Bitcoin, the new digital currency explained.

How does the bitcoin network operate? It is explained in this video.

Also see this video: http://www.youtube.com/watch?v=AjnM2shYIrM

Category:

Education

Tags:

• bitcoin
• p2p
• currency
• electronic
• money
• e-cash

[matchbox555]

whats to stop someone using a supercomputer to generate millions of bitcoins very quickly ?

[alalelalex]

@matchbox555

Bitcoins are generated by solving a very difficult mathematical problem. The network adjusts the difficulty of this problem in such a way that the amount of bitcoins generated per hour is always approximately 6*50=300. Every 4 years this amount will be halved, so that to sum of all bitcoins can never exceed 21 000 000.

[dikidera]

@huiz1990 He would use up so much electricity it wouldn't be worth it.

[phxfreddy]

Isn't that chick the stupid liberal that can't use logic?

[toiwin]

i suppose you would hold your bitcoins on your phone or a card, then someone could take that from you, so i suppose they could then implant th chip under your skin. Sounds ominous. I dont think for one minute that the governments would not inflitrate and take over this invention behind the scenes.

[toiwin]

it is like cash but with usery

[TheFerroh]

@gojo345 Small transaction fees pay the miners. You can pay a larger fee if you want to prioritize your transaction. This is not something we need to worry about for 20-50 years though.

[huiz1990]

@alalelalex

Ok, but if someone is using the best computer in the world he still can generate 300 bitcoins in one hour.

[gojo345]

What happens to the distributed Network when max bit coins are mined?