What is Bitcoin?Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet.
Who created Bitcoin?Bitcoin is the first implementation of a concept called "cryptocurrency", which was first described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control its creation and transactions, rather than a central authority. The first Bitcoin specification and proof of concept was published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project in late 2010 without revealing much about himself. The community has since grown exponentially with many developers working on Bitcoin.
Satoshi's anonymity often raised unjustified concerns, many of which are linked to misunderstanding of the open-source nature of Bitcoin. The Bitcoin protocol and
software are published openly and any developer around the world can review the code or make their own modified version of the Bitcoin software. Just like current
developers, Satoshi's influence was limited to the changes he made being adopted by others and therefore he did not control Bitcoin. As such, the identity of
Bitcoin's inventor is probably as relevant today as the identity of the person who invented paper.
Who controls the Bitcoin network?Nobody owns the Bitcoin network much like no one owns the technology behind email. Bitcoin is controlled by all Bitcoin users around the world. While developers are improving the software, they can't force a change in the Bitcoin protocol because all users are free to choose what software and version they use. In order to stay compatible with each other, all users need to use software complying with the same rules. Bitcoin can only work correctly with a complete consensus among all users. Therefore, all users and developers have a strong incentive to protect this consensus.
How does Bitcoin work?From a user perspective, Bitcoin is nothing more than a mobile app or computer program that provides a personal Bitcoin wallet and allows a user to send and receive bitcoins with them. This is how Bitcoin works for most users.
Behind the scenes, the Bitcoin network is sharing a public ledger called the "block chain". This ledger contains every transaction ever processed, allowing a
user's computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the sending
addresses, allowing all users to have full control over sending bitcoins from their own Bitcoin addresses. In addition, anyone can process transactions using the
computing power of specialized hardware and earn a reward in bitcoins for this service. This is often called "mining". To learn more about Bitcoin, you can
consult the dedicated page and the original paper.
Is Bitcoin really used by people?Yes. There is a growing number of businesses and individuals using Bitcoin. This includes brick and mortar businesses like restaurants, apartments, law firms, and popular online services such as Namecheap, WordPress, and Reddit. While Bitcoin remains a relatively new phenomenon, it is growing fast. At the end of August 2013, the value of all bitcoins in circulation exceeded US$ 1.5 billion with millions of dollars worth of bitcoins exchanged daily.
How it worksFrom a user perspective, Bitcoin is nothing more than a mobile app or computer program that provides a personal Bitcoin wallet and allows a user to send and receive bitcoins with them. This is how Bitcoin works for most users. Behind the scenes, the Bitcoin network is sharing a public ledger called the "block chain". This ledger contains every transaction ever processed, allowing a user's computer to verify the validity of each transaction. The authenticity of each transaction is protected by digital signatures corresponding to the sending addresses, allowing all users to have full control over sending bitcoins from their own Bitcoin addresses. In addition, anyone can process transactions using the computing power of specialized hardware and earn a reward in bitcoins for this service. This is often called "mining".
How do I earn Bitcoins?There are mainly 3 ways you can earn bitcoins online. The first method is earning small amounts of bitcoins through bitcoin faucets like this website. There are literally hundreds of bitcoin faucets that give out free bitcoins every hour or so. Just imagine how much bitcoins you can accumulate once you actively engage in claiming bitcoins through faucets daily.
The second method is to cloud mine bitcoins. Cloud mining is a popular way of 'mining' bitcoins as it is not only convenient for those who are not able of renting too much electricity or for those who simply do not have a mining rig. You can mine bitcoins or any other altcoins such as litecoin, dash, dogecoin, peercoin, ethereum etc by cloud mining. Just think of it as 'renting' someone else's mining rig over the internet. Yes.. it is a pretty cool method to earn bitcoins or earn money online for that matter.
The third method is to sell your digital goods or any other product or services online with bitcoins. There are many sites that are much like 'freelancer' websites with payments made in Bitcoins. If you have a good product or service to sell, maybe selling an online marketing strategy, social media followers or likes, or maybe cigarettes or even e-cigarettes and vaporizers for that matter. You can just about sell anything online and earn money online with sites like these and also earn bitcoins as well!
How do I get a bitcoin address?
In order to have a bitcoin address, you need a bitcoin wallet.
1. Go to Blockchain
2. Click on Wallet
3. Click on Start a new wallet
4. Enter your e-mail & password
5. Confirm your e-mail
6. You are ready!
Need more information? Visit Blockchain Wallet FAQs
Alternatively, There are many other services that provide bitcoin wallets for you. You can Choose Your Wallet
The Ultimate Guide To Earning Bitcoins Online
Methods To Boost Your Bitcoin Earnings & Profits
Method Number 1 - Trading / Exchange
Trading / Exchanging Bitcoins is an easy process. There are many online exchanges available. Some of which are:
First you would have to register for a new account. Once you have registered, you will have to fund your account either through your credit cards, debit cards, paypal or any other methods provided by the respective exchanges.
The price of bitcoins may vary from day to day but most of the times it will be between the range of $200 to $300 for 1 BITCOIN. Purchase them and start having fun with the varying prices!
You must remember to always buy it when the price is low and sell it when the price is high! as simple as that. If you stick to the basics, you will always be on a profit. That's the most important point.
When it comes to trading bitcoins, or even in the real world when you are trading shares on Forex for example, it is always a MUST to stick to the basics unless you are really experienced and you know what you are doing. It is much like gambling but in a way, much more safer than gambling. Try watching the video below to see how they are traded!
Method Number 2 - Mining
You might be thinking that 'mining' BITCOIN is a difficult process where you need special technological knowledge.
You are absolutely right about that. However it is not as complicated as it sounds. You don't need all that special geeky side of you to be mining Bitcoins.
What do I need?
All you need is:
(i) Mining rig
(ii) Cheap Electricity
(iii) A Bitcoin Wallet & Address of course
(iv) Perhaps a fan to cool down your monster machine
Watch the videos below to start with your mining!
Method Number 3 - Gambling
This may not sound as attractive to you but believe it or not, thousands of people are gambling with their bitcoins every day. Bitcoin casino and gambling has evolved into a major part of the currency itself and for these reasons, some people look upon bitcoins as an easy gateway to gambling.
There are no clear boundaries to validate legal documents, age restrictions, money laundering etc. This is a completely another story of bitcoins and we are not going to get deep into this.
What we are looking at is 'how to earn bitcoins' through gambling.
There is no way you can win through gambling unless you are extremely good with handling your desires & emotions. However, if you are talking about small amounts, gambling is better than any other.
You may want to watch the video below if you are interested to learn more about this:
Method Number 4 - Faucets
There are literally hundreds of faucets available online. You will be able to easily find a few through visiting faucets like here as they have links guiding you to other faucets. Claiming around 800-2000 satoshi every once an hour or so. You might be thinking that these small amounts are really bringing nothing good or useful but there are plenty of success stories with faucet experts.
What you would need to do is to be actively claiming your free bitcoins through at least 20 - 30 faucets a day. Another effective way to increase your income would be to share your referral link to those faucets, EVERYWHERE.
Yes.. you heard it. EVERYWHERE is the answer.