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Frank Pallone "Super Genius"

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"We cannot bring entire fossil fuel plants back online.  Particularly in light of cleaner blockchain technologies that already exist."

Rep Frank Pallone. Chairman of the House Energy Committee at a hearing on bitcoin mining.

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Believe me, I’m no fan of this guy.  But that needs to be put in context?  Is he referring to many of the miners moving operations to countries that support more green energy, thereby reducing the carbon footprint created by bitcoin mining?

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Im still trying to figure out bitcoin.... Does it actually physically exist ? Something that you cant touch or see requires vast amounts of energy to create? Can that energy be harnessed after its creation?

Someone shed some light please...... perhaps a link to bitcoin for dummies ?

 

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3 hours ago, riggler said:

Im still trying to figure out bitcoin.... Does it actually physically exist ? Something that you cant touch or see requires vast amounts of energy to create? Can that energy be harnessed after its creation?

Someone shed some light please...... perhaps a link to bitcoin for dummies ?

 

No it doesn't physically exist. Transactions are processed that require compute power. The computers used to process these transactions are ultimately rewarded a fraction of a Bitcoin to pay them for the work they did. It's inherently secure because all the computers processing the data have to have the same result. This is a bit of a simplistic view but I hope you understand it because it is legit.

 

 

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9 mins ago, hurricane1091 said:

No it doesn't physically exist. Transactions are processed that require compute power. The computers used to process these transactions are ultimately rewarded a fraction of a Bitcoin to pay them for the work they did. It's inherently secure because all the computers processing the data have to have the same result. This is a bit of a simplistic view but I hope you understand it because it is legit.

 

 

What does the computers work go towards or what is the work doing involve ? So what calculates its worth if it doesnt physically exist ? Thanks for the reply.

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2 hours ago, riggler said:

What does the computers work go towards or what is the work doing involve ? So what calculates its worth if it doesnt physically exist ? Thanks for the reply.

I’m not the expert but….

 

the blockchain concept is a shared computing network- maybe even a neural network of sorts- that uses many computers collectively to handle the system needs. As far as I understand, no single computer inside the chain understands the whole data picture. That’s the key to the anonymity involved. 
 

As hurricane said, you can lend your computing power in exchange for fractions of bitcoins if things work out well. 

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Think about this too. If you want to exchange money internationally, there's conversion rates, high transaction fees, slow transfers from the bank, etc. Not to mention the bank could hold your money hostage and freeze your account. Same with the government right? Bits of coin cut all that out and put you in charge.

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36 mins ago, hurricane1091 said:

Think about this too. If you want to exchange money internationally, there's conversion rates, high transaction fees, slow transfers from the bank, etc. Not to mention the bank could hold your money hostage and freeze your account. Same with the government right? Bits of coin cut all that out and put you in charge.

There’s still a conversion rate into and out of US Dollars and that’s what you’re paid in from your employer which won’t be changing for the foreseeable future. (Nor will the dollar based bills you pay.)

 

There will be more merchants accepting crypto as time goes on, but not your regular expenses. 
 

So dollar to crypto and back is a real risk of gain or loss in value that won’t go away in our lifetime

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3 mins ago, EricDice said:

There’s still a conversion rate into and out of US Dollars and that’s what you’re paid in from your employer which won’t be changing for the foreseeable future. (Nor will the dollar based bills you pay.)

 

There will be more merchants accepting crypto as time goes on, but not your regular expenses. 
 

So dollar to crypto and back is a real risk of gain or loss in value that won’t go away in our lifetime

Anyways, bits of coin went down. Let's all buy some!

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Posted (edited) · Report post

ok so what is the work this chain of computers are doing and who uses it?

and who are they doing it for?

once the work is accomplished how is it verified ?

 

Edited by riggler

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Posted (edited) · Report post

1 hour ago, riggler said:

ok so what is the work this chain of computers are doing and who uses it?

and who are they doing it for?

once the work is accomplished how is it verified ?

 

lol take a step back it's complicated and none of us are geniuses 

 

Go to coinmarketcap. There's a million coins and they are not all create equally. Bitcoin is just a currency. If you use your Visa card to buy a new plug, the cash register swipes your card and tells Visa it is charging the person who owns this card $20. Visa manages all of their 'computer' infrastructure and there's no visibility into it. Visa will charge the store 3% as well as a fee, You might claim Visa charged you twice and outside of you taking a picture of your account, there's no way we could actually verify that unless we worked for Visa.

 

Let's take bitcoin instead. You swipe your bitcoin card  for a $20 plug and the cash register is going to tell the 'computers' to move $20 worth of bitcoin from your account to the stores bitcoin account. However, the processing of all of the transactions taking place with bitcoin is huge and takes tons of computing power, so all of the computers that actually process the transactions are rewarded (they call this 'mining') a small fraction of a bitcoin. One computer could compute the transaction incorrectly and the other computers that processed it will reject that computer because it did not match the consensus. Everything is open source as well and every transaction can be viewed online - go look up bitcoin block explorer and you'll see. 

 

It's complicated. There's 'coins' that have functionality on their blockchains but I wouldn't bang your head against the wall. Blockchain is open source, everyone can see it and use it, no one owns it and no one can hold your money hostage (IE you go to the bank and the bank simply has no money to hand over to you, this can never happen if you put your bitcoin in your online bitcoin 'wallet'). There's complex math behind the scenes taking place and there is a FINITE amount of bitcoin. More bitcoin can not be printed, the rewards just get smaller over time (which makes bitcoin more valuable anyways ultimately). 

 

TL;DR - When you use bitcoin a bunch of math takes place on real expensive computers that anyone can own. If all the computers calculate the same answer then it is accepted the answer is true. Everyone can see every transaction, no individual or company owns bitcoin, and anyone can participate. The people who run these computers are rewarded small amounts of bitcoin for the processing their computers did. This is all an alternative to putting your trust into one company like Visa which we have no visibility into.

Edited by hurricane1091

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so mining bit coin is not building bitcoin. Mining is a fee for processing ?

I take it you are not a fan of our current monetary system

So can bit coin be purchased as a method to avoid taxation?

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I guess I don't understand.. whats the utility of bitcoin?.. If I go out in the woods and axe down a tree I have a log that I can use for heat or a leaver a board ect ect ..Plus I just don't see the Governments Bankers  cartels ... giving up control of digital currency this is just beginning and far from a victory dance for BC but they are gaining .. I like Precious Metals and rare earths much better something you can hold in your hand ...I do like the blockchain idea.. and keeping the government and bankers out of the peoples business.. Time will tell...

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