OMG I'm facepalming at this "you're at risk because of bitcoin" article:
http://www.news.com.au/technology/online/hacking/were-all-at-risk-from-bitcoin/news-story/297a95b911e00152ffe887141458b8f5WEBSITES are using the power of your computer to tap into the current Bitcoin and cryptocurrency craze, hijacking your processor to ‘mine’ for coins while you are online.
It's pretty crappy that some sites are doing that. But they're almost certainly
not mining Bitcoin. Home mining bitcoin would suck balls.
It’s called cryptojacking, and runs instantly when you go onto certain websites, with no real way to tell on the surface if your computer has been compromised for digital profit.
Except your whole machine will slow to a crawl, because these things apparently utilize 100% GPU until you close the page. Just close any page that's really fucking slow, problem solved.
If it has been compromised, not only is your information at risk, but your computer could overheat and eventually wear down over time if you continually get attacked.
How is your information at risk because your GPU is running hash functions? A mining script is also too busy mining to get around to hacking your system. Also, yeah I guess your CPU could overheat if you never close the tab that has the exploit in it, but it's not like this thing is GPU mining ...
Even if you have never owned any Bitcoin or other cryptocurrency, your computer could still be used by hackers, as what they want from you is the power of your processor. With other people’s computers working for them, hackers will then use an algorithm to find Bitcoin or other digital currencies anywhere in the world.
Oh for fucking fuck's sake. "find bitcoin anywhere in the world" what the fuck? How ignorant can journalists actually get? you don't
find bitcoin - you
process transactions, and the reward for doing so is that you get to create
entirely new bitcoins as a free transaction at the start of the new transaction block you created. The coins are merely the incentive for doing the work. People are perennially confused that crypto has something to do with the coins themselves - it doesn't. The crypto is just "proof of work" and security.
Bitcoin is a cryptocurrency. Twenty-one million of them were released in 2009 and they weren’t worth much as they were pretty easy for tech savvy people to find.
No they fucking weren't. Getting bitcoins isn't "where's waldo?" and 21 million bitcoins
don't even exist yet. 21 million coins is the total that are going to be created from now until the year
2140, and each transaction block creator gets a
few bitcoins.
But they’re a finite resource. Think of them like gold. If there’s a lot of gold being mined, the price isn’t high. But inevitably, the world will run out of gold to find in the ground, so the price of it has risen.
It's
nothing to do with scarcity. The rate at which bitcoin is created is stable by design, it's designed to produce a set amount per day, that only goes down every 4 years or so. In fact, the rate of creation
hasn't changed in years.
The world was in the grip of the Global Financial Crisis, so many people had lost confidence in traditional markets. So purchasing a finite resource — such as bitcoin — made sense. And the price went up.
Well, no. Bitcoin didn't go up until 2013, well after the financial crisis. This is unrelated. Also, dog poop is a resource also produced at finite rates, but the price of
that isn't skyrocketing. The price isn't rising because "scarcity" because that doesn't explain anything. Scarce things don't automatically rise in price.
But once many of these Bitcoin were ‘mined’, it became much harder to find. It was easier to trade the coin in a more traditional way, so non-tech savvy people were buying the currency. And their value has now skyrocketed.
Oh, christ. The rate of bitcoin
hasn't changed. It's more costly to mine purely
because more people are mining it now
because the price is high. The difficultly to mine bitcoin
changes dynamically based on how many miners there are. "mining difficulty" is
driven by price, it's not what
drives the price.
Doesn’t matter if you own Bitcoin or not. You’ve got a computer with processor. And that’s power that computer hackers want to use to mine for bitcoin around the world.
The "around the world" thing sounds like this idjit thinks the coins are hiding out there like Where's Waldo, rather than it's a network of transaction processors, and whoever produces a viable block the quickest gets to write their own transaction in, "finding" coins that never actually existed before
right on your computer. In fact, they didn't "find" anything. They
made it.
These illegal cryptojacking operations need to build huge help to perform the algorithms needed to find the few Bitcoins left that aren’t being traded on the open market. And they can’t do that unless they build extremely expensive servers. So they need to find more power on the cheap, which is why they’re infiltrating websites that regular people visit all the time, and putting a script on there.
Again, it's wrong because the
amount of bitcoin produced per time period doesn't change (at least until 2020). The difficulty mining is purely because more people are doing it. Also, nobody would mine bitcoin on CPUs since it's silly. Mine a coin that designed for low-power systems instead.
Because there is only a finite amount of Bitcoin, it means it’s stored somewhere locally for you. Some people store theirs on their own computer’s hard drive, which actually has led to many people losing millions of dollars worth by throwing out their drives.
