Bitcoin

WHAT IS BITCOIN?

By George Ilian on Jan 9, 2015 in Bitcoin, Blog | 0 comments

A New book is coming soon and it will be ABSOLUTELY FREE! Here is the first chapter of it. The topic is Bitcoins and other cryptocurrencies and everything you need to know to get started with them. Enjoy the first chapter and subscribe to get the full book for FREE!   What is Bitcoin? For those of you who have never heard of Bitcoin, it’s a software-based payment method first introduced to the world in 2009. It utilizes a public ledger so that everyone is kept up-to-date with all transactions. Payments made with Bitcoins are recorded in this public ledger which is based on a peer-to-peer system rather than utilizing a middle-party (bank or financial institution). Bitcoin is a cryptocurrency. Bitcoins are generated to reward users for processing payments. This process is known as mining and involves using computer power to verify and record payments to the public ledger. Mining is not the only way to earn Bitcoins; they can be exchanged for products, services, or even fiat money. Users send and receive Bitcoins electronically by using a virtual wallet. In other words, two users will each have a wallet that holds their Bitcoins. User A can send Bitcoins to User B by means of an electronic address randomly generated by the wallet. Once payment is sent, it is considered pending and added to a block chain. Once that block chain has been verified by a miner, then the transaction is considered confirmed. Bitcoin continues to grow as a viable payment method, extending out to larger companies that are looking for an edge on their competition. Online merchants have an added incentive to accepting Bitcoins. Bitcoin fees are much lower that the fees that credit card processors charge of 2%-3% per transaction. On the downside, Bitcoin has been the subject to some extreme scrutiny. One of the most common concerns is that it can be used for illegal activity. My response to this is that cash can also be used for the same illegal activities. Sites like Silk Coin have been the cause of this scrutiny but was shut down since it was a black market. A Block Chain The most important aspect of the Bitcoin system is the...