How does bitcoin work

How Bitcoin works – The Most Effortless Explanation

This is how Bitcoin works

Bitcoin works like any digital currency system except there are no middle men such as banks or wire transfer services .Bitcoin is a network as well as a cryptocurrency and this network is called the Blockchain. Blockchain Technology is a type distributed ledger system and bitcoin is the first successful use case of the this technology. This technology was chosen because once information is entered, it can not be modified nor double spending.

Sending and Receiving Bitcoins

You can store your Bitcoin in a cryptocurrency wallet.

(I recommend Exodus for beginners).

All you need to do is enter the amount of Bitcoin and the recipient’s wallet address to send out Bitcoin.

This is also called the Private Key.

How a transaction with bitcoin works?

Each time a user sends Bitcoin to another user, the transaction gets sent to the Bitcoin Blockchain.

Other users all around the world who are on the network then validate the transaction.

The network then approves the transaction and the recipient receives the Bitcoin.

The transactions get registered on the Blockchain.

Once added to the blochain, it is very difficult to modify.

Decentralization Explained

Bitcoin is decentralized meaning you can send and receive Bitcoin to anyone around the world within minutes.

You can also send large amounts of Bitcoin anonymously without any fiscal limitations.

And the transactions may costs only a few cents in some cases.

Consequently, transfers are cheaper as well as faster as because there is no middleman.

How does bitcoin work

Why is it called CRYPTO currency anyway?

Crypto stands for cryptography which is the technology to encrypt the transactions.

The BlOCK in blockchain

Each time time a user sends bitcoin to another person, the transactions are bundled and encrypted into blocks.

This encryption is known as the hash.

how does bitcoin works on the blockchain
2668 Transactions are bundled together in this block (source: www.blockchain.com)

The CHAIN

The transactions are split to be verified by users throughout the network.

how does bitcoin work
Transactions are verified by computers from all around the world (source: www.blockchain.com)

The transactions are then rebundled together.

Each ‘block’ of transaction is added to the existing chain of blocks.

How does bitcoin work- how does blockchain work
Validated blocks are added to the existing blocks

How is bitcoin priced?

Market supply and demand are the main factors which determine the price of bitcoin.

The government can not influence the price Bitcoin..

Who are the people selling Bitcoin?

The people selling Bitcoin are miners and cryptocurrency traders.

how does bitcoin work

Miners are the ones who create new bitcoins.

How are bitcoins created?

Remember how I was explaining how bitcoin transactions are processed?

Well, each time a block of transactions is verified, the miners receive bitcoin as an incentive

This is also what powers the blockchain.

Here is a more indepth explanation of how cryptocurrency mining works

Why is everyone saying Bitcoin mining is a waste of Energy?

Bitcoin uses an encryption algorithm called SHA-256 hash.

In very simple words, Sha-256 is a proof-of-work algorithm.

This simply means that the miners have to ‘work’ to confirm a transaction.

The Bitcoin Mining Process

The job of the miner is to decrypt and validate a transaction.

What they do exactly is they  guesses until someone finds the correct answer.

The first user to find the answer gets the bitcoin as reward.

However, the competition to earn the Bitcoins first increases as more users enter the network.

As a results, the miners invest in more powerful and energy hungry computers to process transactions.

The Energy Waste

There powerful computers are know as ASICS and require a lot of energy.

As a result many governments have banned cryptocurrency mining due to their impact on local energy costs.

Can’t they just use another Algorithm?

Yes!!!!

These are called Altcoins.

Popular altcoins include Litecoin, Dogecoin and Potcoin.

Altcoins

As mentioned above, bitcoin uses an algorithm called SHA-256 which also uses a lot of energy.

Many programmers see the proof-of-work not only as a waste of energy.

But they also believe that they can increase the speed of transactions.

Thus began the quest for the fastest and cheapest Altcoin.

This resulted in software updates also known as forks.

New software updates sometimes require new infrastructure which is why sometimes there are free coins and other times not.

Are there other ways to get Bitcoin?

Yes, you can buy Bitcoin on cryptocurrency exchanges.

Some exchanges such as Coinmama, allow you to buy Bitcoin instantly with a Debit or credit card.

Coinmama is very user friendly unlike many other exchanges, so feel free to create a free Coinmama account to check it out or you can check out my Coinmama Review

How do I store my bitcoin?

A cryptocurrency wallet is where you store your Bitcoin

The difference between cryptocurrency wallets versus traditional digital wallets is the fact that there is no middle men.

So this means that you are responsible for the security of your bitcoin.

I recommend using Exodus which a desktop based multi cryptocurrency wallet.

It takes only a few minutes to install and it is completely free.

How do I secure my bitcoin?

To secure your bitcoin wallet you need to create a hard copy or “paper wallet” so you can recover your password in case your computer crashes.

As cryptocurrency exchanges are hackers favorite targets, it is therefor not advisable not to keep your cryptocurrency on an online exchange.

To find the best cryptocurrency wallet suited for you, check out my article on the 5 Cryptocurrency Wallets Everyone ought to know about.

Protip: Never ever give your private key to anyone – Your private key is like an login integrated with a password.

What does a Bitcoin look like?

In fact, a bitcoin looks like a transaction attached to a person.

how does bitcoin work- how does blockchain work
What a Bitcoin REALLY looks like (source: blockchain.com)

In other words, Bitcoin is the transfer of value from one person to another

Why don’t banks like Bitcoin?

The main reason banks don’t like Bitcoin is because they usually have very strict regulations to follow.

Also,they can not do business with certain countries.

The problem for government and banks is anybody can send or receive bitcoin to countries which were inaccessible to receive money such as Iran, North Korea due to sanctions.

Bitcoin allows people to bypass these trade sanctions among countries.

That being said, many banks are investing in blockchain technology because of the security it brings as well as the cost saving potential.

Final Thoughts

The only way to truly understand Bitcoin and decentralization, you will need to buy your first BTC.

Let me know if this info was helpful for you 😉
Cheers,
Marie

Founder of Satoshi Library

Owner of SatoshiLibrary

PS

Thank you for visiting!

And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!

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Library of Satoshi

Hashflare Review: Is hashflare legitimate? Payouts, ROI

The Ultimate Hashflare Review

Hashflare is a UK-based cryptocurrency cloudmining company. In this Hashflare review, I will be describing my experience with this company. Is Hashflare Legitimate? Was I able to get my initial investment back? How were the payouts? What I liked and what I disliked. And finally would I recommend this company?

Ready?

Let’s get started…

What is Hashflare?

Hashflare is the second biggest cloud mining company after Genesis Mining.

