Is there an issue? Send a MessageReason:
None
Changed line(s) 2,30 (click to see context) from:
Imagine a currency that is not under control of a government or centralized financial institution. That is, [[GlobalCurrency anyone can mint new money, handle transactions, and remain fairly anonymous]] to the extent that only a single unique thing, a seemingly random string of numbers and letters, is known about a person. This is the idea of Bitcoins: [[TechnoBabble a cryptocurrency based around cryptographic hashes, using a peer-to-peer network to maintain balances, while shared processing power extends the block chain.]][[note]]This is [[http://www.reallifecomics.com/comic.php?comic=october-7-2013 a quote]] from ''Webcomic/RealLifeComics''.[[/note]]
Okay, that's a pretty terrible way to describe it.
The way the system works is like so:
* Transactions are messages that are broadcast into the Bitcoin network. The network is a peer-to-peer system, making it decentralized. Transactions only specify a Bitcoin address and transfer of ownership of bitcoins is via these addresses. Transactions are attached with signature values known as a hash.
* Every ten minutes a bundle of transactions, called a ''block'', is verified through a process called ''mining''.
* Mining is a process that involves trying to figure out what nonce the transaction used. A block is considered mined when a miner finds a nonce that, when hashed together with the block's signature hash, produces a result lower than ''target difficulty''. Once a nonce that meets the target difficulty is found, it's added as a ''proof of work''. This type of verification makes it extremely easy for the network to verify, but extremely hard to generate an arbitrary value to claim a block as mined.
* Once a block is verified, it's grouped into ''block chains'', which are added to a public transaction database. This data based is shared across the Bitcoin network.
* For every block verified, the miner gets 6.25 bitcoins[[note]]as of May 12, 2020; the rate is halved about every four years, and is scheduled to drop to 3.125 sometime around May 2024[[/note]] as a reward. This is also how new coins are added into circulation.
The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. The symbol for the bitcoin is ₿
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. Every so often, the target difficulty is adjusted so that the process of mining keeps the 10 minute target time.
In any case, Bitcoin is something of a hot topic. Some businesses have accepted it as a valid form of payment. Governments around the world, though, are mixed since it has legitimate and illegitimate uses. Read up on [[https://en.wikipedia.org/wiki/Legal_status_of_Bitcoin the legal status of Bitcoin]] as well as [[https://bitcoin.org/en/you-need-to-know Bitcoin's need-to-know FAQ]] before thinking about getting into the wonders of cryptocurrency.
Just so you don't go out rushing to get mining equipment, note the following:
* Bitcoins are [[http://coinmarketcap.com/btc_30.html highly volatile]]. One minute they may be worth something like ₿1 = $1; the next, ₿1 = $0.01. That is, don't expect this to be another source of stable income.
** As with all currency conversion exchanges the relative value of two currencies is based on what people are willing to pay for it. However unlike national currencies where the bulk of the trading is done by banks and other financial institutions most Bitcoin trading is done by individuals or small organizations so the lower volume leads to more volatility.
* Bitcoins can be lost, often with no way of tracking their existence or proof of ownership, with no recourse such as pressing charges with police or filing a lawsuit. Nor are bitcoin exchanges guaranteed or capable of error correction as, say, banks or stock exchanges are if your monetary loss is the fault of the exchange itself due to hacking or even internal criminal activity. A good example of this is the losses in the Mt. Gox exchange bankruptcy – the bitcoins are either in the pockets of hackers or simply wiped out, and anyone who was still using Mt. Gox is most likely SOL.
* Bitcoins are not legal tender; you can't pay taxes with them directly. [[https://www.marketwatch.com/story/believe-it-or-not-some-americans-already-pay-their-bitcoin-in-taxes-2019-01-07 Well, not in every state.]]
* Bitcoins, depending on your country's tax laws, are taxable income since they can carry legitimate value (they can be exchanged for goods and services, in the same way regular money can).
** Some governments may instead treat Bitcoin and other virtual currency as property. This comes with all of the rights and limitations that the government's property laws afford. That is of course, if you can prove you own them.
* Bitcoin mining is such a developed hobby that to make a decent amount off mining takes a lot of real-world money. Among other complications, US$500 graphics cards and even costlier ASIC boards will need to mine coins for years before recouping the investment at the current rate of things. Without specialist processors, miners are very likely to pay more in electricity costs than they will gain in bitcoin.
** For that matter, a lot of large bitcoin mining operations search out cheap power, to the point that [[https://www.theverge.com/2018/3/16/17128678/plattsburgh-new-york-ban-cryptocurrency-mining Plattsburgh, New York put a temporary ban on new operations]] due to the fact that it has ultra-cheap hydroelectric power *up to a fixed amount* and the resulting overages - with the local utility having to buy ''that'' power on the spot market - had a devastating impact on the community (like many places with cheap hydro, electric baseboard heat is common).
** The currency itself has a cap of 21 million bitcoins and as of the most recent halving event in May 2020, 18.37 million (87.5% of total supply) have been mined. Every four years the rate of creation is halved.[[note]]When Bitcoin started in 2009, the mining reward was 50 bitcoins per verified block. This is halved for every 210,000 blocks verified, which is about every four years as each block takes ten minutes to be verified. The last bitcoin (actually ₿0.00000001, the smallest unit possible, called a ''satoshi'' after the creator) is projected to be mined around 2140.[[/note]]
Bitcoin has so far led to another cryptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed every 2.5 minutes; it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=] that accelerate the work, and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]]. And yes, [[https://en.wikipedia.org/wiki/Dogecoin it's a legitimate cryptocurrency]]. Bitcoin has also seen its fair share of derivatives, and many other types of cryptocurrencies hoping to be the spiritual successor to bitcoin are also starting to flood the market. Will any of them succeed? It's too soon to tell.
Okay, that's a pretty terrible way to describe it.
The way the system works is like so:
* Transactions are messages that are broadcast into the Bitcoin network. The network is a peer-to-peer system, making it decentralized. Transactions only specify a Bitcoin address and transfer of ownership of bitcoins is via these addresses. Transactions are attached with signature values known as a hash.
* Every ten minutes a bundle of transactions, called a ''block'', is verified through a process called ''mining''.
* Mining is a process that involves trying to figure out what nonce the transaction used. A block is considered mined when a miner finds a nonce that, when hashed together with the block's signature hash, produces a result lower than ''target difficulty''. Once a nonce that meets the target difficulty is found, it's added as a ''proof of work''. This type of verification makes it extremely easy for the network to verify, but extremely hard to generate an arbitrary value to claim a block as mined.
* Once a block is verified, it's grouped into ''block chains'', which are added to a public transaction database. This data based is shared across the Bitcoin network.
* For every block verified, the miner gets 6.25 bitcoins[[note]]as of May 12, 2020; the rate is halved about every four years, and is scheduled to drop to 3.125 sometime around May 2024[[/note]] as a reward. This is also how new coins are added into circulation.
The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. The symbol for the bitcoin is ₿
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. Every so often, the target difficulty is adjusted so that the process of mining keeps the 10 minute target time.
In any case, Bitcoin is something of a hot topic. Some businesses have accepted it as a valid form of payment. Governments around the world, though, are mixed since it has legitimate and illegitimate uses. Read up on [[https://en.wikipedia.org/wiki/Legal_status_of_Bitcoin the legal status of Bitcoin]] as well as [[https://bitcoin.org/en/you-need-to-know Bitcoin's need-to-know FAQ]] before thinking about getting into the wonders of cryptocurrency.
Just so you don't go out rushing to get mining equipment, note the following:
* Bitcoins are [[http://coinmarketcap.com/btc_30.html highly volatile]]. One minute they may be worth something like ₿1 = $1; the next, ₿1 = $0.01. That is, don't expect this to be another source of stable income.
