What exactly is BitCoin?
I have no intention of buying any even if I knew how to, but I don't quite understand how it works as currency on illegal black-market sites. I admit I have a morbid curiosity about the strange things you can find on the internet but I'm not curious enough to check out the deep web. I have unfortunately discovered that there are some images that once you see them, that's it-you can never un-see them. That's exactly why I have not and will not EVER watch 2 girls, 1 cup. I can live the rest of my life without seeing that, thank you very much.
- Anonymous2 years agoFavorite Answer
Bitcoin is not an evil thing, it's a computer geek thing.
Bitcoin is a Digital Currency that was created by a Japanese Programmer.
The reason it gets used to buy illegal merchandise, money laundering, tax evasion, and the dark web is because it's decentralized. Bitcoin is not controlled by or regulated by any government. Right now I can send you $1000 worth of Bitcoins, which is about .06 btc and no one would know and no one could track the transaction. You wouldn't even know it was me that sent it to you. All you would see is a string of numbers and letters which makes up my wallet address. At the same time I can hack into your Exchange account and steal all of your Bitcoins and there's nothing anyone can do about it.
The transaction is ran through and recorded by the blockchain but then again all that's recorded is the Wallet address. The wallet address is disposable. The thing is these exchange sites are not always U.S. based and there are no rules that force them to report transactions to the government. In fact, up until the last month when Bitcoin became popular and a household name, it was loosely on the Governments radar. Taking care of it was NOT a priority.
Once the idiots loose their-*** on bitcoins, the Government is going to make damned sure something gets done about it. Also, once these governments realize how much it's lost in Capital gains and Small Business taxes, they're going to find a way to make these Exchange sites report the transactions. The thing is in order to turn Bitcoin into actual cash you can hold, you would need to use the exchange site. You basically exchange or sell off your bitcoins then transfer the cash to your bank account.
Miners are forced to compete against eachother on a Blockchain that keeps growing in difficulty. They compete by purchasing new mining hardware. The more hardware that is running, the more difficult the blockchain becomes. Let's take Ethereum for example. A year ago you could earn 1.0 eth with a $250 Desktop computer graphics card in a matter of weeks. Right now it would take 3 months to mine 1.0 eth using 5x of the same Graphics cards
The anonymous transaction system is just what the doctor ordered when it came to selling illegal goods.
So as you can see, bitcoin started out as something simple with good intentions on making online transactions easier. It also started out as a hobby for many people who wanted to mine it. Bitcoin is one of those things that PROVES the path to Hell is paved with good intentions.
All you're seeing here is Bandwagon hopping. People do it all the time. It's kind of like the Seattle Seahawks. In 2013 no one really cared about them until they realized the Seahawks might make it to the Superbowl. Once it felt safe and once it felt possible then people were all aboard. People are Romanced when they hear a story about some guy who bought $700 worth of Bitcoins in 2012, only to see it grow to $1.6million today.
- Anonymous2 years ago
People use them on the deep web so they don't have to give their credit card details to dogey people. It's basically an online currency.
- 2 years ago
It's a payment system