Bitcoins are DUMB.
So after reading about Bitcoins for an hour I still don’t friggen get it.
Here’s what I learned.
What are Bitcoins?
Bitcoins are an imaginary currency dreamed up online to replace existing currencies of the world. They want it to be a one world currency eliminating the foreign exchange rate.
By 2033 all 21 million will be released, no more. This is a supposed end to the release of the currency. They say this now but if Bitcoins are successful how could there not be more?
How do I get Bitcoins?
The only way to get them is to “mine” them from thin air with $5,000+ mining rigs. Which are just really expensive GPU’s and Graphics Cards.
They kind of brute force hashes and strings to match up and IF you’re lucky you get a new “block” of BTC. So like 25 Bitcoins. It is best to mine as part of a group effort so that when and if the group gets a block you get a small percentage.
This is all sooooo stupid and makes no sense to me.
So they are backless imaginary thin air digital mine elements.
Someone explains, they are not backless, think of the millions of dollars in BTC Mining Rigs that went into getting them out of thin air. I call that stupidity not a fiat currency.
You think that’s stupid? Once you actually have them, whether you bought them, mined them from thin air or sucked some D. You MUST keep them in a actual wallet on your computer.
This is the only place they can store. I can take them from you if I hack you. If your house burns down they are gone. If your shitty old Western Digital HD crashes, money gone. They recommend backing them up to places like DropBox which I’m sure is getting hacked for BTC’s.
So, very unsecured. A guy claims he accidentally threw away his 2 HD’s with millions of dollars on them. That easy to lose it all.
Let’s pretend you don’t lose them. You can only spend them with a few other people who accept it, there is no way to insure your purchases. I could rip you off and laugh. You’re only option is to kill me and take my hard drive.
The biggest exchanges have been shutting down and even have had criminal activity and theft from the inside of the company.
Good luck fools.