basically, bitcoins are generated using computer processing power to "mine" them. The more bitcoins there are, the harder it is to mine and the more processing power it uses. It is cheaper to spend 20k buying a bitcoin than it is in the electricity comsumption (in most 1st world countries) and computer hardware in generating a bitcoin.
I have traded Bitcoin (BTC) between $10k and $15k but only small and in and out quickly - when it went over $15k I left alone. it has been as low as $5500 in last few days and back up to $8000 currently but decided to buy some lower valued coins to gain bigger exposure for the same money so bought Tron (TRX) in Bitcoin - look for TRX/BTC as want that to boom, got in at $0.03 now at $0.04 and want it to go to $1.00 mmmmm
I may well give it a go for trading purposes, but to me it’s fool’s gold - the new alchemy. Nothing to back it, it’s literally a virtual asset. Although I’m not sure asset is the right word.
it's the same FIAT currencies and credit. There isn't anything backing that either as far as i am aware. It's essentially i o u notes. Only commodities are real assets.
You can also have full faith and credit of a Gvt to back its currency. That obviously depends on credit rating etc, but this stuff....there’s nothing. Zilch, zero!..,
it's code on a ledger to say who owns what.... . Not that i'm a cryptocurrency advocate. The government doesn't actually have anything to back up that currency though right? I guess it's just the way the world works and the way i see crypto its pretty much the same if someone wants to adopt it. The only thing i find apprehensive about it is that this ledger is stored virtually and how hackable it is. That's not to say Banks can't be hacked but i guess theres more security on their side of things.
Be careful as to what platform you use to trade on and don’t ever and I mean ever transfer Bitcoin. Use a site like Coinbase to deposit money, then buy Litecoin or similar and transfer them to your trading platform - and I repeat don’t buy Bitcoin and transfer it to a trading platform as you will lose it. PM if you have any questions
Yes, exactly. That’s what I meant by full faith and credit. Obviously, the particular country’s credit rating comes into the equation, but if the day ever comes that the BoE reneges on its promise to honour the currency then the whole global system is ****ed, so it won’t matter.,
It's not easy to hack the ledger as it isn't stored in one place and transactions have to be verified to be added to the blockchain. Don't keep currency on any trading platform unless you plan to trade with it. Otherwise keep it in an offline wallet. Preferably a Trezor or USB wallet.
It's cheaper to trade in ethereum than bitcoin currently. And as you've said - be careful what trading platform you use and when possible move currency off of online wallets on trading platforms.
Yea not hacking the ledger was talking about hacked accounts or hacking the exchange. From how i understand it you are mining for another unique piece of code and then adding it to the pool of these unique codes and letting all the pcs in the network know this is the unique piece.
In particular : https://spectrum.ieee.org/computing/networks/how-blockchains-work In general : https://spectrum.ieee.org/static/special-report-blockchain-world
yup thats why there are all these alt coins. Some alt coins work differently but the reasoning is that there is a limited number and not 1 person can just go and make more of the specific cryptocurrency, so this currency is decentralised i don't know quite how it all works, but people are designing these alt coins and trying to write a use for it to use in transactions in conjunction with the crypto technology (like credit netting and stuff).
No currency system yet has totally evaded the fraudsters. I doubt this one will prove to be any different.
