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enlightenment

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9. I'll take four -

Reply to StrictlyRockers (Reply #6)

Thu Oct 31, 2013, 02:11 PM

Oct 2013

I think the explanation for five year olds would be too complicated for me.

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AMA: Long-time DU lurker and democratic supporter, know everything there is to know about bitcoin [View all] Rassah Oct 2013 OP

Have you made a profit holding bitcoins, and if so have you paid taxes on the profits? n/t PoliticAverse Oct 2013 #1

If anything that would be capital gains tax. dipsydoodle Oct 2013 #3

Capital gains would mean Rassah Oct 2013 #15

I have made a gain... Rassah Oct 2013 #14

Explain to me like I'm five, exactly how bitcoins are generated/created. StrictlyRockers Oct 2013 #2

*Holds up hand*. I want to be 5 too. Whisp Oct 2013 #4

Psht, no way, man! I already called five. StrictlyRockers Oct 2013 #6

okay, 5 and Three Quarters then! Whisp Oct 2013 #7

I'll take four - enlightenment Oct 2013 #9

+1 :) n/t OneGrassRoot Oct 2013 #8

This is a bit long... Rassah Oct 2013 #17

THAT Sissyk Oct 2013 #55

I'm baffled by bitcoin mining - what sort of math problems are done to create bitcoins, and WHY? kestrel91316 Oct 2013 #5

One wonders.. sendero Oct 2013 #10

Moore's law is kept in check... Rassah Oct 2013 #20

Well... sendero Oct 2013 #34

Moore's law IDemo Oct 2013 #44

The more fundamental problem seems to be the question of why a bitcoin should have any value at all? PoliticAverse Oct 2013 #30

Yep Rassah Oct 2013 #35

Mining is actually a method of securing accounting entrees... Rassah Oct 2013 #19

So all the calculations are a part of a massive program for making bitcoins theft-proof or kestrel91316 Oct 2013 #25

I'm too buys Larping Capt. Obvious Oct 2013 #11

I do Rassah Oct 2013 #48

You mean, other than it's a ponzi scheme backed by nothing? n/t pnwmom Oct 2013 #12

Bitcoin is not a Ponzi Rassah Oct 2013 #21

Wait - while obtaining your Finance degrees, Charles Ponzi never came up in any of your classes?? REP Oct 2013 #24

Of course he has Rassah Oct 2013 #42

Perhaps Finance degrees should require more writing classes REP Oct 2013 #49

This message was self-deleted by its author Rassah Oct 2013 #57

I'm not the one who asked REP Oct 2013 #65

This message was self-deleted by its author Rassah Nov 2013 #70

Bitcoin and computer viruses seem to go hand in hand. Rex Oct 2013 #13

Very true Rassah Oct 2013 #22

Wow that last bit was absolutely fascinating. Kurska Oct 2013 #23

Too early in development... Rassah Oct 2013 #36

'program "Do no evil" into the core of a corporation' JEdwards8th Oct 2013 #50

Aren't you worried that an unofficial currency such as this promotes market anarchism? KY5 Oct 2013 #16

I have had to rethink about what is important to focus on... Rassah Oct 2013 #28

Your IP classes did not serve you well. Ms. Toad Nov 2013 #82

Thank you for the info Rassah Nov 2013 #89

Not surprised you're not sure what to think about it - Ms. Toad Nov 2013 #93

My business degrees were mostly focused on finance, accounting, and econ- Rassah Nov 2013 #102

With patents, at least, Ms. Toad Nov 2013 #108

I meant impossible to defend, Rassah Nov 2013 #109

Actually, the patent trolls are thriving Ms. Toad Nov 2013 #110

Bitcoin's a scam dreamed up by Ron Paul disciples. Arkana Oct 2013 #18

It's a Libertarian dream -- freedom from the Federal reserve. pnwmom Oct 2013 #26

Let me know if this is libertarian or not Rassah Oct 2013 #47

Bitboin is just smoke and mirrors. n/t pnwmom Oct 2013 #51

Might be worth pointing out the storied history of bitcoin, as well. JEdwards8th Oct 2013 #56

Sounds like a scam to me. Skidmore Oct 2013 #27

I can try Rassah Oct 2013 #29

Who maintains this trustworthy, indestructible database. And who created it, and how do we know madinmaryland Oct 2013 #31

