What is Bitcoin ?
Bitcoin is a crypto-currency, its creation and transfer is based on an open source cryptographic protocol and is not managed by any central authority, simply put Bitcoin is a decentralized digital currency.
Bitcoin uses a PTP (peer-to-peer) technology to operate, Bitcoins can be transferred Worldwide instantly with very low fees since there is no intermediary and the coins are transferred from person to person, all transaction are final and don’t require your PC to be online when you receive them.
How to create new Bitcoins ?
New bitcoins are created by individuals within the network through “mining“, the process where the computer is given a complex mathematical problem to solve, the goal is a 64 digit number. Mining nodes on the network are awarded bitcoins each time they find the solution (and thereby create a new block), the reward for solving a block is automatically adjusted, it started as 50 BTC in 2009 and the reward per block halves every 4 years, ensuring a finite supply of 21 million coins.
How to get Bitcoins?
There are several ways you can get Bitcoins, you can receive them as payment from offering goods or services as a merchant, business or trader, you can buy them with regular currency, mine them or earn them online by completing offers, viewing videos, affiliate programs or completely free from bitcoin “Faucets”.
How to get started ?
You can start by creating a Wallet, but first there are a few things you should know:
- All bitcoin transactions are final, irreversible, only trade with people or websites you trust.
- Keep your wallet secured, you can read more about that on Wallet page.
- Bitcoin is still an experimental currency and its price is volatile .
- All Bitcoin transactions are stored publicly and permanently on the network, which means anyone can see the balance and transactions of any Bitcoin address. However, the identity of the owner cannot be associated with their Bitcoin address until personal information is revealed by the owner during an exchange. This is why it is recommended for Bitcoin owners to use many different Bitcoin addresses; in fact, you should create a new one each time you receive money.