If email is to post offices what Bitcoins are to money. What is Bitbillions?
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If email is to post offices what Bitcoins are to money. What is Bitbillions?



During a time of economic uncertainty, BITCOIN soars in popularity while experts believe that this currency will skyrocket to thousands within the next year. This Ebook breaks down and debunks the ...

During a time of economic uncertainty, BITCOIN soars in popularity while experts believe that this currency will skyrocket to thousands within the next year. This Ebook breaks down and debunks the myths around BITCOIN.



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If email is to post offices what Bitcoins are to money. What is Bitbillions? If email is to post offices what Bitcoins are to money. What is Bitbillions? Document Transcript

  • DisclaimerDear ReaderPlease read this guide and if necessary read it again. This is not apromise or guarantee neither expressed nor implied of gains or profits tobe made. This guide is dedicated for the education of the People inregards to the Bitcoin economy. Please educate yourselves so that youcan make proper and informed decisions as Bitcoins are only guaranteedto grow in popularity. At the end of this guide I will unveil a ground flooropportunity that I believe will be solid and profitable, but beforesuggesting it, I want to clarify the importance of the excitingcryptocurrency that is known as Bitcoin.There is NO obligation to join or to buy anything, my mission is toexamine opportunities and based on the information, I present youoptions so that you may decide FREELY from a place of empowermentand education. You should be able to read and fully comprehend howBitcoins work within 30 minutes.Congratulations for deciding to learn about Bitcoins.  I look forward tosoon welcoming you to the ranks of Bitcoiners and Bitbillionaires. 1
  • Table of Contents Chapter 1What is a Bitcoin?    3How are Bitcoins anonymous?    4How are Bitcoins safe?    4How do you send/receive Bitcoins?    4How many Bitcoin addresses are there?    4Simplifying the abstract                            5 Chapter 2How to get set up with Bitcoin?                 5What is a wallet?                 5Newbie method                 5Standard method                 5What is a block?                 6 Chapter 3How does Bitcoin compare to money?                 6Are Bitcoins taxed?                 7How are Bitcoins better than gold?                             7What is the legal classification?                                         8Fincen guidelines     8Will governments ban Bitcoins?                 8 Chapter 4Who is 中本?     8Why does 中本 hide?                 9The original white paper                             9What are the benefits for merchants?                                                     9Which merchants use Bitcoins?                             9 Chapter 5Free ways to earn Bitcoins    10Sites to surf                11Bitcoin resources                11Debunking the myths                            12Is the anonymity an exaggeration?                            13 Chapter 6Client downloads/step by step guide                            13Security    15Finding Wallet.dat    16Backing Up    16Restoring    16 BONUSGuide to buying Bitcoins anonymously    17Information for merchants    17Bitcoin wallet comparisons    17Step by step guide to creating an online wallet    17Ground Floor Opportunity introduction    17 2
  • We will examine what Bitcoins are and why they are so revolutionary. If you research "Bitcoins" youwill undoubtedly find the concept to be pure genius. Bitcoin is a completely decentralized digitalcryptographic currency that is not mandated or controlled in any way shape or form by the centralbanks or governments. Is Bitcoin the currency for?: A cryptoanarchists B conspiracy theorists C sovereign individuals D criminals E freedom enthusiasts F economists or you? Read on and decide for yourself 3
  • What is a Bitcoin? Bitcoin (BTC) is a digital currency that was introduced on January 9, 2009. It iselectronic (paperless, in most forms), and uses a peer to peer network. There is no centralizedauthority that issues Bitcoins or confirms transactions. Bitcoins are encrypted with advanced NSA levelcryptography and are for all intents and purposes anonymous. The transactions are irreversible andthere is (allegedly) a finite supply.** Bitcoins are a means of exchange an electronic cash system thatcan perform the same functions as banks and as financial service companies like Western Union,PayPal, Visa, etc. The Bitcoin symbol is BTC. A Bitcoin is comprised of 2 things: 1. public address 2. private key ** this is referred to as “key pairs”.. this does NOT indicate two keys, it simply references the pair as being the public address AND the private keyHow exactly are Bitcoins anonymous?