Bitcoins How They Work

bitcoin, crypto-currency, currency

What is a Bitcoin!!!!!?What on earth is a bitcoin.
Posted by ︻┳テ=δΈ€

Bitcoin is an open source peer-to-peer electronic money and payment network introduced in 2009 by pseudonymous developer “Satoshi Nakamoto“. Bitcoin has been called a cryptocurrency because it uses cryptography to secure transactions. Digitally signed payment messages are broadcast to and verified by a decentralized network of computers all over the world. Specialized computers use a proof-of-work system to prevent people from copying and spending the same bitcoin multiple times, a problem for digital currencies known as double-spending. The operators of these computers, known as “miners”, are rewarded with transaction fees and newly minted bitcoins.Bitcoins are stored by associating them with cryptographically generated addresses. These addresses may be stored on web services, on local hardware like PCs and mobile devices, or on paper print-outs. A collection of Bitcoin addresses is known as a wallet. Thefts of bitcoins from web services and online wallet services have been covered in the media, prompting assertions that the safest way to store bitcoins is in a paper wallet generated by the owner on an uncompromised computer.[citation needed]

In 2012, The Economist reasoned that Bitcoin has been popular because of “its role in dodgy online markets”, and in 2013 the FBI shut down one such service, Silk Road, which specialized in illegal drugs (whereupon the FBI took control of approximately 1.5% of all bitcoins in circulation). However, Bitcoins are increasingly used as payment for legitimate products and services, and merchants have an incentive to accept the currency because transaction fees are lower than the 2 to 3% typically imposed by credit card processors. Notable vendors include OkCupid, Reddit, WordPress, and Chinese Internet giant Baidu.

Speculators have been attracted to Bitcoin, fueling volatility and price swings. As of November 2013, the use of Bitcoin in the retail and commercial marketplace is relatively small compared with a relatively large use by speculators.

What is the bitcoin;explain?in regard to online currency not a medical condition.

Bitcoin is a digital currency created in 2009 by Satoshi Nakamoto. The name also refers both to the open source software he designed to make use of the currency and to the peer-to-peer network formed by running that software.Unlike other digital currencies, Bitcoin avoids central authorities and issuers. Bitcoin uses a distributed database spread across nodes of a peer-to-peer network to journal transactions, and uses digital signatures and proof-of-work to provide basic security functions, such as ensuring that bitcoins can be spent only once per owner and only by the person who owns them.

Bitcoins can be saved on a personal computer in the form of a wallet file or kept with a third party wallet service, and in either case bitcoins can be sent over the Internet to anyone with a Bitcoin address. The peer-to-peer topology and lack of central administration are features that make it infeasible for any authority (governmental or otherwise) to manipulate the quantity of bitcoins in circulation, thereby mitigating inflation.

Bitcoin is a peer-to-peer implementation of Wei Dai‘s b-money proposal and Nick Szabo‘s Bitgold proposal. The principles of the system are described in Satoshi Nakamoto’s 2008 Bitcoin whitepaper. Bitcoin relies on the transfer of amounts between public accounts using digital signatures. All transactions are public and stored in a distributed database which is used to confirm transactions and prevent double-spending.

bitcoin, money, decentralized
How the bitcoin system works?I don’t do this enough…ASK QUESTIONS! I want to know how the bitcoin system works. In laymans terms please.I want to know how the spending system works, I will be honest with you I plan on buying a PlayStation4 w/ these bitcoins, so I’d like to know how spending works normally, as well as anonymously and illicitly. Serious answers are appreciated, I am not going to get crazy w/ drugs or child porn! Links also help, whether they are .com or .onion, as I am able to gain access to the tor network. Analogies help too, I think I’m really dumb sometimes. Thanks guys, sorry about all the rules πŸ™‚
I know how to use Google. I am looking for specific answers and this provides that. I don’t want to make a career out of this stuff, so I want to skip the pages and just get answers to my questions. No offense.

Posted by buckaf8

Bitcoin is a payment method, commodity, and currency all in one.When you sell your coin, what you get is what you get. 1000 or 500 or 30,000.

Hold for the long term 2-4 years……..Bitcoin is the future, it is huge.

Also, if your interested in getting small amounts of free Bitcoin, try

They give 1 Bitcoin away every hour, its a way of getting it into everyone’s hands. Encourage adoption.

Also one thing to consider, you may be buying 1 Bitcoin, but it can be broken up to the 8th decimal place.

So 1 Bitcoin can be broken up into 100,000,000 pieces, or “satoshi’s”

Lots of room for growth, this is the future. It will replace western union, bank wire’s etc in a few years.

You can move 150 million worth of Bitcoin on the network worldwide for about 60 cents. The best bank rate for that amount is about 200,000 bucks. It’s a no brainer, dont listen to the haters……..they hate it because it is going to put them out of business.

 

 

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How Bitcoin Works Under the Hood

http://bitcoindigitalcurrencyreview.com

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