Bit Coins Surpass The Price Of Silver!

That's one of the interesting things about Bitcoins as, on their own, they categorically cannot be a ponzi scheme as there can only be a finite number of them created. Also, the more coins their are, the fewer are created due to the algorithm used to distribute them, and at that point the Bitcoin economy switches over from "mining" Bitcoins as rewards to processing transactions and collecting transaction fees. The math and procedures behind it are actually quite fascinating.

This, of course, doesn't stop people from making ponzi schemes *with* Bitcoins just like people make ponzi schemes with US Dollars. :-)

I've been trying to do a little research on this topic every few days. I'm still really confused with how the whole mining process works and where you can exchange the bitcoins/litecoins.

It seems like a very interesting way to make a bit of cash on the side, but since I don't know squat about computers, I'm confused beyond belief. There are normal programs we need to mine, then we need some kind of online wallet, and then we need another program to exchange the coins for whatever your flavor is? Or does one program do everything for you?

And I figured it's just like any online game, you just gotta play it to figure it out. I just haven't gotten around to just trying it yet. Probably because I only got a laptop at home (which I've read somewhere not to use, unless you want to burn it out) and I don't want to risk my work computers from being slow or anything like that.

And another thing, why the need for so many graphic cards?

Hopefully I'll have all my questions answered here, but in the mean time, I'll just browse whatever google tosses my way.

You mine bitcoins & litecoins by running programs that either use your GPU (graphics cards) to mine. It isn't like a normal program, mining uses a buttload of energy. Some PC's (like mine) wouldn't be worth mining as it would use more electricity than it would produce in btc. The more and more btc that is mined, the more the "difficulty" raises. Obviously when the difficulty raises, its harder to get btc.

You can exchange btc & ltc here http://www.btc-e.com

Mining will soon become useless as a hobby as they are soon releasing asic computers that mine incredibly fast and will blow GPU mining out of the water. But remember, the more btc that is mined, the harder it gets to mine them so once everybody has a hold of these asics, the difficulty is going to shoot up.

And only 21,000,000 bitcoins can ever be mined.

If bitcoins were gold, litecoins would be silver.

ASIC and other RISC architecture will not work with Litecoins yet. We still have at least 6 months before they hit the Litecoin mining community.

Yes my motives may sound unclear but offsite I am getting emails from members here who are interested in Litecoins and trading.

My interest is to help you understand how these work so that if anyone wishes to trade with Litecoins they will know it is a solid form of currency trade.

I have already filled several trades and enjoy having little traceability since USD were not involved. The traditional banking system tracking history of USD has been removed.

Well it seems Bitcoin took its show on the road and
guess where they placed their 1st ATM? That's right
CYPRUS !
http://dollarvigilante.com/blog/201...-cyprus.html

I won't be. I like to be able to physically hold my assets, and silver is my favorite.

Nope it's backed by nothing just like our own dollar. People are paying to play a game winners are paid from the proceeds coming in from more players. There is only value as long as people keep playing.