Complete detail of how Bitcoin works

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[DCUPtoejuice]

what is stopping someone from creating a SETI-like block solving algorithm?

[davincij15]

@DCUPtoejuice

Cost.  What will they get? Well if someone had more than 51% of the hashing power they could in theory double spend bitcoins. Right now the hashing power of bitcoin network is an over kill 10x as todays fastest computer is 1/10th the power. Thus double spending will not work because the person accepting a large amount of coins can refuse to release the goods until they are satisfied that block chain can not be undone.

So it gets you nothing.

[KSASTAMPS]

Bitcoins are issued on an unsound basis. Let's say you create a currency, and every time a laborer digs a hole you pay them a dollar (in your created currency) and then when he fills it back up again you pay him another dollar. If you understand this analogy, then you will understand why the Bitcoin market will swing wildly in value, but eventually will crash and burn. If you don't understand this analogy, then please study Austrian Economics until you do.

[davincij15]

@KSASTAMPS

I have studied Austrian Economics and what the average bitcoin nay sayer does not understand is the miner is not dig a hole and filling it back up again. Each miner is verifying all previous transactions and the current ones that occurred between the last block found and the next one to be found.

The miner in effect secures the network from attack thus they are paid to do so, the Proof Of Work makes sure you actually did that and a bit more so you do not find blocks too fast.

[pam0077]

So, i have to find someone who will accept bitcoins as payment for a good or service?

Is Amazon accepting bitcoins? How about Walmart, Kroger, Target, Costco, your local grocery store, or your local gas station? Most importantly will any bank accept bitcoins yet? Until that happens, bitcoins are perfectly worthless to 99.9999% of us. And I have a notion that if banks ever did accept them, it would take such a huge amount of computational work to make a bitcoin, it's value would go way down.

[davincij15]

@pam0077

A 3rd party allows you to buy stuff from Amazon with bitcoins, but consider that if you got a discover card you have the same problem.

So you have the freedom to say "I'm going to wait until it's accepted in more places". Right now I use it to pay developers and software companies because it's fast and easy to use and fees are low.

But I expect this from most people, they assume that any product created must instantly be used by everyone or it will fail. LOL

[captvanhalen]

@tgvas "WHERE's that BIG MOUTH NOW??????"

Look in your mirror at yourself and you'll see it.

Bitcoins are $15 each right now. So whatever your case was who cares? (all i see is "This comment has received too many negative votes")

[captvanhalen]

@tgvas "davincij15 youre so gd affraid people will know the truth that you allow all posts negative ti bitcoins to be hidden"

The only power Davinci has is to outright delete posts and block users from posting. He cannot control others voting on your bad attitude.

:)

[CarlHulk]

Nicely explained. Great post.

[DCUPtoejuice]

@davincij15 I was thinking of the processing power to mine faster than others, not defraud.

[jjectivity]

:: All the negative feeds are made by US federal agents :: do not pay attention to them ! they are fake made by few agents .