24 Dec '12, 12pm

Bitcoin's unique properties are similar to those of gold though has new properties due to its ethereal nature: #Bitcoin

"Are you saying that these 'miners' essentially create bitcoins out of thin air (which they then award to themselves)? Or are they simply paid a fee by the transaction initiator?" -- OK, so let me step back a bit and clarify. Bitcoin is a protocol which requires people to "mine" (verify transactions) in order for other people to be able to send bitcoins. The protocol states that there will be a maximum of about 21 million bitcoins released in the process of verifying transactions (mining) with the goal of: Creating the initial supply of bitcoins. <-- this is a major point and it's the reason why bitcoins are "created out of thin air" Allowing people to transfer value via bitcoins. <-- we need #1 to do #2 (no poop jokes plz) Note that the miners don't give the bitcoin to themselves, the bitcoin release "mechanism" is built into the protocol. And it's a distributed protocol,...

Full article: http://www.reddit.com/r/Bitcoin/comments/15burs/til_bitco...

Tweets

Free holiday bitcoins! #bitcoin

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