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What Is Bitcoin Summary?

What Is Bitcoin? The Cryptocurrency Explained

What Is Bitcoin? The Cryptocurrency Explained

Bitcoin is back in the headlines after soaring in value. One bitcoin was worth $2,800 on May 25, up from $1,200 at the end of April. In countries that accept it , you can buy groceries and clothes just as you would with the local currency. Only bitcoin is entirely digital; no one is carrying actual bitcoins around in their pocket. Bitcoin is divorced from governments and central banks. It's organized through a network known as a blockchain, which is basically an online ledger that keeps a secure record of each transaction all in one place. Every time anyone buys or sells bitcoin, the swap gets logged. Several hundred of these back-and-forths make up a block. No one controls these blocks, because blockchains are decentralized across every computer that has a bitcoin wallet, which you only get if you buy bitcoins. True to its origins as an open, decentralized currency, bitcoin is meant to be a quicker, cheaper, and more reliable form of payment than money tied to individual countries. In addition, it's the only form of money users can theoretically "mine" themselves, if they (and their computers ) have the ability. But even for those who don't discover using their own high-powered computers, anyone can buy and sell bitcoins , typically through online exchanges like Coinbase or LocalBitcoins . A 2015 survey showed bitcoin users tend to be overwhelmingly white and male, but of varying incomes. The people with the most bitcoins are more likely to be using it for illegal purposes, the survey suggested. Each bitcoin has a complicated ID, known as a hexadecimal code, that is many times more difficult to steal than someone's credit-card information. And since there is a finite number to be accounted for, there is less of a chance bitcoin or fractions of a bitcoin will go missin Continue reading >>

Bitcoin For Beginners: Brief Overview Of The Technology

Bitcoin For Beginners: Brief Overview Of The Technology

Bitcoin for beginners: brief overview of the technology Bitcoin. Blockchain. Mining. If you havent come across these words in the last few months, chances are that you may just be living under a rock. This year has been all about cryptocurrencyfrom the skyrocketing valuation of Bitcoin to the rise of mining farms around the world, to thefts in the tens of millions of dollars. Despite its rapid rise in popularity in todays world, many still dont understand the concept of cryptocurrency. Just an online search will leave you befuddled with the information overload, and I can vouch for that. When I first started, I was inundated with jargon and concepts, which left me more confused than I was at the start. But after scrolling through many forums, articles, and infographics, I realised that while learning the in-depth working of cryptocurrencies requires sound technical knowledge, learning its basics is rather simple. In this article, Ive covered the absolute basics of cryptocurrency: why was it created? How does it work? What gives it value? If any of these questions have ever crossed your mind, read on to find the answers. Conventional digital money works on a payment network with balances, accounts, and transactions. A central entity or regulatory authority governs the entire network and is responsible for ensuring the legitimacy of all transactions. Preventing double-spending (when one entity spends the same amount twice), for example, is something that is under the purview of this central entity. The problem with this system, however, is that all participants in the payment network are relying solely on the records maintained by the central server. The legitimacy of every transaction is based solely on the trust placed in this authority, who can easily exploit it for p Continue reading >>

Bitcoin - Wikipedia

Bitcoin - Wikipedia

Unspent outputs of transactions denominated in any multiple of satoshis [3] :ch. 5 12.5 bitcoins per block (approximately every ten minutes) until mid 2020, [7] and then afterwards 6.25 bitcoins per block for 4 years until next halving. This halving continues until 2110–40, when 21 million bitcoins will have been issued. ^ The symbol was encoded in Unicode version 10.0 at position U+20BF ₿ BITCOIN SIGN in the Currency Symbols block in June 2017. [2] Bitcoin is a worldwide cryptocurrency and digital payment system [8] :3 called the first decentralized digital currency , as the system works without a central repository or single administrator. [8] :1 [9] It was invented by an unknown person or group of people under the name Satoshi Nakamoto [10] and released as open-source software in 2009. [11] The system is peer-to-peer , and transactions take place between users directly, without an intermediary. [8] :4 These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain . Bitcoins are created as a reward for a process known as mining . They can be exchanged for other currencies, [12] products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. [13] Bitcoin can also be held as an investment. According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin. [14] The word bitcoin first occurred and was defined in the white paper [15] that was published on 31 October 2008. [16] It is a compound of the words bit and coin . [17] The white paper frequently uses the shorter coin. [15] There is no uniform convention for bitcoin capitalization. Some sources use Bitcoin, capitalized, to Continue reading >>

Bitcoin: What Is It, Where Can You Use It And Is It Worth Investing?

