2. http://abneyassociates.org/2013/04/09/understandin
g-bitcoin/
• Bitcoin is a form of Internet money that is immensely
trendy and greatly appreciated means of buying
and selling on line. And this is a currency that barely
anybody understands. Various companies
exclusively accept Bitcoins. The truth because of
the recent banking instability in Cyprus it became
so enormous that the worth of “all outstanding
Bitcoins” just hit $1 billion.
3. • So what is this bitcoin? Bitcoin (sign: BTC) is a
decentralized digital currency based on an open
source, peer-to-peer internet protocol. It was
introduced by a pseudonymous developer named
Satoshi Nakamoto in 2009.
• Bitcoins can be exchanged through a computer or
smartphone locally or internationally without an
intermediate financial institution. In trade, one
bitcoin is subdivided into 100 million smaller units
called satoshis, defined by eight decimal points.
4. • Bitcoin is not managed like typical currencies: it has
no central bank or central organization. Instead, it
relies on an internet-based peer-to-peer network.
The money supply is automated and given to
servers or “bitcoin miners” that confirm bitcoin
transactions as they add them to a decentralized
and archived transaction log approximately every
10 minutes.
• Who would have thought that a virtual currency
with no physical manifestation all of a sudden worth
$1 billion in U.S. currency.
5. • Bitcoin is gaining traction plus attention even if it does
not hold a candle to the $1.13 trillion in Federal Reserve
Notes in circulation.
• What people like about Bitcoin is it removes the
middleman from online transfers of money. We are all
concern about those middlemen such as central banks,
or the Federal Reserve or credit card companies. Bitcoin
also permits for more anonymity than every other mode
of online payment. Though it’s hard to pinpoint just how
unidentified Bitcoin really is, this fact manipulates how
the currency is used. One controversial Reddit group
that seeks to “protect” men from feminists asks for
donations in Bitcoin particularly to guard the characters
of all involved, although some secretive purchases
made online using Bitcoin are justified,.
6. • Two main ways to acquire Bitcoins: You can buy
them or mine for them, don’t go back you red it
right, you can mine it. Just like any other type of
money the Bitcoins and U.S. dollars exchange rate
also fluctuates. The current exchange rate as of
Friday afternoon is 1 Bitcoin to $88.811. Similar with
conventional currencies, it’s possible to make
money just by buying and selling Bitcoins as
exchange rates change.
• It’s a outlandish procedure as for mining for Bitcoins.
According to Bitcoin’s official website, mining is
basically making your computer run a program to
“do mathematical calculations for the Bitcoin
network to confirm transactions and increase
security.”
7. • Your chances of receiving any Bitcoins from mining
on your own are thin, other than mining takes up a
lot of space on your computer. A lot of people
adhere what are known as mining pools to
compensate. People can combine their computing
power to crack the codes together, splitting the
Bitcoin profits among themselves in a pool. And this
is the primer of Bitcoin.
