. Jedi Knight Fett

    Jedi Knight Fett Jedi General

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    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 However Bitcoin was originally made just to be a currency.
     
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  6. Lock_S_Foils

    Lock_S_Foils Red Leader

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    That is scary as hell and not an investment I would be willing to make.

    Essentially you are "buying" nothing.

    Thanks.
     
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  7. Jedi Knight Fett

    Jedi Knight Fett Jedi General

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    Correct it is nothing but computer code.
     
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  8. daRinze

    daRinze Force Sensitive

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    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) ?
     
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  9. Trevor

    Trevor Rebellion Arms Supplier
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    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.
     
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  10. TommyWillson

    TommyWillson Clone

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    Think of Bitcoin as digital money, decentralized and secure, using blockchain technology. It's like gold in the digital realm, mined through complex computations. Now, here's something neat: an [link removed]. Essentially, it's like having a fortified vault for your Bitcoin. It uses clever math to ensure added security.
     
    #10 TommyWillson, Dec 7, 2023
    Last edited by a moderator: Dec 7, 2023
  11. Martoto

    Martoto Force Sensitive

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    Who would have thought that when the internet was invented/discovered, it secretly hid seams of "currency" just waiting to be mined by intrepid prospectors and traded by shrewd investors.
     
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