Bitcoin: What Is It, Where Can You Use It And Is It Worth Investing?

Bitcoin: What is it, where can you use it and is it worth investing? Some have speculated as to whether the cryptocurrency could rise to $1m per coin There seem to be hundreds of new articles every week speculating on how high bitcoin could go now Tories snatch key target Barnet Council from under Labour's nose Bitcoin had an incredible 2017 after increasing in value more 20 times from below $1,000 dollars to a peak of just under $20,000. Such phenomenal returns have caused many to ask how they can get in on the action while others to suggest its a dangerous bubble waiting to burst . So what exactly is bitcoin and why is it attracting so much attention? Bitcoin - live updates: Bubble fears increase as value soars Bitcoin is a digital currency created in 2009 by a mysterious figure using the alias Satoshi Nakamoto. It can be used to buy or sell items from people and companies that accept bitcoin as payment, but it differs in several key ways from traditional currencies. Most obviously, bitcoin doesnt exist as a physical currency. There are no actual coins or notes. It exists only online. Real-world currencies, like the dollar, are managed by a central bank such as the US Federal Reserve or the Bank of England, which manage the money supply to keep prices steady. They can print more money or withdraw some from circulation if they think its needed, as well as using other monetary policy controls such as adjusting interest rates. Bitcoin has no central bank and isnt linked to or regulated by any state. The supply of the cryptocurrency is decentralised it can only be increased by a process known as mining. For each bitcoin transaction, a computer owned by a bitcoin miner must solve a difficult mathematical problem. The miner then receives a fraction of a bitcoin as a reward Continue reading >>

How To Buy Bitcoin - Coinbase

How To Buy Bitcoin - Coinbase

Coinbase makes it easy to convert your local currency into and out of bitcoin. On this page, you'll learn how to buy bitcoin and store it securely in a wallet. This first step is to sign up for a Coinbase account. This will give you a secure place to store your bitcoin, and easy payment methods to convert your local currency into or out of bitcoin. After you sign up, connect your bank account. You'll need to complete some verification steps before you can use the account. Once the verification steps are complete, you can start a purchase. After starting your first purchase, we'll complete your buy and deliver your bitcoin. (Sells work the same way but in reverse). The price of bitcoin changes over time, so we'll show you the current exchange rate before you buy. Continue reading >>

How Does Bitcoin Work? - The Economist Explains

How Does Bitcoin Work? - The Economist Explains

The Economist explainsHow does Bitcoin work? The virtual currency is decentralised, which is part of its appeal BITCOIN, the worlds first decentralised digital currency, was launched in 2009 by a mysterious person known only by the pseudonym Satoshi Nakamoto, whose true identity is still unknown. Since then, the value of a single Bitcoin has fluctuated wildly, reaching a high of around $1,000 in late 2013 before falling to less than half that level, and then rebounding in 2016. What exactly is Bitcoin, and how does it work? Unlike traditional currencies, which are issued by central banks, Bitcoin has no central monetary authority. Instead it is underpinned by a peer-to-peer computer network made up of its users machines, akin to the networks that underpin BitTorrent, a file-sharing system, and Skype, an audio, video and chat service. Bitcoins are mathematically generated as the computers in this network execute difficult number-crunching tasks , a procedure known as Bitcoin mining. The mathematics of the Bitcoin system were set up so that it becomes progressively more difficult to mine Bitcoins over time, and the total number that can ever be mined is limited to around 21 million. There is therefore no way for a central bank to issue a flood of new Bitcoins and devalue those already in circulation. The entire network is used to monitor and verify both the creation of new Bitcoins through mining, and the transfer of Bitcoins between users. A log is collectively maintained of all transactions, with every new transaction broadcast across the Bitcoin network. Participating machines communicate to create and agree on updates to the official log. This process, which is computationally intensive, is in fact the process used to mine Bitcoins: roughly every 10 minutes, a user w Continue reading >>

What's A Bitcoin?

