Anyone Else Completely Confused about BitCoin?

Whenever I see a bitcoin discussion, I get this mental image of Wile E. Coyote running off a cliff. Everything is fine as long as he doesn't look down - but eventually, he always does.

 

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It was such a bizarre concept with no regulations/oversight. Could of, should of, would of... haha!

 

Page 3 and I still have no clue about bitcoin. Looking forward to the lesson on NFTs.

 

I hear ya. I was reading earlier about BitCoin "mining." It sounds like a computer monopoly game where someone said, "hey, this is real money" and lots of people jumped on board.

 

FIFY
The way prices have gone this seems more appropriate.

 

The computer equipment and electric power neeeded to keep it running and cooled 24/7/365 and to mine a meaningful amount of Bitcoin requires a huge initial investment - well beyond the means of the average 'crypto-prospector'
A typical mining rig:

 

Yikes!

 

Some power plants have set up mining rooms letting them run at cost for energy. Even then were only getting like 4 a month and declining

 

Doesn't every currency's value derive from people collectively believing in its value though?

If the dollar is no longer backed by precious metals, it is almost like crypto. As the dollar decreases in value, people may start believing in crypto instead.

 

In it's simplest form yes

 

The dollar hasn't been backed by precious metals for many many decades. That's why it is referred to as a fiat currency.

 

It's definitely a scheme...

 

Every investment has risks, which is why it is wise to not invest more than one might comfortably loose.

 

So a Bitcoin is actually an aggregate of 100 million individual block chains called satoshi. So when you exchange a bitcoin you actually pass 100 million block chains to the new holder. Upon the transfer each block chain's digital footprint increases in size due to the fact an additional identifier link is added to the chain. So each time a satoshi is exchanged its value is diluted due to the fact its chain becomes longer and therefore requires an expenditure of more processing resources to verify its authenticity. Meaning a bitcoin containing 100 million satoshi each being two links long will be significantly more valuable than a bitcoin containing 100 million satoshi each being 1 million lengths long.

Is the above correct?

 

I'm a bit confused, also...if just a little bit...but with these bits of information and explanation it's becoming a bit clearer.

 

Believing in something doesn't make it real. https://www.sec.gov/files/ia_virtualcurrencies.pdf

 

One has to pay real currency for virtual currency. Makes no sense. There was a story a few weeks ago I read where some guy is going to lose millions of dollars in bitcoin because he forgot his password. Dumbest thing I ever heard. Like losing all your money at the bank because you lost your ATM card or forgot the pin number. That's about how much sense that makes. If bitcoin was legit, he wouldn't lose all his money because he forgot his pin, unless they crafted and designed a system that doesn't keep track of how much virtual money you got in their system. In that case it's their windfall for anyone who forgets their password.

 

Turkey bans use of crypto. Who's next?

https://www.reuters.com/technology/...ncies-payments-sends-bitcoin-down-2021-04-16/

 

Well said!