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 >>
A bitcoin exchange is a digital marketplace where traders can buy and sell bitcoins using different fiat currencies or altcoins . A bitcoin currency exchange is an online platform that acts as an intermediary between buyers and sellers of the cryptocurrency . The currency ticker used for bitcoin is either BTC or XBT. Bitcoin exchange platforms match buyers with sellers. Like a traditional stock exchange, traders can opt to buy and sell bitcoin by inputting either a market order or a limit order . When a market order is selected, the trader is authorizing the exchange to trade his coins for the best available price in the online marketplace. With a limit order set, the trader directs the exchange to trade coins for a price below the current ask or above the current bid , depending on whether s/he is buying or selling. For example, on a bitcoin exchange, three coin sellers are asking for BTC/USD 2265.75, BTC/USD 2269.55, and BTC/USD 2270.00. A trader who initiates a market order to buy bitcoins will have his order filled at the best ask price of $2265.75. If only five bitcoins are available for the best ask and 10 coins are available for $2269.55, and the trader wants to buy 10 at market, his order will be filled with 5 coins @ $2265.75 and the remaining 5 @ $2269.55. However, a trader who thinks that he can get bitcoins for a better price could set a limit order for, say, $2260.10. If a seller matches his/her ask price with this order or sets a price below this figure, the buyer will get filled. Online bitcoin marketplaces usually designate bitcoin participants as either makers or takers . When a buyer or seller places a limit order, the exchange places adds it to its order book until the price is matched by another trader on the opposite end of the transaction. When t Continue reading >>
Are The Bitcoin Symbols Xbt & Btc Different?
Spoiler: No, XBT is not different from BTC. These two symbols are used synonymously to refer to Bitcoin . But I think only knowing the spoiler information is not enough, and it is my duty on CoinSutra to tell you everything important surrounding Bitcoin. So right now, we are going to talk about Bitcoins ticker symbol i.e. BTC (aka XBT). <br /> Can't load widget<br /> To answer this, lets remember that Bitcoin is not a sovereigncurrency, meaning it is not a national currency producedby any specific entity. It exists with no single point of origin. And being nationless and identity-lessis what makes it decentralized.This is what takes it out of the control of anyone. But this brings a few challenges One of those challenges is how and what to name it. Its just like having a type of food that goes by different names in different countries or different communities. This happens because there is no standard procedure for naming. Similarly, Bitcoin, being decentralized, is called by two different abbreviated names (i.e BTC and XBT) because there is no one in charge to set naming standards. But the interesting thing is that even the founder of Bitcoin ( Satoshi Nakamoto ) didnt give an abbreviation to Bitcoin. I believe he did this purposely so that the community could have full control over the coin. Also, Satoshi mentioned the word Bitcoin only twicein Bitcoins white paper. He did this because its not the name that matters but rather the overall concept. Bitcoin is called BTC because it makes logical sense the acronym follows the sound of the name. So this has been the prevailingBitcoin symbol. But now, some have also started using the symbol XBT. The popular ticker name BTC violates ISO 4217 , and as according to this standard, it goes against th Continue reading >>
A Simple Guide To What Bitcoin Forks Are And Why They Happen
A Simple Guide to What Bitcoin Forks Are and Why They Happen Right now people keep hearing about the pending fork scheduled for on or around November 16 . Because software forks and blockchain splits can be a confusing subject, we want to explain just what a fork is and what it means for all the network participants involved. Also read: Preparing for the Bitcoin Hard Forks: A Step-by-Step Walkthrough If you are just getting involved in cryptocurrencies, and youve done a little research, you might have read about the great scaling debate and the topic of bitcoin forks recently. Forks represent changes to the bitcoin protocol that make previous rules valid or invalid. Cryptocurrency forks are merely protocol upgrades, and there are two types of blockchain forks that bitcoin enthusiasts refer to: a soft fork and a hard fork. Both types of forks can be radical changes to the underlying protocol, but they have two key differences. A soft fork is a rule change that is backward compatible; which means the new rules can still be interoperable with the legacy protocol. In contrast to this method, a hard fork enables a rule change to the software, but it does not have backward compatibility. This means a hard fork is a permanent split from the legacy rule-set, or version, of the blockchain before the fork occurred. The bitcoin blockchain has forked several times over the course of the technologys existence. Bitcoin forked back in March of 2013 , and a few months later in August 2013 . Back then the ethereum creator, Vitalik Buterin, wrote a very vivid description of the March 2013 fork event, stating: Starting from block 225430, the blockchain literally split into two, with one half of the network adding blocks to one version of the chain, and the other half adding to the other, Continue reading >>
What Is Bitcoin2x And What Does It Mean For You?
