BitCoin, Love it or Hate it

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Good or Bad BitCoin will be here for a long time. If you have one or more wallets I applaud you. Many Internet experts say it is the future of Internet currency that is safe and useable. Even with the theft of BitCoins recently it is still the safest form of currency.

The online thefts were do because of either poor security of the user base or just bad web design, not do to BitCoin itself. Think of a stock market and your broker is using your money to constantly but or sell stocks, but there is another trader there who sole purpose is to grab all of that money for their own needs. If your money was not there then you would not be at a loss. It’s the same with online accounts, people poll their BitCoins together to share in the data mining done to helping out BitCoins.

Data mining in BitCoins is a form of helping to solve the complicated math problems in security when creating or moving of BitCoins. As a result the computer(s) responsible for finding a solution are rewarded with a segment of a BitCoin.

At one time 3 to 4 years ago the rewards of BitCoin data mining were a whole BitCoin and one computer could carry out it. Now it takes a lot more resources to carry out the same thing due to all the competition out there. It’s gotten so competitive that some people have devoted server farms first made of computers are now made of SoC (System On a Chip) enabled systems like the Raspberry Pi and others. Since a lot of people in Internet land cannot afford the smart devices they poll their resources online to create a compatible server farm and share the reward. As a result the reward for solving the BitCoin solution you only receive a fraction of a BitCoin which doesn’t sound like much. Remember when you received a whole BitCoin back in the starting days of BitCoin is was worth maybe $0.20 us per BitCoin, doesn’t sound like much and as a result people were wasting them away on small bits of food like piazzas. Now let’s say you get a fraction of a BitCoin today (say 0.1 BTC) at the current transfer rate of 1 BTC = $567.79 us would result in $56.78 when sold. Those poor people who wasted 20-30 BTC on piazzas could have made $11,355.80 – $17,033.70 if they kept them. Using the above math a wouldn’t mind a fraction of a BitCoin today at today’s rate.

When you start out with BitCoin data mining you must understand that for you to get any reward today with one computer running 24×7 connected to the Internet will be very low, in fact you won’t be able to pay the electricity bill for that computer on any BitCoins you data mine. To get around this people pool their BitCoins together on a server farm and take another risk, they MUST TRUST the online server farm not to lose their BitCoins. The online server farm must have the latest security with all administrators passwords locked out from hacking.

Malware also plays a major reason when using BitCoins for both local storage or online storage. It’s always been a problem with computers and online data so this should be no problem today, but stats prove to us it still is.

One thing you’ll always here is “Governments Hate BitCoin”, this is due to the anonymous nature of BitCoin. The BitCoin wallets are always posted online of how much BTC are contained, but the locations and owners of the BitCoins wallets remain anonymous. This keeps governments always worried they will lose tax income or other such moneys they think they deserve to be wasted on useless spending. Virus Creators also love it because they can be paid by BTC and then split up all the booty into smaller BTC wallets and grab what they want when needed.

Another thing great about BitCoins is you can hoard them. You ask why??? Well think about it. In the days of a younger BitCoin environment one can data mine coins very easily, and if they didn’t waste them on food they would be very valuable today. BitCoins do not lose amounts when kept (like one of those prepaid Visa cards). If you have 20-30 BitCoins 5 years ago and lost the wallet on some USB memory card only to find it again, you still have 20-30 BTC but now valued at today’s price. Try and do that with a pre-paid Visa card…

Like I said before: BitCoin will be here for a long time. It’s up to you to use them or not. I keep hearing that same question all around me: Why didn’t I start with BitCoins 5 years ago??? When you asked them 5 years ago about BitCoins you got the same answer: Not sure about the technology, I cannot trust it! All I do is remind them about their answers when they ask me that question…

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