** As with all currency conversion exchanges the relative value of two currencies is based on what people are willing to pay for it. However unlike national currencies where the bulk of the trading is done by banks and other financial institutions most Bitcoin trading is done by individuals or small organizations so the lower volume leads to more volatility.
* Bitcoins can be lost, often with no way of tracking their existence or proof of ownership, with no recourse such as pressing charges with police or filing a lawsuit. Nor are bitcoin exchanges guaranteed or capable of error correction as, say, banks or stock exchanges are if your monetary loss is the fault of the exchange itself due to hacking or even internal criminal activity. A good example of this is the losses in the Mt. Gox exchange bankruptcy – the bitcoins are either in the pockets of hackers or simply wiped out, and anyone who was still using Mt. Gox is most likely SOL.
* Bitcoins are not legal tender; you can't pay taxes with them directly. [[https://www.marketwatch.com/story/believe-it-or-not-some-americans-already-pay-their-bitcoin-in-taxes-2019-01-07 Well, not in every state.]]
* Bitcoins, depending on your country's tax laws, are taxable income since they can carry legitimate value (they can be exchanged for goods and services, in the same way regular money can).
** Some governments may instead treat Bitcoin and other virtual currency as property. This comes with all of the rights and limitations that the government's property laws afford. That is of course, if you can prove you own them.
* Bitcoin mining is such a developed hobby that to make a decent amount off mining takes a lot of real-world money. Among other complications, US$500 graphics cards and even costlier ASIC boards will need to mine coins for years before recouping the investment at the current rate of things. Without specialist processors, miners are very likely to pay more in electricity costs than they will gain in bitcoin.
** For that matter, a lot of large bitcoin mining operations search out cheap power, to the point that [[https://www.theverge.com/2018/3/16/17128678/plattsburgh-new-york-ban-cryptocurrency-mining Plattsburgh, New York put a temporary ban on new operations]] due to the fact that it has ultra-cheap hydroelectric power *up to a fixed amount* and the resulting overages - with the local utility having to buy ''that'' power on the spot market - had a devastating impact on the community (like many places with cheap hydro, electric baseboard heat is common).
** The currency itself has a cap of 21 million bitcoins and as of the most recent halving event in May 2020, 18.37 million (87.5% of total supply) have been mined. Every four years the rate of creation is halved.[[note]]When Bitcoin started in 2009, the mining reward was 50 bitcoins per verified block. This is halved for every 210,000 blocks verified, which is about every four years as each block takes ten minutes to be verified. The last bitcoin (actually ₿0.00000001, the smallest unit possible, called a ''satoshi'' after the creator) is projected to be mined around 2140.[[/note]]
Bitcoin has so far led to another cryptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed every 2.5 minutes; it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=] that accelerate the work, and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]]. And yes, [[https://en.wikipedia.org/wiki/Dogecoin it's a legitimate cryptocurrency]]. Bitcoin has also seen its fair share of derivatives, and many other types of cryptocurrencies hoping to be the spiritual successor to bitcoin are also starting to flood the market. Will any of them succeed? It's too soon to tell.
to:
->''A cryptocurrency [[TechnoBabble
-->-- '''''Webcomic/RealLifeComics''''' [[http://www.reallifecomics.com/comic.php?comic=october-7-2013
Okay,
Bitcoin is the world's most popular cryptocurrency. It doesn't exist in coins or banknotes -- it's digital money.
Well, that's
* Transactions
It's got its own symbol: ₿. And the plural of Bitcoin is "Bitcoin", and it's always capitalised. This is how [[FandomEnragingMisconception to avoid pissing off its fans]].
And its fans are
----
In truly understanding Bitcoin, it's important to separate the technological aspects of it from the economic aspects. There are more or less two totally different ways of thinking about it -- as a thought experiment in using cryptography to make currency, and as a currency outside the control of any central bank. So, let's address the technological aspects first:
* There's no "physical" Bitcoin. A transaction in Bitcoin is a message that is broadcast into the Bitcoin
* Bitcoin
* All Bitcoin transactions are compiled into a
*
* Mining is
* Once a block is verified, it's grouped into ''block chains'', which are added to a public
* When a Bitcoin user shows "proof of work", they get Bitcoin as a reward for allowing the Bitcoin
*
The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. The symbol for the bitcoin is ₿
* Once
This
In any case,
* The decentralised nature of Bitcoin means there is
* It can serve as a
* It's completely anonymous. While every transaction is a public record, the participants are only identified by their wallets, which are in turn identifiable only as a random string of characters.
* It's ''stupid'' valuable. By early 2021, the exchange rate hit ₿30,000 per U.S. dollar.
* It's full of TechnoBabble and makes people feel like they're on the cutting edge.
The people behind Bitcoin are ''probably'' a little in Column A, a little in Column B. It's not that easy to determine, though, because we don't actually know who created it. Nominally, the original Bitcoin whitepaper is credited to a character known as "Satoshi Nakamoto", but it's strongly believed that this is a pseudonym, and could possibly refer to [[HousePseudonym multiple researchers]].
However, actually ''implementing'' Bitcoin as a currency has not been very smooth. There are
* Governments don't like it. Because of the total anonymity, Bitcoin is highly popular for off-the-books or totally illegal transactions. It can also be used to circumvent currency controls. Bitcoin users run a real risk of governments intervening to shut the project down. And because there's no ''physical'' asset to take away from the users, there isn't any real protection from this. In most countries, Bitcoin is tolerated and
Just so you
* People don't
* Bitcoins are [[http://coinmarketcap.com/btc_30.html highly volatile]]. One minute they may be worth something like ₿1 = $1; the next, ₿1 = $0.01. That is, don't expect this to be another source of stable income.
** As with all currency conversion exchanges the relative value of two currencies is based on what people are willing to pay for
* Bitcoins can be lost, often with no way of tracking their existence or proof of ownership, with no recourse such
* Bitcoins are not legal tender; you can't pay taxes with
*
** Some governments may instead treat Bitcoin
* Bitcoin is [[http://coinmarketcap.com/btc_30.html highly volatile]] -- one minute, it may be worth a dollar, and the next, it may be worth a cent. "Real" currencies with government backing benefit from government intervention -- they can manipulate the money supply to keep the rate stable, and also block nefarious transactions attempting to manipulate the currency from outside. No such luck with Bitcoin. Even regular trading exacerbates Bitcoin's volatility; like any currency, the price is set by what people are willing to pay for it on the open market, and while most transactions in dollars are done by banks and other financial institutions, most Bitcoin trading is done by individuals or small organisations. That's a big reason why prices are still quoted in "real" currency.
* Bitcoin is not ''really'' anonymous. Sure, you're only known by your wallet address, which is a random string of characters that can't be traced to you. At least not by ''itself'' -- hacking also relies a lot on SocialEngineering, so it's still possible to connect you to your wallet address by tricking you into revealing it. And once that happens, ''every'' transaction in Bitcoin you've ever made from that wallet is now definitively traced to you.
* Bitcoin can be lost forever. If you lose the password to your wallet file, there's no way to get the Bitcoin inside. ''Billions'' of dollars' worth of Bitcoin have already been lost because of forgotten or lost passwords. In a few cases, Bitcoin were lost because the owner died or disappeared and never told anyone the password to their wallet file. This is exactly what happened to "Satoshi Nakamoto" -- he's believed to control over 5% of all Bitcoins that will ever be mined, but he hasn't been heard from since 2010.[[note]]And since we know which wallet belongs to Satoshi, it would be trivially easy for someone else to prove that they're him -- just move a Bitcoin to someone else.[[/note]] It also adds to Bitcoin's volatility -- if a large amount of Bitcoin once thought lost suddenly reappears, that will have a big inflationary effect on it.
