What is Bitcoin?
Bitcoin is an experimental, decentralized (not controlled by any organization or government) digital currency and peer-to-peer payment network that is powered by its users. Bitcoin is like cash for the Internet.
There is a limited number of bitcoins in circulation and new bitcoins are created at a predictable and decreasing rate. A fixed number of bitcoins means they are a commodity whose worth is determined by supply and demand.
How do you get a Bitcoin?
Before you can begin to get bitcoins, you first need a wallet. You can get one free here.
There are several ways to get bitcoins:
- As payment for goods or services.
- Purchase bitcoins at a Bitcoin exchange
- Exchange bitcoins with someone
- Earn bitcoins through competitive mining
What is Bitcoin Mining?
Bitcoin miners run specific software on their computers to help collectively solve very large and complex problems. Much like “SETI at Home” or “Folding at Home”.
Every transaction that takes place using bitcoins is recorded in a public ledger called the block chain. Basically, the block chain is a history of all confirmed transactions and a record of how much each bitcoin wallet has. Think of it like an army of accountants constantly writing who has how much and who paid whom in a huge piece of paper for all to verify (the block chain). The process called bitcoin mining confirms each of these transactions before it is saved into the block chain. On a few occasions, a transaction is really a reward of several bitcoins. This reward is what gives bitcoin miners the incentive to mine. Because the process of searching for bitcoin takes a lot of effort for computers, it is has come to be called “mining”.
So, how do I get started on this mining gig?
Like many things, mining for bitcoins can be quite easy or very hard. But today we have a fairly simple solution for you provided by Butterfly labs!
Butterfly labs offers bitcoin mining hardware which you plug into your PC and you run the software that is provided. You specify your wallet address so that your bitcoins can be sent to you! It’s that easy.
Wait, you don’t know what a wallet and a wallet address is? Well… it’s simple. Think of your wallet as your personal bank and a wallet address as an account for that bank. You can have as many bank accounts (wallet addresses) as you want.
That would be an easy way to get into bitcoin mining. If you want to get further into it you can follow the links below.
What is a Bitcoin Wallet?
A Bitcoin wallet is a digital wallet that stores your Bitcoin balance and allows you to transact with other users online and offline. All wallets can communicate with each other similar to emails, so you can send to and receive bitcoins from anyone regardless of the type of wallet they use. Digital wallets can be stored on a PC, a smartphone or can be hosted online by wallet providers like Bitpay.
Is Bitcoin Secure?
The Bitcoin technology – the protocol and the cryptography – has a strong security track record, and the Bitcoin network is probably the biggest distributed computing project in the world. According to bitcoin.org all security breaches happened on diverse exchanges and businesses but none of them involve Bitcoin itself being hacked.
How do returns work for Bicoin orders?
All orders fully paid by Bitcoin are final and cannot be returned for Bitcoin or hard currency. All returns will be refunded in the form of a Newegg Gift Card. All returns follow our return policy.
I’d like to learn more. Where can I find more information?