- Each transaction is identified only by a 33 or 34 digitaddress (usually starting with the number 1). No personal information is attached to anyBitcoin address. The transacting Bitcoin addresses are randomized to maintain anonymity, andonce spent the Bitcoin cannot be used again.How are Bitcoins hack proof or impossible to counterfeit? Blockchain serves as a historicalledger or BTC network DNA, it’s constantly updating the list of all Bitcoin transfers from one address toanother in real time. You can enter a public Bitcoin address and see the ENTIRE HISTORY of thataddress from inception. NOBODY can hack or counterfeit Bitcoins because 1,000,000+ computers areequally processing and verifying this data simultaneously.A computational attack is impossible to execute because the processing power of the Bitcoin network iscurrently MORE than 100 PetaFLOPS (# of computations performed per second). This figure is 10times faster than Japan’s K Computer aka the world’s greatest super computer, and any attempt todeliberately create another supercomputer just to attack the Bitcoin network is not possible.How do you send or receive Bitcoins? You will either need to have a Bitcoin application(the client)running on your computer, or you could subscribe to a service (online wallet) that runs the applicationfor you.*If you download the Bitcoin client it will create a wallet.dat file that contains your coordinates(private key and public address). To send money you will need your private key and the receiver’s 4
  • public address. The public address would be the equivalent of your bank account number. To receivemoney you simply provide the sender with your public address.*Please note that downloading can take a full day because it has to synchronize with your computer. After the firstday there will be no difference in your computer’s speed.*If you subscribe for an online wallet you won’t be issued a private key and you won’t have todownload anything. To send Bitcoins you will simply enter the receivers public address. To receiveBitcoins you simply provide the sender with your public address. A Bitcoin address mathematically corresponds to a public key and looks like this: *the Bitcoin address can be 33 or 34 digits, some of the older addresses are shorter 1PC9aZC4hNX2rmmrt7uHTfYAS3hRbph4UNHow many Bitcoin addresses are there or can there be? Without going into mathematics orstatistics, suffice it to say that there are as many addresses as there are atoms in the earth. This meansthat duplicating a Bitcoin address or accessing someone else’s Bitcoin account is impossible (with theexception of security breaches).Simplifying the abstract nature of Bitcoins Now that we know that a Bitcoin is comprised of botha public address and a private key we can use an example of a ring. If you took a ring and had itengraved with the public address and the private key (usually 64 but sometimes as long as 128 digits)your ring would now become a Bitcoin. Let’s say that you had 1 Bitcoin sitting at that address then thering is worth $70 (based on today’s Bitcoin value). Now let’s say that you had 1,000 Bitcoins sitting atthat address that means that the ring is worth $70,000,000 (based on today’s rate of $70 per Bitcoin). Please note That the same ring engraved with a Bitcoin public address alone is NOT a Bitcoin~ however the ring engraved with only the private key IS indeed a Bitcoin (the KEY is critical because you can get the address from the key) Chapter 2How to get set up with Bitcoin ● Easy method for newbies- Open up an online Bitcoin wallet (coinbase, blockchain,) ● Standard method- download the desktop client to your computerWhat is a Bitcoin wallet? In the same fashion that regular coins/money needs to be storedsomewhere, Bitcoins also require a wallet. The wallet gives you ownership of the Bitcoin addresses thatyou use to receive and send coins. Similar to email you can receive Bitcoins when you are offline. Allwallets are universally compatible. If you download the default Bitcoin client, you will have a file 5
  • called “wallet.dat”. This file stores your secret key pairs, that allows you to spend your Bitcoins.Please note that if your hard drive dies and you didn’t backup your wallet, you will loseyour ability to claim your Bitcoins. You may encrypt your wallet (truecrypt) and upload it to acloud service like dropbox/Google Drive. You can also install a Bitcoin app on your smartphone ortablet, but always make a “backup” of your wallet for security just in case you lose yoursmartphone/tablet.What is a Bitcoin transaction block? The Bitcoin transactions are added to a long transactionhistory which then becomes a “block.” The BlockChain publicly stores a record of all balancesbelonging to all addresses ad infinitum, in real time beginning from the inception of BTC.Example if David’s address =100 