Bitcoin and Crypto Thread



Great interview. It was the only time you could understand Simon Dixon without getting headaches.
 
I’ve got absolutely no idea what “mining” bitcoin means guys?
Bitcoin "mining" is a metaphor for mining gold. There is no physical Bitcoin mine.

Miners secure the Bitcoin network by verifying transactions on the blockchain and by solving complex mathematical problems (Proof of Work). The first miner to solve a block receives a Bitcoin reward (currently 3.125 BTC / $280K). The computing power required to do this generates a lot of heat. These new water heaters transfer the generated heat to water that can be used by the household. If the mining pool to which the water heater/miner belongs solves a block, the owner receives a fractional share of the reward, offsetting the cost of the electricity needed to power the miner/heater.

Cool idea -- I would consider it but I just replaced my water heater with a traditional, non-Bitcoin-mining Rheem.
 
Thank you.
I was aware that there was no actual “physical” bitcoin, but the whole mining of it left me scratching my head and unfortunately still does.
 
Thank you.
I was aware that there was no actual “physical” bitcoin, but the whole mining of it left me scratching my head and unfortunately still does.
It is a way to impose a physical cost (electricity) to create new entries on the shared ledger (bitcoin). For the next few decades, the remaining bitcoin that will exist (last 1 million out of 21m) will be paid to miners as a subsidy, since the network is not mature (few users compared to global pop).

The physical cost is necessary for it to work as money - if it was free for anyone to change the ledger, it would be attacked (fake entries, spam, etc) Since it is extremely expensive to make changes (and only honest work is rewarded) it is difficult to attack.

Gold mining is similar. If it cost you no time or energy to mine gold, it would have little value and would not be used as money. Since it costs a lot of human energy (equipment, time) to mine gold, it is not easy to get more and makes a good money.

Bitcoin mining is the ingenious way to link a digital money that only exists as data, to physical reality, giving it value in the physical world.
 

That would effectively destroy the dollar. The only "asset" that backs the US dollar is government debt.
Pay down the debt, the current system collapses. (which I am OK with, but there is no incentive to do so, even for the CIA -- it would be the end of government as we know it)

If the government can no longer steal from its people via money printing, and instead has to provide a market good (like security) at a market price to voluntary market participants (bitcoin cannot be taken by force), the Washington parasite class as we know it ceases to exist.
 
If the government can no longer steal from its people via money printing, and instead has to provide a market good (like security) at a market price to voluntary market participants (bitcoin cannot be taken by force), the Washington parasite class as we know it ceases to exist.
But the government promotes "economic progress" by stealing from its people, chance!
 
But the government promotes "economic progress" by stealing from its people, chance!the argument of “governments can’t print bitcoin and therefore will never adopt it”
For the same reason goyslop is promoted as healthy and low energy usage is good for the environment…it keeps the slaves dumb, poor, and numb on pharmaceuticals while watching sportsball and Netflix, so they will continue working to support the current “elites.”
 
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