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BIG D
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3 hours ago, BIG D said:

Yeah, that's what they said. Where do they get them from?

 

lol

 

 

Little people live in the computers and mine them out of the chips. dongles and gizmos inside

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18 minutes ago, Gob_Bluth said:

 

Little people live in the computers and mine them out of the chips. dongles and gizmos inside

lol

that’s what it sounds like. Seriously, can someone explain the whole Bitcoin thing to me?

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8 minutes ago, BIG D said:

lol

that’s what it sounds like. Seriously, can someone explain the whole Bitcoin thing to me?

 

Even as someone who works in tech, I don't have a clue how it works

 

All I do know is it's put the price of new graphics cards through the roof and you can't get hold of them a reasonable price anymore for love nor money

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OK, in a simplistic manner (it can be far more complicated that this, of course).

 

You can 'mine' Bitcoin electronically using a computer... think if it like getting a reward for being the first to solve a really complicated mathematic problem.

 

So, people connect their computers to the Bitcoin blockchain (network) and it is constantly running equations that are solving various problems to improve computing and/or even just running the network itself (processing transactions, etc). If your computer is the first to solve a problem, then you get rewarded a Bitcoin for the effort.

 

The problems get more-and-more complicated over time as things are solved and newer more difficult equations are then discovered, so essentially more power (i.e. more powerful processors and the power drawn by them from the grid) is needed to then solve the more complicated problems... hence the concerns that mining Bitcoin is actually damaging the environment due to the sheer draw on electricity grids.

 

People buy more and more expensive processors or GPUs to run the problems (there are even companies that have set up giant 'mining farms' or warehouses full of specially built processing computers made just for mining bitcoin — this is pretty much the only way to mine bitcoin effectively nowadays, rather than the days of home computers doing the work) so more power is consumed, creating more difficult mathematical problems to solve which in turn requires more power... its kind of like a never-ending chain of self-propogating issues in that respect. It has even led to a worldwide shortage of the necessary components (which has led to a massive price spike in things like GPUs, which in turn has led to things like the shortages of the new Playstation 5/Xbox consoles, etc).

 

...again, this is a simplistic kind of explanation, but hopefully that makes a little sense?

 

 

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34 minutes ago, OxonOwl said:

 

 

Is it really economically viable to run these mining farms?

 

 

 

 

Thats the big question... and one that is growing in intensity.

 

 

The big hit to Bitcoin's price in the last year came after Elon Musk denounced Bitcoin and Tesla stopped taking it as payment when they realised how bad the whole thing was for the environment (that's after Musk and Telsa essentially pumped the price beforehand though... but that's another longer story!).

 

 

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12 minutes ago, BIG D said:

Thanks but I'm struggling to be honest

lol

 

 

I'll try simpler... 😬

 

- There are really, really, REALLY complex mathematical equations that need to be solved to advance computing and computer science, etc (among other things). These are pretty much the most complicated mathematical equations ever attempted and constantly get harder and harder (as one equation is solved it creates more complex equations).

- To solve these problems really powerful computers are needed to constantly run software to work them out. These equations can take literally years to solve even with the most powerful computers of our time.

- In order to reward people for having their computers run these problems for such a long time, a bitcoin is awarded if your machine is the first to solve a problem.

- Bitcoin is then used as a currency, etc, so has an intrinsic value to reward people for using their computers to constantly run and solve these problems.

 

 

To put it in context, I think on average now it takes the more powerful computers of our time around 5 years to achieve one bitcoin.... so imagine the power needed to constantly run a massively powerful computer at its maximum computing power (and all the fans/cooling needed to stop it from overheating) for five years... Then expand that out to huge warehouses of 'mining farms'. That's the environmental problem we face with it.

 

 

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4 minutes ago, BIG D said:

I wish I hadn’t asked

 

lol

 

Ok I'll give it another try

 

A computer expert or team of experts made a computer program, where if you ran it on your computer your computer could find you what they called a bitcoin - which was intended as a currency

 

It became popular and people actually started using these bitcoins they found as a currency

 

Every time a bitcoin was found it became harder to find the next bitcoin, so at first a computer by itself could find a bitcoin, but as it became progressively harder it has evolved to what we have nowadays-a load of computers are needed to find one bitcoin 

 

lol 

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2 hours ago, Ellis Rimmer said:

Ok I'll give it another try

 

A computer expert or team of experts made a computer program, where if you ran it on your computer your computer could find you what they called a bitcoin - which was intended as a currency

 

It became popular and people actually started using these bitcoins they found as a currency

 

Every time a bitcoin was found it became harder to find the next bitcoin, so at first a computer by itself could find a bitcoin, but as it became progressively harder it has evolved to what we have nowadays-a load of computers are needed to find one bitcoin 

 

lol 

 

That's a better, more concise explanation! 

 

 

It is important to note that Bitcoin was created to be totally decentralised and not controlled by any person, state or entity. The idea is to democratise currency on a worldwide level.

 

Effectively, Bitcoin controls Bitcoin. It runs on a 'blockchain' system. Every computer connected and mining is also validating every transaction to prevent fraud and other issues (some of the complex computing problems being calculated are validations of the system, integrity and transactions, etc).

 

It is really complex, as you'd expect for something like this... so it does take a lot to get your head around it and it is understandable people don't understand it properly (I'm not sure I do totally!).

 

 

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On 30/07/2021 at 06:17, OxonOwl said:

 

 

Is it really economically viable to run these mining farms?

 

 

 


Depends on 2 variables. The cost to mine and the value of the Bitcoin you produce.

 

2 or 3 years ago some of the Wall Street investment banks weren’t just trading (buying and selling) crypto, they were devoting massive efforts to mine it too.

 

But they all pulled out if mining when the cost of the electricity rose and the value of the crypto fell.


The owls are not what they seem.

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