Just herd about it today from the keiser report. Any of you guys herd of it ? How does it work ? How do u mine bitcoins ?

Ive been reading up about bitcoin online, but still not 100% sure of how it works, any1 know more ?

From their video.. it looks like a kind of scam

Do work for us (mining) and we'll pay you in this currency we just made up

yea i agree... smells like bullshit

but it seems that all you have to do is leave ur cpu on, and u can gain currency , which can be spent in quite a few places, including bullion dealers...

and what about it as a method of currency exchange with low fees rather than an income ?

criming without the clicking ?

ok u try it out and let us know how it works out for u.

hey im just here to discuss and gather info, i found this :

Points

*Bitcoin is a P2P system for financial transfer. It consists of multiple parts, a network and a client.

* The Bitcoin network is completely decentralized, similar to modern P2P file sharing programs. This is in contrast to centralized E-currency such as Pecunix and Liberty Reserve. Pecunix and Liberty Reserve are run by corporations, the infrastructure is provided by the corporation, the servers are located in a single country and owned by a single corporation and the technology is closed source. Bitcoin is a network consisting of everyone who runs a client, it has servers across the world and has CPU power currently rivaling some of the worlds most powerful super computers. There are a few open source clients, much in the same way as you can use the Torrent protocol with various clients.

* Unlike Liberty Reserve and Pecunix, bitcoins are not backed by gold or dollars or euros or anything. There is no corporation promising to exchange bitcoins for cash.

* Bitcoins have value for several reasons. The first reason they have value is because they are scarce, currently there are about ten million bitcoins in the economy and there will only ever be a total of 21 million. The second reason bitcoins have value is because they have various sought after characteristics, or are easy to use with other systems which can provide these characteristics. Some of these characteristics include untraceability, unlinkability, unseizeability, essentially impossible to shut down the network due to its massive and distributed nature, Bitcoins are also highly resistant to double spending which can be seen as a sort of counterfeiting. Bitcoins are immune to inflation and deflation prone and they can be sent through the internet with no intermediate company required to handle the transaction (peer to peer distribution). Bitcoins are also cryptographically secure against a variety of technical attacks.

* Bitcoins are mined, resulting in a fair initial distribution scheme. This can be seen as similar to mining for gold; a limited amount of the value exists in the world, and people can spend resources in an attempt to gather the value. With gold the value is a precious metal with some intrinsic value (jewellery, electronics, scarcity), with bitcoin the value is a more abstract item which also has intrinsic value (untraceability, unlinkability, unseizeability, etc).

Mining for Bitcoins is done by using CPU cycles to try and find partial hash collisions for a problem determined by the network + transaction history. The total processing power of all clients protects the entire network from double spends, and also gives the participating clients a chance of finding new Bitcoins for themselves. The probability a client has of finding new Bitcoins is directly related to how many CPU cycles they use protecting the network from double spends.

Bitcoin gets harder to mine over time. The number of sequential partial hash collisions required to get new Bitcoins goes up as more and more bitcoins are mined.

An attacker with more than 50% of the CPU power of the entire Bitcoin network is capable of doing an attack called double spend. This means that they can send the same coins to Alice as they do to Bob. This can be seen as counterfeiting. However, an attacker with greater than 50% of the CPU power is incapable of arbitrarily stealing bitcoins from you. An attacker with a Quantum computer can steal bitcoins from anyone though. Attackers falling into the first category (50%+ CPU power) are rare, the Bitcoin network has more CPU power than most super computers and it is gaining more CPU power rapidly. I have heard from a good source that nobody in the world currently has a quantum computer, including the NSA, so this is more of a theoretical attack.

The initial distribution of bitcoins is good for two reasons. First it demonstrates that some random person did not invent a P2P currency and give himself a ton of it and say hey this has value! Someone made a P2P currency with intrinsic value in its very nature, mathematically demonstrated its scarcity and 'mining mechanism', and allowed anyone to attempt to mine it while simultaneously providing a service to the entire network by protecting from double spends. Bitcoins entire mining process is backed by math, and everyone has a fair chance at mining bitcoins. As with gold, it will get harder to find new Bitcoins as time progresses. There was an initial gold rush with Bitcoins and the first people to start mining did indeed get significantly large sums of money after the currency started to become more mainstream and the supply and demand changed (much higher demand for Bitcoins intrinsic properties coupled with the provably scarce supply of bitcoins resulted in the going price for a single bitcoin rising from a penny when the network started to nearly $2 each today).

Bitcoins can be divided to 8 decimal places, so the limitation of 21 million bitcoins is not going to make it so it can not be used widespread. If bitcoins are worth 10 dollars some day, then .1 bitcoins will be worth 1 dollar. If bitcoins are lost they can never be replaced, and bitcoin is mathematically proven to be scarce, so bitcoin is inherently deflationary.