There is virtual money, and then there is Bitcoin. The super geeky Bitcoin is mathematically-derived money that promises to change how people use money. Bitcoins are not real coins-they are strings of code secured with military-grade encryption-and men and women who use them to purchase and sell products and services are hard to trace. Together with anonymous drug retailers, Ashton Butcher and the Winklevoss twins have reportedly jumped on the bandwagon. There is something to be said about using money that is not regulated by the government or banks, does not have the regular transaction fees and is impossible to fake. Bitcoin also claims to be disaster-proof, as you cannot ruin numbers in precisely the identical way which you could ruin gold reserves or paper money.
What is Bitcoin?
Bitcoin is digital Money made by a programmer hiding under the pseudonym of Satoshi Nakamoto allegedly a Japanese man who has perfect control of American English. Bitcoin is decentralized, which means it is not controlled by a central authority such as a bank, nation, individual or government. It is peer reviewed and open-source, distributed throughout the net from computer to computer, without need for middlemen. In comparison to U.S. dollars, Bitcoin is virtually untraceable, which makes it appealing to libertarians fearful of government meddling and denizens of the underworld. You can use it to pay for purchases on the internet and off, from illegal drugs on the Silk Road to legit restaurant dishes.
Where to Get Bitcoins
You can get Bitcoins from friends, online giveaways or by purchasing them with real cash from Bitcoin exchanges. Using real money to purchase Bitcoins defeats the entire purpose of anonymity, but since you might have to put in your bank account to a third party website. You could even buy Bitcoins using your cellular phone or through money deposit institutions. New Bitcoin converter are made by mining is done automatically by computers or servers-it is not real-world mining in which you must dig underground to unearth commodities, but the idea is similar. You need to exert effort to dig gold, and you or your own machine also needs to devote time and resources to confirm and document Bitcoin transactions.
Among the coolest Things about Bitcoin is that it gets its value not from real world items, but out of codes. Bitcoins are pulled from the ether by machines and the men and women who run them in exchange for solving complex mathematical problems regarding the present number of Bitcoins. These bulky and expensive supercomputers include strong encryption capabilities and suck power like nobody’s business. In a typical transaction, buyer A from place X pays seller B some Bitcoins online. Miners then race to authenticate and encrypt the trade, logging Bitcoin codes at a central server. Whoever solves the mystery first gets the Bitcoins. About 25 new Bitcoins are made for each 10-minute block, but that amount can increase or decrease based on how long the system runs.