By default a client has an option to "generate money". By solving some unmentioned mathematical problems. Which I assumed somebody had to pay something to solve, right? It spends 100% of 3.2ghz x4 (Phenom II X4 955) and in one week I got nothing. WHAT exactly is happening behind the scene if it spends 12.8 ghz every second? Does it brute some hashes to get passwords or something?

To a stranger it looks ridiculous. Generating money either devalues the total bitcoin amount vs dollar exchange rate, or it steals your money. How can you realistically "generate" money??

Generate money option looks very suspicious and it bitcoin software there is no explanation. Bitcoin is open source (I assume WITH all the parts and not something 'valuable' removed), or is a single developer uses thousands of machine to brute something?

I'd like an actual developer to reply. That would be much appreciated.

Thanks.