What Is Bitcoin?Tips and Information on Bitcoin, Types, Faucets and Attributes
Bitcoin can be confusing for beginners, so we're offering some free information gathered from all over the Interwebs about Bitcoin, how to use it, why to use it, when to use it, where you can get them, and what it is, and what it's used for. We'll also look into Bitcoin faucets, and the different Bitcoin attributes. We hope you find our info helpful!
So what is Bitcoin?
Bitcoin is a peer-to-peer online payment system that was developed in 2008 by a guy named Satoshi Nakamoto. Nakamoto's actual identity is still a mystery. There's a lot out there on theories that he was actually a group of programmers, or a guy living in the USA, but so far nobody's sure. What we do know is that the open-source software that he/they developed was released on 2009, and ever since then, it's been gaining popularity.
Bitcoin was first used to pay people for using their computing power to verify and record payments on a public ledger. This was called data mining, and it's still in use today, but nowadays you can actually buy Bitcoins with real money.
How do you use Bitcoin?
Well, to use bitcoins, we fist need to understand what's needed to use them:
First off, there is the “block chain”, which is a sort of ledger that records Bitcoin transactions. It's done by use of the software, and the transactions get recorded, such as “payer A sends ## Bitcoins to player B” - and then ti's broadcast through the network. The persons on either end keep track of their transactions with their own ledgers in the software. Next, you have “units”. Units are the amount of Bitcoin – and are symbolized by BTC, XBT, and B. Smaller parts of bitcoins are mBTC (millibitcoin), uBTC (microbitcoin) and Satoshi. The Satoshi, though, is really the smallest denomination of Bitcoin, being 0.00000001 – one hundred millionth of a Bitcoin! To own Bitcoin, you must have a private keycode for your ledger. The keycode gets confirmed by the network using a public key, and then you're all set. The only problem with this is that if the keycode is lost, the bitcoins are lost. There is no way to recover them without the keycode.
Now that we know what Bitcoin is, let's look at how they are used:
You can use your Bitcoin on the web, and all you have to do is know the address for the person you'd like to send to – it's sort of like a URL, but it's called a URI. Same as any other web address, only the URI is the address for a particular user. Hence we come into the peer-to-peer scheme – you're sending directly, person to person via computers. Nowadays there are many businesses that accept Bitcoin, but they are mostly on the web See here for a list of them: http://en.wikipedia.org/wiki/Bitcoin
How to get some coins:
Mining Bitcoin is one way to do it:Miners are basically doing a ledger service, by tracking and verifying transactions every day. Any time they record a transaction, they rename it with a smaller name – a sort of hash tag. It's a nonce – a number that can only be used once. This is proof of service – but – you have to find a good nonce within 10 minutes of the transaction. It gets hard for one person to do, so lots of people join Bitcoin mining pools. They work together, and share in the profits. They usually pay a fee for the service, though.
Bitcoin Faucets are websites that allow users to ear “free” bitcoins for performing little tasks, like solving captchas or tagging photos. Usually the amount of Bitcoin is pretty small, but over time, one can amass a large amount of Bitcoin if a lot of effort is put into it. Users can also earn money from referrals, such as referring friends, etc. You can get started with creating your own bitcoin faucet with us, we provide a free service and no hosting or coding is required to get setup.
There are lots of services on the Internet that offer something called a Bitcoin Wallet. These services essentially hold your bitcoins for use, and you can use them kind of like a bank account online. All of these services come with fee,s of course, and some wallets are not accepted everywhere.
We hope that you've enjoyed the info that we've supplied here.
Got a question? You can always contact us at: [email protected]