BTC and my address =0 BTC, when David sends me 10 BTC, myaddress updates publicly on the blockchain to reflect my new new balance of 10 BTC and his addressupdates to show his new balance of 90 BTC. All of the connected computers help to verify thisinformation leaving no room for manipulation. No one person or entity can make up an address andsay that it has 1,000 BTC as the block chain would disprove this.ALL addresses appear in the blockchain with 0.000 BTC until receiving Bitcoins. The “accountingledger”(blockchain) records all incoming and outgoing transactions. These transactions are ALWAYSon file in the blockchain. You can view this by visiting http://www.blockchain.info. Chapter 3How do Bitcoins compare to other forms of money? Bitcoins are designed to avoid thedisadvantages inherent with other forms of money. Since there is (in theory) a limited and finitesupply of Bitcoins we can say that Bitcoins are not subject to inflation or devaluation. An increase inthe circulation of fiat money undoubtedly devalues the currency, whereas an increase in thecirculation of Bitcoins is designed to increase the value of each Bitcoin (per the algorithms andcryptography). Money in your bank is FDIC insured, Bitcoins are NOT insured. Bitcoins are to datethe only currency powered by an internet-based peer-to-peer network. The Bitcoin market isfully-liquid and operates 24/7 with no holidays unlike the stock market.While other currencies are going up and down about 3% – 15% a year, Bitcoins have gained over400% in this past year. For all intents and purposes Bitcoins are the best performing currency.Bitcoins are not refundable, replaceable or insurable but then again no other form ofcurrency is. 6
  • Bitcoin Legalities- Is Bitcoin Income Taxed? Bitcoins are not officially subject to taxes (at leastnot yet). Transaction logs are shared publicly online, but these are entirely anonymous. You canclearly see that someone sent 2 BTC to someone else, but you can’t see who. Many say that a Bitcoinpurchase with USD and its subsequent sale for profit in USD is taxable, but as of yet no law has beenofficially cited. The act of buying an item in Bitcoin is not taxable. ow are Bitcoins better than gold? ● Gold is not divisible- Bitcoin is easily divisible to 8 decimal places at present, (more in the future) ● You can’t instantly verify the purity of gold but you can instantly prove you have real Bitcoins ● Gold cannot be sent out over the internet ● Gold is not instantly weighable, unless you have a scale ● Governments can take control of gold mining operations ● Gold could be outlawed and confiscated- as history has already proven ● You cannot memorize gold but you can memorize your Bitcoin address and key ● You cannot easily carry $ 1 million in bullion but you can with BTC ● Bitcoins do not pose a counterparty risk- Stored in a gold storage facility represents an asset to you but simultaneously represents a liability on the financial statement of the other party, leaving you vulnerable to default, bankruptcy or fraud by the other party.***Oh and by the way you can use your Bitcoins to purchase gold at Coinabul.comFun Fact: President Franklin Roosevelt ordered the confiscation of gold on April 5, 1933.What is Bitcoin’s legal classification? It is still early to say, it may be viewed as a commodity, acurrency or perhaps a financial product somewhat similar to “World of Warcraft Gold”. I personallythink that it may in the future be defined as an asset class like cars, houses, gold, etc., but I doubt itwill be called money in the sense of legal tender. It would be awesome IF it was declared money, thatwould mean that people could pay taxes, child support etc. with Bitcoins, but until then it is not legaltender. The IRS may soon find a way to tax us on Bitcoins, but at the moment due to the anonymityand difficulty to trace Bitcoins many are celebrating. I encourage you to abide by your jurisdiction’smandates and laws. I am not an accountant and this guide is not intended to foster tax evasion.Financial Crime Enforcement Network Guideline’s For Bitcoins FinCEN has released newguidelines regarding the legal status of Bitcoin under the U.S money laundering laws. Bitcoinexchanges and miners will now have to register as Money Services Businesses (MSBs) in order tocomply with anti-money laundering regulations. It appears that the government will require the 7
