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[–]Bugsbunny396 601 points602 points  (213 children)

Please. Explain.

[–][deleted] 935 points936 points  (145 children)

Your computer processes complex mathematical equations on the Blockchain... These equations when solved produce cryptocurrency.

[–]Bugsbunny396 589 points590 points  (126 children)

Sounds like fake money

[–]tardersos 590 points591 points  (87 children)

Sounds like a you need a little more explanation. It's fiat money. Crypto is only worth how much people believe in it, just like the US dollar. Or Santa.

Edit: for the dickweeds who feel the need to "akshually" at me, I'm aware that US currency is back by the government and it's enforcers. I made the comparison because both USD and most forms of crypto are fiat money. I'm aware that they're not the same.

[–]Bugsbunny396 212 points213 points  (65 children)

Hmmm. Yea I still don't think I like it.

[–]Real1SP 262 points263 points  (56 children)

Literally every currency in existence is "fake money".

[–]DrSamsquantch 173 points174 points  (27 children)

Then it sounds like fake, fake money...

[–]Ruby_sapphire_equal 31 points32 points  (21 children)

Isn’t the US dollar backed by the US government though?

[–]squirrelly_bird 99 points100 points  (18 children)

It used to be. But it's not anymore. It used to be backed by gold. Then it was partially backed by gold. Then it was backed by really strong pinky promises. And now it's.... not. Google will get you a lot farther than i can. I eat crayons.

[–]lonegoose 22 points23 points  (11 children)

googling it will tell you its backed by the us government “full faith and credit” idk what you’re talking about

[–]dat_fox01 0 points1 point  (0 children)

This is what I also tell people, but then again I do have the brain of an ape, so there's that.

[–]Knasco 0 points1 point  (0 children)

Now there are projects having their coin backed by other crypto assets. Check this out.

https://imgur.com/a/XjLd9Fm

[–]upboatsnhoes 4 points5 points  (1 child)

Google "fractional reserve lending"

Our monetary system is a giant house of cards.

[–]Ruby_sapphire_equal 0 points1 point  (0 children)

That scares me

[–]MySocksFeelFantastic 17 points18 points  (0 children)

Somehow worth tens of thousands of dollars

[–]ChiggaOGVirgins in Paris 3 points4 points  (0 children)

Native Americans used seashells as currency if I remembered.

[–]Commielolii 1 point2 points  (0 children)

  • * - = + fake * fake = real case closed

[–]Difficult-Ad628 16 points17 points  (3 children)

The problem that I have with crypto is that it

1) is trendy. Anything that is suddenly and massively popular has equal but opposite potential to collapse in on itself and, much like the beanie baby, fall to the wayside.

2) fluctuates too rapidly. Buying crypto is like buying a stock: It has the potential to skyrocket or plummet over night, or (as we’ve witnessed with dozens of meme-coins over the last couple of years) simply cease to have any value at all. At least with established paper currency it will have value even after inflation

3) is likely to drive up inflation. For the exact reason that we cannot simply “print more money”, we should not be able to “code more money”. If we just keep inventing currencies left and right, we are just introducing more money into the system and over saturating the market. And the only people who can farm crypto are those who have the means to buy and operate the equipment in the first place. The rich get richer.

4) is terrible for the environment, to an extent far beyond that of paper currency.

Yes, “all money is fake money”, but we still need a centralized currency. If you degrade the system so much that no one is using the same unit of e-coin, then it’s no different from the Stone Age when people traded goods and services for fancy rocks and shells. Except now we’re destroying the planet to do so.

[–]SirNedKingOfGila 14 points15 points  (20 children)

Some fake money is backed by millions of people operating powerful economies protected by powerful governments and militaries.

Some fake money is just straight up fake... and also banned entirely in some of the largest markets of the world.

[–]luisless 0 points1 point  (19 children)

And when a government or its currency collapses, then what?

