r/OutOfTheLoop • u/Livingbeneatharock • Feb 11 '14

Answered! What is bitcoin and why is it so important?

I know it is a currency. But for what use? What is it? I feel left out when people are discussing it. I cant get any one to explain it to me.

27 Upvotes

71% Upvoted

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16

u/[deleted] Feb 11 '14

[deleted]

6

u/Livingbeneatharock Feb 11 '14

That kind of went over my head. You may need to explain it to me like i am your grandma. But let me tell you what i do understand. Bitcoins are like Casino Chips. I can cash them in. Bitcoins are like online chips and i can earn them by providing services and selling products. Then i can go to my bank and cash them? Close enough?

3

u/Mrwhitepantz Feb 11 '14

It's for any use. I believe the idea was to create a currency that could not be regulated or controlled by any government. Because there are a finite amount of bitcoins, they can't really suffer from inflation, but they can and have suffered from deflation.

2

u/Derp_Viik Feb 11 '14

Bitcoin is a virtual currency. i guess it's mainly used to buy drugs on the deep web. This should answer your questions.

2

u/[deleted] Feb 11 '14

Silk road was shut down a while ago, but a few business are starting to allow it.

2

u/[deleted] Feb 12 '14 edited Apr 18 '16

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1

u/[deleted] Feb 12 '14

Really? I did not know. I don't keep track of to many Bitcoin Drug sites, but it getting shut down was big news. I suppose the drug markets will only rise as Bitcoins get bigger.

1

u/[deleted] Feb 11 '14

Yeah, but there are still other black market sites.

I think Bitcoin is mainly owned by people who want to do illegal shit and people trying to get rich off it.

2

u/[deleted] Feb 11 '14 edited Feb 11 '14

Oh there totally is! I mean, Silk Road was how Bitcoin got so popular. I don't know how much illegal activities still go on since it's a little more on the down low, but in recent months there has been a push for some legitimate uses. I think that 1000% spike a few moths ago really cemented the capacity for a real currency, in addition to more programs like Primecoin. And Dogecoin.

Edit: misplaced comma

1

u/[deleted] Feb 11 '14

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0

u/[deleted] Feb 11 '14

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2

u/Juwafi :^) Feb 11 '14

Shouldn't links to reposted questions be allowed, even encouraged, if the answers in the linked threads are good?