* Without any centralised authority, Bitcoin users have no recourse in case of fraud or malfeasance. There's no proof of ownership that the police or government will accept. There's no physical underlying asset. There are no chargebacks or complaint forms. Bitcoin exchanges are not guaranteed or capable of error correction; banks and stock exchanges can roll back an erroneous or fraudulent transaction, but not Bitcoin.
* A venture this big without a centralised authority will naturally ''develop'' a centralised authority. This creates a problem of trust -- if any group of people forms a cartel representing more than 50% of the mining power in the entire blockchain, they can "outvote" the rest of the world and suddenly take over the verification process unilaterally -- and not necessarily correctly. In other cases, groups form out of convenience to facilitate Bitcoin transactions, but these entities are unregulated and unprepared. For several years, the biggest Bitcoin exchange was a website called Mt. Gox, which was formerly a ''TabletopGame/MagicTheGathering'' online card exchange -- they were in over their heads and went bankrupt, and all the Bitcoin stored on the exchange was either wiped out or stolen by hackers.
* Bitcoin attracts... the wrong kind of people. Obviously, there are people who use its anonymity to trade in illegal things on the Internet -- drugs, sex, malware. But there are also very credulous people who are drawn to Bitcoin, with a shaky understanding of economics and a "fear of missing out", and many of these people are particularly susceptible to financial fraud like {{Ponzi}} schemes. Bitcoin has been accused of being a "pump-and-dump" -- it has no value in itself, but the early investors hype it up to later investors and then sell at the height of the bubble, while the later investors can't replicate the process themselves. It certainly doesn't help that, as stated, there's no recourse for fraud victims. Nor does it help that it's ''explicitly'' easier to mine Bitcoin for early investors than it is for later ones.
* Bitcoin doesn't scale well. The blockchain is a record of ''every'' Bitcoin transaction ever made. That makes it a ''very'' big file, which is difficult to store and grow even with all the decentralised computers working on it. A member of the public looking to verify the blockchain may have to wait several hours for a result, and that number will just get bigger over time.
* Bitcoin is inherently deflationary. Because "proof of work" gets more difficult over time, Bitcoin is designed with a cap -- only 21 million Bitcoin will ever exist. Every four years, the amount of Bitcoin you get for mining is
* Bitcoin is an investment. If you want to make a decent amount
* Bitcoin is an environmental disaster. Miners are
** For that matter, a lot
** The currency itself has a cap of 21 million bitcoins and as of the most recent halving event in May 2020, 18.37 million (87.5% of total supply) have been mined. Every four years the rate of creation is halved.[[note]]When Bitcoin started in 2009, the mining reward was 50 bitcoins per verified block. This is halved for every 210,000 blocks verified, which is about every four years as each block takes ten minutes to be verified. The last bitcoin (actually ₿0.00000001, the smallest unit possible, called a ''satoshi'' after the creator) is projected to be mined around 2140.
Bitcoin's success has led to [[FollowTheLeader a number of imitators]]. While Bitcoin
* [[https://en.wikipedia.org/wiki/Litecoin
* [[https://en.wikipedia.org/wiki/Ethereum Ethereum]] is the second most popular cryptocurrency after Bitcoin. It works a lot like Bitcoin, but it has a bunch of interesting new features, including "smart contracts" -- think of these as separate wallet files where the funds are explicitly tied to a contractual obligation, and the transfer happens automatically if the obligation is met. It's a big platform for "initial coin offerings" -- ''i.e.'' you can [[StartMyOwn start your own cryptocurrency]] and offer it to people on the Ethereum platform. It's also one of the main platforms to get into the "non-fungible token" or NFT craze. It's got no supply cap, and transactions are verified every 12 ''seconds''. Unfortunately, Ethereum is ''very'' susceptible to "the wrong kind of people" manipulating the contracts, to the point that a single contract led to hackers stealing $50 ''million'' worth of Ether in one go.
* [[https://en.wikipedia.org/wiki/Dogecoin
Is there an issue? Send a MessageReason:
The symbol is actually ₿
Changed line(s) 13,14 (click to see context) from:
The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. The symbol for the bitcoin is ฿
to:
The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. The symbol for the bitcoin is ฿
₿
Changed line(s) 20 (click to see context) from:
* Bitcoins are [[http://coinmarketcap.com/btc_30.html highly volatile]]. One minute they may be worth something like ฿1 = $1; the next, ฿1 = $0.01. That is, don't expect this to be another source of stable income.
to:
* Bitcoins are [[http://coinmarketcap.com/btc_30.html highly volatile]]. One minute they may be worth something like ฿1 ₿1 = $1; the next, ฿1 ₿1 = $0.01. That is, don't expect this to be another source of stable income.
Changed line(s) 28,29 (click to see context) from:
** The currency itself has a cap of 21 million bitcoins and as of the most recent halving event in May 2020, 18.37 million (87.5% of total supply) have been mined. Every four years the rate of creation is halved.[[note]]When Bitcoin started in 2009, the mining reward was 50 bitcoins per verified block. This is halved for every 210,000 blocks verified, which is about every four years as each block takes ten minutes to be verified. The last bitcoin (actually ฿0.00000001, the smallest unit possible, called a ''satoshi'' after the creator) is projected to be mined around 2140.[[/note]]
to:
** The currency itself has a cap of 21 million bitcoins and as of the most recent halving event in May 2020, 18.37 million (87.5% of total supply) have been mined. Every four years the rate of creation is halved.[[note]]When Bitcoin started in 2009, the mining reward was 50 bitcoins per verified block. This is halved for every 210,000 blocks verified, which is about every four years as each block takes ten minutes to be verified. The last bitcoin (actually ฿0.₿0.00000001, the smallest unit possible, called a ''satoshi'' after the creator) is projected to be mined around 2140.[[/note]]
Is there an issue? Send a MessageReason:
Editing the way the system works now that I had a chance to look at it again.
Changed line(s) 7 (click to see context) from:
* Transactions are encrypted messages that are broadcast into the Bitcoin network. The network is a peer-to-peer system, similar to Bittorrent. Transactions only specify a Bitcoin address and transfer of ownership of bitcoins is via these addresses.
to:
* Transactions are encrypted messages that are broadcast into the Bitcoin network. The network is a peer-to-peer system, similar to Bittorrent.making it decentralized. Transactions only specify a Bitcoin address and transfer of ownership of bitcoins is via these addresses. Transactions are attached with signature values known as a hash.
Changed line(s) 9 (click to see context) from:
* Mining is a process that involves trying to figure out the encryption key used on the transaction using brute force. A block is considered mined when the key contains a signature that the system is looking for called the ''target difficulty''. For example, the target difficulty could be the last 20 bits of the key has to be 0. On average over time, a computer would have to generate at least 2^20, or about a million, keys. Once a key that meets the target difficulty is found, it's added as a ''proof of work''.
to:
* Mining is a process that involves trying to figure out the encryption key used on what nonce the transaction using brute force. used. A block is considered mined when a miner finds a nonce that, when hashed together with the key contains a block's signature that the system is looking for called the hash, produces a result lower than ''target difficulty''. For example, the target difficulty could be the last 20 bits of the key has to be 0. On average over time, a computer would have to generate at least 2^20, or about a million, keys. Once a key nonce that meets the target difficulty is found, it's added as a ''proof of work''.work''. This type of verification makes it extremely easy for the network to verify, but extremely hard to generate an arbitrary value to claim a block as mined.
Is there an issue? Send a MessageReason:
The latest halving took place today.