What's A Bitcoin?

Bitcoin is attracting attention as a wildly volatile, all-digital currency. How does it work? How are criminals taking advantage of it? How risky an investment is it? In this Bitcoin explainer, WSJ's Jason Bellini has "The Short Answer." This transcript has been automatically generated and may not be 100% accurate. I ... it's a big corn ... it's an invisible brochure for currency one analyst calls gold the phone works ... how's it like gold ... well my goal no central bank controls its so governments can just print the form is more of the Currency ... building on the gold medal for ... the coins are mine and set of shovels ... miners whose powerful computers to solve complex math problems when they succeed ... they unearthed more Bitcoins are there an unlimited number that you know this crater Bitcoin with twenty one million Bitcoins in before school ground ... since two thousand I nearly half of them eleven million ... had been mind and put into circulation ... with each new batch of course the founder of ... the program's code automatically makes it harder to solve the next problem ... thus hiding out the spot ... can you buy real things using Bitcoins there's a growing list of online merchants that accepting them ... including a site called hit me that's like the Bay of Bitcoins ... a few brick and mortars take them collectors bar in Berlin ... before also maintain their own physical virtues of the electronic Bitcoins ... making it kind of prepaid catch ... the best of the news on the arms marketplace drivers are silk Road ... and farther peer to peer transactions that are completely anonymous Kudu choir Bitcoins ... most populous from the Japanese site now talks which acts as an exchange because of connection your bank account ... can for real dollars into Bitcoins Continue reading >>

2017 Guide: Bitcoin Explained Simply For Dummies & Beginners

2017 Guide: Bitcoin Explained Simply For Dummies & Beginners

Bitcoin was invented as a peer-to-peer system for online payments that does not require a trusted central authority. Since its inception in 2008, Bitcoin has grown into a technology, a currency, an investment vehicle, and a community of users. In this guide we hope to explain what Bitcoin is and how it works as well as describe how you can use it to improve your life. Since anything digital can be copied over and over again, the hard part about implementing a digital payment system is making sure that nobody spends the same money more than once. Traditionally, this is done by having a trusted central authority (like PayPal) that verifies all of the transactions. The core innovation that makes Bitcoin special is that it uses consensus in a massive peer-to-peer network to verify transactions. This results in a system where payments are non-reversible, accounts cannot be frozen, and transaction fees are much lower. We go more in-depth about this on the page about mining , but heres a very simple explanation: Some users put their computers to work verifying transactions in the peer-to-peer network mentioned above. These users are rewarded with new bitcoins proportional to the amount of computing power they donate to the network. As we mentioned above, there is no central person or central authority in charge of Bitcoin. Various programmers donate their time developing the open source Bitcoin software and can make changes subject to the approval of lead developer Gavin Andresen. The individual miners then choose whether to install the new version of the software or stick to the old one, essentially voting with their processing power. It is in the miners best interest to only accept changes that are good for the Bitcoin currency in the long run. These checks and balances mak Continue reading >>

What Is A Good 'bitcoin For Dummies' Summary? Can Bitcoins Be Used Like Actual Currency, And What Does Mining For Bitcoins Mean? - Updated 2017

What Is A Good 'bitcoin For Dummies' Summary? Can Bitcoins Be Used Like Actual Currency, And What Does Mining For Bitcoins Mean? - Updated 2017

Bitcoins are created out of thin-air through an open-source computer mining system similar to a lottery, yielding a commodity like gold. Ill now try to explain the key words here lottery and gold as they relate to Bitcoin mining. Lottery meaning that your computer is basically trying to decipher a a large number before anyone else on the mining network does. Each time your computer gets the string correct before anyone else, a new block is created and 12.5 BTC (currently) is awarded to the miner or pool (group of miners). But this isnt a normal lottery. This lottery is millions of times more difficult than a normal lottery, thus why miners spend a lot capital on new hardware for mining. Therefore, the faster your system can mine the higher probability you will be rewarded. Rewards for mining a block decrease in half every 4 years making bitcoin finite in creation. Gold meaning only 21,000,000 Bitcoins will ever be created just as only X amount of gold will ever be discovered on Earth. Thus, this form of payment tends to see an opposite affect of that which you are used to. Bitcoins become worth more as time goes on (finite supply) vs. traditional currencies today which lose more value as time goes on (infinite supply; central banks can print money at their discretion, and they do). Bitcoins are bit more different than a standard currency since it has it's own built in transaction system through its mining process. If the dollar, gold and visa had a baby we'd call it Bitcoin. Bitcoins operates on a open transaction ledger called the 'Blockchain'. All transaction data on the network is recorded on the blockchain. Each time a new block is mined the transaction data held inside that block is added to the blockchain and confirmed. The blockchain is then downloaded by every Continue reading >>