Cloudmining companies advertise themselves as a service which makes mining accessible to everyone without the hassle of investing in equipment as well as the maintenance.

How does Hashflare work?

In very basic terms, you buy hashpower (computing power) buy renting equipment with Hashflare.

Through mining contracts, the cloudmining company mines the cryptocurrencies on your behalf.

Then they deduct the energy and maintenance costs.

The remainder is pure profit.

Related: How does cryptocurrency mining work?

How does a Hashflare mining contract work?

A Hasflare mining contract is where you buy hashpower to mine a specific algorithm.

Then you choose algorithm.

Protip: Each cryptocurrency runs under an algorithm and one of the function of the miners is to decrypt the algorithm.

Once you have chosen the algorithm you would like to mine on, you need to choose the amount of hashpower you would like to buy and checkout.

Cryptocurrency Algorithms

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Hashflare then deducts the energy costs and maintenance fees.

As soon as you get a paid you can either reinvest it in the website to buy more hashpower or wait until you reach the minimum payout before you can withdraw to your wallet.

Top 3 things to check when buying a contract

  1. Contract duration
  2. Maintenance cost
  3. Minimum Payout

Is Hashflare Legitimate?

Hashflare LP is a cloud mining company based in Edinburgh, Scotland.

It has been in business since 2015 and created by specialists from Hashcoins.

It is the second most popular cloudmining service after Genesis Mining.

According to its website it has 2,500,000 users worldwide.

They also have quite a huge following on social media.

Are they legit?

They are definitely legitimate.

However, it is important to remember that cryptocurrency prices are extremely volatile.

Investing any website is riskier than just buying the cryptocurrency and holding on to it.

Whether they are a good investment is an entirely different story…

ROI/Payouts

I invested around $80 in the website with around $30 in transfer fees.

(The blockchain fees were crazy in 2017)

Hasflare payouts
What I purchased and re-invested

Compounding

As you can see from the above image, it won’t increase your payouts.

Is hashflare legitimate

Withdrawals

Hashflares makes it easy to reinvest.

But 12 months later, I have not been able to withdraw a single cent from this website.

hashflare withdrawals

Is Hashflare profitable?

Putting your money in this website definitely does not guarantee an ROI even any payouts.

hashflare review withdrawals payouts ROI

Will you get rich with Hashflare?

No 🙂

Why I decided to give Hashflare a chance

What I liked INITIALLY liked about Hashlare that they claimed to choose the most profitable coins to mine.

So I just needed choose the algorithm you want to mine on.

Sounded like a great idea.. right?

Wrong!!

The Great Bull Run of 2017

I have to admit that this sounded great at the beginning of 2017 when all the altcoins prices were shooting up and I couldn’t decide which coin to mine.

However, this turned out to be a problem as the cryptocurrency bubble burst.

The 2018 Depression

When the 2018 bear market hit, this turned out to be a problem.

As you get more comfortable with different cryptocoins and altcoins, as well as have a better understanding how cryptocurrency mining works, you will eventually want to be able to choose which cryptocurrenc you want to mine which Hashflare does not allow you to do.

Is Bitcoin mining is profitable?

Bitcoin mining is profitable in you plan on buying a lot of hashpower.

By a lot, I mean enough hashpower to compete with the big mining farms.

Bitcoin is the first cryptocurrency as well as the most popular.

The problem with being the most popular is that there already a lot of miners.

The more miners the higher the mining difficulty.

As mining difficulty increases, the costs also increases.

The Law of diminishing returns

It also important to remember that bitcoin coin generation halves every 4 years which increases the mining difficulty.

Bitcoin might have been profitable to mine from a basic computer in 2009 but if you intend to mine BTC, remember that you are competing with enormous mining farms.

Shady practices

September 2017

On September 1st 2017, Hashflare changed all the lifetime contracts to end them on August 2018

Ending Bitcoin Mining contracts

In May 2018, Hashflare announced to its users that it would be ending all Bitcoin mining contracts.

It then reactivated them after a huge backlash on social media

Genesis Mining vs hashflare
Hashflare cancels Bitcoin Mining Contracts and enforces user verification

Related: Genesis Mining Review

Investing or just gambling

Cryptocurrency mining is an even higher risk investment ask the miners are betting on the future value of the cryptocurrency in order to recup their initial investment.

So getting if you get into a “cryptocurrency investment” website, you’re leaving investment territory.

What you’re doing is gambling 😉

A safer bet is simply to buy bitcoin or you can check out this article which explore other cooler ways to get bitcoin.

Finally remember that these cloudmining websites don’t exist to make you rich…

Let me know if this info was helpful for you 😉
Cheers,
Marie

Founder of Satoshi Library

Owner of SatoshiLibrary

PS

Thank you for visiting!

And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!

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How to get bitcoin

How to get Bitcoins? The TOP 12 WAYS to get BTC

How do I get Bitcoins?

To get Bitcoins you can Buy Bitcoins, you can Earn Bitcoins or you can Create Bitcoins. The best option for you depends on your time and budget. There are fast ways and easy,  however there is always a trade off: the faster you need them the higher it is going to cost and smaller the budget the longer its going to take. When you’re just starting out you might just be interested in getting Bitcoin fast but if you want to be respected in the cryptoverse and become a serious player, you should definitely learn how the professionals are bringing in the bitcoin.I have mapped out all the legit ways you can get bitcoins so you can choose the best option for you depending your budget.

How to get started with Bitcoin?

You can skip this step if you have already bought your first Bitcoin.

  • Step 1: Get a wallet to store your Bitcoin.

Cryptocurrency wallets have a receive and send address also known as public key and private key.

The private key is like the username and password of your wallet whereas the public key is similar to the email address your give out to receive email.

Related Article: Public Key vs Private Key

Note:that just like the dollar or Euro, you can buy part of Bitcoin for example: 0.05 BTC).

Step 3: Provide you receive address or public key.

Protip: Never keep your Bitcoin on exchanges because they are they favorite targets of hackers.

Step 4: Send Bitcoin to another person buy asking them their public key.

Step 5: Earn more bitcoin buy trading, mining or offering your services.

How to get a bitcoin wallet?

You can go to bitcoin.org or bitcoin.com to download a bitcoin wallet on your phone.

Otherwise, I would recommend going to Exodus.io to download a multicurrency crypto wallet which will allow you to store many types of cryptocurrencies rather than having one wallet for each currency.

Bitcoin vs BitcoinCash and why does it matter

Before moving forward, I think  you should know the difference between Bitcoin(BTC) and BitcoinCash (BCH)so you don’t accidentally use the wrong wallet.