Changed line(s) 11,12 (click to see context) from:
* For every block verified, the miner gets 12.5 bitcoins[[note]]as of July 2016; the rate is halved about every four years, and is scheduled to drop to 6.25 sometime in May 2020[[/note]] as a reward. This is also how new coins are added into circulation.
to:
* For every block verified, the miner gets 12.5 6.25 bitcoins[[note]]as of July 2016; May 12, 2020; the rate is halved about every four years, and is scheduled to drop to 6.25 3.125 sometime in around May 2020[[/note]] 2024[[/note]] as a reward. This is also how new coins are added into circulation.
Changed line(s) 28,29 (click to see context) from:
** The currency itself has a cap of 21 million bitcoins and as of April 2020, 18.33 million (87% of total supply) have been mined. Every four years the rate of creation is halved.[[note]]When Bitcoin started in 2009, the mining reward was 50 bitcoins per verified block. This is halved for every 210,000 blocks verified, which is about every four years as each block takes ten minutes to be verified. The last bitcoin (actually ฿0.00000001, the smallest unit possible, called a ''satoshi'' after the creator) is projected to be mined around 2140.[[/note]]
to:
** The currency itself has a cap of 21 million bitcoins and as of April the most recent halving event in May 2020, 18.33 37 million (87% (87.5% of total supply) have been mined. Every four years the rate of creation is halved.[[note]]When Bitcoin started in 2009, the mining reward was 50 bitcoins per verified block. This is halved for every 210,000 blocks verified, which is about every four years as each block takes ten minutes to be verified. The last bitcoin (actually ฿0.00000001, the smallest unit possible, called a ''satoshi'' after the creator) is projected to be mined around 2140.[[/note]]
Is there an issue? Send a MessageReason:
Updated mining numbers.
Changed line(s) 11,12 (click to see context) from:
* For every block verified, the miner gets 12.5 bitcoins[[note]]as of July 2016; the rate is halved about every four years[[/note]] as a reward. This is also how new coins are added into circulation.
to:
* For every block verified, the miner gets 12.5 bitcoins[[note]]as of July 2016; the rate is halved about every four years[[/note]] years, and is scheduled to drop to 6.25 sometime in May 2020[[/note]] as a reward. This is also how new coins are added into circulation.
Changed line(s) 28,29 (click to see context) from:
** The currency itself has a cap of 21 million bitcoins and as of July 2016, 15.75 million (75% of total supply) have been mined. Every four years the rate of creation is halved.[[note]]When Bitcoin started in 2009, the mining reward was 50 bitcoins per verified block. This is halved for every 210,000 blocks verified, which is about every four years as each block takes ten minutes to be verified. The last bitcoin (actually ฿0.00000001, the smallest unit possible, called a ''satoshi'' after the creator) is projected to be mined around 2140.[[/note]]
to:
** The currency itself has a cap of 21 million bitcoins and as of July 2016, 15.75 April 2020, 18.33 million (75% (87% of total supply) have been mined. Every four years the rate of creation is halved.[[note]]When Bitcoin started in 2009, the mining reward was 50 bitcoins per verified block. This is halved for every 210,000 blocks verified, which is about every four years as each block takes ten minutes to be verified. The last bitcoin (actually ฿0.00000001, the smallest unit possible, called a ''satoshi'' after the creator) is projected to be mined around 2140.[[/note]]
Is there an issue? Send a MessageReason:
None
Changed line(s) 27 (click to see context) from:
** For that matter, a lot of large bitcoin mining operations search out cheap power, to the point that [Plattsburgh, New York put a temporary ban on new operations](https://www.theverge.com/2018/3/16/17128678/plattsburgh-new-york-ban-cryptocurrency-mining) due to the fact that it has ultra-cheap hydroelectric power *up to a fixed amount* and the resulting overages - with the local utility having to buy ''that'' power on the spot market - had a devastating impact on the community (like many places with cheap hydro, electric baseboard heat is common).
to:
** For that matter, a lot of large bitcoin mining operations search out cheap power, to the point that [Plattsburgh, New York put a temporary ban on new operations](https://www.[[https://www.theverge.com/2018/3/16/17128678/plattsburgh-new-york-ban-cryptocurrency-mining) com/2018/3/16/17128678/plattsburgh-new-york-ban-cryptocurrency-mining Plattsburgh, New York put a temporary ban on new operations]] due to the fact that it has ultra-cheap hydroelectric power *up to a fixed amount* and the resulting overages - with the local utility having to buy ''that'' power on the spot market - had a devastating impact on the community (like many places with cheap hydro, electric baseboard heat is common).
Is there an issue? Send a MessageReason:
None
Added DiffLines:
** For that matter, a lot of large bitcoin mining operations search out cheap power, to the point that [Plattsburgh, New York put a temporary ban on new operations](https://www.theverge.com/2018/3/16/17128678/plattsburgh-new-york-ban-cryptocurrency-mining) due to the fact that it has ultra-cheap hydroelectric power *up to a fixed amount* and the resulting overages - with the local utility having to buy ''that'' power on the spot market - had a devastating impact on the community (like many places with cheap hydro, electric baseboard heat is common).
Is there an issue? Send a MessageReason:
None
Changed line(s) 2,3 (click to see context) from:
Imagine a currency that is not under control of a government or centralized financial institution. That is, anyone can mint new money, handle transactions, and remain fairly anonymous to the extent that only a single unique thing, a seemingly random string of numbers and letters, is known about a person. This is the idea of Bitcoins: [[TechnoBabble a cryptocurrency based around cryptographic hashes, using a peer-to-peer network to maintain balances, while shared processing power extends the block chain.]][[note]]This is [[http://www.reallifecomics.com/comic.php?comic=october-7-2013 a quote]] from ''Webcomic/RealLifeComics''.[[/note]]
to:
Imagine a currency that is not under control of a government or centralized financial institution. That is, [[GlobalCurrency anyone can mint new money, handle transactions, and remain fairly anonymous anonymous]] to the extent that only a single unique thing, a seemingly random string of numbers and letters, is known about a person. This is the idea of Bitcoins: [[TechnoBabble a cryptocurrency based around cryptographic hashes, using a peer-to-peer network to maintain balances, while shared processing power extends the block chain.]][[note]]This is [[http://www.reallifecomics.com/comic.php?comic=october-7-2013 a quote]] from ''Webcomic/RealLifeComics''.[[/note]]
Is there an issue? Send a MessageReason:
In Ohio, you can pay some taxes with bitcoin. Added to description.
Changed line(s) 23 (click to see context) from:
* Bitcoins are not legal tender; you can't pay taxes with them directly.
to:
* Bitcoins are not legal tender; you can't pay taxes with them directly. [[https://www.marketwatch.com/story/believe-it-or-not-some-americans-already-pay-their-bitcoin-in-taxes-2019-01-07 Well, not in every state.]]
Is there an issue? Send a MessageReason:
None
Added DiffLines:
** As with all currency conversion exchanges the relative value of two currencies is based on what people are willing to pay for it. However unlike national currencies where the bulk of the trading is done by banks and other financial institutions most Bitcoin trading is done by individuals or small organizations so the lower volume leads to more volatility.
Is there an issue? Send a MessageReason:
Some cleanup. Also Bitcoin is no longer illegal in Thailand so removed that bit.
Changed line(s) 9,10 (click to see context) from:
* Mining is a process that involves trying to figure out the encryption key used on the transaction using brute force. A block is considered mined when the key contains a signature that the system is looking for called the ''target difficulty''. For example, the target difficulty could be the last 20 bits of the key has to be 0. On average over time, a computer would have to generate at least 2^20, or about a million, keys.
* Once a block is verified, it's grouped into ''block chains'', which are added to a public transaction database.
