Bitcoin, bitcoin, bitcoin.
All anyone is talking about these days is bitcoin. OK, so maybe not everyone is talking about bitcoin, but having had its breakout year in 2013 (rising 6,000% in value) bitcoin, and by extension the dozens of other cryptocurrencies which have sprung up in the last 12 months, are now the topic of conversation around dinner tables, in pubs and at the water cooler. I ve heard lots of people say they were going to buy bitcoin, while the more knowledgeable were already planning on getting into litecoin, dogecoin, vertcoin, sexcoin or whatever the cryptocurrency-of-the-week was - but most people never took the plunge and actually bought some. The problem is that actually getting on the cryptocurrency ladder is not that easy. There are no bitcoin notes you can go to a bank and swap for your pounds, euro or dollars, so how do you go about getting your virtual hands on some? Bitcoin mining? You can of course mine some bitcoin - a process we have covered in detail hereWhen the virtual currency bitcoin was released, in January 2009, it appeared to be an interesting way for people to trade among themselves in a secure, low-cost, and private fashion. The Bitcoin network, designed by an unknown programmer with the handle “Satoshi Nakamoto,” used a decentralized peer-to-peer system to verify transactions, which meant that people could exchange goods and services electronically, and anonymously, without having to rely on third parties like banks. Its medium of exchange, the bitcoin, was an invented currency that people could earn—or, in Bitcoin’s jargon, “mine”—by lending their computers’ resources to service the needs of the Bitcoin network. Once in existence, bitcoins could also be bought and sold for dollars or other currencies on online exchanges. The network seemed like a potentially useful supplement to existing monetary systems: it let people avoid the fees banks charge and take part in noncash transactions anonymously while still guaranteeingCoin pursuit provides step by step guide to new cryptocurrency traders with information on digital exchanges available for trading bitcoins & other altcoins. Those who invest in traditional stocks and commodities often have one or more brokers who are just a phone call or email away from walking them through the process, and offering advice along the way. In contrast, buying and selling digital currency is often a do-it-yourself situation. The new investor in the cryptocurrency game can feel at a loss when it comes to connecting with other traders and finding up-to-the-minute market information. To put it in everyday language, the prospect of even getting started scares the living daylights out of some would-be investors.
Are there no investment resources for traders new to cryptocurrency? Of course there are! Even though the field of alternative currency is a young one, many helpful entrepreneurs in the field thought ahead, and established companies with just those concerns inWhat Are CryptoCurrencies? A cryptocurrency is a peer to peer electronic cash equivalent. Unlike typical online financial transactions which involve commercial or government entities acting as the middle man or central authority, peer-to-peer currencies provide a way of moving value directly between two people in the same way that private transactions involving cash in hand or valuable items, such as gold, are done today.
A peer-to-peer architecture exists when individual nodes in the network ,”peers”, act as both suppliers and consumers of a resource. This means that no single person has control. Instead of having one central authority who secures and controls the money supply, it spreads the work out across the entire network.
All the people participating in the network are helping to collectively perform the functions that a central bank would normally perform. These people collectively create the currency and make sure that the transactions that happen are valid and that invalidPros: • Sophisticated, entrenched platform could allow for use beyond currency in stock markets, digital quid-pro-quo agreements, and other revolutionary uses due to nearly zero transaction fees. • Biggest market capitalization, greater than 10 billion dollars (11/25/13). • Secure with some minor caveats including colluding miners (previously 51% attack, now may be 33% attack), • Massive fanbase for its true decentralization. • Established and accepted by 1000s of merchants. • Scarce, only 21 million will ever be mined. Cons: • Transactions take a long time to confirm. Three confirmations (usual minimum) takes at least 15 minutes, but closer to an hour on average in my experience. • Scarcity and finitude means BTC is inherently deflationary.
Some feel this is bad, but this really only for people who think BTC could plausibly take over Fiat completely — not plausible in my opinion and therefore irrelevant. • Mining is expensive, costing some $150,000 a day reports Bloomberg. Mining.