Does anyone want to educate me on Bitcoin?

[LizBeth]

I have a guy talking to me investing in this and I know NOTHING about this. I have followed the market and know a bit about that but nothing about Bitcoin. Talking Bitcoin 101. He is looking at BCH Bitcoin cash.

Educate me. Whatever you think of it. I am clueless.

Edit: I have no interest in this. I am only educating myself to have a conversation with this guy. Beyond foolish. But I didn't know anything about it and had to learn so I could have a conversation with him, tonight.

[Recursion]

1. Imagine that running your car engine could produce tokens

that you could then trade for methamphetamine. That's basically it.

To get a little more in-depth:

There are some problems in math that are much easier to verify than to solve. For instance, if I said "what two prime numbers multiply together to equal 899?" that would take you a while to solve. But if I asked you to verify that "29 * 31 = 899" that would be much faster. (The problems are obviously much much harder than that, but it's a decent example.)

A computer that "mines" bitcoin tries every possible pair of prime numbers one at a time until it gets a solution like that, and then presents the verification equation to the other computers on the network, who verify it. This verification equation is now a "block". All the computers store that block in a "chain" (meaning every bitcoin processor has a record of every bitcoin ever made) but the way the math works only the computer that originally solved the equation can "unlock" it (basically it's password-protected and only I have the password to it). When I want to "spend" the bitcoin, I unlock it, give the unlocked version to somebody else, and he locks it with his password.

To the extent it's a neat idea, it's there: every transaction is recorded on every computer participating in the bitcoin system (if you object that this has a scaling problem, you're right -- there are other problems too). To the extent it's a stupid idea, it's that it's a currency without anything at all backing it and it's only worth what somebody else is willing to pay for it.

[LizBeth]

3. currency without anything at all backing it and it's only worth what somebody else is willing to pay

See. This is a get to a short cut, not doing the research kind of guy. I have always felt this is what this was and never wasted the time researching it. Thank you. Interesting. Not something i would be interested in but not surprised that this guy was interested. Not my money.

[RandySF]

2. Walk away

[LizBeth]

4. Lol. Not something I would ever do, but doing the research to have conversation with someone that

would/is doing this. I told him I would educate myself. Ya, sadly, I always assumed this.

[LizBeth]

5. So, is this something a generation does or a stupid person does?

[wishstar]

6. Much riskier than conventional market and falling in value now too

Indicators for the BCH cash are showing bear market likely

[LizBeth]

7. Exactly that is why he is buying.

[LizBeth]

8. So, this person is saying the height of fear of cornovirus is going to come

to realization that it is not as dire as the panic first came out, now.

[wishstar]

10. Big gamble if market keeps falling and doesn't rally back soon

Our economy and markets have been riding high due to robust consumer spending that seems especially vulnerable for a huge downturn over the course of this upcoming year.

[Eugene]

9. It's volatile, its price has been manipulated and it's more than 50% below its Dec. 2017 peak.

Bitcoin is a wild west commodity with no intrinsic value.

It has seen 10 percent price swings overnight. Theft and fraud in coin exchanges happen frequently.

There are lots of more productive things to invest in.

[whistler162]

11. IS he related to a guy named Ponzi

or a Nigerian Prince?

[LizBeth]

12. He is a gambler. Wanted to know if I was going to jump in with britcoin or market. Told him no.

I need my money to get old. But he plays. Casinos or this.

[whistler162]

16. The next horse or number is

always a winner.

[LizBeth]

13. Thanks all. Interesting stuff. This allowed me to have conversation with this guy.

I appreciate all the information.

[Amishman]

14. BCH is a poor clone of Bitcoin and one of the worst prospects in crypto

BCH was created a few years ago amid a debate on increasing the block size of Bitcoin (changing how much can be done in one cycle if the network). Bitcoin stated the same, and others created Bitcoin Cash.

It's terrible and will never go anywhere.

It's still calculated by proof of work, meaning running the network is insanely computationally intensive and energy inefficient. Most reputable new projects (Tezos, Eos, Cardano) are using proof of stake, which is very efficient. Eth is the number two crypto in market share and has a huge ongoing project to try and convert from proof of work to proof of stake.

It has limited uses, it lacks the smart contract functionality of Eth, Eos, Tezos, and others

It doesn't have the market position of Bitcoin, and due to its limitations, it has no means of getting more usage / attention.

Go with actual Bitcoin, or one of the rising smart contract platforms; particularly ETH or XTZ. The future of crypto isn't as a medium of exchange or store of value - it is as a platform for running secure globally distributed applications.

[whistler162]

15. Seriously read about the Dutch Tulip Mania

https://en.wikipedia.org/wiki/Tulip_mania

http://www.bbc.com/culture/story/20160419-tulip-mania-the-flowers-that-cost-more-than-houses

In my opinion, it is similar.

[Cosmocat]

17. Its worth buying some btc

Functionally cryptos are investments in that project. There are some that are actually solid projects, a lot arent. Like stocks.

As someone else nited, I wouldnt get into bch.

Not a bad idea to buy some btc and hold it.

It is definitely volitile and manipulated.

But when it runs you cant beat the gains.

[beachbumbob]

18. a form of currency which ONLY speculation sets the value

[C_U_L8R]

19. It's awesome. It's free money.

No, seriously. Run.

