05-19-2021, 02:36 PM
(05-19-2021, 01:39 PM)kalibengal Wrote: Thank you for explaining further...I still have alot of doubt in the Crypto investments just because after reading a book on it and then seeing how guys like Elon Musk can have such a dramatic effect on it..makes it scary. I still do not completely understand the "mining of coins" etc. Im not a software guy, Im a Civil Engineer.
One of the issues is they aren't treated like securities, which means they can be manipulated somewhat easily. There is no market to halt in the event of a crash like with traditional markets. They are property and so a guy like Musk can talk about them and move them without risk of running afoul of market manipulation rules. There are no "wash trading" rules which can create some heavy manipulation instances, potentially like we saw today.
You mine based on two components in the case of bitcoin, you verify 1MB of transactions (which helps the flow of traffic) and then you have to come up with the proper hash for the work. Essentially everyone is trying to guess a 64 digit hexadecimal number. The first person who verified 1MB of transactions AND guessed the hash gets rewarded with bitcoin.
