Is bitcoin building the matrix?

Has anyone seen bitcoins worth lately??? When I very first started studying bitcoin a year and a half a go it was worth $700... Today it's worth is over $5,000... that's a 39% markup.... it's worth more then gold and silver, maybe even combined! What I don't get is when did math become so valuable? Mining for bitcoin on your computer, is a program that's designed to solve "simple math" equations. Your awarded based off of your computers ability to solve the block. If your rewarded, your pool who are other miners, also get pieces of your winnings. As well as your pools ratio goes up, in comparison to the other pools. My question is when did math again become so profitable? What is it building? It has to be doing something or else why would it be so profitable... I can do basic math on my hands, I don't know if two cents really gets a dollar back?

a reply to: thefourthjokerscard

Like any currency or precious metal, its worth is measured by the faith put into it. If everybody decided it was worthless, it would then be worthless.

Money has been numbers on a screen for years now. It has a totally made-up value and is practically worthless other than what the status quo dictates.

I hardly ever use cash, my card is much more convenient. The only time I ever see my money is when it is numbers on a check.

With that in mind wouldn't it be very easy for those in power to have virtually unlimited money at their disposal? All they'd have to do is put as many zeroes in their bank account as they wanted.

It actually broke 6k today. new ATH baby!

If the math is building something, then the mining community is being kept in the dark about it. But i could see it! Anyways, the electricity and hardware required costs big money, and the rewards for solving a block halve over time, thus the miners must sell higher to remain profitable.

Really though - the value is simply because it is finite. Unlike the false fiat system in place worldwide today. Bitcoin is strictly digital. Same as 99.9% of fiat. Only difference is again, bitcoin is finite. There will never be more than 21 million. And the original devs hold around 4 mil off of the market as well.

That all being said, bitcoin is having a huge scalabity/forking debate crisis right now. Nobody new to the game should invest now. It will pull back before the end of the year. Bigly. Likely november -30% at least.

My question isnt of its value and how it is resouresourceful, more like what is this math doing?

a reply to: lightedhype

Why is my computer solving math problems??? Where does it go? To the bank?

a reply to: thefourthjokerscard

The math is simply generating proof-of-work data which can then be validated by the network. It is a hashcash function utilizing)/'solving' SHA256^2 cryptographic algorithms.

Google hashcash and the bitcoin wiki.

a reply to: lightedhype

I understand that its data, I understand that it's encrypted. Where is the math going???

I feel as though I'm about to read a bunch of s*** that I already know... lol

a reply to: thefourthjokerscard

No. Bitcoin and the math have nothing to do with the banks. It goes to the blockchain for verification.

a reply to: lightedhype

But why?

a reply to: thefourthjokerscard

Its complicated man. Satoshi was a hell of a lot smarter than I. But quick summary.

Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.

The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins. This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.

Bitcoin mining is so called because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground.

a reply to: lightedhype

"resistant consensus" ??? R u following me?

a reply to: thefourthjokerscard

To support a public, open ledger, of every transaction which has ever occurred on the network - the ledger being called blockchain. It is basically just a transaction system which maintains an open ledger that strives to be immune to fraudulent transactions.

The miners are using the computing power to constantly verify every transaction on the network as being genuine and valid which produces confirmations on the blockchain by the network. In return, they are awarded freshly minted bitcoin split amongst individual systems based on the amount computing power dedicated to this process.

A bitcoin transaction sent 1 second ago will be pending. 10 minutes ago will have 1 confirmation by the network recorded on the blockchain. Years old transaction will have thousands of cofirmations by the network on the blockchain - one for each block since then.

That is the best i can attempt to explain it. The developer(s) are a hell of a lot smarter than I or most for that matter.

a reply to: lightedhype

This just explains what I just did in more words...

I never paid too much attention to, nor thought a whole lot about the subject until recently. Then I got to thinking, what does the network seriously need that much power for? Look up the power consumption alone the network is sucking up, the numbers are staggering.

So I wondered what is all that processing really up to.

At first I thought perhaps the 'zombie network' of sorts might be a slick permutation of SETI@Home / Folding@Home.

Got to checking out what the "Cryptographic Puzzle" really is.

Didnt find a lot of about anyone asking this deeper question, but the one forum I found the question asked everyone seemed to vehement insist that the processing power isnt being sold off to third parties.

It still begs the question though, how much processing power would it really need to process transactions, how come more people pouring resources into it does it still maintain its dollar value climb?

It seems a Soros type could go build a billion dollar mining farm and shock the value? I mean how many transactions are actually happening in the system, how much revenue is being generating in those transactions by any one house to warrant the "value"?

So maybe there's nothing shady going on deep down 'inside it', or maybe it is a covert Google Skynet cloud operation, or maybe they're trying to turn the planet into a time machine / wormhole....

a reply to: lightedhype

Oh man, I feel like no one can see where I'm coming from

a reply to: IgnoranceIsntBlisss

It's the MATRIX! Yes now we're warmer lol I'm just a smartass

originally posted by: IgnoranceIsntBlisss

It seems a Soros type could go build a billion dollar mining farm and shock the value? I mean how many transactions are actually happening in the system, how much revenue is being generating in those transactions by any one house to warrant the "value"?

So maybe there's nothing shady going on deep down 'inside it', or maybe it is a covert Google Skynet cloud operation, or maybe they're trying to turn the planet into a time machine / wormhole....

Hey man I like your ideas and truth is nobody outside those involved in such a thing would know! Afterall - nobody truly knows who Satoshi Nakamoto really is. An obvious pseudonym which has yet actually be identified.

As for the amount of transactions being generated on the network and questions about if the amount of computing power is really necesarry? Well, go to blockchain.info to watch realtime transactions.

The transactions are many. Thousands per second at times even. And during times like that the network indeed does get bogged down and slows greatly. Confirmations take longer - which gives credence to the idea that the amount of computing power is necesarry.

And apparently well enough revenue is being generated for it to continue. The tx fees alone are a vast sum at the current prices.

a reply to: thefourthjokerscard

Now youre getting warmer. Satoshi is really the CIA and bitcoin is really just a system being utilized to attempt to decrypt the simulation of our AI outer space overlords that we are all apart of

If we break the sim we get to evolve a level up!


Or rather as per your OP. It is a system currently building our own simulation matrix programs.