posted on Apr, 6 2013 @ 07:35 PM
reply to post by kdog1982
Perhaps I can explain it better for you?
Bitcoin as a currency cannot be manipulated, outside of the value the consumer places on them. For instance, the bitcoin market could never be
manipulated by a person. It would only come to change if the markets change.
Much like how our economic system is supposed to work.
The # of bitcoins isn't infinite either, its finite. There is a set schedule and eventually, unless something is done, there will be no more 'mining'
bit coins and there will be no more adding to the currency.
The beautiful thing about bitcoin is that there isn't a secret cabal of people pulling the strings behind closed doors. Yes the market can be
volatile, proven by the price jump over the last several weeks, but there is no risk of manipulation from the banking industry, other than driving it
up in value due to people's mistrust in the current system.
Many countries, including my own here in Canada are developing digital currencies similar to bit coin.
Bitcoin is not managed like typical currencies: it has no central bank or central organization. Instead, it relies on an internet-based
peer-to-peer network. The money supply is automated and given to servers or "bitcoin miners" that confirm bitcoin transactions as they add them to a
decentralized and archived transaction log approximately every 10 minutes.
The log is authenticated by end-users through hashed ECDSA digital signatures (similar to a username and password) and confirmed by intense
calculations of varying difficulty, performed by dedicated servers called bitcoin miners. Each 10-minute portion or "block" of the transaction log has
an assigned money supply that is awarded to the miners once a "block" is confirmed. The amount per block depends on how long the network has been
running and how much in transaction fees has been paid. Currently, 25 new bitcoins are generated with every 10-minute block. This will be halved to
12.5 BTC during the year 2017 and halved continuously every 4 years after until a hard limit of 21 million bitcoins is reached during the year
The benefits are quite clear if you understand the technology behind it.
So that's the gist.
ETA: as for the article, well the malware is very common and bitcoin farms aren't few and far between.
I ran one temporarily where people paid me to mine bitcoins for them using high end gaming machines.
These people are doing hte same, but with anybody's PC, which unless you have thousands upon thousands or even millions of people, you won't get very
far concerning the complexity of the algorithms.
edit on 4/6/2013 by tothetenthpower because: (no reason given)