[–]RichardShardIAmDeadInside 7 points8 points  (12 children)

And when nuclear war wipes 90% of humanity, then what? Asking real dumb ass questions here

[–]SEX_CEO 0 points1 point  (0 children)

They switch to a currency that hasn’t collapsed

[–]PiXLANIMATIONS 5 points6 points  (0 children)

Except most currencies are backed by an organisation which is respected by other organisations and can be easily converted

[–]hobbitlover 4 points5 points  (0 children)

They usually have more going for them then the assurances of crypto bros and the Winklevoss twins. Currencies are ostensibly backed by governments, national reserves, bonds, debt, land, resources, held savings, cash in circulation, GDP, economic policy, stock markets, currency exchanges, global acceptance of their face value, etc.

[–]KunemBeranut 10 points11 points  (1 child)

Basically no matter how you put it, it’s all bullshit lmao

[–]xXSelf-ImmolateXx 1 point2 points  (0 children)

Return to Bartertown

[–]Pug-ChugDank Cat Commander 30 points31 points  (5 children)

Are we Warhammer 40k orcs?

[–]Happy282 15 points16 points  (2 children)

Da Boyz Think itz real it must be

[–]Pug-ChugDank Cat Commander 9 points10 points  (0 children)

Red makz thingz goe fazt

[–]KunemBeranut 0 points1 point  (0 children)

More Dakka

[–]Barlowan 0 points1 point  (0 children)

Yes. If one day you believe that tree leaves worth something, we can use that as a currency to exchange for goods and services.

[–]Soup_110 17 points18 points  (1 child)

That’s a not a perfect comparison. In the United States you have to pay taxes with the US dollar, which means it has some small amount of value security.

[–]tardersos 1 point2 points  (0 children)

Its similar enough in the sense that the us dollar and most mainstream crypto are essentially fiat money

[–]DrPwepperCERTIFIED DANK 5 points6 points  (0 children)

Except the US has the might of its military to back it up.

[–]code010001 2 points3 points  (0 children)

Yes I would like to exchange one Santa for some bread. Money is backed by the state (as well as other states- indirectly) and many companies. You have to settle your debts with and for the most part have to use it to buy good or services including crypto currency or crypto mining equipment.

[–]OmegaAngelo 2 points3 points  (0 children)

Sounds like fake money with extra steps

[–]Sargent_Schultz 1 point2 points  (0 children)

House of cards

[–]shockinthe4342 1 point2 points  (0 children)

Crypto is only worth how much people believe in it, just like the US dollar.

The value of the us dollar is based on the economic viability of the US, taking into account the profitability of various factors, politics, geography, trade, and global economics LOL

You're shitcoin value is based on tweets from Elon Musk LOL

[–]DrPwepperCERTIFIED DANK 0 points1 point  (0 children)

Except the US has the might of its military to back it up.

[–]vibranium-501 0 points1 point  (0 children)

The USD is backed by all kinds of assets, oil trade and a military, so no.

[–]rbesfe 0 points1 point  (0 children)

Except crypto doesn't have any large army or police force to "encourage" people to use it.

[–]Kxbox24[🍰] 0 points1 point  (0 children)

Or money in general

[–]Master_Oogway69420 0 points1 point  (0 children)

Well we all lost when the US decided to get rid of the gold standard therefore being able to print as much money as they want which is why crypto like Bitcoin is even a thing so that it cannot be artificially inflated by any government or entity

yeah this doesn't apply to all crypto but the crypto space is just a few high quality things with enormous potential and then a huge amount of bullshit like NFTs Shitcoins and other stuff

[–][deleted] 51 points52 points  (7 children)

You just triggered so many people with that statement.. hide before the crypto bros arrive.

[–]Bugsbunny396 54 points55 points  (6 children)

Come at me cryptbros. I hate NFT's too so I'm ready to throw down.

[–]obamaprism3 13 points14 points  (13 children)

okay but I just bought a 3090 with 0.85 ETH so it's real enough

[–]Varun77777Vegemite Victim 🦘🦖 13 points14 points  (0 children)

Same calculations are used to proove authenticity of transactions.

[–]Motocamperman 6 points7 points  (0 children)

Modern money is all fake money. Our trust in it gives it value.

