The Beginner’s Guide to Bitcoins
Since 2009, bitcoins have been in existence and the build up of popularity over the unregulated virtual currency has been on the increase since 2009. Presently, bitcoins in existence are well over 10 million with the maximum target being 22 million. What are bit coins?
These are currencies created by a computing process called mining. It is a currency that can be used to make purchases anywhere in the world but they are not regulated by banks. It can be likened to a material or stick currency.
Not much is known of the creator of this currency. He is called Satoshi Nakamoto. Very few people have interacted with him and as of April 2011, he had moved unto some other offline projects.
Studies and research conducted on May 2013, revealed that the bit coin is worth approximately $140 or 80.73 pounds. It also revealed that the number of bitcoins in existence is approximately 11 million and the maximum number that would be mined is 22 million. Presently, it is estimated that the total worth of existing bitcoins is 1.06 billion pounds.
Here are some terms used with respect to bitcoins.
1. Bitcoin client: This is a software that was developed to send and receive bit coins.
2. Bitcoin Address: This is an identifier in alphanumeric forms that represent the destination of payment. It can be likened to an email address. An example is 13igD31FysQbaBBVJUzffcQoFxxEuEcbe.
3. Wallet: This refers to the file that is used to store bit coins and the keys needed to access them.
4. Miner: Blocks are added to the block chain. The person who creates these block is referred to as the miner. For every valid block created, the miner receives 50 bit coins from the bitcoins protocol. It is through this process that all bitcoins are made.
5. Bitcoin Protocol: This implies that a copy of every bitcoin transaction is to be downloaded by every node in the network.
6. Blockchain: This is a list of transaction every sent bitcoin, which allows people to know how owns each transaction.
7. Private Key: This is a secret number tagged to an address that allows access for the sending and receiving of bit coins. If for any reason the address is lost, the bitcoin can never be retrieved.
8. Bitcoin Network: This is a network of computers that maintain the block chain. It is via this network that bitcoins transactions are made.
Buying bitcoins is not an easy process since transactions are completely anonymous. There are specific methods which must be used for the payment and it could be a tricky process. It should be noted that for every passing 10 minutes, an additional 50 bitcoins are added to the system. This pace would not be sustained for a very long time to come. It is forecasted that the rate of production will be reduced to 25 bitcoins for every 10 minutes and subsequently to 12.5 every 10 minutes.
Money transfer is the most popular method of paying for bitcoins. This requires you to provide an exchange with your bank and transfer money into a bitcoin account. Cash payment services like Moneygram is used to compensate an intermediary at thee point of deposit. This service can turn the cash to credit and deposit into a bit coin exchange account.
Bitcoins could be referred to as a risky business as a result of the fluctuating exchanging rate. This was observed on the 10th of April when its value fell by 60%. It practically fell from $265 to $100. Many retailers accept bit coins but some others like Amazon, OKcupid, and Western Union have yet to identify with it.
Top Bitcoins Searches by Cities
Based on a release by Google, the following countries have the following score on a scale of 1 to 10 with respect to search for bitcoins online.
1. London – 40
2. Warsaw – 45
3. Toronto – 50
4. Sydney – 56
5. New York – 62
6. Melbourne – 66
7. Berlin – 81
8. Moscow – 100
Top Bitcoin Twitter Accounts
Here is a list of the top Bitcoin Twitter account.
@BitcoinByte: This is a twitter account for veteran Michael Parsons of the banking industry who runs the blog Bitcoins Byte.
@BitcoinEconomy: On his account, statistics on the bitcoin economy are posted from BitcoinWatch.com
@BitcoinMagazine: This account is for bitcoin magazine. This magazine is known as the world first magazine dedicated to cryptocurrency.
Can Can Be Done with Bitcoins
Here are some uses of bitcoins.
1. They can be sold.
2. They can be left on the exchange thereby saving them.
3. They can be liquidated on the exchange.
4. They can be spent and also transferred to a wallet service on your computer.