Bitcoin explained like youre five

A Field-Progammable Gate Array was already an established hardware product that can be used for different purposes, but in this case the technology was repurposed for mining Bitcoin.Thus, when your grandmother is wanting to buy marijuana off the.Imagine HSBC could hypothetically find a way to transfer you money in electronic form, so that you personally could store it on your computer.Reply Delete Replies Brett Scott 27 April 2013 at 19:47 Hi Ryan, glad you enjoyed it.

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The system might fall apart with nobody processing transactions, or maybe they will have to be paid in another currency.

Why Bitcoin is Not a Bubble - Bitcoin News

In a wide-ranging interview with The Washington Post this week,.

Bitcoin brain wallets are useless, like Bitcoiners

Please explain it to me like I am a 3 year old. so cryptocurrencies like bitcoin actually seem like the perfect way.With cash, I could hoard it in a suitcase and count it myself, and show it to other people who agreed it was real.Delete Reply Unknown 23 April 2013 at 11:36 Bitcoin has value not because, as Max Keiser says, it needs work to create it - work done does not at all equal value created, and not simply because it is scarce or at least limited in supply, but primarily because it has utility.

4 Reasons Why Bitcoin Represents A New Asset Class

The miner or mining pool (explained below) that mined this block receives the entirety of these fees.Bitcoin is the silliest of ideas, even when explained in video format.The status will evolve rapidly over the next few months in different countries, doubtless. Delete I.:.S.:. 5 February 2014 at 07:22 Also, see bitlegal.io. Delete Reply Michelle Dokken 16 February 2014 at 13:50 To help me understand this more: Is BitCoin kind of like Paypal.Buy Bitcoin, Create Bitcoin Wallets, Read Bitcoin News, and more, at Bitcoin.com.Why of course universities that can accept like Bitcoins for donations could help research.All our electronic money is actually stored in the IT systems of commercial banks.

Fears about virtual currency bitcoin echo concerns about earlier financial innovations, like paper money. That helps explain the nostalgia for the gold.Not sure I follow all your points, and not sure I understand what naggers are, but to be honest I just wrote this to help myself and any others who might be confused by Bitcoin.This explains the workings of BitCoin nicely and with good humour.

He sent articles about Bitcoin to his bus-trip friends and explained how.

It can be perceived like the Bitcoin data center except that it has been designed to be fully decentralized with miners operating in all countries and no individual having control over the network.Block Reward: This block contained a 25 BTC reward, which is fully rewarded to the miner that relayed the block--in this case Antpool.Now imagine all those were melded into one giant interconnected ledger showing all transactions that had ever occurred between users of a particular electronic currency.I wish to transfer 1 Bitcoin to Public Key 1M9fzriM7DgxDfGEhKqD2takTkXziqPkYF.

Luminous Views Photography Artist 23 April 2013 at 05:34 BitCoins are a weapon in a war against paper (physical) money.

Yes, Bitcoin Has No Intrinsic Value. Neither Does a $1

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Why won’t Bitcoin die? | The Verge

Bit Coin. Please explain it to me like I am a 3 year old

In addition to which, this is all money which is lost to the productive economy, merely stored in a computer somewhere - unlike your funds at The Co-operative Bank.An important difference,. although for larger amounts like 1000 US$,...Furthermore, all energy expended mining is eventually transformed into heat, and the most profitable miners will be those who have put this heat to good use.It is a collaboratively-built knowledge bank that holds the record of the amounts each public key has received and spent, and thereby how many coins can be attributed to each public key.I am trying to work out who their counter party might have been in buying 30k worth.This allows mining to secure and maintain a global consensus based on processing power.

Use it as a tool for finding and sharing helpful analogies to explain.

What Disadvantages Are There To Bitcoin Mining?

To me, this kind of easy manipulation is the biggest risk it faces.On average it takes 10 minutes for new transactions to be validated and included into a block.