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How does bitcoin work?
| Okay, so you buy some coin, and then fairies do magic and make the price of it increase and decrease randomly.
| basically, you make a basic program that everyone uses like a browser or torrent client, and then you put coin miners on them and profit. that's how it works
| It works like the foreign exchange or the stock market: you buy at one price, hope the price goes up, then sell at another price. The price depends on the market itself: if people want coins, they'll usually be willing to pay more for them and the price goes up. If they don't, they'll probably pay less and the price goes down. A lot of people don't seem to realise that market prices depend entirely on the people buying and selling.
Basically: buy low, be patient, sell high.
| >>95743
Essentially, you are trading your real life currency for a decentralized cryptocurrency. It's almost as if you're adding money into your PayPal account to just use that as payment for online purchases (but not really).
There's more to it of course. There is no real value behind Bitcoin or any of the other cryptocurrencies. The value lies within *how many people are willing to buy, sell, and trade that currency*.
| >>95743
The amount of people that invest is how you make your profit. The more people willing to buy with or sell for cryptocurrency, the higher its value.
Thus if I invested in Litecoin today, the value of Litecoin would go up marginally, if that. Really it would not be noticeable unless a large group of people invested, as you're already seeing this year.
| >>95743
At this point the profit would have already been made. Last year April I remember Bitcoin's value being around $500-$600 (fuzzy memory). Had I purchased one whole Bitcoin ($500) then, right now I would have $13k+ sitting in my digital wallet. There's the profit. Waiting for more to invest.
| I wouldn't get too excited. I personally don't see the values going up too much anymore, especially for Bitcoin.
| OP here; thanks for explaining it.
| It doesn't work. The idea was to make a decentralized currency for libertarians, but the implementation is too slow to support widespread use (by design), it's not actually anonymous, and since it's not backed by anything people like the ones in this thread started using it as an commodity rather than a currency so now the value is too unstable to use for normal money stuff.
The profits are from people playing hot potato like in the financial bubble.
| someone had posted a video that explained realy well, ill gravedig in the dead thread and if i find it ill link it.
basically, you lend your pc to people to make maths, they pay you, you get bitcoins that are basically information of anything.
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| How do you profit, and what are the procedures of thst profit making?