  • exchanges to collect client data. FinCEN is not interested in regulating the core Bitcoin network, whichallows ordinary users to exchange currency with one another. Some speculate that some exchangeswill be moving offshore. But this can also be seen as positive news because an exchanger’s model isdesigned for profit and NOT for anonymity. Exchangers will WANT to comply because this willlegitimize the entire network.Will Bitcoins Be Banned By Governments? Governments and central banks aren’t happy aboutBitcoins, but Bitcoin cannot be shut down. There is no server to unplug, or office to raid as Bitcoins aremade by existing software that runs on people’s computers. For all intents and purposes the only wayto stop Bitcoins would be to globally shut down the entire internet and to seize every computer ordevice that connects to the world wide web. This is not practical as it would place the government andits people at a strategic communications disadvantage. Chapter 4Who is 中本? We have no clue. Satoshi Nakamoto is the name used by the creator or creators ofBitcoin.This person is no doubt a highly skilled coder, developer and cryptographer. To date SatoshiNakamoto remains anonymous, and 中本 describes the name in Japanese. He is said to be from Japanbut the mail ID was from Germany and the Bitcoin software is not available in Japanese. Perhaps heor she is of Japanese ancestry but raised or even born in the UK, as the writing in the original proposalshows British spellings as opposed to american spellings. To further compound the mystery, SatoshiNakamoto disappeared into thin air in 2010. Even today multiple investigations continue to yield zeroidentification results for 中本.Why would Satoshi Nakamoto hide? Many believe that he is protecting himself from anyretaliation by the powers that be. Others believe that he is just an introverted polymath who is notinterested in any adulation. I just think he is smart to avoid any hitmen contracted by the bankingcartels.The original project white paperTo read the proposal for Bitcoins you can click here or visithttp://Bitcoin.org/Bitcoin.pdf. Upon reading this you will nodoubt be impressed by the magnitude of genius and vision.Why are Bitcoins so popular? Bitcoins cannot be counterfeited,the value cannot be artificially inflated, money transfers are instant, the cost of transfers is verycheap, and the 4 year history of gains provides much more confidence than standard fiat currency.Make no mistake this cryptocurrency is still controversial but as each day passes more and morepeople, are joining the ranks of Bitcoiners. People globally are feelingsafer with Bitcoins than bank issued currency. We already know thatfiat money is arbitrarily issued by central banks which leads to increasedinflation in a time when the economy is still limping and we havebecome a the society of the “walking wounded”. 8
  • Bitcoin benefits for merchants ● Send money internationally and instantly for less than a penny ● As a vendor you don’t need to set up a payment processor service/avoid set up fees ● No application requirement, immediate acceptance ● Easier than credit cards- no need to give credit card numbers, expiration dates, names, or CVV ● Merchants usually pay 2% to 3% (and up to 11% for *high risk or start up companies) in credit card fees, (this money is usually held for up to 96 hours before becoming available in banks). ● Merchants accepting Bitcoins can avoid credit card fees and pass savings on to consumers. ● Increased Privacy and Security-No fraudulent chargebacks for merchants ● Using Bitcoins increases their value by increasing demand which in turn increases the value of your Bitcoins. ● Convert Bitcoins to dollars and get volatility protection for half a percent (0.5%) ● Accept payments internationally (paypal restricts more than 60 countries) ● Instant payments, pending status appears in seconds and completion is usually one hour ● Bitcoins cannot be counterfeited- There is no printing technology to cheat the Bitcoin network. ● Can’t be frozen like a Paypal account ● No payment gateway fees- No statement feesFUN FACT: Paypal, Google Checkout and Amazon Checkout start charging 2.9%+.30 per transaction.These rates can decrease to 1.9% +.30 per transaction for vendors who generate $30,000 per month insales. What mainstream goods & service Merchants accept Bitcoins as payment? ● The real estate market has a new set of buyers and sellers using Bitcoins. ● Major companies are accepting Bitcoins for payment (namecheap, wordpress, pizzerias, hardware stores, there are more than 4,000 merchants accepting Bitcoins as payment) ● Bitcoin ATM machines have begun to sprout throughout the world. 9