How Bitcoin Works

How Bitcoin Works

Your home for independent, unbiased financial education on the web. Opinions expressed by Forbes Contributors are their own. Bitcoin is a digital currency that exists almost wholly in the virtual realm, unlike physical currencies like dollars and euros. A growing number of proponents support its use as an alternative currency that can pay for goods and services much like conventional currencies. Bitcoin is the first and easily the most popular cryptocurrency, or currency that uses cryptography1 (see "Definitions and Key Concepts at end of article) to control its creation, administration and security. Bitcoin was set up in 2009 by a mysterious individual or group with the pseudonym Satoshi Nakamoto, whose true identity is yet to be revealed and who left the project in 2010. It rocketed to prominence in 2013, when the value of a Bitcoin soared more than 10-fold in a two-month period, from $22 in February to a record $266 in April. At its peak, based on more than 10 million bitcoins issued, the cryptocurrency boasted a market value of over $2 billion. Bitcoin differs from conventional currencies in some very fundamental ways, as noted below (for the sake of simplicity, we use the U.S. dollar as a proxy for conventional currencies). Bitcoin uses P2P technology without a central authority: Bitcoin is a decentralized currency managed by peer-to-peer technology (P2P2), without a central authority. All functions such as Bitcoin issuance, transaction processing and verification are carried out collectively by the network, without a central supervisor or agency to oversee operations. In contrast, a conventional currency is issued by a central bank as part of its mandate to manage national monetary policy. In the U.S., only the Federal Reserve has the power to issue dollars; it i Continue reading >>

A Brief History Of Bitcoin - And Where It's Going Next

A Brief History Of Bitcoin - And Where It's Going Next

Despite the above, Satoshi Nakamoto releases his white paper , revealing his idea for a purely peer-to-peer version of electronic cash to the world. In his vision, he manages to solve the problem of money being copied, providing a vital foundation for Bitcoin to grow legitimately. The first block, nicknamed Genesis is launched allowing the initial mining of Bitcoins to take place. Later that month, the first transaction takes place between Satoshi and Hal Finney, a developer and cryptographic activist. Bitcoin receives an equivalent value in traditional currencies. The New Liberty Standard established the value of a Bitcoin at $1 = 1,309 BTC. The equation was derived so as to include the cost of electricity to run the computer that created the Bitcoins in the first place. The worlds first Bitcoin market is established by the now defunct dwdollar. A programmer living in Florida named Laslo Hanyecz sends 10,000BTC to a volunteer in England, who spent about $25 to order Hanyecz a pizza from Papa Johns. Today that pizza is valued at 1,961,034 and stands as a major milestone in Bitcoins history . Bitcoin is hacked. A vulnerability in how the system verifies the value of Bitcoin is discovered, leading to the generation of 184 billion Bitcoins. The value of the currency from a high of $0.80 to $1 in June drops through the floor. Bitcoin goes under the spotlight. After the hack in August and a subsequent discovery of other vulnerabilities in the blockchain in September an inter-governmental group publishes a report on money laundering using new payment methods. Bitcoin, it suggested could help people finance terrorist groups. Bitcoin reaches $1 million. Based on the number of Bitcoins in circulation at the time, the valuation leads to a surge in Bitcoin value to $0.50/BTC. The Continue reading >>

What Is Bitcoin? - Cnnmoney

What Is Bitcoin? - Cnnmoney

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures. Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value. Several marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies. Mt. Gox is the largest bitcoin exchange. People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally. People compete to “mine” bitcoins using computers to solve complex math puzzles. This is how bitcoins are created. Currently, a winner is rewarded with 25 bitcoins roughly every 10 minutes. Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the FDIC. Wallet in cloud: Servers have been hacked. Companies have fled with clients’ Bitcoins. Wallet on computer: You can accidentally delete them. Viruses could destroy them. Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. While that keeps bitcoin users’ transactions Continue reading >>

How Does Bitcoin Work?

