The mystery of unavailable graphics cards

[DoomRater]

...currency only works if you have faith in it, (or is paper / plastic somehow worth a lot just because it has ink on it?)

The American dollar was originally backed by the US treasury's back stock of gold bars. This stopped being the case at some point but at one point, the American dollar meant something because it substituted an actual amount of gold that the government held.

[Naniyue]

Read the Discworld novel, Making Money. Nice little social commentary on that sort of thing.

[Amuscaria]

Can someone explain to exactly how cryptocurrencies work? I've seen a few videos explain that they use the GPUs to solve math problems, and the more GPUs they have, the more virtual money they generate. But why are the solving math problems? Do these math problems have a real-world application, or is it just random problems made for the sake of generate virual-money?

[ZZYZX]

Randomly generated. Say, "produce a hash that ends with 10 zeros".

[insightguy]

Can someone explain to exactly how cryptocurrencies work? I've seen a few videos explain that they use the GPUs to solve math problems, and the more GPUs they have, the more virtual money they generate. But why are the solving math problems? Do these math problems have a real-world application, or is it just random problems made for the sake of generate virual-money?

My layman understanding is that the entire system is based of block chain technology, which is basically a large distributed database. The idea was "hey, since we can distribute processing power to many different devices, why not do the same with databases?" (This is the most basic explanation of it I can come up with, feel free to correct or add to it.)

As for the way to actually earn it being "math problems".... think of them as the ones that actually "regulate" the currency, the best explanation I found can be found here. But in a shell-nut

The way Bitcoin works is that instead of having one central authority who secures and controls the money supply (like most governments do for their national currencies), this work is spread out all across the network. Most of the heavy lifting for Bitcoin is done by "miners".

and the bitcoins they earn is their "pay".

...currency only works if you have faith in it, (or is paper / plastic somehow worth a lot just because it has ink on it?)

The American dollar was originally backed by the US treasury's back stock of gold bars. This stopped being the case at some point but at one point, the American dollar meant something because it substituted an actual amount of gold that the government held.

And now Bitcoin is doing the same for paper money, kinda like a fish eating another fish eating another fish. I see this as more of an "evolution" (or in some parts, devolution) from paper currency.

If I'm wrong here, feel free to correct me

[Rachael]

Bitcoin is really not likely to be the currency of the future, unless banks are abolished.

It's hard to say what the future will hold for money, since everything is done with plastic nowadays anyway, but I think it's more likely that we'll transition from paper money to some form of centralized public credit/debit system worldwide, which may be managed by some international governmental authority formed by a treaty of sorts - where, unlike now, it would not be managed by private banks.

[Apeirogon]

Does anyone know what's going on here?

Gold rush of new age, cryptocurrency mining. It has much more in common than it seems.

Ends like all other gold rush, when complexity of mining become non profitable for single/small group of miner/s.
And its like, one-one and a half year, because of blocks, difficulty, cost of electricity and other.
Plus some countries, notice I dont point with my finger to "best of korea" and "successor of USSR at world arena", start to entangle cryptocurrency by its vile tentacle of "this need to be controled, this can sponsor terrorism/drug dealing/slave trade/arms trade/etc" which, OF COURSE, cannot exist without cryptocurrency.(this was irony, just to be sure everyone understood )

So better buy dogecoins for a couple of dollars and wait until prospector start sell his graphic card for half of the price.

[Bigger C]

Bitcoin is really not likely to be the currency of the future, unless banks are abolished.

It's hard to say what the future will hold for money, since everything is done with plastic nowadays anyway, but I think it's more likely that we'll transition from paper money to some form of centralized public credit/debit system worldwide, which may be managed by some international governmental authority formed by a treaty of sorts - where, unlike now, it would not be managed by private banks.

The way I see it crypocurrency isn't here to stay but blockchain banking of actual normal currency is. One source I read described it as a world where everyone could be their own bank teller.

[Reactor]

AFAIK gold is still used for substantiation of money value. During the crisis of 2008, China began to hoard gold, and managed to survive the crisis with more or less unharmed. I guess gold will stay with us for a while (which is not a problem, as I prefer something physical as opposed to an abstract series of 1s and 0s).

[Graf Zahl]

but blockchain banking of actual normal currency is. One source I read described it as a world where everyone could be their own bank teller.

That will never happen. Most countries are heavily regulating their banking infrastucture for very good reasons and since the entire idea is to get around the banking system it is a substantial threat to economic stability.

In addition, the entire thing is way too resource intensive and prone to abuse.

My personal expectations for the future of money is that not much will change. Increased efficiency will make more payments cash-less, but that will be the extent of it. If you think about it, most of what you spent isn't done in cash anyway. For me it's €50/month on average, all regular payments are directly withdrawn from my account and any larger purchase is paid by credit card.

[Gez]

Can someone explain to exactly how cryptocurrencies work? I've seen a few videos explain that they use the GPUs to solve math problems, and the more GPUs they have, the more virtual money they generate. But why are the solving math problems? Do these math problems have a real-world application, or is it just random problems made for the sake of generate virual-money?

It is 100% useless, it has no outside purpose, contrarily to stuff like Seti@Home or Foldit.

Also it's not free money, because the power you use to mine bitcoin is something you have to pay in the form of your utility bill.

[Amuscaria]

It is 100% useless, it has no outside purpose, contrarily to stuff like Seti@Home or Foldit.

Wtf? Lol. So they're burning electricity to get virtual items.

[Apeirogon]

It is 100% useless, it has no outside purpose

Just as something from cotton paper with picture of some ruler from past, which we name "money".
And this something have at least some value, much higher than value of cotton paper and some paints to picture from which it done, just because all agreed to consider that piece of papper with face of Washington eaqul to, example, ten loaves of bread and piece of papper with picture of Franclin eaqul to >9000 loaves of bread.
Tha-a-a-ats modern monetary system.

[Graf Zahl]

If you really think about it you'll recognize how [censored word] the entire thing is. Pity the fools which are going to lose their money on it.

[Rachael]

If you really think about it you'll recognize how [censored word] the entire thing is. Pity the fools which are going to lose their money on it.

One quote I often hear - "a fool and his money are soon parted."