Bitcoin P2P currency

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PostMon Jun 13, 2011 12:36 am » by Aragajag


I read about this last week and was amazed enough to put $100 into it one day and was that impressed I put $2,500 the next but I was in for a downward trend. I jumped into it after it got a fair bit of attention from the media over drugs from the net 2 u anomymously.

Well as eager as I was to get straight in I thought the market was going to keep going from the first days 30% rise but it fell hard from to many expecting to much to soon. Its been volatile but has bounced back much better than I thought. Then I stared to reading more on it about how there is no central servers its all distributed and there is only ever going to be 21,000,000 coins. These are made by mining with your PC which is really confirming all the transactions keeping everything secure, the more the merrier. You have a chance to pop 50 bitcoins for yourself. Anyways I think this will be something that will reap alot of rewards not far off getting in early on the new money frontier. Its gone up 4000% since its beginning and the coins deflate not inflate meaning get them now and watch the value grow because of limited supply. I am no financial adviser look well and hard into first. I do hope I can get my acreage for myself out of it.

http://forum.bitcoin.org/index.php?topic=7269.0



Introduction to BitCoin

Forget most things you've heard. People discover BitCoin in a variety of ways, but usually pick up some sort of misconception like "BitCoin gives free money to people with computers" or "in order to use BitCoin I have to use a program that wastes electricity for nothing" along the way. Here is a good summary to help you understand BitCoin in general, by focussing on what BitCoin is and what problem it solves. These two things are not typically well explained on most websites, and it is difficult to appreciate just how effective a technology BitCoin is until they are understood.

What BitCoin is: An agreement amongst a community of people to use 21 million secure mathematical tokens--"bitcoins"--as money, like traditional African and Asian societies used the money cowry. Unlike the money cowry:

there will never be more bitcoins
they are impossible to counterfeit
they can be divided into as small of pieces as you want
and they can be transferred instantly across great distances via a digital connection such as the internet.


This is accomplished by the use of powerful cryptography many times stronger than that used by banks. Instead of simply being "sent" coins have to be cryptographically signed over from one entity to another, essentially putting a lock and key on each token so that bitcoins can be securely backed up in multiple places, and so that copying doesn't increase the amount you own.

Because bitcoins are given their value by the community, they don't need to be accepted by anyone else or backed by any authority to succeed. They are like a local currency except much, much more effective and local to the whole world. As an example of how effective the community is at "backing" the bitcoin: on April 4th 2011 30,000 bitcoins were abruptly sold on the largest BitCoin exchange, consuming nearly all "buy" offers on the order book and dropping the price by nearly 1/3. But within a couple of days, the price on the exchange had fully rebounded and bitcoins were again trading at good volumes, with large "buy" offers slowly replacing the ones consumed by the trades. The ability of such a small economy (there were only 5 million out of the total 21 million bitcoins circulating then, or about 3.75 million USD worth at then-current exchange rates) to absorb such a large sell-off without crashing shows that bitcoins were already working beautifully.

What problem BitCoin solves: Mathematically, the specific implementation of the bitcoin protocol solves the problem of "how to do all of the above without trusting anyone". If that sounds amazing, it should! Normally a local currency has to trust all kinds of people for it to be able to work. So does a national currency. And in both cases, that trust is often abused. But with BitCoin, there's no one person who can abuse the system. Nobody can print more money, nobody can re-use the coins simply by making a copy, and nobody can use anyone else's coins without having direct access to their keys. People who break its mathematical "rules" simply end up creating a whole different system incompatible with the first. As long as these rules are followed by someone, the only way BitCoin can fail is for everyone to stop using it.

This marvelous quality of not having to trust anyone is achieved in two ways. First, through the use of cutting-edge cryptography. Cryptography ensures that only the owner of the bitcoins has the authority to spend them. The cryptography used in BitCoin is so strong that all the world's online banking would be compromised before BitCoin would be, and it can even be upgraded if that were to start to happen. It's like if each banknote in your pocket had a 100-digit combination lock on it that couldn't be removed without destroying the bill itself. BitCoin is that secure.

But the second way of securing the system, called the blockchain, is where the real magic happens. The blockchain is a single, authoritative record of confirmed transactions which is stored on the peer to peer bitcoin network. Even with top-notch digital encryption, if there was no central registry to show that certain bitcoins had already been "paid" to someone else, you could sign over the same coins to multiple people in what's called a double-spend attack, like writing cheques for more money than you have in your account. Normally this is prevented by a central authority, the bank, who keeps track of all the cheques you write and makes sure they don't exceed the amount of money you have. Even so, most people won't accept a cheque from you unless they really trust you, and the bank has to spend a lot of money physically protecting those central records, whether they are kept in a physical or digital form. Not to mention, sometimes a bank employee can abuse their position of trust. And, in traditional banking, the bank itself doesn't have to follow the rules you do--it can lend out more money than it actually has.

The blockchain fixes all these problems by creating a single master registry of the already-cryptographically-secured bitcoin transfers, verifying them and locking them down in a highly competitive market called mining. In return for this critical role, the BitCoin community rewards miners with a set amount of bitcoins per block, taken from the original limited quantity on a pre-agreed schedule. As that original amount gradually runs out, this reward will be replaced by fees paid to prioritise one transaction over another--again in a highly competitive market to ensure the lowest possible cost. The transactions are verified and locked in by the computational work of mining in a very special way so that no one else can change the official record of transactions without doing more computational work than the cumulative work of all miners across the whole network.

In conclusion: All this mathematical technology may be a bit of a mouthful, but what it means in practice is that BitCoin works just like cash. Bitcoin transactions are intentionally irreversible--unlike credit cards or PayPal where chargebacks can invalidate a payment that has already been made. And there are no middlemen. Transactions are completed directly between the sender and the receiver via the peer to peer network.