[MicaelS]

20. It is a way to buy things on the Deep and Dark Web.

Mainly illegal stuff.

https://en.wikipedia.org/wiki/Dark_web

[cbdo2007]

21. Definitely put all your money in Bitcoin. When investing - the less you know the better.

[LizBeth]

23. Of course, and I am not. I have no interest in participating. None. Nada. Zilch.

I have no idea why you felt I needed to be told something so very basic.

[DFW]

24. Here's a site where you can follow it

https://www.netdania.com/Products/live-streaming-currency-rates-foreign-exchange/real-time-quotes/QuoteList.aspx

No instructions, and I haven't the slightest clue how to buy or sell one, but its value in the last year has fluctuated between about $4000 and $19000. If THAT kind of swing doesn't make you nervous, and you wouldn't be seriously financially damaged by, say, buying ten bitcoins for $190,000 and seeing their value plunge to $86000 (today's level for ten bitcoins), much less $40,000, well, go have fun playing.

But it's not for those who can't afford serious losses. If losing your stake means no more than pocket change to you, jump in. If losing $100,000 would mean financial catastrophe to you, then run as fast as you can in the opposite direction.

[LizBeth]

27. I re read what I wrote and I see I was not clear. I have no interest. I thought this guy was

think about it and I was getting information for him. But, I was told later that night he had already bought some. So, doesn't matter what I say. I took my money out of the market, and I was good with knowledge, picking where I wanted to be. Conservative for sure. I can't afford to lose any money though, so I pulled what I had and invested elsewhere. I do not gamble. At all. I cannot afford to gamble. Not even the lottery. I need my money.

[DFW]

34. I tend to be the same way.

I am very conservative with money, and wild speculation, especially with something completely intangible like bitcoin, scares the hell out of me. It is for those with more guts than I possess.

[LizBeth]

25. I have no idea why this 25 yr old, working for minimum wage and not able to afford monthly expense

would feel the need to participate in something like this. I needed information to understand what this was about. When he first told me last night, I told him I knew absolutely nothing. Was pretty sure it was a scam. But before I make statements of fact, I like to educate myself a little. I had no interesting in goggling and researching, and thought a conversation would be an easy way of getting a feel if I was correct.

So thanks all. It blows my mind that this kid thinks he is a reasoned adult. Last week I walked him away from thinking he could buy a house making minimum wage. But then, I know the process and was able to make points that finally sunk in.

I do not have a gambler mind either. I am a very low risk person. For a lifetime, I have never left myself hanging. He is only just opening up how much he gambles and to the extent of. Very interesting listening to and seeing the behavior.

[gredinger]

26. Immutability

Just imagine a rock.

Anyone can write a message to the rock, but no one can change the rock once its been written.

The rock exists in every house around the entire world. When someone writes something new to the rock, that changes are added to everyone's rock at home.

Because this concept of 'blockchain', you have something that is "immutable". Because people like money, they decided to use this technology to keep a public ledger.

So, now everyone writes transactional data to the rock. When writing to the ledger, it's not possible to lie about sending a transaction. Transactions can't be modified once they're made.

[LizBeth]

29. Huh. Lol. To me, seeming like the rock understands much better than I.

That is funny. This stuff isn't going into my brain, but that is ok. It was interesting listening to what I have. I have a little better understanding.

[gredinger]

31. The Rock

Immutability just is a fancy word for "unchanging".

A rock is just a medium for writing a note. Some of the oldest writing in the world is on rocks, because they last for a really long time. Bitcoin is similar in this regard.

If you posted a note on the blockchain (which you can), it'd be available in 1000 years, assuming it still exists.

It'd be a way to communicate to future generations.

[EarthFirst]

30. +1

This is the most well-reasoned response I’ve read here to date.

I have a few small investments in a supply chain projects that operate on blockchain...

[Yavin4]

28. Ever hear of "Social Media"?

Well, this is "Social Currency".

[LizBeth]

33. It just seems so stupid to me. I ignore it all these years.

And it seems as stupid as I deemed it without knowing much of anything. People are still doing it. It must be like a slot machine. Spin the wheel. I don't know. Anyway, I really do not think there is anything more to learn.

[Tommy_Carcetti]

32. You mean ridiculously volatile Monopoly money?

Completely unregulated and without any sort of proper backing?

Apparently it is "mined" for electronically, which is probably about the dumbest shit I've ever heard this side of a Trump rally.

[LizBeth]

36. It certainly is on that level and I first started hearing it in the Republican type mind.

There is that gullibility in that type of thinker. And not to be offensive to anyone, but this is why I am not surprised seeing it in the Sanders persons mind. It seems to be a certain processing of information that they see it as viable, and others see it as damn stupid. Lol

[Gravitycollapse]

35. I lost about 20% of my Bitcoin in the past week.

It’s extremely volatile and I would not recommend investing in it. It’s pretty much useless right now. I only put a small amount of money in it to track trends.

[LizBeth]

38. That is an interesting use.

[mitch96]

37. "Bitcoin is a wild west commodity with no intrinsic value. "

Correct me if I'm wrong but isn't any currency that is not backed by some commodity of value the same thing? If its not backed by say, gold or silver isn't it like bit coin?
You just trust the issuer that it has some sort of value to buy product or services?
What is the dollar backed by? Faith? Nixon took us off the gold standard so what is it's value?
Just curious...
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