Everyone Rassah Oct 2013 #38

Nope. Still sounds like funny money to me. Skidmore Oct 2013 #32

Better try... Rassah Oct 2013 #39

Thank you for that explanation and this thread ...... oldhippie Oct 2013 #46

You're welcome! Rassah Oct 2013 #53

Oh, I like you. EOF JEdwards8th Oct 2013 #58

No computer, no money. And how do I use bitcoin to fill my gas tank or buy a donut? MADem Oct 2013 #59

You are right, it does depend on support Rassah Oct 2013 #63

I lived in Italy for seven or so years. Great place. MADem Oct 2013 #64

If bitcoins were just an alternative currency Rassah Oct 2013 #66

Like tulip mania....the tulips didn't hold their value, but they're still a cool flower... nt MADem Oct 2013 #67

It also depends on continued appreciation which seems pretty risky at this point Major Nikon Nov 2013 #84

Actually... Rassah Nov 2013 #91

Interesting that you express that value in dollars MattBaggins Nov 2013 #94

I am sorry, I have made an assumption... Rassah Nov 2013 #103

Except there's no equity in a bitcoin Major Nikon Nov 2013 #101

Bitcoin has value, an exchange rate, and will likely be treated as foreign currency Rassah Nov 2013 #104

It's not that one cant explain it clearly... TampaAnimusVortex Oct 2013 #33

this may be a stupid question grasswire Oct 2013 #37

Similar Rassah Oct 2013 #41

Is it true that there is a preset limit to the number of bitcoins that can be created? grantcart Oct 2013 #40

Yes, it's true Rassah Oct 2013 #43

What a great way to stifle growth MattBaggins Nov 2013 #95

You don't really want growth in money... Rassah Nov 2013 #105

Your explanation is overly complicated and lacking the broad overview...here I fixed it for you Drew Richards Oct 2013 #45

Saved me the trouble in finding the link. Ruby the Liberal Oct 2013 #52

there are a lot of different explanations... Rassah Oct 2013 #60

An interesting point. JEdwards8th Oct 2013 #61

This isn't about Haystack-style back door access and/or decryption? Ruby the Liberal Oct 2013 #54

Nah, the calculations are Rassah Oct 2013 #62

Thank you for this fascinating topic, and for your efforts in helping folks like me understand this 2banon Oct 2013 #68

Glad to explain Rassah Nov 2013 #72

thanks so much for clarifying... but one more question..:) 2banon Nov 2013 #73

It itself would grow in value Rassah Nov 2013 #74

omg.. should have gotten in when i first heard of bitcoin a few years ago 2banon Nov 2013 #75

If you really want to invest... Rassah Nov 2013 #76

that's good to know.. 2banon Nov 2013 #77

Easiest place I use is Rassah Nov 2013 #78

Bitcoin Primer for Dummies.. 2banon Nov 2013 #79

i don't know what kind of questions people might have Rassah Nov 2013 #80

That's important to know.. 2banon Nov 2013 #85

It's just a TOS thing, not a legal one Rassah Nov 2013 #87

thanks! 2banon Nov 2013 #92

Your best choice is to open a bitcoin wallet, create an anonymous account on websites MattBaggins Nov 2013 #96

I haven't received a PM from anyone yet.. 2banon Nov 2013 #98

No you would not have to MattBaggins Nov 2013 #99

I'll consider your perspective and suggestion. 2banon Nov 2013 #100

FYI... Rassah Nov 2013 #106

I have never heard of bitcoin before. LWolf Nov 2013 #69

Using correct terms,.. Rassah Nov 2013 #71

Are you worried at all about the possible advent of quantum computing? LAGC Nov 2013 #81

It's not a big problem, apparently Rassah Nov 2013 #88

Would it be correct to say that Bitcoin is the very definition of a Fiat Currency? solarhydrocan Nov 2013 #83

Fiat money lacks intrinsic value davidpdx Nov 2013 #86

I would say so... Rassah Nov 2013 #90

When other groups start the whole mining over again MattBaggins Nov 2013 #97

Other groups already have Rassah Nov 2013 #107

Let's kick this back up since Bitcoin is in the news... icymist Nov 2013 #111

He made a really stupid mistake Rassah Nov 2013 #112