BITCOIN INTRODUCTION

What is Bitcoin? Bitcoin Introduction.

Bitcoin is a new digital currency. It was created by an unknown person using the assumed name Satoshi Nakamoto in 2009. Bitcoin Transactions are made with no middle men for example, no banks. There are a slight transaction fees and no need to give your real name and more any information about you. More merchants accept them: This type of currency called now crypto currency.

Why Transact Bitcoins?

At the present time you can be used Bitcoins to buy merchandise anonymously. In addition, global payments are easy and cheap because bitcoins are not tied to any country or subject to bylaw. Little businesses may like them because there are no credit card fees and any other hidden expenses. Some people just buy bitcoins and other crypto currency as an investment, hoping that they’ll rise in value.

Owning Bitcoins

Bitcoins and any other crypto currencies are stored in a “digital wallets,” which exists moreover in the cloud networks or on a user’s own computers. The wallet is a type of virtual bank account that allows users to send or receive crypto currencies and bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the FDIC.

Anonymity

Though every one bitcoin and any other crypto currency transaction is recorded in a public record, names of buyers and sellers are never exposed – only their wallet IDs. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has grow to be the currency of choice for people online buying drugs or other illegal activities.

Acquiring Bitcoins

Buy on an Exchange

A number of marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies and different crypto currencies. Mt. Gox is the biggest bitcoin exchange.

Mining

People compete to “mining” bitcoins using computing power to solve difficult math puzzles. This is how bitcoins are generated. At this time, a winner is rewarded with 25 bitcoins approximately every 10 minutes.