What is Bitcoin2X and what does it mean for you? If youve been following Bitcoin for any length of time, youll notice that one of the major discussions in the marketplace is all about forks hard forks, soft forks, etc. The recent hard fork for Bitcoin Cash , the Bitcoin Gold hard fork, and now, the coming hard fork for Bitcoin2X, all of which seem mysterious. What will happen if I already own Bitcoin? Which side should I support? Dont worry, Ive put together all the relevant information in this post to help you navigate the change. Well, theres not really an simple answer to that at least not as simple as youd think. Bitcoin is built on a blockchain system . This means that transactions using Bitcoin are processed by being placed in blocks and then added to the chain. Each block contains just 1MB of information, which limits the amount of transactions that can be placed on each block. The debate regarding Bitcoin2X started when Bitcoin became more popular. The problem with 1MB blocks is that they dont scale well that is, you cant get any more transactions per block than you already have. Hence, the scaling debate. The scaling debate ended with the signing of a famous document called the New York Agreement (NYA), which made provision for a first SegWit solution and then a following SegWit2X solution . The first solution came in mid-August with a SegWit soft fork . SegWit stands for Segregated Witness, or dividing the transaction from the witness of the transaction. This solution helped immensely, since by dividing the transaction into two pieces, more transactions could fit within each block. The proposed second solution, SegWit2X, was to take effect at block 494,784 on or around November 17. This solution would double the size of each transaction block to 2MB, meaning Continue reading >>
What Is Bitcoin? - Definition From Whatis.com
virtual agent (intelligent virtual agent or virtual rep) Bitcoin is a digital currency (also called crypto-currency) that is not backed by any country's central bank or government.Bitcoins can be traded for goods or services with vendors who accept Bitcoins as payment. Bitcoin-to-Bitcoin transactions are made by digitally exchanging anonymous, heavily encrypted hash codes across a peer-to-peer ( P2P ) network. The P2P network monitors and verifies the transfer of Bitcoins between users. Each user's Bitcoins are stored in a program called a digital wallet , which also holds each address the user sends and receives Bitcoins from, as well as a private key known only to the user. The Bitcoin network is designed to mathematically generate no more than 21 million Bitcoins and the network is set up to regulate itself to deal with inflation.Bitcoins can be spent by initiating a transfer request from a Bitcoin address in the customer's wallet to a Bitcoin address in the vendor's wallet. As of this writing, one Bitcoin (also called a BTC) is worth $104 -- but just as with stocks, the value of Bitcoins can fluctuate quickly. In the United States, Bitcoins are controversial because they can be used to anonymously transfer illicit funds or hide unreported income from the Internal Revenue Service (IRS). Bitcoin policy now requires transactions that involve traditional, government-backed currencies to be attached to an identity. This CNN video provides an overview of Bitcoin: Continue reading >>
What Is Bitcoin Cash? Bitcoin.com
Bitcoin cash as a payment network. Bitcoin as a settlement layer. Its argued that bitcoin cash is more suited as a payment network, similar to Visa or PayPal. When you add to this bitcoin cashs advantages as a cryptocurrency, you get something truly remarkable. Compared to bitcoin, the BCH network can process many more transactions per second and has faster confirmation times. Bitcoin cash can be used for higher-volume transactions such as retail payments made by millions of consumers around the world. Thats why proponents wanted an increase of the block size limit to 8 MB to improve scalability. Bitcoin, on the other hand, can be viewed more as a settlement layer in which high-dollar, smaller-volume transactions can be sent locally or across borders. These payments are not subject to the examination of banks, taxing authorities and other regulatory bodies. But because of bitcoins 1 MB block size limit, users are facing longer processing times and higher fees. If youre sending $50,000 or even millions of U.S. dollars worth of bitcoin through its network, it still competes favorably against traditional wire transfers and other methods (like Western Union). Disadvantages of traditional wire payments: Requires multiple identifications or government approval Bitcoin cash as alternative to paper cash Bitcoin and bitcoin cash attracted much media coverage throughout 2017 because of large increases to BTC and BCH market capitalization. Despite the favorable publicity, traditionalists question why bitcoin cash has value in the way that fiat currencies do, such as the U.S. dollar or Japanese Yen. Both the dollar and yen are widely considered stores of value and acceptable mediums of exchange. But even these global reserve currencies have been floating currencies for no more tha Continue reading >>
