WeBitcoin: Beginner and How to Guide

What is Bitcoin and How do i get it?

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What is Bitcoin?</h3>
It was probably the greatest trade in all of recorded history. 
 
In October 2009, a Bitcoin aficionado who went by the name of ‘Liberty Standard’ published the first bitcoin exchange rate. He arrived at the figure by dividing the cost of the electricity consumed by his computer over a 30-day period by the number of bitcoins it generated. 1,309 bitcoins to one dollar was the price.6 Liberty  
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Standard was actually criticized for valuing bitcoins too high. Four years later, on November 29th 2013, one bitcoin was $1,242 – over 1.6 million times higher. A bitcoin was the same price as an ounce of gold. 
 
If anybody managed to buy the low (which actually came in December 2009 at 1,630 bitcoins to the dollar) and sell the high, they made over two million times their money. In four years, one dollar became two million dollars. 
 
Nice work if you can get it. 
 
The story of Bitcoin is amazing – not just for the gains (and the losses) that have been made, not just because of the revolutionary technology, but also because of the human stories that have come about as a result. 
 
There’s the developer in Finland who, trying out the tech, bought a beer from his buddy for some bitcoins. Three years later, his buddy sold those coins and bought a des res apartment in the trendiest district in Helsinki. There’s the computer nerd with an interest in economics who became the FBI’s most wanted drug dealer. And, of course, there’s the great whodunit. 
 
Read More: <a href="http://webitcoin.blogspot.com/2016/04/how-bitcoin-could-change-everything.html" target="_blank">How Bitcoin Could change Everything</a> 
 
Who invented Bitcoin? Who is Satoshi Nakamoto? 
 
He has a Japanese name, a German email address and he uses British spelling. He has invented a new form of money that could change the world. He is worth almost a billion dollars. He has computer programmers the world over purring at the unhackable genius of his tech. Half the internet – as well as investigative journalists and forensic scientists, even – have been trying to figure out his identity for over three years. And yet still, nobody knows who he is. 
 
I think I’ve cracked that, by the way. 
 
The story of Bitcoin has everything from the hilarious to the mysterious to the audacious to the calamitous. 
 
Genius computer hackers. Dogs with funny names. Cypherpunks. Cryptography. Financial systems. Governments. Organized crime. Attempted murder. Political insurrection.  
 
 
Inspiring bursts of generosity. Squatters. Poker players. City traders. And people just like you. 
 
When you type a website address into a browser you might have noticed that the letters ‘http’ appear at the front. ‘Http’ stands for Hypertext Transfer Protocol. In typing an address you are actually sending an HTTP command to transmit that website to you. Hypertext Transfer Protocol is the means by which information is shared across the web. 
 
Similarly, when setting up an email account, you might have noticed the letters ‘smtp’ – for example, ‘smtp.gmail.com’. SMTP stands for Simple Mail Transfer Protocol.  
 
SMTP is the protocol by which we send emails to each other. What actually happens when you send an email through Gmail to, say, someone with a Yahoo address is that a Google server reaches out to a Yahoo server and transmits a text file; then the Yahoo server says to its user, ‘you’ve got mail’. 
 
So, a protocol is an agreed system by which information is shared across a network. 
 
Bitcoin – with a capital ‘B’ – is another protocol. The function of the protocol is to send and receive payment information. 
 
With Bitcoin, your computer reaches out to another user’s computer, gives it some binary gibberish proving you control X number of coins at this address and want them to increase the balance at that address. 
 
The unit of money on the Bitcoin protocol is the ‘bitcoin’ (with a small ‘b’). As the dollar is the unit of money on the US banking network, so bitcoin is the unit of money on the Bitcoin system. So, Bitcoin is two things – a protocol and a unit of money. 
 
 
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What is Bitcoin and How do i get it?

What is Bitcoin? It was probably the greatest trade in all of recorded history. In October 2009, a Bitcoin aficionado who went by the n...

11:53

How to Get Bitcoin Fast

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How to get bitcoins Fast?</div>
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Using dollars or pounds is easy. 
 