Bitcoin (BTC) was created by SatoshiNakamoto and the first cryptocurrency ever created.

BitcoinCash(BCH) was created in 2017 and is a fork a bitcoin.

This is means that it similar to a spin-off or a different version.

For this reason, you can not store your BTC at the same address you are storing your BCH.

In very simple terms, imagine Bitcoin being the US dollar and BitcoinCash being the Canadian dollar, they are both currencies but are for different markets.

This confused me a lot when I was just starting out 🙂

Long story short: save yourself  from a potentially very expensive mistake and a lot of aggravation by getting a multicurrency wallet for beginners like Exodus which several cryptocurrency.

Exodus is completely free and you can set it up in under 5 minutes. You download the Exodus Wallet Here.

The lists starts with the fastest and easiest to option which takes the most time:

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Please include attribution to https://satoshilibrary.com with this graphic.

How to get Bitcoin

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Popular Ways of Getting Bitcoin

Cryptocurrency exchanges and trading platforms are the most popular and fastest ways to get bitcoin.

It is usually recommended that beginners start with exchanges and get their first Bitcoin to see how the technology works before moving to more advanced platforms.

1. Cryptocurrency Brokers

Cryptocurrency Brokers are companies or people which own bitcoins and sell it to you in fiat (USD/EUR) in exchange for a commission.

This is a great way for beginners to get bitcoins in under 15 minutes.

If your time is valuable and just want to get bitcoin fast without too much energy, this is the way to go.

The most popular cryptocurrency brokers  for beginners are Coinmama and Indacoin.

The great thing about these companies is that buying experience is similar to shopping.

The allow you to buy bitcoins with your debit card or debit card,

Buy bitcoin fast with Coinmama

1. Go to Coinmama.com and create an account . You can also use out affiliate link here:Coinmama

How to get bitcoin

2. Verify your email address and your identity.

As this Coinmama is offering financial services, you will need to provide proof of ID.

3. Enter the amount of Bitcoin you want to buy or the amount you want to spend

how to get bitcoin

4. Enter (VERY IMPORTANT) your bitcoin receive address

How to get bitcoins

Step 5: Enter your credit card info

how to get bitcoin

Wait a few minutes while the blockchain processes your transaction, remember that it IS decentralized.

The next alternative to Coinmama is Indacoin, which I have also tried, but I personally think Coinmama offers a better experience.

The advantage of Indacoin over Coinmama is that you can sell your Bitcoin on their exchange.

Coinmama also allows customers from the US to buy bitcoins with them.

Related article: CoinMamaReview

how to get bitcoins

2. Cryptocurrency Trading

Cryptocurrency exchanges allow you to buy and sell your cryptocurrency.

The biggest problem with cryptocurrency trading platforms is that the largest ones are usually open to new registration.

Cryptocurrency trading is not usually recommended for beginners unless you already have experience trading securities.

The most beginner friendly exchanges

  1. Coinbase
  2. Bitpanda
  3. Paxful

When I was just starting out, I found cryptocurrency exchanges extremely overwhelming so I would recommend starting with these 3 if you don’t like tech too much.

Cryptocurrency Exchanges

I will be using Paxful as an example because they have the most payment options.

Paxful allows you to buy bitcoin with credit cards, debit cards, Paypal and even Skrill.

  1. Go to Paxful.com or feel free to user our affiliate link.

And create a free account:

How to create bitcoin - cryptocurrency exchanges

Paxful also give you the choice to choose the best deal in their market place or they can do a search for you based on your preferred payment method.

how to get bitcoin -paxful review

Choose how much Bitcoin based on the payment method.

how to get bitcoin

how to get bitcoin buy now

As you get more experienced and better understand the market you might want to move over to exchanges like Binance.

Getting paid in Bitcoin

We tend to forget that bitcoin was created so we could send and receive value from anywhere around the world instantaneously.

This is also a faster and cheaper alternatives to banks.

3. Cryptocurrency Mining

Mining is a very popular way to get Bitcoin and other cryptocurrency.

Cryptocurrency mining is the process of creating new cryptocoins.

So how it works is, you help the ecosystem by verifying transaction and you get cryptocurrency as a reward for your efforts.

Feel free to check out a more detailed explanation on how cryptocurrency mining works.

So why don’t I just mine bitcoins?

Bitcoin coin generation is halved every 4 years and mining difficulty increases as more players come onto the market despite more specialized equipment.

Another problem with Bitcoin Mining machines, also know as ASIC miners, is they they can only mine one type of coin which makes them a very high risk investment.

Though it was profitable to mine bitcoin on a computer in 2010, you definitely won’t earn anything mining from a computer 10 years later unless you plan to create a mining farm.

What can are my options if I’m broke?

Though you can’t mine Bitcoin small scale, you can definitely mine lesser know coins or ASIC resistance coins such as XUN, Monero or Cannabiscoin.

Once you’ve mined them, you can sell them on an exchange.

The biggest disadvantage is that it is very time consuming and you probably won’t make much at the beginning unless you plan on holding your crypto for several years.

cloud-computing-2116773_1920

However, the biggest advantage of this method is that it is great way to learn how cryptocurrency mining works and whether it is something you see yourself doing in the long run.

Other mining options

If you want to learn how to choose which coins to mine, I would definitely check out Genesis Mining which is a cloud mining company.

Which coins to mine
Choosing cryptocoins to mine

Cloud mining is where rent out mining equipment and the company pays you out the profits directly.

If you would like a deeper explanation of how Genesis Mining works and how the let you choose which coins to mine, you can check my full Genesis Mining Review.

If done right, cryptocurrency mining can become a great source of passive income.

Genesis Mining review payouts is genesis mining legit

4. Charge Bitcoin for your services

This is slightly different than bounty hunting because freelancing involves doing ongoing work in exchange for Bitcoin.

The truth of the matter is bank transfers are expensive and take a long time and Skrill or Paypal don’t support all countries.

how to get bitcoin

For this reason, many employers are opting to pay their team in cryptocurrency.

With all the startups which have raised millions during the ICOs they have a lot of work to offer.

Popular job posting on Upwork.com

  • Content Writing
  • Copywriters
  • Whitepaper writer
  • Marketing experts
  • Community managers
  • PHP or Java Developpers
  • DAPP Developpers
  • Mobile Developpers
  • Video producers
  • Graphic Designers

If you are a content writer, have a support background  or even programming background, there are quite a few number of clients on Upwork looking to pay in Bitcoin.

Cryptocurrency is making it even easier to get paid from clients from around the world.

5. Selling products for Bitcoin

Selling products online for crypto is not new, however, it IS VERY UNDER-RATED.

