Bitcoin is an electronic currency & payment system based on an
open-source, peer-to-peer internet protocol. There is no centralized
issuer; instead individual users volunteer computing power in effect
executing and recording the Bitcoin network’s transactions in a
decentralized way.
Why do bitcoins have value?
They have value because people find the Bitcoin protocol to be a useful means of value transfer. Bitcoins are traded freely in many markets and prices emerge based on supply and demand.
So it’s like a currency, but it isn’t backed by a government? That doesn’t seem right.
Bitcoin begs the question: “Can there exist a currency backed purely by mathematics and computing power instead of a central issuer?”
Government backed fiat currency has long been the norm. It is a system where units of currency can be added or subtracted at the whim of the issuer. Staunch Bitcoin supporters feel it’s no advantage to the health of a currency that a few people have the ability to make arbitrary changes to it. With fiat currencies, the issuing government is charged with protecting all aspects of the currency, including counterfeiting. In the case of Bitcoin, math and computing power replaces government. The anti-counterfeiting duties are done by computer code and have never been defeated. There are many other aspects to consider on the subject of mathematics and computing power currency governance. The Bitcoin project is truly an economic experiment.
Where can I buy and sell Bitcoins?
You can buy them from whoever has them and sell them to whoever wants them. There are centralized options as well as decentralized options, for example:
This seems so complicated. I just want to play poker.
We offer this information for anyone who is interested, but understanding the science behind Bitcoin is irrelevant to playing on Seals. Once you have an account balance, it’s normal poker from there. (Normal poker with low rake and fast cashouts, thanks largely to the effectiveness of Bitcoin!)
Why do bitcoins have value?
They have value because people find the Bitcoin protocol to be a useful means of value transfer. Bitcoins are traded freely in many markets and prices emerge based on supply and demand.
So it’s like a currency, but it isn’t backed by a government? That doesn’t seem right.
Bitcoin begs the question: “Can there exist a currency backed purely by mathematics and computing power instead of a central issuer?”
Government backed fiat currency has long been the norm. It is a system where units of currency can be added or subtracted at the whim of the issuer. Staunch Bitcoin supporters feel it’s no advantage to the health of a currency that a few people have the ability to make arbitrary changes to it. With fiat currencies, the issuing government is charged with protecting all aspects of the currency, including counterfeiting. In the case of Bitcoin, math and computing power replaces government. The anti-counterfeiting duties are done by computer code and have never been defeated. There are many other aspects to consider on the subject of mathematics and computing power currency governance. The Bitcoin project is truly an economic experiment.
Where can I buy and sell Bitcoins?
You can buy them from whoever has them and sell them to whoever wants them. There are centralized options as well as decentralized options, for example:
- Coinbase.com is a USA-based centralized wallet service that also allows you to buy or sell bitcoins for a small fee using your checking account.
- Localbitcoins.com is a service for connecting local buyers and sellers of Bitcoin around the world.
- Other options include exchanges like Bitstamp, BTC China, and BTC-E. Finding the most popular exchanges by volume per currency can be done by inspecting the market data on an aggregator site like BitcoinAverage.com.
This seems so complicated. I just want to play poker.
We offer this information for anyone who is interested, but understanding the science behind Bitcoin is irrelevant to playing on Seals. Once you have an account balance, it’s normal poker from there. (Normal poker with low rake and fast cashouts, thanks largely to the effectiveness of Bitcoin!)
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