SO WHAT EXACTLY IS A BITCOIN ANYWAY- COMPLETE BREAKDOWN OF BITCOIN

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There is virtual money, and then there is Bitcoin. The super simple Bitcoin is a mathematically-derived currency that promises to alter the way people use cash. bitcoin news Bitcoins aren’t real coins-they’re strings of code secured with military-grade encryption-and people who use them to buy and sell products and services are not easy to trace. Together with anonymous drug dealers, Ashton Kutcher and the Winklevoss twins have jumped onto the bandwagon. There’s something to be said about using money that is not regulated by the government or banks, doesn’t come with the typical trade fees and is impossible to fake. Bitcoin also claims to become disaster-proof, because you can’t ruin numbers in the exact same manner which you can destroy gold reserves or paper cash.

Bitcoin is an electronic money made in 2009 by a developer hiding under the pseudonym of Satoshi Nakamoto (allegedly a Japanese man who has perfect command of American English). Bitcoin is decentralized, meaning it is not controlled by a central authority such as a bank, country, government or individual. It is peer reviewed and open-source, dispersed throughout the net from computer to computer, without need for middlemen. Compared to U.S. bucks, Bitcoin is virtually untraceable, making it attractive to libertarians afraid of government meddling and denizens of the underworld. You may use it to pay for purchases online and off, from illegal drugs on the Silk Road to second-hand restaurant dishes.

You are able to get Bitcoins from friends, online giveaways or simply by purchasing them with actual cash from Bitcoin exchanges. Using real money to buy Bitcoins defeats the whole purpose of anonymity, however, because you might have to add your bank account to a third party site. You can even buy Bitcoins using your cellular phone or through cash deposit establishments. New Bitcoins are made by”mining.” Mining is performed automatically by computers or servers-it’s not real-world mining in which you have to dig underground to unearth commodities, but the concept is similar. You need to exert effort to dig up goldand you (or your own system ) also have to devote time and tools to confirm and record Bitcoin transactions.

Among the coolest things about Bitcoin is that it gets its value not from real items, but out of codes. bitcoin price Bitcoins are pulled from the ether by machines (and also the men and women who run them) in trade for solving complex mathematical problems linked to the current number of Bitcoins. These bulky and pricey supercomputers arrive with powerful encryption capabilities (and reportedly suck power like nobody’s business). Whomever solves the mystery first gets the Bitcoins. About 25 new Bitcoins are created for each 10-minute block, but that number can increase or decrease depending on how long the network runs.