Remember that you can send bitcoin to anyone around the world instantaneously.

You can sell products on market places like Overstock.com or Openbazaar.org.

This set up works well if you like electronics such as video games or computer parts because gamers. You also get access to a broader oversees market.

The BIGGEST advantage I have been hearing from merchants is that they do not need to worry about refunds.

how to get bitcoins free

Credit Card purchases tend to get a 10% refund rate which is quite a budget for online companies.

6. Marketing other companies products

An affiliate program is where you market a product and get a commission or referral on each time the person you recommended makes a purchase.

How do referral programs work?

When you apply to an affiliate program, you are provided with an affiliate link, when someone clicks on the link, cookies are added in the users’browser for a certain period of time until they purchase the products.

For example Amazon’s cookies stay 24 hours in the user’s browser.

Affiliate programs are great if you already have a huge audience but what what you don’t want to do is spam every group out there- This is a big no-no.

how to get bitcoins

Affiliate marketing blueprint

  1.  Create a huge audience on Social Media. This can be pinterest or a facebook group.
  2.  Offer valuable information why they need this product.
  3.  Propose an affiliate product.

Popular Cryptocurrency Affiliate programs

  1. Coinbase
  2. Bitpanda
  3. Shapeshift

7. Bitoin Faucets

The first Bitcoin Faucet was created by Gavin Adresen in order to distribute bitcoin and educate the public.

How do bitcoin faucets work

They work similar to bounty programs except you do less to do even less.

Example of tasks required by faucets

  1. Providing your email address
  2. Clicking on ads
  3. Accessing a website once a day

how to get bitcoins - bitcoin faucets

Each ‘task’ rewards you around 2-3 cents and faucets also require users to meet a minimum threshold in order to be eligible which is around $5-$10 including transfer fees.

They usually entice users by opting in by offer $1 worth of Bitcoin.

They are know that you won’t be entering your email to weird websites once a day two thousand days in row.

Faucets are not a serious way nor sustainable to earn bitcoin and most of these websites contain a lot malware.

There are so many better paying jobs on websites like upwork or freelancer.com where you will be better paid for your talent.

8. Bounty Programs

Bounty hunting is when you get offered a reward in exchange for completing a task.

The most common bounty programs are among ICOs, where tokens are offered in exchange for a social share.

This is a great way to earn cryptocurrency if you already have a large audience.

How do you actually get bitcoin if you are being rewarded tokens?

The idea is to sell the tokens in exchange for bitcoin once the reach the exchange.

how to get bitcoins

Where can to find bounty programs

Most ICO bounty programs can be found:

  • Bitcointalk.com Forum (Bounty Section)
  • Blockchain Facebook groups (the real ones not spammy ones)

Advantages of Bounty Programs

  • Little effort if you already have a huge following.
  • Airdrops which means they reward you tokens for your loyalty.
  • Some tasks require .

Disadvantages of bounty programs

  • Not all tokens make it to exchanges.
  • Your friends and family might get upset if the project fails.
  • 99% of startups fail.
  • It is becoming very difficult to get tokens on exchanges due to regulations.
  • Founders sometimes dump all the tokens as soon as they reach exchanges.
  • Tokens are usually worth a few cents when they first reach exchanges.

If you want to earn ‘real money’ instead of a few dollars and some tech skills, there are is a high demand for locating bugs in exchange for bitcoin.

High Paying Bounty Programs

*By real money I mean serious amounts of bitcoin 😀

More Clever Ways to Get Bitcoin

9. Placing ads

If you already own a tech or financial blog  you can set up an account with cryptocurrency ad companies which generate cryptocurrency and blockchain related content.

Note: You might need to trade the tokens on exchanges in exchange for Bitcoin.

Cryptocurrency Advertising programs

add a donate button on your site to received cryptocurrency

10. Tipping or Donation Jar

A bitcoin tipping jar is also a great way to monetize your content in both writing and video.

Though you can find a plugin, you can also just use your public key.

How to set it up

Just paste your Bitcoin public key underneath the content.

Where can I add my tipping address?

  • Closed Facebook groups
  • Under your youtube content
  • In your blog
  • On your T-shirt (basically anywhere people can find it 🙂
  • In forums

VERY IMPORTANT: DO NOT SPAM forums and groups asking for Bitcoin donations.

11. Become an influencer

This is one of those open-secrets of the industry.

Many blockchain startups seek out social media personalities with high followings.

Influencers can get paid to tweet, participate in events or review their products.

John Mcafee famously claimed he charged $105,000 per tweet.

He even explained in the interview with Independent why he charges over $100,000.

Influencers also get paid to travel and speak at blockchain projects around the word. Preety cool eh? 😉

how to get bitcoins - become an influencer

12. Treasure Hunting

This is currently the coolest app created in the crypto and it literally makes crypto trading fun.

Aircoins is an augmented reality plateform which allows you to receive tokens like PokemonGo or Snapchat.

how to get bitcoin for free

I am not being paid or endorsed to share this, I just think it’s really cool and I am really happy we can come such a long way from the Electrum Wallet days.

The technology is moving very fast and companies are constantly adding new features.

Anything that appears a bit complicated today might get a bit easier down the road.

Final Thoughts

Remember that Bitcoins are a currency and to buy them requires to going through financial companies.

The faster you need the BTC, the more it is going to cost you.

If you do not own bitcoin, I would recommend buying an amount which you are comfortable with just to see how the technology works.

Once you are comfortable with the technology then you can move onto more serious solutions.
Owner of SatoshiLibrary

PS
Thank you for visiting!
And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!
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Coinmama Review

Coinmama Review: Is Coinmama a scam or legit? We checked!

The Ultimate Coinmama Review

 Coinmama is a cryptocurrency broker and a subsidiary of NewBitVentures.
Coinmama is registered in Slovakia but based in Ra’anana, Israel.
The transactions are also processed in Israel.
This company has been in business since 2013.

Affiliate Disclaimer

How does Coinmama work?

Coinmama is a cryptocurrency broker which means that they will send you the cryptocurrency directly to your cryptocurrency wallet in exchange for a commission.

Unlike cryptocurrency trading platforms, you do not need to create an additional wallet on the platform to store your crypto.

Checkout Process Review

Coinmama has a very user-friendly and shopping feel to it unlike other exchange platforms which makes it ideal for beginners.

Create a free account account:

 Step 1: Head over to Coinmama and create a free account.

Feel free to use our affiliate link at no extra-cost to you:

https://satoshilibrary.com/recommends/coinmama/

There are two ways to create an account with Coinmama:

You can either click the sign up button on the top right or the ‘Buy Coins ‘ button.

