#bitcoin #TOR #internet #security #anonymous
Recently we discussed using TOR to browse the deep web and find shops and activist groups. We discussed the ability to actually buy things on an anonymous browsing service, but how does someone make an anonymous purchase on an anonymous browsing service? With lovely lovely bitcoin, the crypto currency of tomorrow.
Crypto Currency is a non-government backed internet based currency, which really leaves quite a gap of confusion in what "worth" really means. Knowing the US dollars buying power, or the Euro, is quite apparent, there are tons of markets and stock exchanges that rely on it to function. And with a finite about of dollars and euro's it all makes sense. Same thing applies to bit coin, there is a finite amount available, and interestingly enough its not based on how much the Bit Coin inventor produces, its based off of the public "mining" for the product with computers.
Now its getting weird and confusing a little, I know "mining" what does that even mean? Well to produce any form of money you need to work for it, a dollar doesn't just happen, someone has to put it all together and give it out. Being 100% electronic, bitcoin still has to be assembled, can't just "give it out", instead there is a long algorithm that requires intense mathematical computation done by a computer to solve and "hash out". Each time this is done, the following transaction becomes larger and more complicated, relying on more computer power and time before its completed.
With thousands of computers around the world working together to hash out these "blocks" of bitcoin, the work is being done hard and fast. Lets just say your ROI on a modern mining machine really... is in the couple of months, if not years range. Slotted with high cost of energy, not 100% sure if its worth jumping into now, maybe if you make a few pi miners it might be worth it just to see how it all works.
So now we know that bitcoin doesn't just happen, it has work put into it with a finite amount in the market. But the real beauty of bitcoin is, it doesn't exist. When I say it doesn't exist, I mean its not in a bank account, its not tied to an IP address, its not linked to your name, its stuck on a hard drive. This has a plus and a minus to it of course. Its tired to your hard drive, so what if your hard drive dies? Guess what? Your bit coin goes missing, there are a few cases where people have thrown out $5Million worth of bit coin on a hard drive they forgot about. On the plus side, all transactions are 100% anonymous and... tax free.
Obtaining bit coin can be done in one of two ways now, either paying cash for it, or mining it, (or you get paid in it, but that's more of the business end of it all), and without government backing, its market value is based on demand. When cryptowall first hit, only way of removing it was to pay with bitcoin, kept all transactions anonymous, and the virus maker could profit in silence. It drove the demand for bitcoin sky high, and if I recall made 1 bit coin worth over $600.
With the product value increased, more people want them, more people want them, demand drives value. Which brings companies like tigerdirect out into the fold, now accepting bitcoin as tender for their products. You can build a whole computer, buy a car, and a house for bitcoin now. Although not legally classified as "legal tender", the demand is still pretty high, and online markets will take them off your hands for countless products. Back to that whole TOR thing, you can buy a gun, on TOR, with bitcoin... transaction can't be traced, traffic can't be traced... a package just shows up at your house, 100% anonymous. Bit Coin is cool. And as always, be safe my goblins.
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