Bitcoin seems to be the talk of the web these days and while it’s still not a mainstream currency at this point, its buzz is growing. Bitcoin might seem complicated, but there’s really only a few things you need to know about this popular new money of the internet.
1. Just What Are Bitcoins?
First off, bitcoin is not real money that you can hold in your hand. Bitcoin is a digital currency used to buy goods and services with on the internet.
2. Where Did They Come From?
Bitcoin was created in Japan around 2009 by the mysterious Satoshi Nakamoto. I say mysterious because the creator has since vanished and some even believe he never existed to begin with, but merely adopted an alias formed from Japanese companies — SAmsung TOSHIba NAKAmichi MOTOrola. Whatever the case, the digital currency system he put in place is anonymous, meaning that transactions can be completed without anyone knowing about where the payment went or who it was sent from.
3. How Do You Get Bitcoins?
They can be acquired through providing services to users for Bitcoins, through a currency exchange program like Mt. Gox or by Bitcoin mining.
Bitcoins are kept in a digital wallet that is on your computer or through an online website that will manage your account for you. There is no limit on the number of Bitcoin wallets a person can have and software can be used to prevent tracking of IP addresses.
4. What Is Mining?
Mining is essentially offering up your computer to Bitcoin. Bitcoins are minted using a special software known as Bitcoin Miner that attempts to find a new block in the chain of Bitcoin network. Once a new block is found through long calculations, the computer’s owner is gifted with 50 Bitcoins.
5. Where Do You Spend Bitcoins?
Many non-profit groups and some companies accept Bitcoin, it’s merely just a matter of inquiring about the trade of them.