Coinmama Review : The easiest way to buy bitcoin and ethereum

Step 2: Coinmama verification process

Enter:

  • Your email
  • Preferred password
  • Name
  • Country of residence
  • Click create account

Coinmama requires very basic user information to create an account.

Coinmama Review: How to create an account

Coinmama will send you an email confirmation to confirm your identity.

What I personally like about the Coinmama Verification process the fact that is that they do not invasive questions like traditional trading platforms.

In some cases, KYC approval can easily take months.

Coinmama review - create and verify your account

Placing an order

Coinmama offers two options:

Option 1: You can choose one of their 4 packages at different price points for simplicity.

Option 2: You can choose a very specific amount of crypto or fiat (USD/Euros) by either entering the exact figure.

I think the price slider adds a very nice touch.

Coinmama allows you to choose a package or buy a specific amount.

Coinmama - Buy bitcoin or buy ethereum in USD or euros

Click the ‘Buy at the bottom of the page.

Enter your (receive) wallet address

VERY IMPORTANT: Be sure to give the wallet address which corresponds to correct amount of crypto.

For example, if you are buying Bitcoin (BTC) , you would need provide your Bitcoin readdress and if you are buying Ethereum, you would need to provide your ethereum wallet address.

Coinmama review

If you do not have a cryptocurrency wallet yet to store your cryptocurrency, head over to Exodus.io  to download their free and beginner-friendly multicurrency wallet.

Protip: The Receive Address is also known as the public key and the send address the private key.

If you are not sure what is a private key, you can check out this easy explanation.

The Checkout

This is definitely one of the finest qualities of Coinmama.

I really like the fact that that you do not need to provide ID verification like typical cryptocurrency exchange where they sometimes require you scan your password as well as take a selfie.

Coinmama review - buy bitcoin with creditcard

Is Coinmama legit?

Here is the Bitcoin and Ethereum I ordered in the Coinmama dashboard.

It is safe to say: Yes!

Coinmama review - is coinmama legitimate

Which other coins can you buy?

Coinmama currently allows you to buy the 8 following cryptocoins directly:

You can buy Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Bitcoincash (BCH), Cardano (ADA), Qtum, Ethereum Classic (ETC)

Coinmama review- how to buy cryptocurrency with your debit card

    1. Bitcoin (BTC) : Bitcoin is the first cryptocurrency and created by SatoshiNakamoto who had gone into hiding and recently reappeared.
    2. Ethereum : The second most popular cryptocurrency after Bitcoin created by 22 year old Vitalik Buterin. Ethereum is also a blockchain platform which is very popular among devs as they can create DAPPs (decentralized applications) and smart contracts.
    3. Ripple: Just like Ethereum Ripple is also a blockchain platform except their target maket is the banking sector.
    4. Litecoin: The Creator of Litecoin, Charlie Lee, called Litecoin, the digital silver and bitcoin being the goal. Litecoin is meant to be faster alternative to Bitcoin.
    5. Cardano: This is a Chinese-based cryptocurrency and blockchain project similar to ethereum.
    6. Qtum: Is a Bitcoin fork (derived from Bitcoin) and blockhain platform like* Ethereum.
    7. BitcoinCash: BitcoinCash is another Bitcoin fork which boasts faster and cheaper transaction. Its most vocal advocate is RogerVer.
    8. Ethereum Classic: Ethereum Classic was infact the original Ethereum but as the community could not agree. The fork became what is known as Ethereum and Classic the ‘core’ version.
*In very simple terms

Accepted Payment Methods

Coinmama accepts:
  1. Visa
  2. Mastercard
  3. Bank Transfer (SEPA)

Coinmama does not accept:

  • American Express
  • Discover
  • Paypal

Coinmama Supported Countries

You can buy cryptocurrency from Coinmama if you live in the following countries:

[table id=Coinmamacountries /]

Coinmama supports the following states in USA:

[table id=Coinmamausa /]

More experienced cryptocurrency traders complain that brokers like Coinmama have high rates, here is a break down of the costs

There are 2 main fees when buying cryptocurrency through Coinmama:

  1. 5.90% brokerage fee (included in the price)
  2. 5% Credit/Debit card fee imposed by

HACK: To be sure you have enough funds on your card, just take the price and multiply by 1.05% . So if you buy $100 worth of BTC, you need $105 of your card.

Some people may feel that the 5% transaction fee is high, but I personally think that it’s really a question of how much your time is worth.

As you become more comfortable with the technical aspects of cryptocurrency and blockchain, you will naturally pick up ways to save on these fees.

Hidden Fees:

1.Blockchain fee :

However, remember that blockchain transactions powered by something called mining and the miners verifying the transactions require transaction fees.

Unfortunately, the mining fees are unavoidable no matter transaction even if you’re sending crypto directly to another person.

2.Cash advance fee

At the beginning of 2018, Mastercard and Visa reclassified all cryptocurrency purchases to cash-advances out of fear people would buy cryptocurrency on credit and later ask for chargebacks.

Consequently, this resulted to an additional 5% on purchases of cryptocoins.

They claim to have reversed this decision, but if this does happen to you, you can file dispute with your bank.

3.Exchange rate fees

This is the fee charged by banks to convert your currency to USD or EUR.

It is a lesser known fee but good to monitor if you live outside of the US or EU.

bitcoin-3266561_1920

Buying Limits

The minimum purchase is 60 USD or EUR.

There is a maximum daily limit of 5000 USD/EUR and monthly limit of 20,000 USD/EUR.

Coinmama requires verification for the higher amounts.

Support

Coinmama does not provide any phone support if you need to contact them, you can send them an email at support@coinmama.com, submit a ticket or contact them on their Facebook Page.

They also have a very extensive knowledge base which answer all user questions.

Reputation

Coinmama doesn’t appear a negative reputation except for more experiences users complaining of high fees which in my opinion normal when deal with a bank and credit card companies.

Social Media Presence

I think this is the biggest weakness of this company, they do not have a big following on Facebook or Twitter.

Coinmama’s Competitors

Indacoin

Indacoin is definitely the closest competitor in terms of fast and beginner friendliness.

My biggest issue is that they are not transparent on how much they charge for brokerage.

Paxful

Paxful is ‘clunkier’ with more features.

Their anti-spam set-ups make the website frustratingly slow to use.

LocalBitcoin

LocalBitcoin can be compared to Craiglist.

It can be a daunting option for first time Bitcoin buyers

[table id=Coinmamacompetitors /]

I will be creating a more detailed review for each one of them soon 😉

Who is Coinmama for?