You get paid in them. They’re in your bank account (hopefully). And you can pay for things with them via electronic banking, by cheque, credit card, or in cash. 
 
But where on earth do you get bitcoins? There are three ways. 
 
You can get paid in bitcoins.  
You can buy bitcoins. And last of all (the very unconventional bit),  
you can make bitcoins.  
 
Yes, you can, literally, create money. 
 
 
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You earn bitcoins by doing or selling something in exchange for bitcoins – just as you would earn normal money. If I do this job for you, you pay me in bitcoins. You buy bitcoins just as you would buy and sell foreign currency – from the Bitcoin equivalent of a bureau de change, known as a Bitcoin exchange, or directly from an individual. You hand over your dollars, pounds or whatever currency you’re using and you receive bitcoins. 
 
To create bitcoins, you run the Bitcoin software on your computer. It’s called ‘mining’ – more on that later. But I should say that mining has now progressed to the point at which regular home computers are no longer much good. 
 
Of course, you need somewhere to keep your money. You could keep your dollars in a bank account, your back pocket, your wallet or purse, even under your mattress. Bitcoins are kept in a ‘digital wallet’. 
 
There are hundreds of places to get a wallet, just as there are hundreds of places to get an email account. Often people will have more than one. You can keep a wallet on your computer or your phone, you could keep one on a hard drive off-line, or you could keep one with an exchange. Some people with lots of bitcoins keep them in a wallet on a hard drive in a safe. 
 
Each wallet has its own address – a sequence of different numbers and letters. To make a payment, you click on your wallet, type in the number of coins you wish to pay, copy and paste the payee’s wallet address, hit send and the payment is made. To receive a payment in bitcoins, all the person paying needs is your wallet address.  
 
When you receive a payment, your computer might give you a little ‘ching’ sound to notify you. It is as simple as sending an email. With barcodes you can open your wallet on your smartphone, photograph the barcode, hit send and the payment is made. The day is not far off when you will walk into a shop, select an item you wish to buy, photograph the code on the label, payment will be made automatically and off you go. 
 
Once you get the hang of it, it is as simple as using a credit card. And, as long as you have internet access, there are no barriers to entry. 
 
Read More: <a href="http://webitcoin.blogspot.com/2016/04/how-bitcoin-could-change-everything.html">How Bitcoin Could change Everything</a> 
 
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Cash in my wallet, money in the bank </h3>
I bet you use different kinds of money all the time, sometimes without even realising it. In various online accounts, I currently have: some dollars, some pounds and some euros. I have some air miles from two different credit card companies. I have some supermarket rewards points from three different companies. In addition, I have some bitcoins in a wallet on my computer. 
 
These are all tokens with some kind of value, which can be swapped for goods or services. They are all, in other words, different forms of money – nine in total. Of course, the dollars are more widely accepted than my supermarket rewards points – they are a more effective form of money. But those supermarket reward points are still exchangeable for goods and services of some kind and therefore are also a form of money. 
 
What’s more, I have none of these monies on my person. They are all stored and transacted on some computer somewhere – they are all forms of digital money. If I want to exchange the supermarket rewards points or the air miles for some kind of good or service, I must do it through the issuer. 
 
I can send you the dollars, pounds or euros, but I have to do it through a bank. If I had those dollars, pounds or euros in cash on my person and you were standing next to me, I could hand you that money directly. But most of the people or companies with whom we transact today are not in our immediate vicinity, so we have to send the money via a bank or even a courier. 
 
Making payments this way can be costly, particularly payments abroad or for small amounts. Western Union, for example, can charge as much as 10% of the total money transferred. 
 
There is also the issue of privacy – the bank and people who work for it can see how much money you have, what you buy with it, who you buy from – and what your entire spending habits are. 
 
There is also the issue of risk. The courier could be robbed, the bank could go bust (in theory at least) and so on. It is also worth remembering that money deposited in the bank becomes the property of the bank; it is no longer yours – a fact the majority of people are not aware of. 
 
Also, not everyone in the world has a bank account. While over 90% of adults in first world countries do, in poor countries that number falls to about 40%.8 Sixty per cent of people in poor countries, in other words, have no access to basic financial services and thus are excluded from the financial system. 
 
