Bitcoin (cryptocurrency)

Joined the Pi Network recently,looks like it has potential.
It's mining using your phone and is on the Google playstore to download.
(use invitation code Doots2 please,shameless I know).
 
I have just read that the Met Police have seized £180m of bitcoin from a criminal.
Can someone please explain to for how you seize something that doesn't materially exist.
Oh but please don't try to explain 'mining bitcoins' I have read a number of articles on that and still don't understand it.
 
Blue Mist said:
I have just read that the Met Police have seized £180m of bitcoin from a criminal.
Can someone please explain to for how you seize something that doesn't materially exist.
Oh but please don't try to explain 'mining bitcoins' I have read a number of articles on that and still don't understand it.
Click to expand...

It's not much different to digital money. When you log on to your internet banking you see a bunch of numbers, not physical money. Of course with normal currency there's always a physical version.

The "worth" of the currency is simply how much it's valued against more tangible currency at a given time. Kind of like how gold or silver is valued on exchanges. Gold and Silver are tangible items but they are only given value because of humans and how we use them. Same as crypto. If we didn't like the look of silver, for example, and didn't use it widely in jewellery (I know it has other uses too) it wouldn't be worth as much as it is. Bitcoin was born out of the desire to have an unregulated global digital currency - it's kind of become something else now but that's for another day - and grew, initially, because of that.

Crypto only exists in the digital world but that's a huge universe and a growing one. However, unless Crypto becomes more widely used it will eventually die, in my opinion. And I own a fair bit! There are some crypto coins being used by the financial services so if it has a use beyond its basic identity then it might survive, like Cardano or Ethereum.
 
bugsyblue said:
It's not much different to digital money. When you log on to your internet banking you see a bunch of numbers, not physical money. Of course with normal currency there's always a physical version.

The "worth" of the currency is simply how much it's valued against more tangible currency at a given time. Kind of like how gold or silver is valued on exchanges. Gold and Silver are tangible items but they are only given value because of humans and how we use them. Same as crypto. If we didn't like the look of silver, for example, and didn't use it widely in jewellery (I know it has other uses too) it wouldn't be worth as much as it is. Bitcoin was born out of the desire to have an unregulated global digital currency - it's kind of become something else now but that's for another day - and grew, initially, because of that.

Crypto only exists in the digital world but that's a huge universe and a growing one. However, unless Crypto becomes more widely used it will eventually die, in my opinion. And I own a fair bit! There are some crypto coins being used by the financial services so if it has a use beyond its basic identity then it might survive, like Cardano or Ethereum.
Click to expand...
Yeah, coins that end up with a real world usage (and there are some already) and are properly decentralised should stand the test of time. Utter shite like Dodge and the likes will probably all disappear. Bitcoin will end up worth over 100k a coin one day I think.
 
Craig said:
Yeah, coins that end up with a real world usage (and there are some already) and are properly decentralised should stand the test of time. Utter shite like Dodge and the likes will probably all disappear. Bitcoin will end up worth over 100k a coin one day I think.
Click to expand...

Bitcoin has the advantage of being the market leader and "first" coin. However, its technology is pretty limited so I'm not sure whether it will survive or not. It's not geared towards mass real world usage.
 
Blue Mist said:
I have just read that the Met Police have seized £180m of bitcoin from a criminal.
Can someone please explain to for how you seize something that doesn't materially exist.
Oh but please don't try to explain 'mining bitcoins' I have read a number of articles on that and still don't understand it.
Click to expand...

One of the issues with bitcoin and all crypto currencies is that it is very much a technology driven thing. It only exists on the internet and in the computing code. You can only own it if you can access it and that is basically via a website. For the vast majority of people holding it there is a middle man or broker who will ofer you an account or wallet. Its just a log in to a website that will hold the crypto for you. Ignoring the jargon - its a website.

The mining side of it is the network of computer sitting behind it all tracking the movement of the currency. You can earn cypto by supplying computer processing power. Its the strength but also teh weakness of it. Strong in that it takes any central control away but weak in that it is inefficient and relies on the assumption that mining will always be worth doing. If the value ever falls to the point that it is not worth doing then the whole thing collapses and falls over.
 
Gaudion M said:
One of the issues with bitcoin and all crypto currencies is that it is very much a technology driven thing. It only exists on the internet and in the computing code. You can only own it if you can access it and that is basically via a website. For the vast majority of people holding it there is a middle man or broker who will ofer you an account or wallet. Its just a log in to a website that will hold the crypto for you. Ignoring the jargon - its a website.

The mining side of it is the network of computer sitting behind it all tracking the movement of the currency. You can earn cypto by supplying computer processing power. Its the strength but also teh weakness of it. Strong in that it takes any central control away but weak in that it is inefficient and relies on the assumption that mining will always be worth doing. If the value ever falls to the point that it is not worth doing then the whole thing collapses and falls over.
Click to expand...