* Once a block is verified, it's grouped into ''block chains'', which are added to a public transaction database.
to:
* Mining is a process that involves trying to figure out the encryption key used on the transaction using brute force. A block is considered mined when the key contains a signature that the system is looking for called the ''target difficulty''. For example, the target difficulty could be the last 20 bits of the key has to be 0. On average over time, a computer would have to generate at least 2^20, or about a million, keys.
keys. Once a key that meets the target difficulty is found, it's added as a ''proof of work''.
* Once a block is verified, it's grouped into ''block chains'', which are added to a public transaction database. This data based is shared across the Bitcoin network.
* Once a block is verified, it's grouped into ''block chains'', which are added to a public transaction database. This data based is shared across the Bitcoin network.
Changed line(s) 13,16 (click to see context) from:
The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. The symbol for the bitcoin is ฿, which happens to be the same symbol that represents the baht, Thailand's currency, and is partly why Bitcoin is illegal there.
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. Every so often, the target difficulty is adjusted so that verified blocks keep the 10 minute target time.
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. Every so often, the target difficulty is adjusted so that verified blocks keep the 10 minute target time.
to:
The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. The symbol for the bitcoin is ฿, which happens to be the same symbol that represents the baht, Thailand's currency, and is partly why Bitcoin is illegal there.
฿
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. Every so often, the target difficulty is adjusted so thatverified blocks keep the process of mining keeps the 10 minute target time.
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. Every so often, the target difficulty is adjusted so that
Added DiffLines:
** Some governments may instead treat Bitcoin and other virtual currency as property. This comes with all of the rights and limitations that the government's property laws afford. That is of course, if you can prove you own them.
Is there an issue? Send a MessageReason:
update to July 2016
Changed line(s) 25,26 (click to see context) from:
** The currency itself has a cap of 21 million bitcoins and as of December 2013, 12 million have been mined. Every four years the rate of creation is halved.[[note]]When Bitcoin started in 2009, the mining reward was 50 bitcoins per verified block. This is halved for every 210,000 blocks verified, which is about every four years as each block takes ten minutes to be verified. The last bitcoin (actually ฿0.00000001, the smallest unit possible, also called a ''satoshi'' after the anonymous creator) is projected to be mined around 2140.[[/note]]
to:
** The currency itself has a cap of 21 million bitcoins and as of December 2013, 12 July 2016, 15.75 million (75% of total supply) have been mined. Every four years the rate of creation is halved.[[note]]When Bitcoin started in 2009, the mining reward was 50 bitcoins per verified block. This is halved for every 210,000 blocks verified, which is about every four years as each block takes ten minutes to be verified. The last bitcoin (actually ฿0.00000001, the smallest unit possible, also called a ''satoshi'' after the anonymous creator) is projected to be mined around 2140.[[/note]]
Is there an issue? Send a MessageReason:
add some explanation of the mining rate
Changed line(s) 11,12 (click to see context) from:
* For every block verified, the miner gets 25 bitcoins as a reward. This is also how new coins are added into circulation.
to:
* For every block verified, the miner gets 25 bitcoins 12.5 bitcoins[[note]]as of July 2016; the rate is halved about every four years[[/note]] as a reward. This is also how new coins are added into circulation.
Changed line(s) 25,26 (click to see context) from:
** The currency itself has a cap of 21 million bitcoins and as of December 2013, 12 million have been mined. Every few years the rate of creation is halved.
to:
** The currency itself has a cap of 21 million bitcoins and as of December 2013, 12 million have been mined. Every few four years the rate of creation is halved.
halved.[[note]]When Bitcoin started in 2009, the mining reward was 50 bitcoins per verified block. This is halved for every 210,000 blocks verified, which is about every four years as each block takes ten minutes to be verified. The last bitcoin (actually ฿0.00000001, the smallest unit possible, also called a ''satoshi'' after the anonymous creator) is projected to be mined around 2140.[[/note]]
Is there an issue? Send a MessageReason:
None
Changed line(s) 9 (click to see context) from:
* Mining is a process that involves trying to figure out the encryption key used on the transaction via a brute force method. This is compared to the network's ''target difficulty'' and if a certain value is reached, the block is considered verified.
to:
* Mining is a process that involves trying to figure out the encryption key used on the transaction via a using brute force method. This is compared to the network's ''target difficulty'' and if a certain value is reached, the force. A block is considered verified.mined when the key contains a signature that the system is looking for called the ''target difficulty''. For example, the target difficulty could be the last 20 bits of the key has to be 0. On average over time, a computer would have to generate at least 2^20, or about a million, keys.
Is there an issue? Send a MessageReason:
None
Changed line(s) 8 (click to see context) from:
* Every ten minutes a bundle of transactions, called a ''block'', is verified through a process called ''mining''. Mining is a process that involves trying to figure out the encryption key used on the transaction via a brute force method. This is compared to the network's target difficulty.
to:
* Every ten minutes a bundle of transactions, called a ''block'', is verified through a process called ''mining''.
* Mining is a process that involves trying to figure out the encryption key used on the transaction via a brute force method. This is compared to the network'starget difficulty. ''target difficulty'' and if a certain value is reached, the block is considered verified.
* Mining is a process that involves trying to figure out the encryption key used on the transaction via a brute force method. This is compared to the network's
Is there an issue? Send a MessageReason:
Redid how the process works.
Changed line(s) 6,9 (click to see context) from:
The way the system works is that transactions are digitally signed messages that are broadcast into the Bitcoin network, a peer-to-peer system similar to Bittorrent. Transactions don't specify a name, but rather a Bitcoin address, and ownership of bitcoins is via these addresses. Every ten minutes, a bundle of transactions called blocks are verified, called mining, through a proof-of-work algorithm by users in the peer-to-peer network. Verified blocks are grouped into block chains, which are added to a public transaction record. For every block verified, the user gets 25 bitcoins as a reward. This is also how more coins are added in circulation. The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. The symbol for the bitcoin is ฿, which happens to be the same symbol that represents the baht, Thailand's currency, and is partly why Bitcoin is illegal there.
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. To further ensure system stability, the difficulty of verification, which is basically brute-forcing the algorithm, is adjusted once in a while.
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. To further ensure system stability, the difficulty of verification, which is basically brute-forcing the algorithm, is adjusted once in a while.
to:
The way the system works is that transactions like so:
* Transactions aredigitally signed encrypted messages that are broadcast into the Bitcoin network, network. The network is a peer-to-peer system system, similar to Bittorrent. Transactions don't only specify a name, but rather a Bitcoin address, address and transfer of ownership of bitcoins is via these addresses. addresses.
* Every tenminutes, minutes a bundle of transactions transactions, called blocks are a ''block'', is verified through a process called ''mining''. Mining is a process that involves trying to figure out the encryption key used on the transaction via a brute force method. This is compared to the network's target difficulty.
* Once a block is verified,called mining, through a proof-of-work algorithm by users in the peer-to-peer network. Verified blocks are it's grouped into block chains, ''block chains'', which are added to a public transaction record. database.
* For every block verified, theuser miner gets 25 bitcoins as a reward. This is also how more new coins are added in circulation. into circulation.
The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. The symbol for the bitcoin is ฿, which happens to be the same symbol that represents the baht, Thailand's currency, and is partly why Bitcoin is illegal there.
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm.To further ensure system stability, Every so often, the target difficulty of verification, which is basically brute-forcing the algorithm, is adjusted once in a while.
so that verified blocks keep the 10 minute target time.
* Transactions are
* Every ten
* Once a block is verified,
* For every block verified, the
The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. The symbol for the bitcoin is ฿, which happens to be the same symbol that represents the baht, Thailand's currency, and is partly why Bitcoin is illegal there.
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm.
