I don't know if this is going to make me seem stupid or something, but with the shitstorm surrounding the whole bitcoin fiasco in ESEA, I'd like a simple explanation of Bitcoins. I've read a couple articles on bitcoins (http://www.economist.com/blogs/economist-explains/2013/04/economist-explains-how-does-bitcoin-work) and I sort of understand how they are generated, but I don't get how this converts into anything of actual monetary value, or what the point of buying/selling bitcoins is for the exchange companies.
If no-one wants to explain this, I understand because there's no reason to, but I'd appreciate an explanation as to how this works. Maybe there're even other people in the same position.
I don't understand bitcoins
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I don't know if this is going to make me seem stupid or something, but with the shitstorm surrounding the whole bitcoin fiasco in ESEA, I'd like a simple explanation of Bitcoins. I've read a couple articles on bitcoins (http://www.economist.com/blogs/economist-explains/2013/04/economist-explains-how-does-bitcoin-work) and I sort of understand how they are generated, but I don't get how this converts into anything of actual monetary value, or what the point of buying/selling bitcoins is for the exchange companies.
If no-one wants to explain this, I understand because there's no reason to, but I'd appreciate an explanation as to how this works. Maybe there're even other people in the same position.
If no-one wants to explain this, I understand because there's no reason to, but I'd appreciate an explanation as to how this works. Maybe there're even other people in the same position.
They convert because there's a market demand for them, just like oil or shoelaces convert into currency. You can exchange dollars for bitcoins and vice versa on certain websites and exchanges.
Some business, especially businesses that want untraceable money handling, use bitcoins for transactions.
They convert because there's a market demand for them, just like oil or shoelaces convert into currency. You can exchange dollars for bitcoins and vice versa on certain websites and exchanges.
Some business, especially businesses that want untraceable money handling, use bitcoins for transactions.
Some business, especially businesses that want untraceable money handling, use bitcoins for transactions.
The value of bitcoins comes from people accepting them as being valuable, as with every other currency. There are companies and private people that allow you to buy with bitcoins, so you can actually "convert them into something of monetary value".
The value of bitcoins comes from people accepting them as being valuable, as with every other currency. There are companies and private people that allow you to buy with bitcoins, so you can actually "convert them into something of monetary value".
So it's just an alternative currency in that it only has a monetary value because it is a currency? Thank you.
[edit: my grammar]
So it's just an alternative currency in that it only has a monetary value because it is a currency? Thank you.
[edit: my grammar]
[edit: my grammar]
More specifically, it's a Fiat Currency. Meaning it isn't backed by anything but the acceptance of it's perceived value.
More specifically, it's a Fiat Currency. Meaning it isn't backed by anything but the acceptance of it's perceived value.
LKincheloeMore specifically, it's a Fiat Currency. Meaning it isn't backed by anything but the acceptance of it's perceived value.
thats not what fiat currency means
[quote=LKincheloe]More specifically, it's a Fiat Currency. Meaning it isn't backed by anything but the acceptance of it's perceived value.[/quote]
thats not what fiat currency means
thats not what fiat currency means
http://i.imgur.com/764Yuub.png
this was misleading
and i was going to add you on steam to teach you all about bitches
[img]http://i.imgur.com/764Yuub.png[/img]
this was misleading
and i was going to add you on steam to teach you all about bitches
this was misleading
and i was going to add you on steam to teach you all about bitches
So it's e-money that the mafia uses so they can launder all their drug money?
So it's e-money that the mafia uses so they can launder all their drug money?
On the sidebar, i saw
"I don't understand bitc..."
Surprising lack of stultus
On the sidebar, i saw
"I don't understand bitc..."
Surprising lack of stultus
"I don't understand bitc..."
Surprising lack of stultus
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