I don't understand mining for bitcoin, etc. Can someone explain it to me?

[Anonymous]

Anonymous wrote:Not OP but I still don't get it

Good video in here

[Anonymous]

Imagine if keeping your car idling 24/7 produced sudokus you could trade for heroin.

[Anonymous]

It's a madeup "currency" in cyberspace.

Hard currency is valued against something (usually gold) or at least pegged to the price of that something.

What is bitcoin valued against?

[Anonymous]

My take on bitcoin is that new bitcoin are a prize for verifying existing bitcoin. As an example: you use bitcoin to buy pizza. That transaction is assigned a riddle/code that has to be guessed/solved to make sure that it is authentic. However, this riddle is very complicated. Once solved the transaction is then verified as true. If your computer is the one that solves this riddle, your reward is a new bitcoin. You can then spend that bitcoin on another pizza and the whole process repeats itself.

Is this a very basic explanation of bitcoin?

[Anonymous]

Anonymous wrote:My take on bitcoin is that new bitcoin are a prize for verifying existing bitcoin. As an example: you use bitcoin to buy pizza. That transaction is assigned a riddle/code that has to be guessed/solved to make sure that it is authentic. However, this riddle is very complicated. Once solved the transaction is then verified as true. If your computer is the one that solves this riddle, your reward is a new bitcoin. You can then spend that bitcoin on another pizza and the whole process repeats itself.

Is this a very basic explanation of bitcoin?

Sounds right, but I don’t think anyone actually uses Bitcoin to buy pizza. They sell their Bitcoins for dollars and then use dollars to buy pizza.

[Anonymous]

More good info:

[Anonymous]

The tech sector created a currency that requires tech hardware to create. You then make money doing nothing but selling that currency at a price higher than your utility bill used to generate that currency.

[Anonymous]

Hmmm..