  • If you do not own Bitcoin yet.
  • If you do not own Ethereum yet.
  • You find exchange platforms to complicated.
  • You get overwhelmed by complicated processes.

coinmama review

Final Thoughts

When had just started out, I found all the information extremely overwhelming and all I wanted to do was just buy Bitcoin and Ethereum.

Coinmama is the most user friendly and easy to use platform compared to its competitors.

Though the brokerage fees are steeper compared other similar platforms, the simplicity was definitely worth it for me as a beginner.

Thank you for reading!

I hope you enjoyed my coinmama review 🙂

Affiliate link: https://satoshilibrary.com/recommends/coinmama

Let me know if this info was helpful for you 😉
Cheers,
Marie

Founder of Satoshi Library

Owner of SatoshiLibrary

PS

Thank you for visiting!

And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!

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buy bitcoins with a credit card

How can I buy Bitcoins with a credit card? Easiest, fastest and safest ways to buy BTC

2 ways to buy bitcoin in under 5 minutes with a credit card or debit card

How to buy bitcoin with CoinMama or Indacoin in just few minutes:
– Go to CoinMama or Indacoin
– Create an account so you can receive your receipts
– Choose the amount of Bitcoin you wish to receive and click on ‘Buy Now’
– Enter your Bitcoin wallet address
– Enter you credit card or debit card information
– Wait for the Bitcoin to appear in your wallet (it may take a few minutes depending on the network speed)

These are the 2 fastest and safest ways which you can purchase bitcoin with a credit or debit card if you live outside of the US.

I have personally tried both.

Affiliate Disclaimer

My experience

I remember how I had just decided to get into Bitcoin and how overwhelming cryptocurrency exchanges were at the time.

When I was just starting out, I found the cryptoexchanges too technical plus I had no clue what was the difference between Bitcoin and BitcoinCash let alone understand which symbol was for which currency.

There was Bitcoin, then BitcoinCash, there is also BitcoinGold …uhhh…BitcoinPrivate too?arrrgghh!!🤯 How do I get the real one?!!!! 

Will the REAL BITCOIN please stand up?

This is why I decided to find other ways to buy Bitcoin because I had no interest  in taking trading courses at the time nor do tech research on each cryptocurrency.

There were just too many of them!

Plus the exchanges required a lot of personal info before I could test out their services which I was not comfortable doing at the time.

All I wanted was to use the few extra hundred bucks which I would have otherwise used to buy shoes to BUY  REAL BITCOINs…

(Don’t judge me 😳 )

Anywho….I scoured the net for a long time and eventually found two quick ways to instantly buy bitcoin with a credit card or debit card for non-US and non-European citizens.

I have personally used both and would highly recommend both methods.

Is it for you?

  • You just want to buy Bitcoin fast ..
  • You don’t want to get in the tech of figuring out exchanges…
  • You don’t feel comfortable doing bank transfers to exchanges…
  • You find credit cards safer to do business…
  • Find waiting for cryptocurrency exchange KYC approvals aggravating…

If the answer is yes to any of these, then Indacoin and Coinmama are for you

Who are they not for:

  • Experienced traders
  • Those who have time to watch the market everyday
  • Those who own already own a lot of Bitcoin

IMPORTANT: Before moving forward make sure you already have a cryptocurrency wallet which supports Bitcoin. If you don’t, head over to Exodus and download their multicurrency wallet. It is free and extremely easy to use.

PRO TIP: The symbol for Bitcoin is BTC .

*Bitcoincash (BCH) is a different currency than Bitcoin just like the Australian Dollar (AUD)versus the US Dollar (USD)

Coinmama

Buy Bitcoin, Ethereum and other altcoins with a credit card or debit card

COINMAMA is Slovakia based company which was founded in 2013.

It was supports 188 countries except the US.

This is my personal favorite because it has a price slider which allows you to specify the exact amount you want to spend.

The experience is very similar to buying a product from a regular online store.

Features:

  • Immediate payment process
  • Minium of $100 or 86EUR
  • Fees:  Coinmama charges a 5.50% commision fee with an additional 5% processor fee (Visa or Mastercard)
  • Email Support

PROS: 

  • Transactions processed immediately
  • Transparent fees
  • Extremely efficient email customer support

CONS:

  • No chat support

It has also added other cryptocurrencies recently but I have not tested them out yet.

CLICK <> to BUY Bitcoin through COINMAMA

Indacoin

Buy Bitcoin and Ethereum instantly with your Visa or Mastercard

Indacoin is London based company and has been around since 2013.

I opted with them at the beginning because they were a UK-based company and offered live chat support…

The experience is extremely similar to Coinmama and I would say easier than buying something on Amazon.

Features:

  • Payment Processes in 30 minutes
  • Provides a calculator which states the amount of BTC you receive including the fees.
  • $100 maximum limit for new users which is gradually increased automatically.

My biggest criticism of this website is how they don’t clearly state the transaction fees.

PROS:

  • Chat Support

CONS:

  • Fees and rates not transparent enough
  • Poor email support

When I initially made purchases, I remember that there were negative reviews of users claiming they had not received their Bitcoin, but I believe that these users were not aware that the transaction could take some time if there is a too high volume of transactions on the network.

I did have to wait a few hours in 2017 because the Bitcoin network was slow at the time but I was not worried.

CLICK on our affiliate link to buy Bitcoins Indacoin:

https://satoshilibrary.com/indacoin

Note:

  • In both cases miners may charge an additional fee for powering the transaction.
  • Note that the processor fees may vary depending on your country

Final Thoughts:

I would recommend taking this anxiety of waiting as an initiation to decentralization.

You might even appreciate banks 😉

Though they do have higher transaction fees than exchanges, depending where you live, I think my time was worth the extra $10-15.

Let me know how it works out for you 😉
Cheers,
Marie
Founder of Satoshi Library

Owner of SatoshiLibrary

PS
Thank you for visiting!
And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!

Dogecoin explanation for beginners

What is Dogecoin? The Best Guide For Beginners

What is Dogecoin?

Introduction

Dogecoin is a decentralized cryptocurrency created by Jackson Palmer in December 2013 with the help of software engineer Billy Markus.

Jackson’s initial intention was to poke fun at the all the cryptocurrencies which were being introduced at the time.

Dogecoin gained huge popularity with the picture of a Shiba Inus which was also a widely popular internet meme at the time.

dogecoin explained for beginners
The Doge Meme Coin

Basic Info:

Doge is slang for ‘dog’.

Dogecoin stood out from other cryptocurrency with its dog mascot which also made it appear more fun and approachable than other existing cryptocurrencies.