  • ● Politicians (Mark Warden was the first U.S legislator who accepted Bitcoins) to fund his political campaigns Pizzaforcoins.com allows you pay for Dominos Pizza with BitcoinsFor a complete list of merchants who accept Bitcoins visit https://en.Bitcoin.it/wiki/Trade Chapter 5Free ways to earn Bitcoins If you google the term “free Bitcoins” you will find a plethora of sitesthat give away free Bitcoins for viewing videos and ads online. I have included a couple of places thatare pretty easy. Don’t expect to earn a lot, but even 20 daily minutes can add up to get you started inthe Bitcoin economy. I personally earned one Bitcoin after 27 days of surfing free sites.Surfing sites ● I want free Bitcoins .com - complete offers and do tasks to earn Bitcoins ● Bitcoin get .com - watch videos and complete tasks ● BTC for free .info - enter your Bitcoin address and wait for free money ● Cointicket .org - free Bitcoins every day ● BitPasta .com - (copy /) paste utility that share the advertising revenue with users ● Bitvisitor - get paid to watch websites for 5 minutes ● Netlookup - ad-supported. Providing free Bitcoins every 24 hours ● BitcoinAddict - free Bitcoins every 24 hours. Chance to win jackpot ● Bitcoin faucet - One time payout per Google account ● BunnyRun - select a bunny & get paid on the basis of its position in a race ● Bitcrate – ad-supported. Break crates to get Bitcoins. Different crates have different amounts ● DailyFreeBitcoins - free Bitcoins every hour, ad-supported ● Coinad - free Bitcoins every hour for account holders, every 24 hours for visitors ● Bitcoiner - ad-supported. Free Bitcoins every 24 hours ● Bitcoin Captcha - free Bitcoins from a pre-selected pool ● Earn Free Bitcoins – get paid to watch websites (allows NSFW/Adult Content) ● BTCFree.tk - free daily Bitcoins 10
  • ● BitStart .biz – Scroll down to the bottom or buy an ad for profit ● BTC 4 Free .com - fill out surveys to earn Bitcoin ● Free digital money .com – try apps, surveys, ads, trials etc. ● Coinworker .com - do tasks to earn BitcoinsOffer a service or product to earn more Bitcoins You can join www.bitmit.net/ (the Bitcoincomunity’s version of ebay)and sell products or services in exchange for Bitcoins Bitcoin ResourcesWeUseCoins.org - Best place for beginners to start.Paytunia.com - Very nice online ewallet service with Android app. Store your coins here.BitSpend.net - Enables you to buy ANYTHING online by paying with Bitcoin. Very cool.BitInstant.com - This is currently the easiest and fastest way to buy Bitcoin in the US.Bitcoin.org - Official site of the Bitcoin project, download the wallet software here.MtGox.com - The leading Bitcoin exchange. Buy and sell Bitcoins here.BitcoinTalk.org - The official discussion forum, and large enthusiast communityWiki.Bitcoin.it - Encyclopedia of most aggregated Bitcoin knowledge, very extensive.Bitcoin.it/wiki/trade-companies that accept Bitcoin as paymentBitcoinMagazine.net - Professional publication and news portalBlockchain.info - Tool for viewing accounts, payments, and numerous economic statistics.BitcoinCharts.com - Shows current market prices and economic statistics.Preev.com - Super easy Bitcoin<->fiat calculator, multiple currencies supportedBitcoinMonitor.com - Live view of transactions as they happen on the Bitcoin network.Coinabul.com - Leading gold and silver bullion seller for BitcoinCoinapult.com - Send Bitcoin via Email or SMSWorkForBitcoin.com - Bitcoin job board - freelance projects which pay in Bitcoin.Debunking the naysayersBitcoin is just like all other digital currencies nothing new- Other digital currencies arecentrally controlled, they can be attacked/hacked at the center server. Controllers of other digitalcurrencies can print out the currency at any time, these things cannot happen with Bitcoin.Bitcoins are worthless they arent backed by anything - News Flash neither is the dollar, it isjust fiat paper (the US abandoned the gold standard in 1933).Bitcoins are illegal because theyre not legal tender - Baseball cards aren’t legal tender, butusing baseball cards for barter is not illegal. If Bitcoins were illegal politicians would NOT accept themto raise campaign funds, and a major company like Wordpress would not accept them for payment.The FinCen’s new guidelines requiring exchangers and miners to register for “money service businesslicenses” legitimizes Bitcoin. 11
  • Bitcoin enables tax evaders -Cash transactions are just as anonymous, but are still taxed. Yes youcan transfer Bitcoins anonymously but when you cash them out and put the money in your bank youare taxed. Tax evaders are only caught because their lifestyle and assets are incongruent with theirreported income and not because government is able to follow their money.Bitcoins can be printed/minted by anyone and are therefore worthless -Bitcoins are notprinted/minted. Instead, Blocks are computed by miners and for their efforts they are awarded withBitcoins. This is a universal network powered by the majority unlike banks run by an elite minority.21 million Bitcoins isnt enough- One Bitcoin is divisible down to eight decimal places. There arereally 2,099,999,997,690,000 (just over 2 quadrillion) maximum possible atomic units in the Bitcoindesign. The value of "1 BTC" represents 100,000,000 of these. In other words, each is divisible by up to10^8. As the value of the unit of 1 BTC grows too large to be useful for quotidien affairs the use ofmilli-Bitcoins (mBTC) or micro-Bitcoins (μBTC) will be adopted.Bitcoins are a