What Is Bitcoin (btc)? - Definition From Techopedia
Definition - What does Bitcoin (BTC) mean? Bitcoin is a digital cryptocurrency made up of processed data blocks used for online and brick-and-mortar purchases. Because bitcoins are limited and their value is determined by market forces, bitcoins are also traded like stocks on various exchanges. Relatively new and experimental, bitcoin is described as the first decentralized digital currency. Bitcoins are generated after a block of data is processed, creating a block of transactional data in the bitcoin network. This is accomplished through a bitcoin mining client, although this function is no longer adequately performed via a regular central processing unit (CPU). The forecasted number of produced bitcoins is 21 million with an expected completion date of 2040. Bitcoins may be purchased or sold over the bitcoin network and are considered secure because during each transfer, each bitcoin must be cryptographically signed. A bitcoin user is required to employ a public key, private key and bitcoin address for each transaction that occurs as a peer-to-peer transfer. The bitcoin concept was invented by Satoshi Nakamoto, although virtually nothing is known about him. In 2010, Nakamoto withdrew from the Bitcoin Project. Continue reading >>
Why I Would Bet Against Bitcoin
We're economists covering everything economics. Opinions expressed by Forbes Contributors are their own. I am not one of those economists who has been looking down his nose at Bitcoin from the start. As I argued back in 2013, I think the condescension that some economists bring to the topic of Bitcoin is an instinctive dismissal of anything with a whiff of anti-central banking. I have believed my friend Tim Lee when he argued Bitcoin is something worth thinking about for economists. Yet the Bitcoin bubble is now screaming too loudly to ignore. And it has revealed flaws about the cryptocurrency that I think will keep it from being more widely embraced as a currency and unit of exchange. What is a bubble, how do you know when there is a bubble, and when will a bubble pop? These are all very, very hard questions for economists. But a good sign that there is a bubble is when a large share of market participants are buying based on untenable assumptions. So what are the assumptions that bitcoin market participants have? Many, I believe, are buying because they think prices are going to continue to skyrocket, making this a "good investment." Iconducteda Twitter poll of Bitcoin buyers, and 72% of of the 79 respondents are purchasing because theywant to profit from rising prices . Let's dig into this assumption a bit. Why might Bitcoin continue to rise in price? It can't be because people simply view it as a good investment because it rises in price. This is a Ponzi scheme, and the number of people who think Bitcoin is a good investment simply because prices are rising is limited. I don't know how much longer that can go on for, but it must end eventually. And once prices stop rising rapidly, all the buyers who were purchasing based on the assumption of rapidly rising prices w Continue reading >>
What Is Bitcoin? - Definition From Whatis.com
