Friday 3 January 2014

What is a bitcoin?

Over the past year of 2013 bitcoins have made a prominent stand in our mind and I have been asked hundreds of times,what is a bitcoin?

Bitcoins are a form of person to person digital currency, a non physical form of money, that you keep in a digital wallet. You have to get a digital wallet before you can start receiving or store your bitcoins and these wallets can be online or on a data stick for even safer keeping(keep an eye on your data drive, a man threw out his by accident, losing 7 million dollars worth of bitcoins). One can get bitcoins in a few different ways, one is by transferring physical currency or money to digital currency or bitcoins through a currency exchange site. Another way is by selling products or services for bitcoins and lastly is by earning them through sites that offer small tasks for small amounts of bitcoins or by gambling for them.



The thing about bitcoins that has people loving the idea is the annoy amity of them. When a bitcoin is mined through bit mining it is publicly recorded and that record is known as a block-chain but they don't record any personal information. By holding these public records it makes duplicating and counterfeiting very difficult. Also the digital wallets hold annoy amity as high as they can and many people use a bitcoin tumbler. A bit tumbler is essentially a bitcoin money launderer, you put your bitcoins in the tumbler and it mixes it with everyone's else's bitcoins then delivers them to your pre-chose digital wallet for a small fee. All of this plus using the onion router and pgp encryption make bitcoins the most anonymous form of currency we have now.

1 comment:

  1. BitKong: Fun & Addictive, provably fair bitcoin game.

    TIP: Claim bitcoins every 10 minutes from the free btc faucet.

    ReplyDelete