Dogecoin’s popularity grew with the introduction of the Dogecoin tipper which allowed Reddit users to easily tip other users.

The Dogecoin Community has also funded many charities and this further increased its popularity.

Some Slightly More Technical Info:

  • Almost instantaneous transfer.
  • Faster than Bitcoin.
  • There is no supply limit.
  • Dogecoin is a fork of Feathercoin which is also a Litecoin Fork.
  • Unlike Bitcoin, Dogecoin is an inflatory cryptocurrency.
  • Litecoin miners get dogecoin as rewards (Namecoin).
  • The code used on cryptocurenncy exchanges : DOGE, symbol: Ð and D

Jackson Palmer says that the Doge meme has also made cryptocurrencies more approachable to a broader audience such as women and children.

How to get started?

Dogecoin Wallet

The first thing you need is a Dogecoin wallet or a multicurrency crypto wallet that supports Dogecoin.

You can download a free Dogecoin wallet here:

NOTE: Exodus no longer support Dogecoin

 History

Price Chart:

Dogecoin value from the beginning
Dogecoin Price Chart since 2014

How it all started

Jackson Palmer, an engineer at Adobe System in Sydney, Australia, tweeted that he we was going to invest in ‘Dogecoin’ to his 100,000 twitter followers as a joke.

He came up with the name Dogecoin by taking the name of the doge meme, which was named as “Know your Meme” 2013 meme of the year and adding the word ‘coin’ because of all the new cryptocurrencies which were popping up at the time.

Dogecoin creator

Who created Dogecoin?

He did not think much of it at that time but word spread and Billy Markus from Portland Oregon reached out to him.

Billy was already working on a similar project and offered Jackson Palmer to make the Dogecoin project a reality.

Dogecoin gained more adoption when Josh Mohland created the (now discontinued) Dogetipbot, a tipping system on for reddit users.

how to send doge reddit

[caption id="attachment_568" align="alignnone" width="300"]how to receive doge by reddit How to receive Dogecoin with dogetipbot

February 2014 – Jackson Palmer announced in Github that Dogecoin would have an unlimited supply.

April 2015 – Jackson Palmer said that he would be taking an ‘extended leave of absence’ from the Dogecoin community.

However, he returned to the cryptocurrency world in 2018 with an education youtube channel.

The Dogecoin Charities

The Dogecoin community has hosted many fundraising events through its non-profit organization The Dogecoin Foundation.

The first fundraising event which drew attention was to help the Jamaican Bobsled Team go to the Sochi Winter Olympics.

Water for Dogecoin
Doge For Water

Other noteworthy causes are:

  • Doges4kids  – Which helps provide dogs for children in need
  • Experiment.com – West Virginia Water Contamination Relief and Study
  • University of South Alabama study on Virginia chemical spill – study and help recovering from this disaster.
  • Doge4Kashmir – Help flood victims in the Kashmir, India region.
  • Ghana Medical Help -Supply Northern Ghana hospitals with urgently needed basic medical equipment.

NASCAR

In March 2014 reddit users noticed that race car drive Josh Wise was racing an unsponsored car.

Within a week, the Dogecoin Community had raised $55,0000 or around 67 million Dogecoins.

Several weeks later Wise drove the Dogecar.

Nascar race car sponsored by dogecoin
The DogeCar

Faucets aka Doge Watters Bowls

What is a doge faucet?

A dogecoin faucet is a website that collects dogecoins from other users, then giveout  those coins to other users.

Dogecoin faucets  provide free dogecoins to beginners while introducing them to the dogecoin cryptocurrency.

Cryptocurrency faucets usually require that the users carry out a small task in exchange.

via GIPHY

Top Dogecoin Faucets

  • Dogcoin Folding at Home
  • DogeFaucet.com
  • EarnCrypto.com
  • The Dogecoin Barker – A client based Dogecoin faucet
  • Faucet Kennel
  • Eobot

Remember that cryptocurrency faucets are provide only negligible amount of cryptocoins but definitely not a way to make any serious income.

Dogethereum (DOGX)

The Dogecoin Fork Explained

According to the Dogethereum website, the Doge+ethereum cryptocurrency is a hard fork of Dogecoin except it on the Ethereum Platform.

Users who bought Dogecoin before March 30th 2018, will automatically get access to DOGX in their Dogetherium Wallets.

Dogethereum explained

Features:

  • DOGE 10.000:1 DOGX
  • No premine
  • No ICO
  • Algorith Ethash
  • Minable coin

Dogethereum users will not be able to use Ethereum Wallets like Mist and MEW, which are incompatible with DOGX but instead use the Dogethereum Wallet.

What does the DogecoinCore Team Think?

Here is their Twitter reply:

The DOGE-ETH-Bridge

In very simple terms,  TrueBit is a protocal, whichallows dogecoins to be sent to through the Ethereum platform.

The dogecoin are burnt and dogetokens are received in exchange.

Doge + ETH bridge

Dark Days

The Dogewallet Hacker

On December 25, 2013 Dogecoin experienced its first major theft when a hacker stole millions of dogecoins from the dogecoin online wallet

Molah Exchange Scam

Moolah was a cryptocurrency exchange run by someone under the name of Alex Green who became an important player from early on in the dogecoin community by going on generous dogecoin tipping sprees and giving hundreds of dollars for no reason.

He then convinced the dogecoin community to invest in his project in exchange for a ‘slice of pie’ in Moolah.

However, the project failed and then Green disappeared with $2-4 million of Dogecoins. It was later revealed that Alex Green was an alias and Ryan Kennedy was his real name.

The Future

What started as a joke quickly grew into a huge fundraising medium.

The Dogecoin Cummunity is one of the main driving forces behind this cryptocurrency.

But at the end of the day, remember the creator never intended for this cryptocoin to gain any significant value or even so much popularity for that matter.

The Core Devs are supporting the network but the set up still appears to be volunteer based.

Resources

Twitter Accounts

The Dev Team @dogecoin_devs Official

Twitter account @dogecoin Jackson

Palmer @ummjackson Whitepaper

What are bitcoins - how do bitcoins work

What is a Bitcoin – The Easiest Guide for Beginners

What is a Bitcoin? 

So what is a Bitcoin exactly? Bitcoin is the world’s first cryptocurrency ever created. Bitcoin is Peer-to-peer electronic cash system like Paypal meaning you can send and receive Bitcoin, or BTC instantly to anyone from any country.  It runs on a distributed ledger system called the Blockchain and the transactions are powered and verified by users all around the world. Bitcoin has been around since 2009 and was created by someone under the pseudonym of Satoshi Nakamoto. 

