Bitcoins!

[Qwertman]

Bitcoins! I just discovered them a week ago, but they've been around since 2009. Some genious grad student discovered a way to make digital currency that cannot be counterfeited, and is peer to peer (transfers are anonymous). I don't fully understand how it works, there's a lot of cryptography involved which is extremely confusing and complex :33:. Basically the coins are derived from pieces of data called blocks which are composed of hashes.

These take a gargantuan amount of processing power to create, so people gather to combine their processing power into one pool:32:. For example, right now my computer is communicating with the pool at mineco.in, and fully utilizing my graphics processor to solve the complex mathematical formulas necessary to solve the block. Together, everybody connected to the pool will create a new block in about a day, and the 50 coins that come out of that block are split among us based on how much we contribute. There are several members with dedicated mining machines (this practice is called bitcoin mining) that are 20x more powerful than my single machine. They actually make a profit off of it!

My current income is 0.20 bitcoins per block on average, which ends up being about ฿6.65 per month. At the current exchange rate, I could sell that into $103.42 per month. The exchange rate is in a dip right now, and likely go go back up.:08:

[Loken]

What? This makes no sense to me. You are paid to make blocks of hash marks? And this is currency? I'm just gonna waddle off now, because any explanation you could give me would not help clarify this for me. What?

[Qwertman]

A hash is a string of data derived from a larger piece of data using an algorithm (I think).

To;dr version of bitcoins: it's a new decentrilized currency not controlled by any govt or person, impossible to counterfeit, and accepted at many online retailers. You can get them either through a currency exchange, or by contributing your computers processing power to creating blocks which are the canvases for transactions, the reason counterfeit is impossible.

[Deleted]

That is quite an interesting find, Qwertman. What sold me about these bitcoins were the fact that they are impossible to counterfeit and accepted at many of the retailers that are on-line.

[Qwertman]

Since I made that post I've my computer has made about $100 in bitcoins :08:

[Deleted]

Your computer had already made $100 worth in bitcoins within a month? That is quite impressive.

[Hermit Crab]

but uh, werent bitcoins still virtual money?
its not like paypal credit which you can actually get to your bank, to real money.
sure, a lot of stores accept bitcoins, but most of those that matter or have worldwide shipping do not