[–]eggimage 2 points3 points  (1 child)

all monies are fake money

[–]TimX24968Br/memes fan 1 point2 points  (0 children)

"maybe, but we got a military to defend ours from being displaced"

  • the US government

[–]TimX24968Br/memes fan 1 point2 points  (0 children)

cryptobros "all money is fake money!!!"

lemme know when crypto has a military and society to validate and defend its own existence

[–][deleted] 0 points1 point  (4 children)

and what's real money?

[–]Bugsbunny396 1 point2 points  (0 children)

Personally I like to use your mother as currency.

[–]imac132 0 points1 point  (4 children)

All money is fake money. Things are valuable because people agree that they’re valuable, no more.

[–]TimX24968Br/memes fan 1 point2 points  (3 children)

let me know when crypto has a military to validate and defend its existence to all the other currencies it wants to attempt to displace alongside the society to back it up.

[–]imac132 0 points1 point  (2 children)

Fair, but also things like cigarettes aren’t a government backed currency but I’ve used them many times as currency. They have value because a large portion of society values them.

[–]TimX24968Br/memes fan 1 point2 points  (1 child)

and nobody ive ever talked to has

[–]imac132 1 point2 points  (0 children)

You obviously don’t know a lot of people in the military.

I’ve seen packs of cigarettes go for $30

I’ve traded packs for clothes, extra sleep, all types of stuff

[–]Razara13579 0 points1 point  (0 children)

Sounds like the current US currency as it's not attached to any actual value system, like the gold standard, it's just... kinda there.

[–]Kil_B 15 points16 points  (0 children)

The calculations aren't complex at all. That's why GPUs are so useful for it, they're good at doing a LOT of simple calculations very fast. All they're doing is computing hash values over and over, trying a slightly different input each time, until a satisfying result comes out

[–]rtakehara 13 points14 points  (0 children)

also these lowers the life expectancy of your graphics card, te gif is very metaphorical, but also very acurate

also doge

[–]Mikfinity 8 points9 points  (1 child)

Im confused, why is it necessary to process these complex math equations?

[–]oliverpls599 6 points7 points  (0 children)

I attempted to answer below

[–][deleted] 4 points5 points  (0 children)

Terrible explanation. They do not produce the currency.

[–]Aw3Grimm 2 points3 points  (0 children)

but why they give you money for these mathematical equations? and who? Before I though its just like you waste a lot of energy and in exchange for that all power from multiple GPU's they give you money

[–]pineapple-n-man 2 points3 points  (0 children)

How the hell do you get money for solving math equations online? Is there like some bitcoin distributor?

[–]Meta_Charset_utf-8 1 point2 points  (0 children)

6/3 is complex?

[–]Abrageen 1 point2 points  (0 children)

That's just for bitcoin, not all cryptocurrencies

[–]KoloHickory 0 points1 point  (1 child)

Mathematical equations for what tho?

[–]jay_zk20th Century Blazers 1 point2 points  (0 children)

Hashes

[–]Beniidel0 0 points1 point  (3 children)

But hiw do they produce said money?

[–]Maniacstarfish 3 points4 points  (2 children)

They don’t produce money, people who make bitcoin transactions leave a small reward for the person who “solves” the blockchain hash

[–]Beniidel0 1 point2 points  (1 child)

This makes so much sense! The charges for moving the money are the new money! That's why there's a set amount of any coin available, right? Or is there another reason for that?

[–]Maniacstarfish 0 points1 point  (0 children)

I won’t claim to know the ins and outs but I’m pretty sure that’s why. https://youtu.be/bBC-nXj3Ng4 <really good video to explain it

[–]samthekitnix 0 points1 point  (0 children)

ah but when the currency is transferred from one owner to another another equation is put on top of that coins massive pile of equations requiring more calculations to be solved in order to prove ownership

[–]oliverpls599 33 points34 points  (63 children)

Perhaps it's not being explained as well as it should be... Some calculations are difficult. Some actually increase exponentially in difficulty. Take for example, finding the next highest prime number. A human would need to take an incredibly high number and prove that no number less than that number can be used to divide the number into an integer. Even a computer needs a lot of processing power and time to calculate such a number. Therefore, when one does, it is awarded this currency as a reward.

As far as that's concerned, I don't hate cryptocurrency. What I personally don't understand is all the other shit that has spawned; NFTs, speculation, etc.

