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To: Errant

Scam.

Come on, money from a mathematical equation that’s solved by computers? Really?


14 posted on 03/07/2014 8:15:32 PM PST by WildWeasel
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To: WildWeasel
Come on, money from a mathematical equation that’s solved by computers? Really?

Money doesn't grow on trees, or from computer solutions to mathematical equations. Really!

As a CPA, you know that something like 97% of our money is nothing but data entries in an accounting ledger in the banking system. The banks clear our transactions to ensure that we only spend money that is on our account.

The banking system also creates money out of thin air (not from trees) based on their banking rules and decisions of banking officials.

Bitcoin is a massively distributed global ledger in a peer to peer network of computers. The system does the same work that the centralized banking system does, but in a decentralized system.

Transactions are digitally signed to ensure only the owner of the bitcoins being transferred can transfer them. It ensures that bitcoins being transferred are not transferred more than once.

The system generates new bitcoins out of thin air (not from solving math problems), but at a predictable rate. It awards these to network nodes that do the work of securing the global ledger (which does require a lot of computation). The new bitcoin generation rate diminishes over time, so only a finite amount will ever be generated.

15 posted on 03/07/2014 10:25:10 PM PST by Database
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