How Does Bitcoin Work?

This is a question that often causes confusion. Here's a quick explanation! As a new user, you can get started with Bitcoin without understanding the technical details. Once you have installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should only be used once. The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending bitcoins that are actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography . A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast between users and usually begin to be confirmed by the network in the following 10 minutes, through a process called mining . Mining is a distributed consensus system that is used to confirm waiting transactions by including them in the block chain. It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions Continue reading >>

Bitcoin: Seven Questions You Were Too Embarrassed To Ask

Bitcoin: Seven Questions You Were Too Embarrassed To Ask

Sign up or login to join the discussions! Bitcoin: Seven questions you were too embarrassed to ask We're resurfacing this explainer to shed some light on the recent bitcoin drop. This explainer originally ran in early December. With continued high interest in bitcoin, we're republishing it with updated prices. This week, bitcoin has gone through a wrenching selloff , falling from a high of $19,500 earlier this week to below $13,000 on Friday. Want to really understand how bitcoin works? Heres a gentle primer In recent months, the currency's astonishing gainsit was worth less than $1 in early 2011and subsequent decline has caused a lot of people to wonder if they should be paying attention to the technology. While almost everyone has heard of bitcoin at this point, many people are fuzzy on the details: what is a bitcoin, exactly? How do I buy some? What would I use it for? We're here to help. Read on for a beginner's guide to bitcoin. We'll explain what bitcoin is, how it works, and what ordinary people should know about the technology. Chris Ratcliffe/Bloomberg via Getty Images The term bitcoin actually refers to two different things. Bitcoin is a payment networklike MasterCard is a payment network. Bitcoin also refers to the currency of the bitcoin networkmuch like MasterCard uses dollars in the United States. What makes bitcoin different from MasterCard, PayPal, and other payment networks that existed in 2008 (when bitcoin was invented) is that bitcoin was the world's first payment network that's completely decentralized. The MasterCard network is operated by MasterCard Inc., but there's no Bitcoin Inc. in charge of the bitcoin network. Rather, it's a peer-to-peer network that maintains a shared transaction ledger called the blockchain. Inventing a new currency wasan Continue reading >>

Bitcoin: 5-part Summary On What Bitcoin Is And Its Value

Bitcoin: 5-part Summary On What Bitcoin Is And Its Value

Bitcoin: 5-Part Summary On What Bitcoin Is And Its Value What is Bitcoin and how did it start. Bitcoin vs. cash. Blockchain, Distributed Ledger and Cryptography explained. Bitcoin and blockchain's future potential uses and value. Is bitcoin a bubble? What about the technology behind it? Were going to write a lot about Bitcoin over the next few months, as it's pretty topical. Just this weekend, in fact, China got mad with the cryptocurrency and is now working to shut down many of the exchanges it trades on in China. After this news came out, the price of a Bitcoin promptly fell 7%. So many questions, so little time. There are so many different ways we have thought about attacking this question, but none of them are appropriate for a single 5-minute session. So instead, we are going to do this over multiple notes. By the end, you will know exactly what a Bitcoin is, why China is closing exchanges which allow you to trade bitcoins, and why them doing so has caused the price of a Bitcoin to fall. First and foremost, it is really important you realise that Bitcoin is a completely made up currency that only exists on computers and the internet. And technically, its not even a currency at all. Its an invention. Its a piece of technology. And its the technology part which is super interesting. The Bitcoin itself, not so much. But today were not going to discuss any of that. Today, we just want you to know what a currency is, and why it has value. Have you played the game if you were stuck on a desert island, and could only take ten things with you, what would you take"? Classic game. Good times. How many of you ever answered cash as one of your things? None right. Ever wondered why? Its because money or cash actually has no inherent or intrinsic value. Zero. You cant eat it, d Continue reading >>

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