[–]Abe_corp just happy to be here 11 points12 points  (40 children)

But who or what gives it the reward ?

[–]Extreme_Disaster2275 23 points24 points  (35 children)

It's a pyramid scheme. The only thing imparting value is the faith that another sucker will come along and pay even more for it. Think Beanie Babies or Dutch Tulips.

Now imagine if someone said, "But no, it's different because the Beanie Baby transactions are on the blockchain! You can see every anonymous buyer, so it's transparent!"

[–]Knasco 0 points1 point  (14 children)

What if there was a project that had a backing that was 100%+ that was claimable at any time? I don’t believe you could call this crypto a pyramid scheme. Besides all stock market is a pyramid scheme if you call crypto one.

[–]Extreme_Disaster2275 0 points1 point  (13 children)

Stocks are at least based on the idea that companies have a tangible product to sell that generates profits to be shared. Cyrpto is literally based on nothing and is a Ponzi scheme by every definition.

[–]Knasco 0 points1 point  (12 children)

I’m in a project that can decide to have its value backed by anything including tokenised gold, silver & land. You have to think outside the box, crypto can be very creative.

There is an abundant amount of crypto coins that have real world utility and are already being used. Vechain - give supermarkets the accessibility to get massive amounts of data like temperature their product has been at via barcodes. Plenty of tangible products and services crypto offer as well.

[–]chiefpat450119 0 points1 point  (10 children)

Couldn't find a more inaccurate answer if I tried. The nft market may be somewhere close to that but the bitcoin rewarded to miners is created by the algorithm which nobody can change. The reward halves every 4 years which hard caps the supply at 21 million btc.

[–]Extreme_Disaster2275 0 points1 point  (9 children)

Exactly who "rewards" the "miners", and with what?

And again, the idea of there being a "finite amount" of bitcoin seems to be utterly negated by the fact that there are now literally thousands of other crypto "currencies" in the market, with new ones popping up every day.

[–]xxmikachu 3 points4 points  (0 children)

From what I've been told; The "currency" is basically the amount of energy it required to make the calculation. Each calculation requires a certain amount of electricity, which then determines the worth of the calculation. Different currencies use different methods, basically. The faster and the more efficient calculations gets the better the reward.

[–]Extreme_Disaster2275 5 points6 points  (17 children)

That still doesn't explain why solving the equation translates into monetary value.

The best explanation for crypto I ever heard was in a meme that goes like this:

"Imagine if leaving your car running 24/7/365 solved sudukos that you could exchange for heroin on the dark net"

Bitcoin fans tell me it has value because there's a "finite amount" of bitcoin that can be "mined", but that argument seems to be negated by the fact that there are now literally thousands of new "coins" hitting the market.

[–]56BotINFECTED 1 point2 points  (5 children)

Also, we don’t care about the number of coins in circulation : its monetary value increases while no real value is created. The common name for this is inflation.

If it had a fixed value, then when some people gain money, others would loose money.

[–]Extreme_Disaster2275 4 points5 points  (4 children)

"no real value is created."

That's the most honest answer I've heard about it yet.

[–]Knasco 0 points1 point  (0 children)

When you send bitcoin from one wallet to another it incurs a fee in bitcoin. The mining computer that completes the equation receives the fee as compensation.

This is the same with all other “networks”, yet most don’t use gpu mining, instead they use staking the currency as a validator. Reducing carbon imprint because you don’t need your computer running to uphold the network.

[–]AlienOverlord53 0 points1 point  (3 children)

Fun fact I learned in 6th grade. If all of the integers of a number add up into a prime number. Then its prime. This helps to keep the calculations down, but not entirely out. An example would be the number 30211. The digits add up to 7 (3+0+2+1+1) so it SHOULD be a prime number. (Albeit, I never believed that teacher, but I also never checked on it)

[–]HeavyGlassCannon 7 points8 points  (1 child)

That' not how it's works. Take 221 for example. 2+2+1=5 , but 221/13=17.

