History Channel Dad produced the best explanation possible:“Imagine if keeping your car idling 24/7 produced solved Sudokus you could trade for heroin.”
You put money in. Anybody with money in can take money out. You can take out only what you put in. The actual value of what you put in and take out can be different.
I think ArtyD2 nails it pretty well – at bottom it is simply a scam to separate people with too much money and not enough intelligence from some of their money which will ultimately lead to them acquiring MORE intelligence.
Sometimes, tough experience is the only REAL teacher!
Take a page from an allied field, Cryptozoology. If you can’t wrap your head around “the Loch Ness Monster”, maybe you should avoid “cryptocurrency” as well!
It’s based on the blockchain, a way of storing and distributing data, and securing the data from being secretly manipulated. The main idea is, that everybody is allowed to change it, but only in a certain way and according to a given ruleset, and any deviation from this ruleset will be detected immediately by every participant (in reality, an app is doing that for you). The prefix “crypto” indicates, that some encryption technology is applied to guarantee that.
Fun fact: Probably 95% of all people do not know how 99% of all things they use every day are working. So what is so special about the lack of cryptocurrency knowledge?
pgomes almost 6 years ago
History Channel Dad produced the best explanation possible:“Imagine if keeping your car idling 24/7 produced solved Sudokus you could trade for heroin.”
Brass Orchid Premium Member almost 6 years ago
You put money in. Anybody with money in can take money out. You can take out only what you put in. The actual value of what you put in and take out can be different.
Ida No almost 6 years ago
Crypto=secret, hidden. If people knew how the thing worked, they wouldn’t be calling it “crypto.”
Anathema Premium Member almost 6 years ago
I’ll steer clear of cryptocurrency. The rest of you can argue about it and it’s merits.
ArtyD2 Premium Member almost 6 years ago
Simple combination of ‘greater fool theory’ and ‘sucker born every minute’
Stephen Gilberg almost 6 years ago
Seems pretty straightforward to me. Its value is based on faith, just like any paper currency.
Now, if you mean to ask how it works on a technological level…
NWdryad almost 6 years ago
Well, that makes me feel better. I’m lucky I know what a block chain is.
wellis1947 Premium Member almost 6 years ago
I think ArtyD2 nails it pretty well – at bottom it is simply a scam to separate people with too much money and not enough intelligence from some of their money which will ultimately lead to them acquiring MORE intelligence.
Sometimes, tough experience is the only REAL teacher!
Take a page from an allied field, Cryptozoology. If you can’t wrap your head around “the Loch Ness Monster”, maybe you should avoid “cryptocurrency” as well!
Coyoty Premium Member almost 6 years ago
Search on “nakamoto bitcoin” to get the joke.
Spock almost 6 years ago
It’s based on the blockchain, a way of storing and distributing data, and securing the data from being secretly manipulated. The main idea is, that everybody is allowed to change it, but only in a certain way and according to a given ruleset, and any deviation from this ruleset will be detected immediately by every participant (in reality, an app is doing that for you). The prefix “crypto” indicates, that some encryption technology is applied to guarantee that.
Spock almost 6 years ago
Fun fact: Probably 95% of all people do not know how 99% of all things they use every day are working. So what is so special about the lack of cryptocurrency knowledge?
swanridge almost 6 years ago
Bit coin is a process of exchanging a lot of electrical power for the illusion of wealth.