seattle- best to
Google it, I've discussed it here a few times, do a blog search as
well - it's a virtual currency that is mined by solving a computer
algorithm - the more coins that are mined, the algorithm becomes
exponentially more difficult to solve - thus limiting the number of
bitcoins that can exist i.e. A year ago I almost built a high
end computer with the sole purpose of mining bitcoins, I would have
left the computer run 24 hrs a day to solve the algorithms, wish I
had because I could probably have generated 50 - 100 bitcoins, so
if I had spent $5K on the computer, I would have 50 - 100K now
LOL
you can even set up your computer to min bitcoins right now, but
these days the algorithm is so complicated that it takes a long
time to generate one coin - again it grows exponentially more
difficult over time.
The concept is a neat one as it has an imposed self control i.e.
some gov can't just create loads of money out of thin air.
However I have concerns with it, first off, clearly it's
parabolic now, and a parabolic top and sharp sell off is probably
imminent sometime. Next, what happens if the world powers see
it as a threat to their currencies and clamp down on it with
regulations etc, the price could drop to nothing overnight
anyway google it
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Question
Posted by seattle on 30th of Oct 2013 at 03:08 am
Matt, Steve, what is bitcoin and is it traded like stock that we can also apply technical analysis?
Thanks.
seattle- best to Google it, I've
Posted by matt on 9th of Dec 2013 at 02:01 pm
seattle- best to Google it, I've discussed it here a few times, do a blog search as well - it's a virtual currency that is mined by solving a computer algorithm - the more coins that are mined, the algorithm becomes exponentially more difficult to solve - thus limiting the number of bitcoins that can exist i.e. A year ago I almost built a high end computer with the sole purpose of mining bitcoins, I would have left the computer run 24 hrs a day to solve the algorithms, wish I had because I could probably have generated 50 - 100 bitcoins, so if I had spent $5K on the computer, I would have 50 - 100K now LOL
you can even set up your computer to min bitcoins right now, but these days the algorithm is so complicated that it takes a long time to generate one coin - again it grows exponentially more difficult over time.
The concept is a neat one as it has an imposed self control i.e. some gov can't just create loads of money out of thin air. However I have concerns with it, first off, clearly it's parabolic now, and a parabolic top and sharp sell off is probably imminent sometime. Next, what happens if the world powers see it as a threat to their currencies and clamp down on it with regulations etc, the price could drop to nothing overnight
anyway google it