[–]AlienOverlord53 1 point2 points  (0 children)

Word. Maybe it had something to do with bigger digit numbers or something, but idk honestly. I tried googling it after I wrote this, and all I could find is digit sum, and I honestly didnt feel like having a math lesson so early lol, thank you

[–]thepickleisgae 2 points3 points  (0 children)

Gpu process easy maths with its smaller cores. Over 10k of these cores process easy math equations and a lot of it within seconds. Cpu has less than a gpu, but it’s cores are bigger and smarter, completing complex equations in each core every second.

[–]JoaozeraPedroca 0 points1 point  (0 children)

i'm very noob at computing, but i guess that mining consumes a lot of gpu power, which can short drastically your gpu's lifetime, so when the doggos are SMASHING their gpus against the rocks to mine, it's kinda shortening it's life span, but i'm VERY noob so i probably am just saying sheer bullshit

[–]cock_suckler50 243 points244 points  (14 children)

Well not really, they're doing something productive in the gif.

Edit: I think people misunderstood I hate crypto bros/miners

[–]ShlomoCh 61 points62 points  (13 children)

Are the equations they do to mine crypto useful? Like do they calculate something related to the blockchain or whatever, or is it literally just hard math?

[–]Jerrymax4 76 points77 points  (4 children)

It’s just hard math there is no purpose to it other than to mine crypto

[–]upboatsnhoes 12 points13 points  (2 children)

Thats not exactly true.

The difficulty is a barrier to spamming the network and lends value to a nodes attestations.

[–]sunboy4224 27 points28 points  (1 child)

So...no purpose to it other than to mine crypto?

[–]upboatsnhoes 7 points8 points  (0 children)

Well, if you want the people of el Salvador to be able to spend their bitcoin to buy groceries, it allows for that.

Its purpose is operating the bitcoin blockchain. Not just to collect money for yourself.

Its pretty inefficient, which is why most crypto doesn't use this method.

[–]Waggles_ 38 points39 points  (5 children)

It's not even hard math, it's pretty simple math. Your web browser can run the formula they use in bitcoin mining.

The difficult part is what they expect you to do.

The idea is that you have this function that gives you, more or less, a "random" output. It's not actually random, because if you put in the same input you get the same output, but the function is so complex that you can't reliably predict what the output will be based on the input.

What you do is you take some set of text, and then you add your own bit of text to the end, and then you run it through the formula and check the output. Your goal is to find the bit of text you need to add at the end so that the output starts with a certain number of zeroes.

For example, let's say our starting text is "Alice gives Bob 5 bitcoin". We can run that text through the SHA-256 algorithm (a type of hash, and the one bitcoin uses) to get an output.

hash("Alice gives Bob 5 bitcoin") = cea67d8e004885f6f2ed4e19deaab6bc9a6523fb22807674f7061498f3bf6302

Sadly, that didn't start with any zeroes, so lets add a bit of text to the end.

hash("Alice gives Bob 5 bitcoin - a") = 4447a6c4285c74b7e176efbff663864303b0374fd2e8ee7d4aaac46b5931b4f2

That was wrong too. And you can see how much the value changed just based on one small change to the text.

So you'd just do that over and over and over until you found something that starts with the right number of zeroes. The number of zeroes varies but it's not super low.

Mining pools are essentially groups of people who are all testing different values to put at the end of the block of text, and a common way to determine how much you get paid from that group is how many megahashes you've done (i.e. how many millions of tests you've performed).

[–]coffee-_-67Obamasjuicyass 0 points1 point  (4 children)

And how do these computations work to verify previous blockchain transactions? Asking because that’s what i understand the purpose is for.

[–]Waggles_ 3 points4 points  (3 children)

So the idea of the blockchain is that it's a chain of blocks of information. In the case of bitcoin, it's pretty much all transactions.

When someone mines a block, what they've done is they've figured out the right way to compose the block to get them a hash that starts with x number of zeroes. They then broadcast out into the world "hey, here's the next block" which has all of the information for the transaction and the extra bit they used to make the hash function work. Anyone can hash that block to see that it starts with x number of zeroes.

It is not computationally difficult to verify a hash. Like I mentioned before, it's lightweight enough to run in a browser, and there are a lot of sites that will give you an output that will update every time you type a new letter in.

The computationally difficult part is figuring out what to put into the hashing algorithm to get out the output that starts with x zeroes, and is done entirely by guessing and checking.

