Bitcoin For Beginners – Complete Guide
By Leonya9.blogspot
It’s digital money. It’s
the new gold. It’s hot and everyone wants a part of it.
Bitcoin
is a digital coin that has value. Bitcoin is not owned by a central entity such
as a government or a central bank, in other words it’s decentralized. It is
easy to operate, and can be sent quickly and securely from any point in the
world to another. Due to being a decentralized coin, the Bitcoin value is
determined in a free market, without any manipulation from a central body. The
current Bitcoin USD rate can be seen on page. https://www.coindesk.com/price/
What about Crypto?
Then you have cryptocurrencies.
Crypto- is short for “cryptography”, a computer technology used for securing
and hiding information, among other things.
Cryptocurrency is defined as electronic money made with technology to:
·
Control how it was
made
·
Protect transactions
·
Hide the identities
of its users.
The technology
around cryptocurrencies effectively give them the same traits as
regular, cold hard cash.
1The Cycle of Money — Stick-Figure by
Decryptionary.com
Cryptocurrencies are not made out of thin air.
Instead, people have their computers work many hours and expend massive amounts
of electricity to “mine” the digital money. They solve mathematical equations.
More on that later…
In 2009, the first Bitcoin was mined by someone nicknamed
Satoshi Nakamoto. There are still disputes over who Satoshi is. Ever since
then, the open source project has been accumulating many users and enthusiasts
who have contributed their time and efforts to developing and distributing the
bitcoin around the world.
Bitcoin comes into the world through a process called mining.
It’s an analogy to gold mining, but instead of actual mining, new Bitcoins are
created using computer power. In the past it would have been worthwhile to mine
Bitcoin. Today such huge computer power is required that bitcoin mining is not
usually profitable. Currently, there are total of 16.5 million Bitcoins, and
the mining process will continue until reaching the maximum limit of 21 million
Bitcoins.
The simple and easy way to get Bitcoin is by buying online or at bitcoin ATMs that are located around the world. Click here to buy Bitcoin with a credit card with our partner exchange.
The simple and easy way to get Bitcoin is by buying online or at bitcoin ATMs that are located around the world. Click here to buy Bitcoin with a credit card with our partner exchange.
Just as regular coins are stored in your wallet, Bitcoins are
also stored in a dedicated digital wallet. Each wallet has its own public
digital address, to which coins can be sent. The address is a string of numbers
and English letters about 30 characters long. There is no cost to create a new
wallet, or a limit on the amount of wallets you can have. There are several
types of wallets, which differ mainly in their security levels. You can read in our featured article about types of wallets. https://leonya9.blogspot.com/2018/03/7-types-of-bitcoin-wallets.html
A Bitcoin transaction is a digitally signed order and hence
encrypted. The transaction is signed by the outgoing wallet and gets broadcast
to the internet, and gets listed on the Block Explorer. This log keeps track of
all bitcoin transactions. The log is divided into blocks, each block contains
of a number of log commands, and once the block is closed, the actual
transaction takes place. That means it takes an average of about 10 minutes to
close a block and confirm a Bitcoin transaction. Most exchanges require at
least 2-3 confirmations in order to ensure a bitcoin transaction.
The only cost of a Bitcoin transaction from one place to another
(doesn’t matter the physical distance) is the miner’s fee, which is added to
each order and paid to the miner for his work to close the block. Relative to
the means of money transfers, the cost of transferring Bitcoin is significantly
cheaper. The fee is not fixed and most of the wallets automatically calculate
the fee required. The higher the fee, the faster the transfer will be (i.e.,
your transfer will be handled by the miner, who prefers to take the higher fee
transactions) As of writing this, Bitcoin's transaction cost (fee) is around 1
USD.
Bitcoin has 8 numbers after the decimal. The smallest amount is
0.00000001 Bitcoin and this unit of measurement is called one Satoshi. It is
better not to send such a small amount because the transaction fee will be
higher than the amount sent.
Today more and more business places and online stores are
adopting Bitcoin as a valid payment method. Bitcoin's daily use as money is
still not as common as the traditional bank account, but with the help of
companies such as Xapo and Bitpay, credit cards can be linked directly to
Bitcoin wallets and are respected anywhere as a standard credit card.