Is there an issue? Send a MessageReason:
None
Changed line(s) 20 (click to see context) from:
Bitcoin has so far led to another cryptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed every 2.5 minutes; it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=] that accelerate the work, and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]]. And yes, [[https://en.wikipedia.org/wiki/Dogecoin it's a legitimate cryptocurrency]]. Bitcoin has also seen it's fair share of derivatives, and many other types of cryptocurrencies hoping to be the spiritual successor to bitcoin are also starting to flood the market. Will any of them succeed? It's too soon to tell.
to:
Bitcoin has so far led to another cryptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed every 2.5 minutes; it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=] that accelerate the work, and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]]. And yes, [[https://en.wikipedia.org/wiki/Dogecoin it's a legitimate cryptocurrency]]. Bitcoin has also seen it's its fair share of derivatives, and many other types of cryptocurrencies hoping to be the spiritual successor to bitcoin are also starting to flood the market. Will any of them succeed? It's too soon to tell.
Is there an issue? Send a MessageReason:
None
Changed line(s) 20 (click to see context) from:
Bitcoin has so far led to another cryptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed every 2.5 minutes; it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=] that accelerate the work, and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]]. And yes, [[https://en.wikipedia.org/wiki/Dogecoin it's a legitimate cryptocurrency]].
to:
Bitcoin has so far led to another cryptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed every 2.5 minutes; it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=] that accelerate the work, and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]]. And yes, [[https://en.wikipedia.org/wiki/Dogecoin it's a legitimate cryptocurrency]]. Bitcoin has also seen it's fair share of derivatives, and many other types of cryptocurrencies hoping to be the spiritual successor to bitcoin are also starting to flood the market. Will any of them succeed? It's too soon to tell.
Is there an issue? Send a MessageReason:
None
Changed line(s) 2,4 (click to see context) from:
Imagine a currency that is not under control of a government or centralized financial institution. That is, anyone can mint new money, handle transactions, and remain fairly anonymous to the extent that only a single unique thing, a seemingly random string of numbers and letters, is known about a person. This is the idea of Bitcoins: [[TechnoBabble a crpytocurrency based around cryptographic hashes, using a peer-to-peer network to maintain balances, while shared processing power extends the block chain.]][[note]]This is [[http://www.reallifecomics.com/comic.php?comic=october-7-2013 a quote]] from RealLifeComics[[/note]]
to:
Changed line(s) 7,12 (click to see context) from:
The way the system works is that transactions are digitally signed messages that are broadcast into the Bitcoin network, a peer-to-peer system similar to Bittorrent. Transactions don't specify a name, but rather a Bitcoin address, and ownership of bitcoins is via these addresses. Every ten minutes, a bundle of transactions called blocks are verified, called mining, through a proof-of-work algorithm by users in the peer-to-peer network. Verified blocks are grouped into block chains, these are added to a public transaction record. For every block verified, the user gets 25 bitcoins as a reward. This is also how more coins are added in circulation. The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. The symbol for the bitcoin is ฿, which happens to be the same symbol that represents the baht, Thailand's currency, and is partly why Bitcoin is illegal there.
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. To further ensure system stability, the difficulty of verification, which is basically brute forcing the algorithm, is adjusted once in a while.
In any case, Bitcoin is something of a hot topic. Some businesses have accepted it as a valid form of payment. Governments around the world though are mixed since it has legitimate and illegitimate uses. Read up on [[https://en.wikipedia.org/wiki/Legal_status_of_Bitcoin the legal status of Bitcoin]] as well as [[https://bitcoin.org/en/you-need-to-know Bitcoin's need-to-know FAQ]] before thinking about getting into the wonders of cryptocurrency.
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. To further ensure system stability, the difficulty of verification, which is basically brute forcing the algorithm, is adjusted once in a while.
In any case, Bitcoin is something of a hot topic. Some businesses have accepted it as a valid form of payment. Governments around the world though are mixed since it has legitimate and illegitimate uses. Read up on [[https://en.wikipedia.org/wiki/Legal_status_of_Bitcoin the legal status of Bitcoin]] as well as [[https://bitcoin.org/en/you-need-to-know Bitcoin's need-to-know FAQ]] before thinking about getting into the wonders of cryptocurrency.
to:
The way the system works is that transactions are digitally signed messages that are broadcast into the Bitcoin network, a peer-to-peer system similar to Bittorrent. Transactions don't specify a name, but rather a Bitcoin address, and ownership of bitcoins is via these addresses. Every ten minutes, a bundle of transactions called blocks are verified, called mining, through a proof-of-work algorithm by users in the peer-to-peer network. Verified blocks are grouped into block chains, these which are added to a public transaction record. For every block verified, the user gets 25 bitcoins as a reward. This is also how more coins are added in circulation. The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. The symbol for the bitcoin is ฿, which happens to be the same symbol that represents the baht, Thailand's currency, and is partly why Bitcoin is illegal there.
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. To further ensure system stability, the difficulty of verification, which is basicallybrute forcing brute-forcing the algorithm, is adjusted once in a while.
In any case, Bitcoin is something of a hot topic. Some businesses have accepted it as a valid form of payment. Governments around theworld though world, though, are mixed since it has legitimate and illegitimate uses. Read up on [[https://en.wikipedia.org/wiki/Legal_status_of_Bitcoin the legal status of Bitcoin]] as well as [[https://bitcoin.org/en/you-need-to-know Bitcoin's need-to-know FAQ]] before thinking about getting into the wonders of cryptocurrency.
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. To further ensure system stability, the difficulty of verification, which is basically
In any case, Bitcoin is something of a hot topic. Some businesses have accepted it as a valid form of payment. Governments around the
Changed line(s) 15 (click to see context) from:
* Bitcoins can be lost with often no way of tracking their existence or proof of ownership, with no recourse such as pressing charges with police or filing a lawsuit. Nor are bitcoin exchanges guaranteed or capable of error correction as, say, banks or stock exchanges are if your monetary loss is the exchange's fault itself due to hacking or even internal criminal activity. A good example of this is the losses in the Mt. Gox exchange bankruptcy - the bitcoins are either in the pockets of hackers or simply wiped out, and anyone who was still using Mt. Gox is most likely SOL.
to:
* Bitcoins can be lost with lost, often with no way of tracking their existence or proof of ownership, with no recourse such as pressing charges with police or filing a lawsuit. Nor are bitcoin exchanges guaranteed or capable of error correction as, say, banks or stock exchanges are if your monetary loss is the exchange's fault of the exchange itself due to hacking or even internal criminal activity. A good example of this is the losses in the Mt. Gox exchange bankruptcy - – the bitcoins are either in the pockets of hackers or simply wiped out, and anyone who was still using Mt. Gox is most likely SOL.
Changed line(s) 18 (click to see context) from:
* Bitcoin mining is such a developed hobby that to make a decent amount off mining takes a lot of real-world money. Among other complications, $500 graphics cards and even costlier ASIC boards will need to mine coins for years before making back on the investment at the current rate of things. Without specialist processors, miners are very likely to pay more in electricity costs than they will gain in bitcoin.
to:
* Bitcoin mining is such a developed hobby that to make a decent amount off mining takes a lot of real-world money. Among other complications, $500 US$500 graphics cards and even costlier ASIC boards will need to mine coins for years before making back on recouping the investment at the current rate of things. Without specialist processors, miners are very likely to pay more in electricity costs than they will gain in bitcoin.
Changed line(s) 21 (click to see context) from:
Bitcoin has so far led to another cyptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed every 2.5 minutes, it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=] that accelerate the work, and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]]. And yes, [[https://en.wikipedia.org/wiki/Dogecoin it's a legitimate cryptocurrency]].
to:
Bitcoin has so far led to another cyptocurrency cryptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed every 2.5 minutes, minutes; it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=] that accelerate the work, and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]]. And yes, [[https://en.wikipedia.org/wiki/Dogecoin it's a legitimate cryptocurrency]].
