05 Aug '12, 2am

Fantastic Bitcoin interview on Free Talk Live #FZB #spon

1. A very hard mathematical problem is made public in a network of computers. First computer to break the problem gets 50 coins. 2. Computer power is not free, it costs electricity to run a computer. As such it costs more to "hack" yourself to a bitcoin than to BUY one. Similar to gold backing: It's easier to buy than to mine in the ground. 3. The mathematical problem is hard to solve, but the solution is easy to verify - the entire network can tell.

Full article: http://www.youtube.com/watch?v=1ZAFGRrp_kc

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