giant ponzi scheme - In a Ponzi founders promise investors that they’ll profit.Bitcoin does not make any guarantees. There is no central entity, just people building an economy asopposed to founders who only profit at the loss or expense of newcomers and the late adopters. Bitcoinhas an expected win-win outcome. Everyone can benefit from the decentralized peer-to-peercurrency.Bitcoins have been hacked before- The hacking that has transpired has been withEXCHANGERS due to weak security and NOT with Bitcoin. You can see a history of Bitcoinexchanger hacks here.Bitcoinica, an exchanger owned by a 17 year old snot faced KID (Zhou Tong) had 43,554 Bitcoinsstolen by a hacker, these PREVIOUS events severely affected the value of Bitcoins because at that time(2011) there weren’t many Bitcoin users.Today there are 4 MAJOR corporations (backed with VC funding) acting as exchangers these are:mtGOX,StrongCoinCoinbaseBitPayIs Bitcoin anonymity exaggerated?***Understand that Bitcoins are not COMPLETELY anonymous as many people currently useonline wallets and link their banking information to purchase Bitcoins online. In the event that theewallet service is hacked your Bitcoin transactions could be traced. FinCen a division of the USTreasury Department has announced that currency exchangers and miners will have to register as 12
  • money service brokers, ultimately meaning that all client information will be available to thegovernment. Until this happens there are some clever ways of remaining under the radar. But youcan face a challenge when transferring fiat currency into Bitcoins (buying Bitcoins), fret now I have asolution towards the end of this guide. Bank wires obviously won’t work because all of your personalinformation is recorded. Don’t forget that Obama revised the Banking Facta so now all transactionsabove $600 are reported to the Internal Revenue Service (IRS), contrary to the belief that transactionsbelow $10,000 were not reported to the IRS.I encourage everyone to abide by their jurisdictions’ laws and mandates. In the spirit ofefficaciousness I have included the protocols for those who are curious about maintainingtheir anonymity. This section is for information purposes only, continue reading. Chapter 6Bitcoin client Downloads: ● For Windowshttp://sourceforge.net/projects/Bitcoin ... e/download ● For Linux (tgz 32/64 bit download)http://sourceforge.net/projects/Bitcoin ... z/download ● Machttp://sourceforge.net/projects/Bitcoin ... g/downloadAfter downloading the client on your Windows, Mac or Linux computer. It will automatically create awallet for you and will start downloading the transaction history. Running the Bitcoin client inessence makes you your own bank because you are not relying on any third party for access to yourmoney. The Bitcoin client, when fully encrypted and secure, is much more safe than third parties.Running the Bitcoin client helps support the Bitcoin network by giving it more speed and strength.Please note that due to the size of the blockchain it can take as long as 24 hours to download andsynchronize, this also depends on your internet connection.When it has downloaded, open it up (the .exe file for windows) and complete the install process whichwill place the Bitcoin program in your directory.You’ll see (out of sync) appear on your client until theblockchain is fully updated. Step by step:1) install and complete installation wizard 13
  • The Bitcoin window will open and connections will start up in minutes. The blocks will begindownloading.Should you leave your client open? An open client helps to relay the recent blocks across thenetwork nodes faster, but in all honesty you don’t need to have a client running all the time. 14
  • SecurityUsing BOTH an online wallet and a desktop download I suggest you use both an online wallet anddownload the Bitcoin program to your computer to get a private local wallet (your own private keypair). You’ll be able to move Bitcoins from your online wallet to your local wallet for safer storage. Byhaving your online wallet act as a buffer you in essence have your own personal exchange betweenfiat money and Bitcoins. Try to transfer the bulk of your Bitcoins to your local wallet for increasedsafety. There is always a risk that your computer may be compromised, hacked, stolen or could simplycrash and die. But there are intelligent measures that you can take to be prepared should said eventhappen.Bitcoin’s client now has a way to encrypt the data file (wallet.dat) on your computer,protecting you from the theft of your wallet.dat file from your computer (the thieves won’t be able toaccess your funds). The first time you open your wallet software you will need to make a password toencrypt your wallet. After making this password backup your wallet file in a different location.To find your wallet.dat file:Windowslook for "Show hidden