Because of BitCoin's intricate design, the network remains secure no matter where or how you process bitcoin transactions. Which is incredible--no one else has ever tried to create a system that worked this way! All previous monetary systems have relied on trusting somebody, whether it was the king, town hall, the federal reserve, or banks. BitCoin doesn't. It's guaranteed instead by the laws of mathematics, and that's why it has everyone from technologists to economists very excited. I'm sure you have lots more questions, so scan the index below to see if they've been asked before, then dive in! The so-called "canonical" threads linked from this index are considered newbie-friendly zones; outside of them you're welcome to try your own luck.
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PostMon Jun 13, 2011 12:54 am » by Ghost32


Sounds Interesting,

Here is a video about it from their homepage.

What Is BitCoin?


Upload to Disclose.tv




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PostMon Jun 13, 2011 2:05 am » by Hamal67


capitalist prick

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PostMon Jun 13, 2011 2:13 am » by Aragajag


hamal67 wrote:capitalist prick


Been poor for ages so I dont mind a bit of money to go towards my personal security and comfort at least it doesnt go through banks, govts etc its a straight trade between two parties. Shit yea I will have a few million in my pocket in two years max.
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PostMon Jun 13, 2011 2:29 am » by Newearthman


So are the drugs in the mail or what?
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PostMon Jun 13, 2011 2:32 am » by Aragajag


newearthman wrote:So are the drugs in the mail or what?


No I was so tempted to go some DMT but I ended up spending the last week reading everything I can about bitcoin and watching the market go for a wild ride.
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PostMon Jun 13, 2011 10:26 am » by Tjahzi


got me convinced :banana:
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PostThu Jul 21, 2011 3:25 am » by Aragajag


Bitcoin is gaining more attention and from mainstream as well. I have put some of the banks money via credit card into it gawd bless their little socks for the opportunity to use their fiat currency as its failing to buy Bitcoins to help my future along.
After getting into it right on the highest peak as a total noob, I have had plenty of time to check it out more and put more money in at a lower rate and making some dollars at a steady rate.

This is not meant to be financial advice, look into it for yourself as it maybe for you.

http://www.cnbc.com/id/43823614 for more of following article.

The dollar, euro and yen might be the primary language of currency traders today, but online, all the talk is about bitcoins.

The digital currency has been around for nearly two years now, but it burst onto the radar of the mainstream world in June, when Gawker published a story about an underground Website where you could trade the currency for illegal drugs. The chatter surrounding the story eventually faded, but a lot of people were left confused about bitcoins. What are they? How do they operate? And what, aside from illegal narcotics, can they be used for?

What is Bitcoin?

Dollar and Euro
Bitcoin is striving to be a global currency of sorts—one that's not backed by any government or institution. Bitcoins aren't cash, technically. They're an entirely virtual currency. Users exchange online credits for goods and services from select retailers, contractors and online trading houses.

Rather than going through a bank or financial institution, these credits—called tokens by users—are exchanged directly from person to person.

When a transaction occurs, the bitcoin is automatically sent from the buyer to the seller through an encrypted method that's designed to ensure bitcoins can’t be hacked or artificially created.

What’s the point of bitcoins?

Bitcoin's creators like to position the currency as an alternative to the dollar and Euro. They hope to revolutionize the world of finance just as the Web has proven to be a paradigm shift in the publishing world.

That's a lofty (and likely impossible) goal, but it wisely taps into people's frustration and anger with banks following the 2008 financial crisis. By moving the transaction process to a peer-to-peer level, banks are removed from the process, which also lowers fees for both users and businesses.

The process also lets people conduct transactions with virtual (but not complete) anonymity, perhaps the biggest key to its success so far. And as online transactions continue to grow and online data theft becomes a more common occurrence, bitcoin backers see an opening for the system.

How is Bitcoin different from Paypal?

Paypal and other online payment services are reliant on existing financial institutions to work. Your account is generally tied to a credit card or a checking/savings account—meaning that whenever you spend money, you're subject to the same restrictions and limitations you would have for using those. So, let's say you had tied your PayPal account to Visa[V 88.64 -0.57 (-0.64%) ] with a $2,000 credit limit. Before making an online purchase in excess of that amount, you'd have to arrange for a credit extension or make changes to the source PayPal was drawing from. Using bitcoins, users can spend as much as they want—as long as they have a sufficient number of coins to cover the charge.

At the same time, because there's no way for a bitcoin account to be frozen, users can transfer funds wherever they like. For example, last year PayPal (as well as Visa and MasterCard [MA 308.27 -3.12 (-1%) ]) blocked users from donating funds to WikiLeaks. Bitcoin donations, however, went through without a hiccup.
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PostThu Jul 21, 2011 3:34 am » by Zer0


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PostThu Jul 21, 2011 3:42 am » by Aragajag


otoel wrote:
Disclose.tv is a privately owned web site and as such we reserve the right to remove any post that we deem to be inappropriate, offensive or intentionally disruptive, or to take any action necessary against any member whose behaviour we deem to be inappropriate, offensive or intentionally disruptive. Action taken is done on a case by case basis and is dependant on the nature and severity of the violations, but can include anything up to the banning of the account and IP address without prior warning or notice.

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Spam includes any of the following:

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Its not a product if you took the time to look. What didnt you get about decentralised P2P, no centralised company to promote actually no company at all. Staff member here so I consulted myself on the benefits for others by disclosing further info for people to pursue for themselves to do what ever they wanted.
Again a useless uniformed post by yourself to raise the drama levels on the site.
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