Oh, lol. Bitcoin exists is in the
blockchain. What you store locally is your public and private keys, for receiving and sending bitcoin, respectively. Bitcoin isn't
on your drive, that makes no sense at all. It makes a lot more sense if you actually understand a little about
how it works. Also to highlight:
Because there is only a finite amount of Bitcoin, it means it’s stored somewhere locally for you.
WHAT THE FUCK EVEN? Firstly, bitcoin
isn't stored locally, or even in
one place. Your bitcoins are replicated in
every mining node. It's what allows them to continue existing even if one machine goes down. Secondly, what on Earth would there being a "finite amount of bitcoin"
have to do with it "being stored somewhere locally for you"?
CAN I MINE MY OWN BITCOIN?
Probably not. It’s 2017, they’ve been around close to a decade and are now worth a fortune. It’s not like they’re lying around and can easily be found.
Oh god dammit, I feel dumber now. The
cost to mine coins always lags
behind price - or a bit higher, but only if people expect the price to be higher in the future. If people are
losing money then people
stop mining which means the profitability of everyone else improves relative to the price. What has
changed is that the elite miners have far more efficient mining rigs that you do.
They dictate the cost of mining because they have the good hardware which can turn a profit from doing so. Basically, people with inefficient hardware are priced out of the mining market.
Bitcoin will only ever have 21 million coins available due to the algorithm in which it was created, meaning the less there are left to mine, the greater the value until it eventually reaches its peak.
Mr Dunworth’s way of explaining it is to think of it like limited edition shoes. Nike might only put up 10 sets of new limited edition sneakers, if someone destroyed a shoe, there would only be 9 left and those 9 would be worth more and so on.
Like Bitcoin, when it first was released, there were 21 million, which were much easier to mine then and come across meant the value was much lower. Now, like the Jordans, as there are less and less Bitcoins to come across, value has skyrocketed.
Oh god, just incoherent bullshit. No, there weren't "much easier to mine" which meant the price was lower, they were easier to mine because there
weren't many miners. The rate of mining coins wasn't a whole lot much more than it is now.
Generally, the rate in which Bitcoins are available halves every four years, until eventually all 21 million have been found.
Again "found" is bullshit. You
make a few coins when you create a new block of transactions for other people. And the amount is in fact a
completely arbitrary decision by the creator. It could stay the same, rise over time, or go up and down in sine wave, making infinite bitcoins. Or it could just be any third-party random number of coins per block, e.g. it could be based on the weather. It's
arbitrary.Years ago, to mine Bitcoin, you could have found some using your laptop in just a few hours, however these days due to the limited supply, it’s much harder.
Again, this is counter to the truth. "limited supply" isn't why it's hard. "stiff competition for mining" is the real answers - more people want to mine it since the
price went up.
HANG ON. EXPLAIN BLOCKCHAIN.
Blockchain is basically a decentralised computer system which can govern how information is sent across the internet, and is essential to cryptocurrencies. By decentralised, we mean there is no single computer, but rather information is verified across millions of different computers across the globe.
While in the real world, I can just physically give you something and you now own it and I don’t, it’s not quite that simple digitally. Think about when you send someone a photo over email, you’re not really sending that photo itself, but creating a copy of it and sending that copy to someone. You both now have the photo. This wouldn’t work in a currency world, because no real value is being sent.
So this is where the blockchain fits in, it allows people to send value (not just money) over the internet, by coming to an agreement on who owns it across millions of different computers. Think of it like Paypal, who could be the middleman in governing that yes you did send $100 to James, and now you have $100 less and James has $100 more. But with blockchain, there is no central company or organisation that looks over this that could potentially tamper with it.
If you were to try and tamper with data on the blockchain, you’d need to do that somehow on all of the millions of computers in which the data needs to be verified across, making it an essentially unhackable way of sending goods.
This lays the backbone for Bitcoin and other digital currencies, as it allows them to have an intrinsic value, as you can create a finite number. The blockchain will set up the agreement between its massive network that you sent those 2 Bitcoins to James, and that they are now his and you no longer have any ownership of them.
The blockchain itself has huge value not just for sending Bitcoin, but could be used to send anything of value — think the deed to real estate, the ownership of your car or even to verify information in databases to help thwart hacks.
While it currently is only really being talked about with Bitcoin, you’ll be hearing a lot more about blockchain as it starts to become more important in all our digital lives.
More or less coherent, except the guy has no fucking clue about the
blocks in the blockchain and how
miners make them.I mean, this
should be basic. An explanation of
what coin mining is, how it fits into the block-chain idea, and
why it was set up the way it was is in fact
simpler and more sensible than the "21 million bitcoins were created. They could be on your hard-drive, it's a global Where's Waldo race to find them" explanation, which is patently nonsensical and explains
nothing.