files and folders" -Then you you will be able to find your wallet here:C:Documents and SettingsYourUserNameApplication dataBitcoin (XP)C:UsersYourUserNameAppdataRoamingBitcoin (Vista and Windows 7)Macgo to the Library/Application Support/Bitcoin/Back Up Understand that you are NOT backing up Bitcoins per se, but the private key that allows youto claim your Bitcoins. Your wallet.dat holds up to 100 keypairs and you are not limited to ONE singlekey pair. You’ll have a PRIMARY key pair that allows you to create as many as you wish instantly,similar to having multiple email addresses that all forward to your PRIMARY email. At first yourBitcoin wallet will have 100 addresses for initial use. When you backup your wallet.dat, you arebacking up 100 key pairs, and each time you give one out, a new one is generated. This means thatyour backup of wallet.dat is backing up 100 (or more) private keys therefore you only need to backupwallet.dat again when you give out your 101st key, although I would encourage you to backup dailyfor added protection.When should you backup your wallet.dat file? As soon as it’s generated and not when you getyour first coins, this way you are protecting your first 100 claims to Bitcoins. You don’t need tohave any Bitcoins in order to perform a backup. If only using ONE key/address for alltransactions you really don’t need to back up your wallet again.Back up options-Do at least 2 of these methods 15
  • ● Back up to a usb flash drive and store physically in a firesafe box or safe deposit box ● Back up, encrypt (true crypt/7-zip) and store in Google Drive or Dropbox if you trust those ● Back up, burn to a cd and tape it inside your underwear drawerDo online services allow backups?At the time of writing blockchain is the only online wallet service that does indeed offer you the abilityto back up your wallet. The advantages of using an online service is that with a username andpassword you can still access your funds easily, and you don’t have to download the client.Restoring You can do a back up on April 1, receive Bitcoins on May 1st, have computer problems that delete your wallet.dat file on June 1st and easily restore the wallet.dat file from April 1 with all of your Bitcoins intact. To test efficacy, a fellow Bitcoiner backed up his wallet.dat to a USB drive, transferred coins in and then deliberately wiped out the wallet.dat on his computer and restored his computer with the backup performed PRIOR to receiving Bitcoins. His Bitcoins were intact and his faith in the blockchain catapulted his confidence in the Bitcoin economy. Bitcoiner’s TestimonialsFrom http://www.sovereignman.comAs a subscriber to this confidential list, I want to keep you updated as to my own experience, andwhere appropriate let you in on what I believe are opportunities worth taking notice of. Meanwhile Ido urge you to explore Bitcoin fully. I have invested" a total of US$6,000 in BTC, and as of today myBitcoin balance is worth $32,274 - and most of that gain has been since the beginning of January thisyear, when I purchased $5,000 worth of BTC at the then current price of $13.79 each. And with thestate of the global economy, not to mention the declining faith in fiat currencies, I can see a brightfuture for Bitcoin.Economist Max Keiser is now a Bitcoin millionaire you can watch his videos hereThe Bitcoin economy is larger than Tuvalu’s economy! Granted it is the 4th smallest country in theworld, but this is still an eye opening testimonial as to the power that Bitcoin offers.I do hope that this guide has given you the core basics of Bitcoins. Now that you understand thegenius in this currency you can easily understand why more than 30,000 new Bitcoin addresses aregenerated daily. There are currently 42 BTC transactions executed every single minute. Moreimportantly understand that the design is such that as more Bitcoins are created they are meant toincrease in value. 16
  • Additional links that may be of interest to youBitcoin for merchantsSteps to purchase Bitcoins anonymouslyFor a Bitcoin wallet comparison click hereFor a step by step guide on how to create a blockchain online wallet click hereHere is an important question for youWould you have liked to buy Bitcoins at the very beginning when they were$.06 cents each? Some experts believe that Bitcoins will rise up to $1,000 percoin within the next 5 years. I cannot confirm this and I regretfully reportthat my crystal ball was made in China and purchased on sale at walmart,thus the reading is not exact; but I still think that we can diversify and getinto the Bitcoin economy for solid gains! And now for the opportunity mentioned at the beginning of this guide, are youready to learn about it? ........ 17
  • YES! I want to EXPLORE this opportunity, I understand that I am NOT obligated in any way shape or form to join, but the curiosity is killing me. 18