The document serves as an introductory guide to Bitcoin, explaining its technology, transactions, and the underlying blockchain system. It highlights that Bitcoin operates like digital property with general tax principles applying to virtual currency transactions. The guide also emphasizes the importance of wallets, private keys, mining, and the confirmation of transactions within the Bitcoin network.

1. S
Bitcoin
Confused About Bitcoin Technology

2. Bitcoin

3. Bitcoin
S "General tax principles that apply to property transactions
apply to transactions using virtual currency.”
S Statement made by the IRS on trying to claim their slice
of the Bitcoin pie…..

4. Bitcoin
S Bitcoin Basics
S You may be entirely clueless, like, that is, devoid of even
a single ounce of knowledge when it comes to the
phenomenon called Bitcoin, but after reading through this
quick synopsis of Bitcoin and the technology behind
Bitcoin, you’ll be a quintessential Bitcoin whiz.

5. Bitcoin
S Well, okay, not quite but you get the drift.
S If you’re new to bitcoin and you’d like to get started
because you’ve heard it’s cutting edge craft and you feel
you are missing out big time, relax you really don’t need
to be a techie geek sort.
S After all, even your grandmother could figure Bitcoin out,
so there’s no excuse why

6. Bitcoin
S You need to install a bitcoin wallet either on your
smartphone/mobile device or computer. Once that’s done
you’ll get a Bitcoin address. Give this address out to your
friends (and granny), and they can then pay you or you
can pay them – in Bitcoin, of course.
S It’s a similar concept to email and how that technology
works, with the exception that a Bitcoin address should
be used one time only.

7. Bitcoin
S Balances - Blockchain
S The entire Bitcoin network has to run on some foundation
and the foundation is called blockchain. Every single
confirmed transaction is listed in the blockchain. As such,
Bitcoin wallets are able to recalculate a new balance and
transactions are verifiable.

8. Bitcoin
S The chronological order and integrity of the blockchain are sanctioned by
cryptology, so you’re not going to lose your shirt by someone stealing your
Bitcoin.
S Private Keys for Bitcoin Transactions
S A Bitcoin-related transaction is reallocation of value among Bitcoin wallets,
which of course is listed within the blockchain. It would be, wouldn’t it?
S Every Bitcoin wallet holds a very secretive part of data which is termed as
a seed or a private key. This is used to sign for a transaction and thus
algorithmic (think Google algorithms) proof is available that the transaction
was made by the wallet owner.

9. Bitcoin

10. Bitcoin
S Transactions occur between Bitcoin users are confirmed within
the blockchain network within around 10 minutes’ time. This
part of the process is referred to as ‘mining’, a term not to be
confused with digging for coal.
S Mining
S What is mining? In techie type of terms it’s a distributed
consensus system which is utilized to confirm every transaction
that is waiting. These transactions are included in the
blockchain.

11. Bitcoin
S Mining allows the chronological order to be enforced
within the blockchain, serves as protection for the
neutrality of the network, and permits various computing
systems to come to agreement about the system’s state
– aka condition.
S The network verifies transactions that are packed within a
block. This follows very strict cryptographic regulations
and allows the transaction’s confirmation.

12. Bitcoin
S The regulations do not allow any modification to previous
blocks. If that occurred then everything that followed
would be invalidated, or messed up, in layman’s terms.
S No-one that uses Bitcoin has any control over the
blockchain. If they did, they could easily recharge their
own Bitcoin accounts, which would be something similar
to illegally wiping your credit card clean after maxing it
out on a holiday to Timbuktu.

13. Bitcoin
S http://wesleyyuhninfo.com/
S http://www.scoop.it/t/bitcoin-by-wesley-yuhn-1
S https://bitcoin.org/en/how-it-works
S www.economist.com/bitcoinexplained
S venturebeat.com/2014/02/17/bitcoin-for-idiots-an-
introductory-guide/