I'm still trying to figure out if bitcoin is a real substance or a something dreamed up to create a basis for creating an alternate monetary value system
I'm still trying to figure out if bitcoin is a real substance or a something dreamed up to create a basis for creating an alternate monetary value system
It helps me to think of it like gold. Industrially, gold isn't that valuable; steel is worth much more. The qualities that make gold valuable (scarcity, fungibility, immutability, resistance to forgery) are the same ones that make cryptocurrencies valuable. This doesn't mean that bitcoin will or won't succeed, just helps to place it in your mind.
What, exactly, are they mining and how is this mining being done?Quote:
Originally Posted by Jon
I seem to remember some pictures (perhaps from a previous post of yours) where they were "mining" bitcoin in what appeared to be factory-like buildings equipped with machinery of some sort. It seemed more like manufacturing than mining.
Does bitcoin have any intrinsic value or is it, like paper money, valued by agreement between its users?
Crypto mining means solving cryptography puzzles. Essentially guessing at hashes until you get one correct. The more computer processing power you have, the more likely that you will guess correctly, and earn the block reward - currently 12.5 BTC, valued around $90K USD. These days it's more common for people to add their computing power to crypto mining pools. When the pool gets a block reward, it's split among people relative to the processing power that they contributed. It's generally not profitable unless electricity is very cheap.
The network of computers that handle bitcoin is now the most powerful computing network in history.
Intrinsic value? No. I don't know if ANY money is currently in use with intrinsic value. Even if you count gold as having intrinsic value (minimally), I don't believe any country still has gold-backed currency. The argument in favor of bitcoin's value is largely centered around its utility AS money, in that it's more trustworthy than any money we've previously seen. And that bitcoin is a proof of work.
Thus the theoretical but still interesting bitcoin space mining question. The thought is that you send a spaceship close to the sun, and use the solar energy to power computers that solve bitcoin hashes. Thus, the largest problem of space mining: sending the payload back to Earth, is mostly solved, because you just send back a string of characters which represents a bitcoin address that holds a block reward.
Sounds too much like the stock market to me it only retains value as long as there is trading going on. How many flat broke Millionaires and billionaires would there be if someone simply pulled the plug on the system.Everything is traded on non existent futures or speculation of hard goods to be produced. by people who wear neckties who wouldn't know a pork butt it it sat on him.
I won't ever have the millions but when I buy something I can touch it with my hands if I sell it it or trade it either sells or trades at a value either more or less than what I have in it but it is tangible none the less. If I buy an ounce of gold I want it weighed out equal to a standard mass then placed in my hand not some data stream batch of numbers that says I own the gold if it is not in my hand I can't prove that it even exists.
in 1981 I told a guy that someday the stock market would reach 6000 He thought I was crazy. I said it is just a number Yesterday it hit 26,000 just another number through all of the devaluations of money over they years 26K probably is not much more than 6 K was when I made that statement 17 years ago.
Yup, most money is digital now, whether it's cryptocurrencies or not. You touched on another money problem that bitcoin attempts to solve: inflation. The number of bitcoin produced is finite (21 million), and all mining is expected to be completed around 2140.
Another way to think about it is this: money is just a ledger. From the line in your bank's computers, to the $20 bill in your sock drawer, each one is just a note saying: "You are entitled to this much worth of goods/services." Bitcoin is attempting to act as the new ledger. Because all bitcoin transactions are public (although those involved in the transaction may be anonymized), and those transactions are recorded across millions of computers, the immutability of the ledger is thought to be superior to current systems.
""Because all bitcoin transactions are public (although those involved in the transaction may be anonymized), and those transactions are recorded across millions of computers, the immutability of the ledger is thought to be superior to current systems.""
This is still the downside When technology vanishes into burned electrons I will still have 17 acres of land with stuff scattered all over it.
I have been working on a friend's truck and his trailers He sometimes hands me cash while other times I get my compensation in other forms.
For instance He called me up and asked what I thought about an old Shear that he found would it be worth a $100.00 to me off his bill
Sure I said
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It will be delivered soon OK I have 2 options here I could haul it to scrap if I find that it is completely non repairable and collect the value of weight in other steel or cash Or if at least partially repairable I could do this and use it If fully repairable and upgrade-able I could do that then use it to trade up or for something else.
Also Just last night he told me he bought an old Austin Western crane for $500.00 Its mine if I want it. DUH! I happen to have an engine I can put in it and according to the guy he bought it from it was running and being used around his place before the engine broke he pulled it but later bought another crane
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Either way I go I can't loose with these.
PS I get that water tank as well
Also There is a load of roof insulation on the way