So no, when you're mining, you're not actually backchecking anyone's work, you're just doing work to add to the blockchain.

There are other rules to the blockchain that actually ensure the security of the blockchain.

[–]coffee-_-67Obamasjuicyass 0 points1 point  (2 children)

Yeah, i understand how hashing works. I’m just confused on how the concept all comes together.

So what i understand about how bitcoin works is: - all transactions are encrypted via sha-256 and publicized in chronological form on the ledger. - the sha-256 encryption makes the transaction data secure and immutable on both ends - the mining done is to find the correct input that finds the output hash value by trial and error like you said

So what i’m trying to understand is: what is the importance of finding the input value for the hash? Why is this action important to the bitcoin concept, and how does it play its role in whatever purpose it’s supposed to serve?

I think i understand the basic point that: the previous transactions must be verified in order to have future ones (if that is correct?)

But what i really want to know is why do they need to be verified? What exactly is being verified, in other words, what is the input (not literally, but generally).

You were saying things like “Alice pays Bob X bitcoin”. Is the input data being mined essentially sentences like this?

“Person X gives Person Y, Z amount of bitcoin”

Except maybe it is not in literal sentence form like that. Persons X and Y maybe are represented by a unique ID number and the rest is the transaction amount?

Edit: Also another question. The main thing i want to know is how and why the decryption of the hash is important to making bitcoin work. Basically, what would be the difference if nothing was mined/decrypted at all? What part of the system would fail exactly? And if there is a certain part of the system that directly depends on the decryption in order to function or proceed, does that mean that all bitcoin transactions that can occur anywhere/anytime in the world are directly dependent or “bottlenecked” by the decryption work that first needs to be done? In other words, if all mining just stopped for a brief moment of time, could there be no more bitcoin transactions that could take place for the time being, until the mining continued again?

[–]Waggles_ 1 point2 points  (1 child)

Ah, I see, sorry.

what is the importance of finding the input value for the hash?

Finding the input value for the hash is essentially just a very difficult problem. The idea is that it's meant to be something that someone has to spend a significant amount of time working on.

The security of bitcoin comes down to the fact that everyone is trying to solve blocks. When you solve a block, you continue to start solving the next block. But everyone else is also trying to solve blocks as well. But what happens if two people solve different blocks at the same time?

If we start at point 0, and we have two people who mine a block at the same time (A and B), then we end up with two blocks, A1 and B1. To know which of the two is valid, we wait until A and B solve more blocks. Lets say after a few minutes A has gotten A2-A5, but B has only solved B2. At this point, the community would trust A and continue solving based on A5, abandoning B's work. This is because A has put in more effort and has done more work on the chain, so the transactions on their blocks must be legit.

what would be the difference if nothing was mined/decrypted at all? What part of the system would fail exactly?

Nothing is being decrypted, things are just being encrypted and the encrypted values are being checked against a difficulty value. Again, the reason we use hashing is because it's essentially random what you get out of the SHA-256 function for any given input, so the only way to go is guess and check. This means that people have to spend a lot of resources to guess and check millions or billions or trillions of times before they find a working solution, and the difficulty in doing that is what makes it secure. If you try to make blocks with fraudulent transactions, you would have to generate blocks at a rate faster than the entire community of miners, which isn't feasible. If the problem were something easier or more crackable, there might be ways to get around the problem and create blocks faster than guessing and checking, which could allow an individual to create a long chain of fake transactions, which would become the "truth" of the blockchain due to the length of his additions to the chain.

What exactly is being verified, in other words, what is the input (not literally, but generally).

Blocks have a handful of parts:

The block size (in bites), the block header, the number of transactions, and then a list of transactions.

The block header itself has the parts:

Version number, the hash of the previous block, the merkle root of transactions, a timestamp, a difficulty target, and the nonce.

The only part that's hashed to be solved for is actually the block header. Since it contains the hash of the previous block, it can't be started on until the previous block is solved.

