Hencredible
Bitcoin created:
You know brute force hacking? It's when you're just guessing a lot of combination until you eventually hit the correct one. Coins are generated the same way, and when you hit a jackpot(finding a key) you will announce the p2p network, and they will verify that it's in fact true. Then 50BTC is transferred into your wallet.
Bitcoins are created at a specific rate. It follow the same pattern as a geometrical sequence
![[Image: 220px-GeometricSquares.svg.png]](https://upload.wikimedia.org/wikipedia/commons/thumb/e/e6/GeometricSquares.svg/220px-GeometricSquares.svg.png)
in image you can add infinite sequences, without ever going outside the square. The total area will therefor never exceed the area of the square. Bitcoins are being created the same way. With some modifications. Every 4 years, the rate of bitcoins being mined its cut to half.
Risk of bitcoin?
There are a few:
-Alternative krypto valuta. There are already many, lightcoin etc..
-Bug in the code, that makes everyone lose their money
-Politics, becoming illegal
-The core itself of the code itself have so far been proven safe. But a lot of the surrounding services, like mtgox, have had problems. Anolology; Gold is gold. Can't be created or destroyed. (at least not without your personal supernova), but people may sell you fake gold, you can loose your gold or people may steel it. Same goes for coins.
- What will happen when the "gold rush" is over? Will people stop backing it up, and it will become an easy target for attacks? This is something i might worry. The whole limit in supply might not be so great after all. I think it might be better with a 3% inflation every year. Enough that people would leave their hardware running.
Bitcoin created:
You know brute force hacking? It's when you're just guessing a lot of combination until you eventually hit the correct one. Coins are generated the same way, and when you hit a jackpot(finding a key) you will announce the p2p network, and they will verify that it's in fact true. Then 50BTC is transferred into your wallet.
Bitcoins are created at a specific rate. It follow the same pattern as a geometrical sequence
in image you can add infinite sequences, without ever going outside the square. The total area will therefor never exceed the area of the square. Bitcoins are being created the same way. With some modifications. Every 4 years, the rate of bitcoins being mined its cut to half.
Risk of bitcoin?
There are a few:
-Alternative krypto valuta. There are already many, lightcoin etc..
-Bug in the code, that makes everyone lose their money
-Politics, becoming illegal
-The core itself of the code itself have so far been proven safe. But a lot of the surrounding services, like mtgox, have had problems. Anolology; Gold is gold. Can't be created or destroyed. (at least not without your personal supernova), but people may sell you fake gold, you can loose your gold or people may steel it. Same goes for coins.
- What will happen when the "gold rush" is over? Will people stop backing it up, and it will become an easy target for attacks? This is something i might worry. The whole limit in supply might not be so great after all. I think it might be better with a 3% inflation every year. Enough that people would leave their hardware running.