By using this site, you agree to our Privacy Policy and our Terms of Use. Close
Ljink96 on 16 January 2018
Edit Thread
CrazyGamer2017 said:

While I understand the concept of cryptocurrencies I don't understand how they ACTUALLY work and so far NOBODY has clearly explained how they actually work. To the best of my knowledge they are a code you have on your computer and that's it. How do you get that code? No one really knows, can't get it in a store, can't get it at your bank, can't pay with it when going to a store as it only works online, mining of some kind is involved but what mining, where, of what? No one really knows and how mining has ANYTHING to do with money? No one knows.
It really deserves its name of "CRYPTO" currency as in cryptic, sibylline, unclear, abstract etc...

So it soaring or crashing means very little to me.

EDIT: And I even forgot to talk about the value of a Bitcoin. To the best of my knowledge it's not traded in WallStreet or any other financial center so who decides how much a Bitcoin is worth every day? No one knows...

Well, they have a lot do with programming and that's what a lot of people don't understand. But that's on the back end side of things. What you want to know is the code. Your Bitcoin wallet has a code that you'll always be able to know once you get it set up. This is what you use to buy and sell (give and take) Bitcoin. Think of it as your debit card sorta. This code is what you use to trade. 

There are some establishments that take bitcoin, like the KFC in Canada that is going to be taking Bitcoin this year. And it's only going to become more wide spread as the mainstream jumps on. Mining, eh go to reddit crytp forum to learn more about that. It's trick in my experience and does require extra hardware to mine the coins. 

The value of bitcoin is not controlled by the government, which is why the government wants to stop bitcoin. But they can't. But any coin value does have a principle behind it. It depends on who's buying/selling and how much they're buying and selling. It has a lot to do with supply and demand as there will only ever be 1 set amount of Bitcoin in the world. So it's insanely volatile as we've seen over the past half a year or so. From 22,000 to 13,000. But you can avoid such losses if you do study waves and basically never get much sleep. Or set alarms. It's a tedious process at first but if you're doing it full time it is like having a normal job.