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HOW DOES BITCOIN WORKS?

Bitcoin is the world's first non-centralized digital currency which is held electronically. It is finite with only 21 Million Bitcoins that can be created. To date,16 Million Bitcoins have been created; hence, less than 5 Million Bitcoins is left to mine and own in a world population of 7.5 Billion people. You do the math now! As the Bitcoins become scarce, the price per unit will surge exponentially.


Bitcoin was created in 2009 by Satoshi Nakamoto. Satoshi disappeared in 2010 willingly seeking privacy from the fame without leaving a trace about his real identity to his colleagues who worked with him on the Project.

The video below contains more information about Bitcoin, click on it to play!

2. YOUR WALLET'S ACCOUNT BALANCE = BLOCKCHAIN (BITCOIN DECENTRALIZED P2P NETWORK)


The blockchain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the blockchain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending bitcoins that are actually owned by the spender.

The integrity, security and the chronological order of the block chain are enforced with cryptography.

WHY SHOULD I BUY & USE BITCOIN?


  1. Bitcoin has existed since 2009 and will eventually be adopted worldwide soon once more merchants and consumers accept it

  2. Safe haven: The worldwide currencies and economies are failing. But Bitcoin has surged to unprecedented highs from $1 to $1176 USD!

  3. Bitcoin payments arrive fast and in real-time

  4. No fees to own and send/receive Bitcoin

  5. There is no need for the middle man (goodbye corrupt banks!)

  6. Manage your own Money / Bitcoins directly from your wallet off your Mobile app or Computer

  7. Not subject to inflation (only 21 million Bitcoins can exist and additional Bitcoins cannot be printed)

  8. No chargebacks allowed

  9. The Bitcoin Network (Blockchain) is secure or unhackable

  10. Privacy (you do not have to share your information like you do with banks unless you have to)

4. TRANSACTIONS VALIDATION = MINING 


Mining is a distributed consensus system that is used to confirm waiting transactions by including them in the blockchain. It enforces a chronological order in the blockchain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all following blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively in the block chain. This way, no individuals can control what is included in the block chain or replace parts of the block chain to roll back their own spends.

ABOUT BITCOIN

NEED MORE TECHNICAL INFORMATION ON BITCOIN?


We wanted to keep things simple for you and Bitcoin; hence this was a very short and concise summary of the Bitcoin ecosystem. If you would like to get into the details, you can read the below:


You can buy Bitcoins with US, Canadian Dollar, Euro, Chinese Yuan or any other currency from:

  1. an Individual

  2. from an Online Exchange

Refer to Where to Buy & Sell Bitcoin section to buy Bitcoins immediately in less than 15min


Once you have purchased your Bitcoins, you can store your coins in the digital wallet that was created for you.
Each wallet has its own specific address such as: 1HB5XMLmzF__________sbifRoD4miY36v. This address
identifies you as the sole owner of the wallet.

3. YOUR BITCOIN PAYMENTS = TRANSACTIONS


A transaction is a transfer of value between Bitcoin wallets that gets included in the blockchain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast between users and usually begin to be confirmed by the network in the following 10 minutes, through a process called mining.