Bitcoin for dummies

Bitcoin works like the dollar

  • Bitcoin is the world’s first decentralized digital currency and works just like Paypal, Internet Banking or money on your bank card
  • Decentralized means that it is not run by any government, company or individual
  • You can send Bitcoins to any one around the world
  • It is both a currency and payment system.

Affiliate Disclaimer

How to store your Bitcoin

First you need a wallet to store your BTC.

You can get a dedicated Bitcoin Wallet or you can get a multicurrency wallet which allows you to store other cryptocurrencies such as Litecoin or Ethereum.

I would recommend getting a multicurrency wallet instead of one wallet for each currency. 

So if you do not already own a cryptocurrency  wallet, head over to Exodus.io, download their their wallet.

It takes less than 5 minutes to set up.

How to send bitcoin to another person

  1. Ask the other person to give you their BTC wallet address
  2.  Enter the amount and click send

How to receive BTC

Give the other person your BTC Address (also known as public key)

Please include attribution to satoshilibrary.com with this graphic.

How to get started with Bitcoin

Feel free to share this infographic on your site 😉

 What can I buy with Bitcoin?

There are a few marketplaces similar to Amazon where you can buy or sell products with Bitcoin:

Here are 5 of the major companies who are accepting Bitcoin as payment

  1. Paypal
  2. Subway
  3. Shopify
  4. Microsoft
  5. Etsy

2017 has also seen a surge of Bitcoin Merchant Directories and Listings like CoinMap.Org.

Why aren’t more businesses accepting Bitcoin as payment

  1. Tax Filing –Due to the lack of regulation, many businesses are having a hard time to account for cryptocurrencies
  2. Users prefer to hold (or HODL) onto their Bitcoins instead of spending them

Pros of using Bitcoin over traditional banking systems:

  1. The recipient immediately receives the bitcoin even if they are in another country
  2. It is a peer-to-peer payment system, meaning that users send money directly to each other without a bank acting as an intermediate.
  3. Lower transaction fees
  4. Payments are irreversible
  5. Transactions are anonymous (No need to provide names, emails, account numbers , ID numbers, phone number etc)
  6. There is no price manipulation by the government 
  7. Transactions can not be duplicated or changed

Cons of using Bitcoin:

  1. Many governments have banned Bitcoin
  2. In countries where Bitcoin is not regulated, banks and financial institution avoid doing business with crypto-related business
  3. Cryptocurrency exchanges are the favorite targets of hackers due to the anonymity

Where can I buy Bitcoin?

Here are 3 ways to get Bitcoin

1. With a creditcard or debit

2.Cryptocurrency exchanges:

3. Local Listings

How are Bitcoins created?

The process of creating new Bitcoins is called mining.

In simple terms, mining is the process of verifying Bitcoin transfers in exchange for Bitcoin as rewards.

Mining is the process of validating transactions on the bitcoin network by answering a series of math problems The users and computers powering the network are know as the miners.

How Bitcoin mining work?

Bitcoin is also a payment system as well as a currency.

The transactions are powered on the bitcoin payment network.

First a person sends BTC to another persons, the transaction then gets verified by a series of complex math questions by other users on the network.

Finally, the system rewards the users who have helped solve the problems in form of BTC. 

Related article: How does cryptocurrency mining work?

Is Bitcoin Mining Profitable?

Here are some facts to consider:

  • Limited Supply: Only 21 million bitcoins can ever be created
  • Scarcity: Every 4 years, the amount of bitcoin which can be mined per year is halved
  • Randomness: The network randomly rewards miners every 10 minutes
  • Efficiency: Bitcoin mining can be done through CPU, GPU or Asics Miner

Please include attribution to satoshilibrary.com with this graphic.

What is bitcoin mining and how does it work

Feel Free to share On Your Site 😉

 

What is the Value of Bitcoin?

BTC Price History

Bitcoin founder Satoshi Nakamoto mined the first Bitcoin in 2009.

He also priced the Bitoin mining energy required to created a bitcoin which was around 10cents at that time.

The price has gradually increased and reached an all time high of $20,000 in Korea and Japan in late 2017.

what are bitcoins - bitcoin price history

Bitcoin History

Who created bitcoin ?

Satoshi Nakamoto , or someone under than pseudonym, started working on the code 2007 and mined the first block in January 2009. He (or they) also founded Bitcointalk forum as well as the Bitcoin.org domain.

Though,  it is still unclear if Satoshi Nakamoto is an actual person, team or pseudonym, Craig Wright claimed that he was the real Bitcoin founder.

However, he has never been able to provide concrete proof.

Why it’s not important

The creator of Bitcoin designed the system in a way that it would work entirely on its own.

  • Demand and supply of bitcoins determine its price
  • The code is open source, so the users can work on the code to improve it.

As a result, the Bitcoin Network does not need one person to exist nor grow. 

Who is Bitcoin For?

The First users of Bitcoin

  • The first Bitcoin users were the computer nerds who had extra computers who liked the idea of using their spare computers to mine these cryptocoins knowing they may or may not make any profit.
  • The next users that followed were the stock traders who saw the money making potential.

The future users of Bitcoin

Users sending large sums of money and want to save money on transaction fees

  • Peer-to-Peer transactions eliminate the bank and intermediaries which in turn reduce transaction fees consequently hidden fees.

Those who like the idea of a limited supply of Bitcoin

  • Many people don’t like the idea of central banks ‘printing money’ whenever they feel like it and consequently worry a lot about hyper inflation.

Political Reasons

  • There are a lot of people who don’t trust fiat currency because of the government making the decisions. So, they like the idea of the market determining the price on demand and supply.

Those who wish to stay anonymous

  • Charities and donations (Bitcoins is what allowed wikileaks to survive when Paypal cut off its services)
  • Gambling websites
  • Drugs and weapons

 Final Thoughts

Digital currency is nothing new and we are gradually transitioning to a peer-to-peer system

You won’t be able to truly understand the impact decentralization and the implications unless you own your first bitcoins.

The system works exactly like exchanging any foreign currency meaning you can buy $100 worth of Euros or Bitcoin- Makes sense? 😉

Let me know if this info was helpful for you 😉
Cheers,
Marie
Founder of Satoshi Library

Owner of SatoshiLibrary

PS
Thank you for visiting!
And also, if you feel comfortable enough to give me your email, just enter it below and I just might send you an email one of these days 😉

Disclaimer: I am not a financial advisor and the information provided does not replace professional advice. Cryptocurrency prices are highly volatile as well as evolving very quickly. This post may contain inaccuracies, so please do your own research before placing money in any website. Thanks!
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