Why should you run a mining server?
Mining servers are used to cryptographically secure transactions. They provide computing power and electricity to secure transactions from others. In return you receive Bitcoins as compensation.
Whoever has more computing power is faster and therefore earns more Bitcoins. If someone wants to manipulate transactions, he would have to hold back his computing power and then suddenly strike and take over all transactions. But this would become visible with a sudden peak.
Is the price of Bitcoins manipulated?
- Bitcoin’s Price Was Artificially Inflated, Fueling Skyrocketing Value, Researchers Say
- U.S. Launches Criminal Probe into Bitcoin Price Manipulation
- Researchers find that one person likely drove Bitcoin from $150 to $1,000
- Bitcoin Manipulation At Peak Before The Next Big Crash
- Much of Bitcoin’s 2017 boom was market manipulation, research says
How does modern bank robbery work?
There’s this quote: Give a man a gun and he can rob a bank. Give a man a bank and he can rob the world.
With Bitcoins it’s even more simpler. Just open a Bitcoin exchange where you can by Bitcoins with real money. Collect the Bitcoins of your customers. If you have enough tell them you are hacked and all their money is gone. Software experts know there is no complex software without bugs.
However, a Bitcoin Exchange gives you even easier manipulation options. In the event of a crash, you can offer your customers the option of converting Bitcoins into real money more quickly for a higher fee. Whoever does not respond to this blackmail can lose a lot of money.
Deflation is something bad, isn’t it?
Most economists agree that deflation is a bad thing. Ideally, the World Bank always aims for low inflation around 2%. In the case of deflation, the value of the currency rises constantly. Therefore, money is held back and the flow of goods comes to a standstill. Today’s real currencies constantly increase the amount of money, which causes inflation. With Bitcoins this is not possible, because the amount of money cannot be changed. So it happened that a few years ago people ordered a pizza for a Bitcoin that was worth over $1000 in the meantime.
What is a blockchain and how do they become Bitcoins?
Bitcoins are just a few bits. The blockchain logs who has sent which bits to whom and that this doesn’t happen twice. With real money, a bank ensures that the money is transferred correctly. Bitcoins are transferred in signed blocks for efficiency. The fastest miner, who solve a mathematical problem will sign the block. This block is then chained into a continuous log file. Since all participants have an interest in keeping Bitcoins alive, they store this log file decentrally. This makes forgery impossible. This technology makes offline transfers impossible.
Are Bitcoins suitable for time critical transfers?
No, neither the value nor the fees for the transaction are predictable over time. The time for the transfer depends on the volume of the transactions and how much you are willing to pay for a higher priority.
Are Bitcoins suitable as crisis currency?
No -> Global Protests Reveal Bitcoin’s Limitations – In a crisis, the state simply cuts off the Internet and electricity.
Are Bitcoins money?
I can put physical money under my mattress at home if I don’t trust the banks. Bitcoins are only worth something if someone is willing to exchange them for real money. Bitcoins are therefore more like a digital check.
Are Bitcoins suitable as currency at all?
The block size of the Bitcoins limits the number of transactions to a maximum of 7 per second. The transactions of VISA are estimated at about 25000 per second. Bitcoins are therefore completely unsuitable as a global currency.
Are there successful blockchain projects apart from cryptocurrencies?
Blockchains make no sense at all for internal company projects. Any attacker could rent a cloud at short notice and manipulate the block chains at will with the computing power.
Even for banks the own cryptocurrency makes no sense, because it makes the bank redundant.
Are Bitcoins just a bad joke?
After reading here that Bitcoins are not even suitable as currency, they can only be a bad joke, right? That’s what the Internet thought and invented as a parody the Dogecoin. This was only meant as a joke, but the value increased so fast that they are now traded as a serious cryptocurrency. This is finally also the explanation why today’s cryptocurrencies are worth something. As long as people invest real money in cryptocurrencies in the hope of wealth, there are also profiteers who take the money from them. This does not mean, of course, that you cannot profit from short-term increases, but that you will lose everything in the long term. Today’s cryptocurrencies are not sustainable and unsuitable as a global currency.
What are BlockChain / Bitcoins good for?
It is an interesting piece of technology that we can explore and learn from. Bitcoins are an interesting approach for a cryptocurrency. Possibly a global cryptocurrency based on Bitcoins will be developed in the future. But it could also be that mankind destroys itself first and then has completely different problems.