SAP FICO (SAP Finance and SAP Controlling) Bitcoin is a digital currency (also called crypto-currency) that is not backed by any country's central bank or government.Bitcoins can be traded for goods or services with vendors who accept Bitcoins as payment. Bitcoin-to-Bitcoin transactions are made by digitally exchanging anonymous, heavily encrypted hash codes across a peer-to-peer ( P2P ) network. The P2P network monitors and verifies the transfer of Bitcoins between users. Each user's Bitcoins are stored in a program called a digital wallet , which also holds each address the user sends and receives Bitcoins from, as well as a private key known only to the user. The Bitcoin network is designed to mathematically generate no more than 21 million Bitcoins and the network is set up to regulate itself to deal with inflation.Bitcoins can be spent by initiating a transfer request from a Bitcoin address in the customer's wallet to a Bitcoin address in the vendor's wallet. As of this writing, one Bitcoin (also called a BTC) is worth $104 -- but just as with stocks, the value of Bitcoins can fluctuate quickly. In the United States, Bitcoins are controversial because they can be used to anonymously transfer illicit funds or hide unreported income from the Internal Revenue Service (IRS). Bitcoin policy now requires transactions that involve traditional, government-backed currencies to be attached to an identity. This CNN video provides an overview of Bitcoin: Continue reading >>
What Does The Surge In Transaction Fees Mean For Bitcoin? | Bank Innovation | Bank Innovation
What Does the Surge in Transaction Fees Mean for Bitcoin? Bitcoin has had a volatile December, from reaching an all-time high of over $19K to crashing down more than 30%. There is no dearth of reasons for why the price for cryptocurrency has been falling, from blaming the recent the hack of South Koreas cryptocurrency exchange Youbi last week, or simply an overall reluctance by many people and governments to accept the legitimacy of the cryptocurrency. Another reason, according to a report by Seeking Alpha, is the rising transaction fees associated with the cryptocurrency. The fees may send users scuttling to altcoins, the report argues. This report points to the fact that bitcoins transaction fees are 1,000 times more than other cryptocurrencies. Jonathan Cooper, author of the Seeking Alpha report stated: Transaction fees will continue to hinder Bitcoin adoption and provide a rough user experience for Bitcoin users. Specifically, Bitcoin costs far too much relative to other coins, even to the mostly identical Bitcoin Cash. Perhaps the most problematic element of bitcoins high transaction fees, as pointed in article, is that its not based on the transaction amount, as one might logically assume so, it doesnt matter if an investor is putting in $50, or $2 million. Bitcoins transaction fes is calculated based on the transaction in bytes, meaning the number of wallets used to make the transaction. This transaction fee was less than $1 in January this year. In December, the average cost per transaction was at least $33.30, according to Seeking Alpha. Thats a 3300% increase. Fellow Bitcoiners, are you ever going to realize how problematic these fees are getting? Avg fees now over $40 per tx. A year ago avg fee was $4. A year prior, $0.40. Growing faster than price, and expo Continue reading >>
How Does Bitcoin Mining Work?
By Euny Hong | Updated October 17, 2017 — 3:51 PM EDT Cryptocurrency mining is painstaking, expensive, and only sporadically rewarding. Nonetheless, mining has a magnetic draw for many investors interested in cryptocurrency. This may be because entrepreneurial types see mining as pennies from heaven, like California gold prospectors in 1848. And if you are technologically inclined, why not do it? Well, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin. (Related: How Bitcoin Works and our helpful infographic, What is Bitcoin? ) By mining, you can earn cryptocurrency without having to put down money for it. That said, you certainly don't have to be a miner to own crypto. You can also buy crypto using fiat currency (USD, EUR, JPY, etc); you can trade it on an exchange like Bitstamp using other crypto (example: Using Ethereum or NEO to buy Bitcoin); you even can earn it by playing video games or by publishing blogposts on platforms that pay its users in crypto. An example of the latter is Steemit , which is kind of like Medium except that users can reward bloggers by paying them in a proprietary cryptocurrency called Steem. Steem can then be traded elsewhere for Bitcoin. In addition to lining the pockets of miners, mining serves a second and vital purpose: It is the only way to release new cryptocurrency into circulation. In other words, miners are basically "minting" currency. For example, as of the time of writing this piece, there were about 16 million Bitcoin in circulation. Aside from the coins minted via the genesis block (the very first block created by Bitcoin founder Satoshi Nakamoto himself), every single one of those Bitcoin came into being because of min Continue reading >>
What Does Bitcoin's Meteoric Rise Mean For Investors?