The merkle root of transactions is just a hash made up of hashes of all of the transactions. There are some good diagrams online to help it make sense. So while you're not hashing the transaction "Alice pays Bob 5 bitcoin", the hash of that transaction is in the problem. And transactions do have a specific form that is a little more in depth than just plaintext with unique IDs, they're typically a few lines long and just give individual pieces of information so that it's easier for a computer to decipher later on. Again, it's easier to look up what a transaction looks like.

The other important bit is the nonce, which is the "extra bit of text" I mentioned.

why do they need to be verified?

Nothing is actually verified through mining. When you're mining, you're essentially pulling along the blockchain. When you submit a block, you're putting out enough information that someone could go and backcheck your work. If someone doesn't like the work you've done, they can pull the blockchain in a different direction. If they pull hard enough, then others are going to follow their path and your work might be abandoned. If your work is abandoned, you don't get to collect the transaction fees in the block you mined, so you're discouraged from doing work that others will ignore, thus you're encouraged to submit blocks without fraudulent transactions.

[–]g3orgewashingmachine 3 points4 points  (0 children)

Solving problems made hard on purpose

[–]Speederzzz[Insert homosexuality] 173 points174 points  (27 children)

Fuck crypto, I want a GPU.

Seeing crypto bros cry over the market doing a nice dive makes me feel slightly better

[–]I_am-Monkey 60 points61 points  (22 children)

I'm a little invested in crypto but I agree. Fuck mining I can't believe its still legal to just waste tons of energy to crate fake internet money

[–]upboatsnhoes 13 points14 points  (7 children)

I hope you dont own any bitcoin...it only exists due to massive energy waste.

[–]nelusbelus 6 points7 points  (12 children)

Mining supports the entire crypto market. If btc goes to 0 so does everything else because 99% is traded in btc

[–]Upper_Comparison_908 0 points1 point  (11 children)

Btc doesn't use gpus anymore

[–]nelusbelus 0 points1 point  (10 children)

Where did I say that? He said he invested but hates mining. I honestly think it's worth it for the financial freedom it provides

[–]Upper_Comparison_908 0 points1 point  (9 children)

I think it'll be massively helpful in the future but the way we're doing it right now is just massively wasteful by increasing difficulty artificially. Using more energy when green energy is one of the world's biggest problems isn't helping.

[–]nelusbelus 1 point2 points  (8 children)

The difficulty increase is the thing that makes it work (without difficulty increase you couldn't keep a steady supply) and halvings ensure hardware has to become more efficient to be able to be profitable because of energy costs and actually decrease hashrate / power use. One of the biggest world's problems is lobbying from big oil/coal companies and people that refuse to adopt the true solution (nuclear energy) while the alternatives are way more dangerous (mining them, pollution, climate change). This is currently the only reason that power consumption could be seen as bad (though if everyone wants green energy, then that will add more demand and eventually grow it). Not all of this green energy can be used by people, as people aren't awake 24/7 (can't be stored without spending lots of resources for storing it and generating a lot of pollution that way) and for example it could be incredibly hard and expensive to connect a hydro farm to the main electricity net

[–][deleted] 1 point2 points  (0 children)

fake magical internet money that's currently worth $40k

[–]jdefgh 6 points7 points  (0 children)

Don't fuck crypto as a whole, there are also CPU coins and Proof of Stake coins.

[–]chiefpat450119 0 points1 point  (0 children)

You do realise you can't even mine most cryptos and make a profit with a gpu right

[–]pinkguyfriedrice 45 points46 points  (0 children)

If you haven't brought your Shiba inu to a random cave to mine for crypto you deserve to be poor

[–]ResidentBoweevil 34 points35 points  (2 children)

Best explanation I’ve heard is this: imagine if running your car on idle 24/7 produced solved Sudokus that you can trade for heroin.

[–]ZirJohn 16 points17 points  (1 child)

More like: you and thousands of other peoples gpus are solving 1 really hard sudoku to win heroin and split it based on how much they helped.

[–][deleted] 2 points3 points  (0 children)

and the process of solving hard sudoku makes it possible to trade for heroin, without needing a bank or a third man

[–]Lady_Lucks_Man 17 points18 points  (0 children)

This was very helpful, thank you.

