Advertise with us (we do not endorse any site advertised)

Author Topic: How the Online Money Bitcoins Are Taking Over IRL  (Read 1557 times)

0 Members and 1 Guest are viewing this topic.

Offline bitcoinforum.comTopic starter

  • Administrator
  • Legendary Member
  • *******
  • Joined: Nov 2011
  • Location:
  • Posts: 1497
  • Country: bz
  • Thanked: 52 times
  • Karma: +40/-1
  • Gender: Male
  • The Bitcoin genie is already out of the bottle.
    • View Profile
How the Online Money Bitcoins Are Taking Over IRL
(By: Nicole Capo)

Don’t trust the banks? Consider investing in Bitcoins — it's the online digital currency of the future and it's gaining in popularity.

Although it's status as a currency was a bit rocky when it started getting mainstream attention in 2011, due to the low amount of transactions and currency circulating the Internet, Bitcoin is now poised for a takeover. Popular websites Wordpress and Reddit have recently decided to start accepting the coins for their transactions, and some banks are also looking to start getting involved. The money is even making a leap into the real world with the promise of an upcoming debit card launch. Want to buy minutes for your wireless device? It can help you out there too. That, coupled with the fact that one Bitcoin is currently worth about $40, only goes to show how popular the intangible currency is quickly becoming.

The coins are not associated with any government or cleared through a central server. Instead, they’re distributed through a peer-to-peer network, similar to the way torrents work on BitTorrent. To generate new coins, users also run algorithms that solve puzzles. Each time a puzzle is completed, the user is rewarded with Bitcoins — but, don’t think you can just start churning out money. Each new puzzle is significantly more complex than the last meaning they take plenty of time to solve, there's also finite amount of Bitcoins that will ever been produced, and these Bitcoin “miners” can end up spending tons of their own dollars on the necessary equipment, just to break even.

The allure of such a system can also be a pitfall. Because there’s no real regulation over the money, hacking into the personal “wallets” of the people who use the system isn’t an entirely tough nut to crack. Just last September, one operator had 24,000 Bitcoins stolen from them. Bitcoin has also garnered notoriety for being the currency of choice on the underground drug marketplace Silk Road. Some critics worry that the lack of regulation will lead to money laundering.

But, as long as the value continues to rise — and more and more legitimate organizations and businesses accept the digital cash — it doesn’t seem like Bitcoins will be disappearing any time soon. In fact, part of their recent leap in value the occurred within the span of just a few days.

Leave it to the computer geeks of the world to figure out a way to generate wealth without ever having to leave their caves.

[Pic via Flickr - Zach Copley]
"Your keys, your Bitcoin. Not your keys, not your Bitcoin." (Andreas Antonopoulos)
Latest stable Bitcoin version
Latest stable Electrum version Bitcoins & The Future Of Online Currency

Started by

Replies: 0
Views: 4780
Last post April 17, 2012, 11:57:05 PM
by Are Bitcoins a safe currency to use for online casinos?

Started by

Replies: 0
Views: 1502
Last post January 16, 2013, 11:37:05 PM
by Is Online Gambling Legal If Bitcoins, Not Dollars, Are At Stake?

Started by

Replies: 1
Views: 1354
Last post June 27, 2013, 11:01:12 PM
by pmcontent
EBay eyes use of Bitcoins in online commerce

Started by

Replies: 0
Views: 888
Last post November 06, 2013, 05:11:05 PM
Earn money online without investment

Started by zeroone

Replies: 1
Views: 2119
Last post April 09, 2016, 05:53:08 PM
by poorkie

your ads here