Not all crypto currencies are mined though. Some of the most technologically advanced crypto coins use a "proof-of-stake" system which has moved away from the original technology of Bitcoin.
 
bugsyblue said:
Bitcoin has the advantage of being the market leader and "first" coin. However, its technology is pretty limited so I'm not sure whether it will survive or not. It's not geared towards mass real world usage.
Click to expand...

bugsyblue said:
Not all crypto currencies are mined though. Some of the most technologically advanced crypto coins use a "proof-of-stake" system which has moved away from the original technology of Bitcoin.
Click to expand...

Without any central control there is no mechanism to sort out these issues. Bitcoin is stuck on its technology platform and I dont think it is sustainable. Its too energy /processing inefficient and that will be its downfall. But it wont be a managed downfall.

There are better technologies out there but there is very little logic behind what becomes popular. We have seen many smaller coins fail - we are yet to see what happens when a bigger one collapses.
 
bugsyblue said:
It's not much different to digital money. When you log on to your internet banking you see a bunch of numbers, not physical money. Of course with normal currency there's always a physical version.

The "worth" of the currency is simply how much it's valued against more tangible currency at a given time. Kind of like how gold or silver is valued on exchanges. Gold and Silver are tangible items but they are only given value because of humans and how we use them. Same as crypto. If we didn't like the look of silver, for example, and didn't use it widely in jewellery (I know it has other uses too) it wouldn't be worth as much as it is. Bitcoin was born out of the desire to have an unregulated global digital currency - it's kind of become something else now but that's for another day - and grew, initially, because of that.

Crypto only exists in the digital world but that's a huge universe and a growing one. However, unless Crypto becomes more widely used it will eventually die, in my opinion. And I own a fair bit! There are some crypto coins being used by the financial services so if it has a use beyond its basic identity then it might survive, like Cardano or Ethereum.
Click to expand...

So the worth of Bitcoin is measured in tangible currency which is the very thing it’s supposed to replace? Glad we got that sorted.

Not only that but there are 100s of competing “coins” so it’s not even as if there is a standard coin everyone can get behind. Until volatility is brought under some control these bitcoins have zero chance of being anything but the play thing of speculators and geeks who want to apply real world terms like “mining” and “coin” to a digital token to try and give them some credibility. I tried to get long volatility in this shit a while back but no one wants the other side of that trade at a price that doesn’t put me massively offside to start with.
 
Could the collapse of Bitcoin (as predicted on here in the last few posts) create an economic recession?
 
117 M34 said:
Could the collapse of Bitcoin (as predicted on here in the last few posts) create an economic recession?
Click to expand...

Probably not. Majority of private individuals will, I suspect, have invested their savings, if this thing goes to zero it’ll be those who get hung out to dry but they aren’t using the money to live day to day. The professionals are way ahead of you in terms of reacting, they are watching this shit 24/7 and have the reactions of a cobra snake.

There will be some knock on consequences however. Anyone shorting the market will collect which would tend to be the professionals- so a few banks will get paid from the losses of all the individuals. That means all the Uncle Jim’s out there aren’t going to be able to buy motor homes or whatever with their Bitcoin investment like they hoped but Trader Joe is buying his Ferrari and the bank shareholders are getting dividends.
 
Cheers for all the replies. I get the general idea but, how do you 'seize' it as per the police story.
I get that it is stored in a digital wallet by a 'banker' and if I say to him pay Ric a thousand bitcoin for my BM subscription, the banker transfers it. But....it is unregulated so the cops can't say to the banker, its seized hand it over surely ?
 
Blue Mist said:
Cheers for all the replies. I get the general idea but, how do you 'seize' it as per the police story.
I get that it is stored in a digital wallet by a 'banker' and if I say to him pay Ric a thousand bitcoin for my BM subscription, the banker transfers it. But....it is unregulated so the cops can't say to the banker, its seized hand it over surely ?
Click to expand...

It will be stored on a usb stick which is specifically designed to store your crypto on. Requires your own unique password to access ect.
 
Gaudion M said:
One of the issues with bitcoin and all crypto currencies is that it is very much a technology driven thing. It only exists on the internet and in the computing code. You can only own it if you can access it and that is basically via a website. For the vast majority of people holding it there is a middle man or broker who will ofer you an account or wallet. Its just a log in to a website that will hold the crypto for you. Ignoring the jargon - its a website.

The mining side of it is the network of computer sitting behind it all tracking the movement of the currency. You can earn cypto by supplying computer processing power. Its the strength but also teh weakness of it. Strong in that it takes any central control away but weak in that it is inefficient and relies on the assumption that mining will always be worth doing. If the value ever falls to the point that it is not worth doing then the whole thing collapses and falls over.
Click to expand...

Abit like a bank eh.
 
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