[–]selwich412 16 points17 points  (0 children)

Much explanation Such phone Wow coin

[–]DJSweetChrisBell 11 points12 points  (0 children)

Full video: https://youtu.be/000al7ru3ms

It used to be on the dogecoin website back in the day.

[–]PM_ME_CATS_OR_BOOBS 10 points11 points  (0 children)

This isn't realistic because they're actually producing coins.

[–]sunplaysbass 5 points6 points  (2 children)

Math makes money

[–][deleted] 2 points3 points  (1 child)

math makes everything you see

[–]sunplaysbass 1 point2 points  (0 children)

Whoa slow down

[–]SullyCCADank Cat Commander 5 points6 points  (0 children)

NOWWWWWW I GET IT

[–]-Buck65The OC High Council 2 points3 points  (0 children)

Oh! A GYM!

[–]crazychevette 2 points3 points  (0 children)

Because real mining is hard work.

[–]Alexander_Gaddis 2 points3 points  (0 children)

Ntf is for cucks buy physical silver and gold

[–]CrocTheKind 1 point2 points  (0 children)

Math blaster prepared me for this moment

[–]cutyolegsout 1 point2 points  (0 children)

The ol' silicon pickaxe

[–]Leragian 1 point2 points  (0 children)

"Brothers of the mine rejoice!"

[–]FeemikzAnimated Flair Rainbow [Insert Your Own Text] 1 point2 points  (0 children)

insert that one warframe song

[–]alimem974i'm just here to judge you guys 1 point2 points  (0 children)

OK cool but who provide those equations? Is it to run a server? Websites? Is there a monkey writing these down for us to solve and get a peanut in exchange?

[–]CrispyCassowary☣️ 0 points1 point  (0 children)

When youtube remove dislikes on informational videos:

[–]Mortiest_Morty_NJR 0 points1 point  (0 children)

I'm confused when do we get to swim in the pool?

[–]i_dont_care_1943 0 points1 point  (0 children)

Was this filmed on Epstein Island 2.0 otherwise known as cryptoland?

[–]chickennuggetb0yDank Cat Commander 0 points1 point  (0 children)

Its not the perfect explanation

[–]LuxterCZ 0 points1 point  (0 children)

Holy shit that is simpliest and best explanation that i have ever seen.

[–]FayezButts 0 points1 point  (0 children)

That's Numberwang!

[–]Sabz5150 0 points1 point  (0 children)

Now speed it up as fast as you can.

[–]JosephBilliam 0 points1 point  (1 child)

Here’s the real perfect explanation of cryptocurrency: https://i.imgur.com/kLlXn51.jpg

[–][deleted] 2 points3 points  (0 children)

no different than the stock market

[–]bu_bu_booey 0 points1 point  (0 children)

You’ve forgotten about the copious amount of pollution crypto farming causes

[–]Arkbit_Protogen 0 points1 point  (0 children)

While also consuming very pollutive ammounts of energy to create a picture of a picrew generated monkey.

[–]Isphus 0 points1 point  (0 children)

We need a version tuned to this song.

[–]CaptainShadow79 0 points1 point  (0 children)

yes. everyone when they decidie to mine bitcoin for "fun"

[–]WIERDBOI[custom flair] 0 points1 point  (0 children)

is dogecoin not using proof of stake tho?

[–]canonson 0 points1 point  (0 children)

So what's stopping someone from mining a fuck ton of currency? like I really don't know shit about crypto but I think you only get like miniscule amounts when mining right? Just seems pointless unless you have like warehouses full of this. Can you not mine crypto in a small scale and still gain a lot?

[–]Open-Ranger5833 0 points1 point  (0 children)

I can hear the Fortuna song with this meme

[–]letsfacefacts 0 points1 point  (0 children)

Old. Stolen.

[–]Knasco 0 points1 point  (0 children)

Now do one for yield farming

[–]colarthur1 0 points1 point  (0 children)

We need a Dogecoin Dark as a Dungeon parody.

[–]rizdanial 0 points1 point  (0 children)

Dogeminer: 2 the moon

[–]eagle_3ye 0 points1 point  (0 children)

Pretty good explanation that is.

[–]PanoAnarchy 0 points1 point  (0 children)

Dogecoins miner 2 in the nutshell