Is there an issue? Send a MessageReason:
None
Changed line(s) 18 (click to see context) from:
* Bitcoin mining is such a developed hobby that to make a decent amount off mining takes a lot of real-world money. Among other complications, $500 graphics cards and even costlier ASIC boards will need to mine coins for years before making back on the investment at the current rate of things.
to:
* Bitcoin mining is such a developed hobby that to make a decent amount off mining takes a lot of real-world money. Among other complications, $500 graphics cards and even costlier ASIC boards will need to mine coins for years before making back on the investment at the current rate of things. Without specialist processors, miners are very likely to pay more in electricity costs than they will gain in bitcoin.
Is there an issue? Send a MessageReason:
None
Added DiffLines:
[[quoteright:350:http://static.tvtropes.org/pmwiki/pub/images/bitcoin_5892.png]]
Is there an issue? Send a MessageReason:
None
Changed line(s) 12 (click to see context) from:
* Bitcoins are highly volatile. One minute they may be worth something like ฿1 = $1; the next, ฿1 = $0.01. That is, don't expect this to be another source of stable income.
to:
* Bitcoins are [[http://coinmarketcap.com/btc_30.html highly volatile.volatile]]. One minute they may be worth something like ฿1 = $1; the next, ฿1 = $0.01. That is, don't expect this to be another source of stable income.
Is there an issue? Send a MessageReason:
I don\'t like how you can\'t preview notes :\\
Changed line(s) 1,2 (click to see context) from:
Imagine a currency that is not under control of a government or centralized financial institution. That is, anyone can mint new money, handle transactions, and remain fairly anonymous to the extent that only a single unique thing, a seemingly random string of numbers and letters, is known about a person. This is the idea of Bitcoins: [[TechnoBabble a crpytocurrency based around cryptographic hashes, using a peer-to-peer network to maintain balances, while shared processing power extends the block chain.]][[note]]This is [[reallifecomics.com/comic.php?comic=october-7-2013 a quote]] from RealLifeComics[[/note]]
to:
Imagine a currency that is not under control of a government or centralized financial institution. That is, anyone can mint new money, handle transactions, and remain fairly anonymous to the extent that only a single unique thing, a seemingly random string of numbers and letters, is known about a person. This is the idea of Bitcoins: [[TechnoBabble a crpytocurrency based around cryptographic hashes, using a peer-to-peer network to maintain balances, while shared processing power extends the block chain.]][[note]]This is [[reallifecomics.[[http://www.reallifecomics.com/comic.php?comic=october-7-2013 a quote]] from RealLifeComics[[/note]]
Is there an issue? Send a MessageReason:
None
Changed line(s) 19 (click to see context) from:
Bitcoin has so far led to another cyptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed every 2.5 minutes, it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=] that accelerate the work, and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]]. And yes, [[it's a https://en.wikipedia.org/wiki/Dogecoin legitimate cryptocurrency]].
to:
Bitcoin has so far led to another cyptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed every 2.5 minutes, it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=] that accelerate the work, and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]]. And yes, [[it's a https://en.[[https://en.wikipedia.org/wiki/Dogecoin it's a legitimate cryptocurrency]].
Is there an issue? Send a MessageReason:
Some cleanup, and that quote.
Changed line(s) 1,2 (click to see context) from:
Imagine a currency that is not under control of a government or centralized financial institution. That is, anyone can mint new money, handle transactions, and remain fairly anonymous to the extent that only a single unique thing, a seemingly random string of numbers and letters, is known about a person. This is the idea of Bitcoins: [[TechnoBabble a cryptocurrency based on cryptography hashes with transactions done over a peer-to-peer network called blocks, and every ten minutes a block-chain is added to the public transaction records]].
to:
Imagine a currency that is not under control of a government or centralized financial institution. That is, anyone can mint new money, handle transactions, and remain fairly anonymous to the extent that only a single unique thing, a seemingly random string of numbers and letters, is known about a person. This is the idea of Bitcoins: [[TechnoBabble a cryptocurrency crpytocurrency based on cryptography hashes with transactions done over around cryptographic hashes, using a peer-to-peer network called blocks, and every ten minutes a block-chain is added to maintain balances, while shared processing power extends the public transaction records]].
block chain.]][[note]]This is [[reallifecomics.com/comic.php?comic=october-7-2013 a quote]] from RealLifeComics[[/note]]
Changed line(s) 5,6 (click to see context) from:
The way the system works is that transactions are digitally signed messages that are broadcast into the Bitcoin network, a peer-to-peer system similar to Bittorrent. Transactions don't specify a name, but rather a Bitcoin address, and ownership of bitcoins is via these addresses. Every ten minutes, a bundle of transactions called blocks are verified, called mining, through a proof-of-work algorithm by users in the peer-to-peer network. Verified blocks are grouped into block chains, these are added to a public transaction record. For every block verified, the user gets 25 bitcoins as a reward. This is also how more coins are added in circulation. The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. By the way, the symbol for the bitcoin is ฿[[note]]the same symbol that represents the baht, Thailand's currency, and is partly why Bitcoin is illegal there.[[/note]].
to:
The way the system works is that transactions are digitally signed messages that are broadcast into the Bitcoin network, a peer-to-peer system similar to Bittorrent. Transactions don't specify a name, but rather a Bitcoin address, and ownership of bitcoins is via these addresses. Every ten minutes, a bundle of transactions called blocks are verified, called mining, through a proof-of-work algorithm by users in the peer-to-peer network. Verified blocks are grouped into block chains, these are added to a public transaction record. For every block verified, the user gets 25 bitcoins as a reward. This is also how more coins are added in circulation. The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. By the way, the The symbol for the bitcoin is ฿[[note]]the ฿, which happens to be the same symbol that represents the baht, Thailand's currency, and is partly why Bitcoin is illegal there.[[/note]].
there.
Changed line(s) 19 (click to see context) from:
Bitcoin has so far led to another cyptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed ever 2.5 minutes, it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=] that accelerate the work, and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]] (and yes, it's a legitimate cryptocurrency).
to:
Bitcoin has so far led to another cyptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed ever every 2.5 minutes, it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=] that accelerate the work, and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]] (and Dogecoin]]. And yes, it's [[it's a https://en.wikipedia.org/wiki/Dogecoin legitimate cryptocurrency).cryptocurrency]].
Is there an issue? Send a MessageReason:
None
Added DiffLines:
* Bitcoins can be lost with often no way of tracking their existence or proof of ownership, with no recourse such as pressing charges with police or filing a lawsuit. Nor are bitcoin exchanges guaranteed or capable of error correction as, say, banks or stock exchanges are if your monetary loss is the exchange's fault itself due to hacking or even internal criminal activity. A good example of this is the losses in the Mt. Gox exchange bankruptcy - the bitcoins are either in the pockets of hackers or simply wiped out, and anyone who was still using Mt. Gox is most likely SOL.
Is there an issue? Send a MessageReason:
Reworded a sentence since it would give the wrong context. Added some more details.
