bitcoin help

So lately ive been seeing a lot about bitcoin and its varients. Ive done some research but I really don't understand some of it. I'm just wandering why it is so valuable? And ive seen a lot about "mining" but what is that? Thanks to anyone who takes the time to explain a bit more

 

It's valuable because it's versatile. It's not being regulated by the government; more by the people. Because of that, it's very risky. Before investing your time/money in bitcoins, you should learn more about it.

Mining is the process of using your computer power to help transactions which leads to newly mined bitcoins.

This is just the basic understanding of it.

 

Alright thanks. But what generates the new coins when you mine them? Like is it just randomly given to a miner or does someone have to find a certain code or whatever?

 

I'm not too sure on the process. I tried looking into it a while ago and it was too complicated for me. There are guides on google.

 

Here's some links that may help:

How to Explain Bitcoin to Your Mom

Understanding Technology, Makes for Bad Investments Says Warren Buffett

The Original White Paper the Creator(s) of Bitcoin Manifested With the Concept of Bitcoin

For the mining aspect of Bitcoin, I honestly would just suggest to not even bother because of impossibly difficult it is to produce it by 'mining' it now. Unless you just want to know the process, there's really no reason to learn from a consumer standpoint. The White Paper link I provided details the process in full. Read it and try to comprehend it and I'll answer any questions you have after that.

 

Bitcoin, in case you missed it, is a decentralized cryptocurrency that circulates through peer-to-peer network. It is so valuable simply because it has a value, and it can be used as a medium of exchange. To understand more about bitcoin, go to www.betcoin.tm.

 

Just watch youtube videos on it, there are different reasons it holds its value. I don't even know much myself.

 

That's redundant. "Something is valuable because it has value." What gives it value to begin with? Money transfers such as Western Union and bank transfers can act as a medium of exchange while being a much safer means to do so because they are insured and can be held accountable. In the overall picture, we know the U.S. is in debt, but you can take a local bank to small claims court and have a go there.

For example:
If you walk into a bank, there will most likely be branded pens that you can take with you once you leave. Pens are a dime a dozen, literally. So you could throw it out of the window on the drive home and not ever think about it again.
Now, what if you happen to bring that pen with you to school tomorrow and finals are taking place? The guy next to you taps your shoulder, "Hey, do you got something to write with?"
And you say, "Hey, do you have money to buy my pen?"

The simple concept of supply and demand applied to how much items are worth in certain scenarios.

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Mt. Gox was a Bitcoin exchange and no one can hold them accountable because Bitcoin was been deemed as an alternative. Statements from Japan and the U.S. declared that Bitcoin was an alternative and not an actual currency, much like gold or silver. The users of the exchange were therefore not insured against any losses that they experienced with the exchange.

The IRS has deemed that Bitcoin is property and therefore taxable. This supposed value that Bitcoin has will suffer even more as laws are put into place. Along with how media affects trading of Bitcoin in general. Because Bitcoin can be exchanged like a stock on exchanges, it can happen in real time. When news breaks of something detrimental in the world of Bitcoin, prices are affected.

The only real reasons that someone would have used Bitcoin in the first place is if they were laundering money, buying drugs, rebelling against regulated banking systems, or something else along those lines. Since then, Bitcoin has become more widely adopted by those who may want to try to buy it at a low price and flip it when the price is high for profit - much like a stock. Once media gave attention to Bitcoin, there was a frenzy. Along came altcoins, such as Litecoin, and people have just fell in love with this idea of virtual currency.

 

I think I got it now. Been reading around and doing a lot of research thanks guys