As stated, Bitcoin
is traded on an open free market. Its value is affected by supply and demand as
in any normal market. According to past events, a direct connection can be
discerned between instability and crisis around the world and the Bitcoin. For
example, political events such as the Brexit (the UK voted to leave the
European Union), the last US elections where president Trump was elected,
cancellation of the largest Rupee bills in India - all of which have recently
led to an increase in the Bitcoin’s value. Of course, an event such as
recognition of Bitcoin as a legitimate way of payment (like in Japan) also
increased Bitcoin’s value, whereas hacking of crypto exchanges, Bitcoin
regulation, the postponement of the Bitcoin’s ETF caused panic and a rapid
decline in value. So - we decided to publish an article with an appropriate
answer to the ultimate question -
Okay… But what do I use bitcoin for?
What do you use bitcoin for, what are
the benefits of it and why should you be interested?
First, a short disclaimer: Nothing
published in this article is to be construed as financial, taxation,
investment, legal or other advice. Nothing in this article constitutes investment
recommendations nor should any data or content in this article be relied upon
for any investment activities. Investing in bitcoin or other alternatives is
highly speculative and the market is largely unregulated. Anyone considering it
should be prepared to lose their entire investment. Disclosure: I own a variety
of coins including bitcoin. Keeping that in mind, the following is what I’ve
seen bitcoin used for.
Even though bitcoin was designed as
electronic cash, its recent creation, lack of government control and unstable
prices have caused western businesses to hesitate in accepting it as money.
That hasn’t stopped tech-oriented
businesses like Bitpay and Coingate from popping up and allowing online
businesses to accept and store bitcoin, as well as convert it into
fiat currency.
A handful of larger companies, such
as Overstock and Expedia, now accept bitcoin as valid payment. And you might
have heard of supercar manufacturer McLaren accepting bitcoin,
though it only seems to be the dealer in Newport Beach, CA who does so.
During the summer
of 2010, when many had doubted the concept of Bitcoin, one of the early
adopters named Laszlo Henitz tried very hard and succeeded in ordering pizza
and paid for it with Bitcoin. In those days, Bitcoin was worth nothing (cents)
and to order two family pizzas worth $ 30, Laszlo paid 10,000 Bitcoins! What
was later considered as the first ever purchase in Bitcoin, became also the
world's most expensive pizza. 10,000 Bitcoins worth today is worth more than 25
million USD.
That has to have been the most expensive pizza:
That has to have been the most expensive pizza:
The McLaren dealership is accept
bitcoin through the bitcoin service provider known as Bitpay.
The payment process is simple:
·
You install
a bitcoin wallet on your phone and make sure your bitcoin is
accessible on your device.
·
Using Bitpay,
McLaren Newport Beach will create an invoice with a barcode on
it.
·
Using the bitcoin
wallet app on your phone, you will scan the barcode.
·
The wallet will ask
you to confirm the details of the transaction.
·
Once confirmed, you
will generate payment and become the proud owner of a
McLaren!
Lately, bitcoin has
been taking the center stage in hyper-inflated countries like Venezuela.
There, bitcoin has been unofficially adopted by the Venezuelans as a currency.
Where a McDonald’s Big Mac might cost you one month’s wages in fiat
currency, bitcoin has come in and provided a new opportunity at
relatively fair exchange, since it’s not controlled by an unstable
government or national bank.
While bitcoin has yet to receive
widespread adoption for major transactions in North America and Europe, it has
become a popular investment globally. Due to its unique technology
and unregulated trade, investors have flooded in, creating volatile
prices. It isn’t uncommon to see the price swing up or down by more than 10%
a day.
And so, as I see it, these
are the benefits of owning bitcoin:
1.
A new way
to transact outside of the government.
2.
A way to
gain 100% control over your money, outside the sphere of influence of any
organization, government, or bank.
3.
A new, very
volatile investment that has probably made as many fortunes as it has broken.
Thanks
:)
for more info
Visit
http://leonya9.blogspot.com
for more info
Visit
http://leonya9.blogspot.com
Free Bitcoin Faucets List
2018
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Free Bitcoin Cloud Mining Sites
(updated on on June
28th, 2018 BTC, DOGE, LTC, ETH, XRP, DASH etc)
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