Bitcoin For Beginners – Complete Guide
By Leonya9.blogspot
What is Bitcoin?
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…
When was Bitcoin invented and by whom?
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.
How was the Bitcoin created? How can I get Bitcoin?
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.
How and where to store your bitcoins?
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
How is Bitcoin being transferred? How long does it take to transfer Bitcoin from one wallet to another?
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.
How much does it cost to send Bitcoin?
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.
Is it possible to buy or send less than one Bitcoin?
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.
What can I buy for Bitcoin?
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.
What affects the Bitcoin price?
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.
McClaren Dealership in Newport Beach, CA Accepts Bitcoin — Screenshot taken fromhttp://www.rdsautomotivegroup.com/
What is the all-time high amount which paid for a pizza?
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:
How do you actually pay using digital currency?
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:
• A new way to transact outside of the government.
• A way to gain 100% control over your money, outside the sphere of influence of any organization, government, or bank.
• A new, very volatile investment that has probably made as many fortunes as it has broken.
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Free Bitcoin Faucets List 2018
(updated on June 28th, 2018 BTC, DOGE, LTC, ETH, XRP, DASH etc)
https://goo.gl/2y3Z7o
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(updated on on June 28th, 2018 BTC, DOGE, LTC, ETH, XRP, DASH etc)
https://goo.gl/ua7Lxu