BITCOIN (MY WORLD)

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INTRODUCTION

Bitcoin is new kind ,creative , Innovative online payement network.Bitcoin is an online payment system invented by SATOSHI NAKAMOTO, who published his invention in 2008, and released it as open-source software in 2009.The system is Peer-2-peer; users can transact directly without needing an intermediary. Transactions are verified by network nodes and recorded in a public distributed ledger called the Block Chain. 

 

Bitcoin is basically a online currencyIt is considered to be the best secureeasily transferable and Ir-traceable  currencyThese types of currencies known as Cryptocurrenies. Bitcoin became the first decentralized  cryptocurrency in 2009. Since then, numerous cryptocurrencies have been created.bitcoin is a global borderless currency.

 

ADVANTAGES

Bitcoin is not controlled by any single authority in the world because this currency bitcoin is not an official currency issued by any government or by any central bank.Bitcoin is different from fiat money .Bitcoin transaction is super fast then Fiat money transactions .Bitcoin transactions are verified by the blockchain, usually 6 confirmations needed to the transaction to be happened.Bitcoin transfer fee is too low that you can consider it free transfer of any amount you want to be transferred anywhere in the world within no time. Bitcoin is highly divisible , A satoshi is the smallest amount within bitcoin representing 0.00000001 bitcoin and the best part of this currency is to stored where ever you want ,You don't need open account in bank or any institution , just store them in online or offline wallets  and other forms of wallets on which you controlled them easily.

Its price varies up and down and with the time more and more major companies accepting Bitcoin as a payment processor which leads to more stability of this digital currency.Bitcoin is not unlimited its only consists of 21 millions in number..It is the largest currency of its kind.I will further guide You how to earn this currency and where to save it later.

 Units

bitcoin =1 btc , deciBitcoin =.1 btc , centiBitcoin = .01 btc , milliBitcoin = .001btc , microBitcoin = .000001 , satoshi = .00000001

Bitcoin Rate

The Bitcoin rate on June 2010 was not more than .06$ and the highest price were recorded on Nov 2013 more than 1000 $ per bitcoin.Current price is approx 242.3 $ per bitcoin.Different exchangers have their own buying and selling rates , But I mostly use Preev.com to see current price of bitcoin.

https://www.coinbase.com/charts

http://preev.com/

 How to Earn

There are many ways but 3 ways are of great importance Mining , Trading ,Saving.Now start with Mining.

1.Mining

Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm  transactions  to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

 Difficulty

Difficulty means  the measure of how difficult it is to find a new block . It is recalculated every 2016 blocks to a value such that the previous 2016 blocks would have been generated in exactly two weeks had everyone been mining at this difficulty.Means system adjust its difficulty at the end of every 14 days. Hashpower is inversely proportion to the difficulty More hash power added to the system causes the difficulty to increases.

https://bitcoinwisdom.com/bitcoin/difficulty

 There are many types of mining CPU mining , GPU mining these are too old and can't use anymore because difficulty factor is too high.In now a days Asic mining gain popularity.An application-specific integrated circuit, or ASIC, is a microchip designed and manufactured for a very specific purpose. ASICs designed for Bitcoin mining were first released in 2013.

I also purchase some asic miners for personal use.

Bitmain Antminer S3 - 441 GH/s Bitcoin Miner


Further description can be obtain from following link.

http://bitminingparts.com/store/1-pack-antminer-s3-441ghs-077wgh-28nm-sha-256-asic-miner/

Bitmain Antminer s4 - 2000 GH/s Bitcoin Miner.

 Further description can be obtain from the following link.

https://bitmaintech.com/productDetail.htm?pid=00020140916100720380cS1tRWd00684

Bitcoin Mining Profitability Calculator

You can easily check Your profitabilty on this link

http://www.vnbitcoin.org/bitcoincalculator.php

2.Trading

Second way to earn is to buy less and sell high.This all done on various online wallets which we discuss later.

3.Saving

3rd way to earn is to save them for long turn to earn more.We all know that in recent history price of bitcoin touched 1000 $ ,so may be it touch that value again soon or later.

BITCOIN Wallets

There are many ways to store them.

Web base Wallets

These wallets are basically online web base wallets.These are also known as websites wallets.These bitcoin websites provide addresses associated with an online account to hold bitcoin funds on the user's behalf, similar in ways to bank accounts.These types of wallets are in large numbers but I prefer bittrex and cryptsy.

https://www.bittrex.com/

https://www.cryptsy.com/

Desktop wallets

It  also known as software wallets.These Software wallets directly connects to the peer-to-peer bitcoin network.These software easy to installed on pc's and mobiles.In these softwares  bitcoind and Bitcoin-Qt are more popular.

Paper wallets

Any valid bitcoin address keys may be printed on paper and used to store bitcoins offline these are known as paper wallets. It is safe to use only if you have printed the paper yourself otherwise it is too risky .These non-digital offline wallets also term as "Cold Storage".These are the physical currency.I also have some printed paper wallets which i made from site listed below.

https://www.bitaddress.org/

 

These are my printed wallets.

 Physical Bitcoin

Physical bitcoins have been around for years, but  there are very few companies involved in this  industry. Some try to appeal to consumers through quality and the use of precious metals, others offer good designs at relatively low prices.Physical bitcoin includes DIY coins , Lealana coins , Antana coins and much more.

DIY coins

Lealana coins

Antana coins

“[Virtual Currencies] may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system.”

Ben Bernanke, Chairman of the Federal Reserve USA

 

“Bitcoin is a remarkable cryptographic achievement and the ability to create something that is not duplicable in the digital world has enormous value”

Eric Schmidt, CEO of Google

 

“Bitcoin may be the TCP/IP of money.”

Paul Buchheit, Creator of Gmail

 

“Bitcoin is a technological tour de force.”

 Bill Gates, Microsoft co-founder

 

 

 What we can Buy with Bitcoin

With the passage of time there are number of merchants – some of them retailer deciding to accept bitcoin in exchange for goods and services. Many of them are online e-commerce sites, but an increasing number of bricks-and-mortar stores are also now accepting cryptocurrency all over the world.

E-commerce

E-commerce site includes MIcrosoft , Dell , Bitcoinshop.us , BTCtrip , Air Lituanica and much more are accepting payements in bitcoin .

Physical Stores

Reeds Jewelers  in USA , Sacramento Kings , CoinMap.org also accepting payements in bitcoin.

Hotels ,Resturants and properties

A Holiday Inn hotel in Brooklyn, New York , Spanish chain One Shot Hotels, Foodler ,  Bitcoin Travel site is also accepting bitcoin as payments. 

Mobile Top up

Buy mobile top-up with Bitcoin.

https://www.bitrefill.com/pakistan/

http://www.bitmoby.com/

 

Donating bitcoin

You can also use your bitcoin in helping others like donating it to your favorite charities working for the betterment of the mankind.The easiest way is to donate to bitcharities here in bitlanders.

One of best social media site named Bitlanders  .  BitLanders, formerly known as the Film Annex, is a social media site that pays its users in Bitcoin. Bitlanders is basically Social Network that pays people for “content”         (blogs, films, images, and sharing).

Sources

http://en.wikipedia.org/wiki/Bitcoin

http://www.bitcoin.com/

 http://www.coindesk.com/

 http://www.bitlanders.com/



About the author

abdul-weenab

ACCA in progress

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