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  • Know More About BitCoins 0 comments
    Aug 1, 2014 9:26 AM

    Bitcoin is a distributed peer-to-peer digital currency that can be transferred instantly and securely between any two people in the world. It's like electronic cash that you can use to pay friends or merchants.
    What are bitcoins?
    Bitcoins are the unit of currency of the Bitcoin system. A commonly used shorthand for this is "BTC" to refer to a price or amount (e.g. "100 BTC"). There are such things as physical bitcoins, but ultimately, a bitcoin is just a number associated with a Bitcoin Address. A physical bitcoin is simply an object, such as a coin, with the number carefully embedded inside. See also an easy intro to Bitcoin.
    How can I get bitcoins?
    There are a variety of ways to acquire bitcoins:
    • Accept bitcoins as payment for goods or services.
    • You can buy bitcoins from Coin
    • The most common way to buy bitcoins are the Bitcoin Exchanges
    • There are several services where you can trade them for traditional currency.
    • Find someone to trade cash for bitcoins in-person through a local directory.
    • Participate in a mining pool.
    • If you have a lot of mining hardware, you can solo mine and attempt to create a new block (currently yields 25 bitcoins plus transaction fees).
    • Visit sites that provide free samples and offers.

    Does Bitcoin guarantee an influx of free money?
    Since Bitcoin is a new technology, what it is and how it works may be initially unclear. Bitcoin is sometimes presented as being one of three things:
    A. Some sort of online 'get-rich-quick' scam.
    B. A loophole in the market economy, the installation of which guarantees a steady influx of cash.
    C. A sure investment that will almost certainly yield a profit.
    In fact, none of the above are true. Let's look at them independently.

    Is Bitcoin a 'get-rich-quick' scheme?
    If you've spent much time on the Internet, you've probably seen ads for many 'get-rich-quick' schemes. These ads usually promise huge profits for a small amounts of easy work. Such schemes are usually pyramid/matrix-style schemes that make money from their own employees and offer nothing of any real value. Most convince one to buy packages that will make them earn hundreds a day, which in fact have the buyer distribute more such ads, and make minute profits.
    Bitcoin is in no way similar to these schemes. Bitcoin doesn't promise windfall profits. There is no way for the developers to make money from your involvement or to take money from you. That bitcoins are nearly impossible to acquire without the owner's consent represents one of its greatest strengths. Bitcoin is an experimental, virtual currency that may succeed or may fail. None of its developers expect to get rich off of it.
    A more detailed answer to this question can be found here.

    Will I make money by installing the client?
    Most people who use Bitcoin don't earn anything by doing so, and the default client has no built-in way to earn Bitcoins. A small minority of people with dedicated, high-performance hardware do earn some Bitcoins by "mining" (generating new bitcoins, see what is mining?) with special software, but joining Bitcoin shouldn't be construed as being the road to riches. Most Bitcoin users get involved because they find the project conceptually interesting and don't earn anything by doing so. This is also why you won't find much speculation about the political or economic repercussions of Bitcoin anywhere on this site: Bitcoin developers owe their dedication to the project's intellectual yielding more than to those of a monetary nature. Bitcoin is still taking its first baby steps; it may go on to do great things but right now it only has something to offer those chasing conceptually interesting projects or bleeding edge technology.

    As an investment, is Bitcoin a sure thing?

    Bitcoin is a new and interesting electronic currency, the value of which is not backed by any single government or organization. Like other currencies, it is worth something partly because people are willing to trade it for goods and services. Its exchange rate fluctuates continuously, and sometimes wildly. It lacks wide acceptance and is vulnerable to manipulation by parties with modest funding. Security incidents such as website and account compromise may trigger major sell-offs. Other fluctuations can build into positive feedback loops and cause much larger exchange rate fluctuations. Anyone who puts money into Bitcoin should understand the risk they are taking and consider it a high-risk currency. Later, as Bitcoin becomes better known and more widely accepted, it may stabilize, but for the time being it is unpredictable. Any investment in Bitcoin should be done carefully and with a clear plan to manage the risk.

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