If you want to purchase Bitcoin as an investment and you want to join the BitClub Network Company, so that BitClub can mine Bitcoin and other Crypto Currency on your behalf to grow a stable and increasing investment for you, please Join BitClub Here For Free. Once you join, you will be set up with a free lead account and receive follow up emails detailing how you can create a Bitcoin investment account with The BitClub Network. For any answers to questions Contact Clyde Thorburn Here.
Author : Coindesk : 20th March 2015.
Who prints it? No one. This currency isn’t physically printed in the shadows by a central bank, unaccountable to the population, and making its own rules. Those banks can simply produce more money to cover the national debt, thus devaluing their currency. Instead, bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are ‘mined’, using computing power in a distributed network. This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network. So you can’t churn out unlimited bitcoins? That’s right. The bitcoin protocol – the rules that make bitcoin work – say that only 21 million bitcoins can ever be created by miners. However, these coins can be divided into smaller parts (the smallest divisible amount is one hundred millionth of a bitcoin and is called a ‘Satoshi’, after the founder of bitcoin). What is bitcoin based on? Conventional currency has been based on gold or silver. Theoretically, you knew that if you handed over a dollar at the bank, you could get some gold back (although this didn’t actually work in practice). But bitcoin isn’t based on gold; it’s based on mathematics. Around the world, people are using software programs that follow a mathematical formula to produce bitcoins. The mathematical formula is freely available, so that anyone can check it. The software is also open source, meaning that anyone can look at it to make sure that it does what it is supposed to. What are its characteristics? Bitcoin has several important features that set it apart from government-backed currencies.
1. It's decentralized. The bitcoin network isn’t controlled by one central authority. Every machine that mines bitcoin and processes transactions makes up a part of the network, and the machines work together. That means that, in theory, one central authority can’t tinker with monetary policy and cause a meltdown – or simply decide to take people’s bitcoins away from them, as the Central European Bank decided to do in Cyprus in early 2013. And if some part of the network goes offline for some reason, the money keeps on flowing. 2. It's easy to set up. Conventional banks make you jump through hoops simply to open a bank account. Setting up merchant accounts for payment is another Kafkaesque task, beset by bureaucracy. However, you can set up a bitcoin address in seconds, no questions asked, and with no fees payable. 3. It's anonymous. Well, kind of. Users can hold multiple bitcoin addresses, and they aren’t linked to names, addresses, or other personally identifying information. 4. It's completely transparent. …bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger, called the blockchain. The blockchain tells all. If you have a publicly used bitcoin address, anyone can tell how many bitcoins are stored at that address. They just don’t know that it’s yours. There are measures that people can take to make their activities more opaque on the bitcoin network, though, such as not using the same bitcoin addresses consistently, and not transferring lots of bitcoin to a single address. 5. Transaction fees are miniscule. Your bank may charge you a £10 fee for international transfers. Bitcoin doesn’t. 6. It’s fast. You can send money anywhere and it will arrive minutes later, as soon as the bitcoin network processes the payment. 7. It’s non-repudiable. When your bitcoins are sent, there’s no getting them back, unless the recipient returns them to you. They’re gone forever. So, bitcoin has a lot going for it, in theory. But how does it work, in practice? Read more to find out how bitcoins are mined, what happens when a bitcoin transaction occurs, and how the network keeps track of everything.
Where to Buy and Sell Bitcoin. Coinbase at https://www.coindesk.com/companies/coinbase/ is based in the United States of America operates one of the most popular wallets and is an simple way to buy bitcoin. Localbitcoins at https://www.coindesk.com/companies/exchanges/localbitcoins/ is based in Finland matches buyers and sellers online and in-person, locally worldwide. BitQuick at https://coinde.sk/1gWyY9L is based in the United States of America claims to be one of the fastest ways you can buy bitcoin. CoinCorner at https://www.coincorner.com/?AffiliateId=12 is based in the Isle of Man allow purchases with credit and debit cards for verified users. Bitbargain at http://bitbargain.co.uk/?r=koofybit is based in the United Kingdom has a vast range of different payment options for UK buyers. Xapo at https://www.coindesk.com/companies/wallets/xapo/ is based in the United States of America is Known for it's ease of use and bitcoin cold-storage vault.
Read more about Bitcoin and The BitClub Network.
We just sent you an email. Please click the link in the email to confirm your subscription!
OKSubscriptions powered by Strikingly