But here’s the key: with internet access, I can send a bitcoin directly to you with no intermediary, just as I could hand you a note if you were standing next to me. A bitcoin transaction is direct, frictionless and private. 
 
In other words, unlike the dollars, the air miles and all those other forms of money, the bitcoin is digital cash. 
 
Digital cash. 
 
The possibilities are endless. 
 
Read More: <a href="http://webitcoin.blogspot.com/2016/04/what-is-bitcoin-and-how-do-i-get-it.html">What is Bitcoin and How do i get it?</a> 
 
 
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How to Get Bitcoin Fast

How to get bitcoins Fast? Using dollars or pounds is easy. You get paid in them. They’re in your bank account (hopefully). And you ca...

08:04

How Bitcoin Could change Everything

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Everybody is constantly thinking about ways to make money. The average American spends more hours of each day attempting to earn it than he does anything else– be that eating, playing or even sleeping. 
 
 
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But hardly a soul – not even highbrow economists – stops to consider what money actually is and how it works. It is hard to overstate how important money is. Like the air we breathe, it is part of almost everything we do. Just about every transaction we make involves money. To use another analogy, what blood is to a body, money is to an economy. 
 
Governments, central banks and private banks create modern money – dollars, pounds, euros and so on. This ability to create money is – as I’m sure you appreciate – an immensely powerful privilege. While most have treated this privilege responsibly most of the time, there are plenty that haven’t. And all sorts of abuses have crept in. 
 
Politicians are forever spending more money than they have – aka running up deficits – in pursuit of some ideology or political agenda (normally popularity and re-election). They might spend the money on bailing out banks, on welfare, on some kind of subsidy; they might even spend it on wars (the US military is the world’s biggest employer).  
 
Central banks manipulate interest rates and inflation numbers on behalf of politicians and special interest groups. Private banks, through such means as lending and leverage, perpetrate their own abuses in pursuit of profit. As a result of all this, money gets debased. 
 
Government agencies even use money as a means to control people and spy on them. Money is supposed to be a means of exchange and a store of wealth, but it is also a political tool. This has been the case throughout history, but the control of governments and banks has grown over the last hundred years and is now unprecedented. It has led to huge concentrations of wealth and power. Both the state and finance now occupy, in the eyes of many, disproportionate territory in our economies. 
 
Meanwhile, over half the world’s population still doesn’t have access to basic financial services and is shut out. Suddenly, along comes Bitcoin, an open-source currency with no central authority, offering an alternative that could undermine the existing monetary order.  
 
Nobody even knows who designed it. It’s by no means the first attempt at digital cash, but it’s the first that works this well. It’s actually more efficient than dollars or pounds. It’s immune to all the manipulation and abuses that go on, there are no barriers to entry, bar internet access, and it has captured a zeitgeist in a way that nobody could have foreseen. 
 
If Bitcoin changes the way we transact and the way we store wealth – and it has the potential to do this – the repercussions could be enormous. Think what email did to the postal service, or what the internet did to newspapers, publishing, music and television. With the huge costs involved in the printing and distribution of physical newspapers, news publishing was once the exclusive domain of a few large companies.  
 
Now any blogger, aspiring journalist or start-up can publish on the web, effectively for free. Huge opportunities have opened up to the masses, and the old dinosaurs have seen their monopolies eroded. 
 
We’re still a long way from that, but Bitcoin could do something similar to banking, finance and, even, the large state model under which we live. Without wishing to get too excited, it could bring about the huge changes to society so many are clamouring for, re-balancing the skewed distribution of wealth and opportunity. The implications are enormous. 
 
That’s why Bitcoin is important. 
 
 
Read More: <a href="http://webitcoin.blogspot.com/2016/04/how-bitcoin-could-change-everything.html">How to Get Bitcoin Fast</a> 
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How Bitcoin Could change Everything

Everybody is constantly thinking about ways to make money. The average American spends more hours of each day attempting to earn it than h...

06:57

What is Bitcoin and How do i get it?

How to Get Bitcoin Fast

How Bitcoin Could change Everything

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