Thread: Bitcoin
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Old 21st April 2011, 11:55     #24
Jodi
 
Quote:
Originally Posted by Lightspeed
Don't ask these foolish questions, just buy my coins!
I don't 100% get the economics either, but If I get more money from bitcoin than I spend on power, then it's hardly fluffy nonsense.

Basically, instead of having a central bank printing the money, the bitcoin network collectively "prints money" by this mining process. That way you don't get inflation in the classic sense, because no one person/central bank can decide to print 1000 more bitcoins and cause an inflation hike.

Why is value actually assigned to bitcoins? Not too sure, I expect it'll require sitting in to some enonomics 101 classes.
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