[quote=joec]I can’t say I know at all how this bit coin works…Can someone summarize how one farms or get bit coins? I watch bloomberg a lot and they were saying how since there is a finite amount, some people may just end up buying it to hold instead of using it for commerce. The lack of stability in this thing makes it extremely limited in use if you have to worry about currency fluctuations…[/quote]

Bitcoins are a crypto currency. Basically mining bitcoins is producing solutions to increasing complexity hashing algorithms. In the early days one might be able to mine multiple bitcoins on a personal PC in a day now it might take a super computer a week to produce one. At this point each bitcoin that is mined might be worth less than the electricity and depreciation associated with producing it.

It’s works much like a ponzi scheme in that those that started at the top/beginning win and those that get in late lose. Somebody that spent $1 to buy bit coins 3 years ago might get $100K today because of the increased demand and limited supply but that increased demand works only for as long as you have an exponential pool of suckers to sell to.