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Old 05-16-2011, 06:40 PM   #10
Mike Wevrick
RIP 1/19/64 - 7/23/11
Scooby Guru
Member#: 24654
Join Date: Sep 2002
Chapter/Region: NESIC
1957 Taggart Comet


I don't get it either. How do you create new bitcoins that have some value?

edit: I watched the video and read the mining section, but I still don't get it. All I got was that you create these somehow using a graphics card. Do you produce something with some real value, or is the "mining" just a way to limit supply? If the latter, how do you stop people with advanced computer skills from easily mass-producing bitcoins?

To me, if you wanted to start a global cybercurrency, it would make more sense to have it based on gold stored in 1 or more secure locations. You would convert your USD, Euros, yen, or whatever at the current exchange rate and then have a credit at the bank that you could use to do exchanges with other members. One unit might be--just as an example--one gram of gold, or a "gramau," currently worth about $US50
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