Saturday, January 18, 2014
Have You Heard of Bitcoins?
I was watching the local news on TV the other day. One news item that attracted my attention was the word bitcoins. The news stated that the Kings Basketball tickets could now be purchased using bitcoins. That was the first time I heard of the word. So what is a bit coin? Here's what is in the Wikipedia.
"Bitcoin is a peer-to-peer payment system and digital currency introduced as open source software in 2009 by pseudonymous developer Satoshi Nakamoto. It is a cryptocurrency, so-called because it uses cryptography to control the creation and transfer of money. Users send payments by broadcasting digitally signed messages to the network. Participants known as miners verify and time stamp transactions into a shared public database called the block chain, for which they are rewarded with transaction fees and newly minted bitcoins. Conventionally "Bitcoin" capitalized refers to the technology and network whereas "bitcoins" lowercase refers to the currency itself. Bitcoins can be obtained by mining or in exchange for products, services, or other currencies.
Bitcoin has been a subject of scrutiny due to ties with illicit activity. In 2013 the FBI shut down the Silk Road online black market and seized 144,000 bitcoins worth US$28.5 million at the time. The United States, however, is currently considered to be Bitcoin friendly compared to other governments. In China, new rules restricted bitcoin exchange for local currency, and the European Banking Authority has warned that Bitcoin lacks consumer protections. Bitcoins can be stolen, and chargebacks are impossible.
Commercial use of Bitcoin, illicit or otherwise, is currently small compared to its use by speculators, which has fueled price volatility. Bitcoin as a form of payment for products and services has seen growth, however, and merchants have an incentive to accept the currency because transaction fees are lower than the 2–3% typically imposed by credit card processors".
Now that you know the word bitcoins, are you ready to start mining? If you are, read first www.startbitcoin.com