this program is advertiseing btcoins but not eplaining what they want to pay me to do and why dos it need to be done? its running algorithms but what is it doing that for? is it trying to protect something and if so what is it they are trying to protect and why?
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it is now corrected.– vincentJul 23, 2014 at 4:11
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1possible duplicate of What is a good way to concisely explain Bitcoin?. See also What exactly is Mining?– Nate EldredgeJul 23, 2014 at 4:27
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2Still terrible question: You don't say what "this program" is. You ask multiple questions in one. You have done 0 research yourself, as all of those questions have been answered many times already. And it's full of confusing typos, indicating you don't even spend a few minutes to ask a concise question.– JannesJul 23, 2014 at 15:36
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1 Answer
I have not very clear what exactly you are asking, but I will try to answer according to what I think you are asking.
The purpose of Bitcoin is creating a new currency where neither governments nor private institutions will have the power to manipulate. As you may already know, when a country needs more money or has financial problems, they just push a button and make new money out of the blue. Thus, the value of that money compared to the rest of the world is devaluated, which has two important implications:
That countrie's exports are cheaper, so other countries will be willing to buy their goods. That countrie's imports are more expensive, so inside the country people will start to buy goods made inside the country because the imported ones are too expensive.
This will also lead to a raise of prices of the products that are done with raw materials from other countries which in the end will lead to a devaluation of the money people has been keeping in the banks. They can now buy less things with the same money they had.
Bitcoin, being decentraliced and independent can not be devaluated, transactions are quite fast (an international money transer takes about 2 days if you do it with a bank and few minutes if you do it with Bitcoins -the truth is it doesn't take time, time is taken waiting for confirmations of the transaction-) and the number of coins that will be mined is limited (about 20million).
Some stores start to see the potencial, people can pay and no commisions are applied by banks so they have that as an addition for starting to use that coin.
Now we get to the point... what do they want you to do to earn money? Nothing, nobody wants you to do anything, if you think someone is interested in buying Bitcoins then you can try to mine some and sell them to those that want them, you are creating coins and selling them, so it is up to you to decide if you want to do that.
Who gives the value to the Bitcoin? As always, people and the trust of the people on that coin. Who gives the value to the dollar, the central bank? no, it is the people that trust that if they go to a store and give a painted sheet of paper called money to the shopkeeper he will give them goods for it.
So people willing to buy Bitcoin and people willing to sell Bitcoin give the price to Bitcoin itself. If demand is higer price will rise, if demand is lower price will go down.