What Does Bitcoin's Meteoric Rise Mean For Investors? Opinions expressed by Forbes Contributors are their own. Bitcoin has climbed more than 1,300% this year.(Photo by Chesnot/Getty Images) Bitcoin prices have ralliedso far this year, climbing past $16,000 andreturning more than 1,300% year-to-date. These sharp gains have produced many so-called Bitcoin millionaires,as reports have cropped up all over about individuals who have made their fortunes simply by investing in the digital currency. While Bitcoin has enjoyed a meteoric rise this year, what do these sharp gains mean for investors? [Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.] Going forward, investing in Bitcoin - or simply holding the digital currencies - could provide these investors with more returns. However, it could also be a trap, causing these market participants to suffer sharp losses. While some analysts are bullish about what the digital currency's future outlook, others are far more cautious, warning that Bitcoin has entered a bubble and could soon suffer either a correction or an outright crash. Certainanalysts, like Latium CEO and co-founder David Johnson, are very optimistic. "I would say without question we will see Bitcoin above 20k before the end of the year," he said. "Momentum is growing daily and as momentum grows sellers have less reason to sell." Pawel Kuskowski, CEO & co-founder of Coinfirm , a blockchain and regulatory technology firm, also provided a bullish outlook. "Although there are going to be dips or what the industry calls corrections, the market and I mean the mass or traditional market is beginning to see the legitimacy of bitcoin," a developmen Continue reading >>
Bitcoin: What Does Mining A Bitcoin Really Mean? | The Economic Times
ET Home Industry Banking/Finance Banking What does mining a bitcoin really mean? 2017 was the year when curiosity about the Bitcoin hit an all-time high, thanks largely to a dramatic surge in its value. Notwithstanding recent fluctuations in its price, interest remains strong in the original cryptocurrency, which was launched in 2009. One question everybody has is what is the process of 'mining' that creates new Bitcoins and how does the blockchain technology underpinning the cryptocurrency really work. Here's how... Continue reading >>
Understanding Bitcoin Price Charts
CoinDesk Launches 2017 Year in Review Opinion and Analysis Series Whether you already own bitcoin or plan to get some, sooner or later youll want to know how much the cryptocoins are worth when converted to your currency of choice . Later, you may want to know whether to hang onto your coins or to sell them hopefully making a little profit in the process. However, analyzing price charts and understanding trading terms from the financial world can be rather daunting, especially for the beginner. This guide serves as a useful primer of the basics. The best place to find out the latest price of bitcoin (currency symbol: BTC or XBT) is the exchange you bought them from ( Bitstamp , Bitfinex and BTC-e being the most popular exchanges at the moment), or Coindesks own Bitcoin Price Index . Knowing bitcoins current price is one thing, but pretty soon youll want to know where prices will go in the future. Forecasting price movements of anything traded at an exchange is a risky probabilities game nobody is right all the time. Many traders have lost lots of money, if not their life savings, into such attempts. The two main approaches to predicting price development are called fundamental analysis and technical analysis . While fundamental analysis examines the underlying forces of an economy, a company or a security, technical analysis attempts to forecast the direction of prices based on past market data, primarily historical prices and volumes found on price charts. To perform technical analysis on bitcoin price and volume history, youll need bitcoin price charts that display data in a more readable manner than just plain number tables. Good places to start are the charts on Coindesks Bitcoin Price Index . The most basic type of price chart displays prices as a line: Closing pr Continue reading >>