Anyone know how bitcoins work?

[Ruby the Liberal]

If I want to buy something that is EUR 102,00 and Bitcoins are at $150.463793 (mx.gox current price) how does that work? Do I spend $150 and then turn the full bitcoin over to the retailer? How do you the exchange rate spread?

I googled a few sites but they all seem to be rather technical and/or "why bitcoin" - so if anyone has a link to unmystify this that would be great.

[JVS]

1. You sign up and the FBI and NSA take note.

[Ruby the Liberal]

2. !

Well, there is that.

Only asking because they offer a discount for bitcoin. Since I am not in a rush, figured I'd ask.

[bhikkhu]

13. I've looked at it a little bit

just enough to figure its not worth the learning curve. The whole thing with electronic wallets, and the elaborate transfer protocols...I don't trust my computer enough to use it as a bank.

[Drew Richards]

3. Bitcoin is a valuation on decrypting data hash data to be specific

If you have unlimited or low cost resources on the internet and have some fast computers to be used for decryption work you can share resources and acquire bitcoins...or you can buy bit coins to purchase stuff from bitcoin vendors...mostly porn drugs knives and guns....dont bother the hases are so hard to decrypt now that it takes special asci processors to decrypt even a tiny bit of a hash.

[Ruby the Liberal]

4. Well, I am not looking to decrypt anything

Just checking out the discount option like I would google for a coupon code. I should probably stick to amazon.com. Heh.

[tenderfoot]

5. I don't know much about them but found this article:

http://lifehacker.com/5803124/what-is-bitcoin

[madinmaryland]

6. Hmm. " This makes it attractive to drug dealers and/or privacy advocates"

BTW. Welcome to DU!!

[Ruby the Liberal]

8. Maid!

Hoping life is treating you well back in OH. Good to see you!

[Ruby the Liberal]

7. So from what Drew Richards posted,

Am I understanding correctly - you can't actually buy bitcoins - you allow your computer to be used by who knows what for its processing power? And get "credits" for that?

I was part of the Haystack group in 2009 with several computers set up and logged in from home, but this seems a bit nefarious. At least then I knew what I was doing. This is like opening Pandora's box.

[Drew Richards]

9. No you can also buy bit coins from certain exchanges and a couple banks in NY deal in bitcoin

Exchanges..again though its a nefarious and limited market of goods and "sexual services" offered in exchange for bit coins...please think twice...

[Ruby the Liberal]

10. Yeah, I'm thinking this is way beyond shady

Out of my league on this deal for a measly 10% discount on an aboveboard/legal purchase. Guessing the site owners have other lines of business or are off-the-chart Libertarians.

Thanks for your help, Drew. Something I always wondered about but never had a reason to ask.

[pnwmom]

11. My feeling is that it's kind of a pyramid scheme -- just a lot of hot air. I'd avoid it. n/t

[Drew Richards]

12. You are welcome...and if you really want to see how shady try doing a search on bitcoin mining

scam..it will shock you....

[Ruby the Liberal]

14. Whoa

More than just a little information on that topic.

I am glad I asked here and not some bitcoin/libertarian fanboi site.

Thanks Drew.