Changed line(s) 5,6 (click to see context) from:
The way the system works is that transactions are digitally signed messages that are broadcast into the Bitcoin network, a peer-to-peer system similar to Bittorrent. Transactions don't specify a name, but rather a Bitcoin address, and ownership of bitcoins is via these addresses. Every ten minutes, a bundle of transactions called blocks are verified through a proof-of-work algorithm, called mining, by users in the peer-to-peer network. Verified blocks are grouped into block chains, these are added to a public transaction record. For every block verified, the user gets 25 bitcoins as a reward. This is also how more coins are added in circulation. The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. By the way, the symbol for the bitcoin is ฿[[note]]the same symbol that represents the baht, Thailand's currency[[/note]].
to:
The way the system works is that transactions are digitally signed messages that are broadcast into the Bitcoin network, a peer-to-peer system similar to Bittorrent. Transactions don't specify a name, but rather a Bitcoin address, and ownership of bitcoins is via these addresses. Every ten minutes, a bundle of transactions called blocks are verified verified, called mining, through a proof-of-work algorithm, called mining, algorithm by users in the peer-to-peer network. Verified blocks are grouped into block chains, these are added to a public transaction record. For every block verified, the user gets 25 bitcoins as a reward. This is also how more coins are added in circulation. The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. By the way, the symbol for the bitcoin is ฿[[note]]the same symbol that represents the baht, Thailand's currency[[/note]].
currency, and is partly why Bitcoin is illegal there.[[/note]].
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. To further ensure system stability, the difficulty of verification, which is basically brute forcing the algorithm, is adjusted once in a while.
Once block chains are verified, they cannot be changed without redoing the work. And as long as honest nodes who are verifying blocks are outpacing those who are trying to attack the system, then the system remains stable. This led up to something of an arms race, where people would develop customized chips designed to compute the algorithm. To further ensure system stability, the difficulty of verification, which is basically brute forcing the algorithm, is adjusted once in a while.
Changed line(s) 16 (click to see context) from:
Bitcoin has so far led to another cyptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed ever 2.5 minutes, it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=], and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]] (and yes, it's a legitimate cryptocurrency).
to:
Bitcoin has so far led to another cyptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed ever 2.5 minutes, it uses a proof-of-work algorithm called scrypt, which makes it harder to build [=ASICs=], [=ASICs=] that accelerate the work, and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]] (and yes, it's a legitimate cryptocurrency).
Is there an issue? Send a MessageReason:
None
Changed line(s) 1,2 (click to see context) from:
Imagine a currency that is not under control of a government or centralized financial institution. That is, anyone can mint new money, handle transactions, and can remain fairly anonymous to the extent only a single unique thing, a seemingly random string of numbers and letters, is known about a person. This is the idea of Bitcoins: [[TechnoBabble a cryptocurrency based on cryptography hashes with transactions done over a peer-to-peer network called blocks and every ten minutes a block-chain is added to the public transaction records]].
to:
Imagine a currency that is not under control of a government or centralized financial institution. That is, anyone can mint new money, handle transactions, and can remain fairly anonymous to the extent that only a single unique thing, a seemingly random string of numbers and letters, is known about a person. This is the idea of Bitcoins: [[TechnoBabble a cryptocurrency based on cryptography hashes with transactions done over a peer-to-peer network called blocks blocks, and every ten minutes a block-chain is added to the public transaction records]].
Changed line(s) 5,6 (click to see context) from:
The way the system works is that transactions are digitally signed messages that are broadcasted into the Bitcoin network, a peer-to-peer system similar to Bittorrent. Transactions don't specify a name, but rather a Bitcoin address and ownership of bitcoins is via these addresses. Every ten minutes, a bundle of transactions called blocks are verified through a proof-of-work algorithm, called mining, by users in the peer-to-peer network. Verified blocks are grouped into block chains, these are added to a public transaction record. For every block verified, the user gets 25 bitcoins as a reward. This is also how more coins are added in circulation. The bitcoin itself is something of a strange entity, since this implies bitcoins are really records of validated transactions. By the way, the symbol for the bitcoin is ฿.
to:
The way the system works is that transactions are digitally signed messages that are broadcasted broadcast into the Bitcoin network, a peer-to-peer system similar to Bittorrent. Transactions don't specify a name, but rather a Bitcoin address address, and ownership of bitcoins is via these addresses. Every ten minutes, a bundle of transactions called blocks are verified through a proof-of-work algorithm, called mining, by users in the peer-to-peer network. Verified blocks are grouped into block chains, these are added to a public transaction record. For every block verified, the user gets 25 bitcoins as a reward. This is also how more coins are added in circulation. The bitcoin itself is something of a strange entity, since this implies that bitcoins are really records of validated transactions. By the way, the symbol for the bitcoin is ฿.
฿[[note]]the same symbol that represents the baht, Thailand's currency[[/note]].
Changed line(s) 10,11 (click to see context) from:
* Bitcoins are highly volatile. One minute they may be worth something like ฿1 = $1, the next ฿1 = $0.01. i.e., don't be expecting this to be another source of stable income.
* Bitcoins are not legal tender, you can't pay taxes with them directly.
* Bitcoins are not legal tender, you can't pay taxes with them directly.
to:
* Bitcoins are highly volatile. One minute they may be worth something like ฿1 = $1, $1; the next next, ฿1 = $0.01. i.e., That is, don't be expecting expect this to be another source of stable income.
* Bitcoins are not legaltender, tender; you can't pay taxes with them directly.
* Bitcoins are not legal
Changed line(s) 13 (click to see context) from:
* Bitcoin mining is such a developed hobby that to make a decent amount off mining takes a lot of real-world money. $500 graphics cards and even costlier ASIC boards will need to mine coins for years before making back on the investment at the current rate of things.
to:
* Bitcoin mining is such a developed hobby that to make a decent amount off mining takes a lot of real-world money. Among other complications, $500 graphics cards and even costlier ASIC boards will need to mine coins for years before making back on the investment at the current rate of things.
Changed line(s) 16 (click to see context) from:
Bitcoin has so far lead another cyptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that transactions are processed ever 2.5 minutes, uses a proof-of-work algorithm called scrypt which makes it harder to build [=ASICs=], and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]] (and yes, it's a legitimate crpytocurrency).
to:
Bitcoin has so far lead led to another cyptocurrency called [[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that Litecoin transactions are processed ever 2.5 minutes, it uses a proof-of-work algorithm called scrypt scrypt, which makes it harder to build [=ASICs=], and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]] (and yes, it's a legitimate crpytocurrency).cryptocurrency).
----
----
Is there an issue? Send a MessageReason:
Ah, editing minor things~
Changed line(s) 7,8 (click to see context) from:
In any case, Bitcoin is something of a hot topic. Some businesses have accepted it as a valid form of payment. Governments around the world though are mixed since it has legitimate and illegitimate uses. Read up on [[https://en.wikipedia.org/wiki/Legal_status_of_Bitcoin the legal status of Bitcoin]] as well as [[https://bitcoin.org/en/you-need-to-know Bitcoin's need-to-know FAQ]] before thinking about getting into the wonders of concurrency.
to:
In any case, Bitcoin is something of a hot topic. Some businesses have accepted it as a valid form of payment. Governments around the world though are mixed since it has legitimate and illegitimate uses. Read up on [[https://en.wikipedia.org/wiki/Legal_status_of_Bitcoin the legal status of Bitcoin]] as well as [[https://bitcoin.org/en/you-need-to-know Bitcoin's need-to-know FAQ]] before thinking about getting into the wonders of concurrency.
cryptocurrency.
Changed line(s) 16 (click to see context) from:
Bitcoin has so far lead another cyptocurrency called Litecoin. The key differences are that transactions are processed ever 2.5 minutes, uses a proof-of-work algorithm called scrypt which makes it harder to build [=ASICs=], and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]] (and yes, it's a legitimate crpytocurrency).
to:
Bitcoin has so far lead another cyptocurrency called Litecoin.[[https://en.wikipedia.org/wiki/Litecoin Litecoin]]. The key differences are that transactions are processed ever 2.5 minutes, uses a proof-of-work algorithm called scrypt which makes it harder to build [=ASICs=], and the expected cap is 84 million coins. Litecoin also has a derivative cryptocurrency called [[MemeticMutation Dogecoin]] (and yes, it's a legitimate crpytocurrency).
