+ 2 Bitcoins, if you don't know it, LEARN IT!
With a new year comes new laws, with these laws comes more regulation. Some sources have already discovered that their payment options are becoming smaller this year as anti laundering regulations are tightening their nooses and going to extreme lengths to flag receivers, stop transactions and freeze accounts.
With Bitcoins (BTC) there is no one to answer to, no IRS no Treasury Department, No one. It's completely untraceable and when done correctly anonymous as well. BTC is the way of the future.
Wrapping your mind around the concept of a currency that exist only digitally but can be kept securely hidden on or offline is the first real challenge and it's more of a challenge than I'm willing to commit to in this post.
Understand that BTC are not effected by local economy, it doesn't belong to any nation, it is the only truly universal currency around. It's value can drop or raise at an instant. The more people who use it, the greater value each BTC will hold. At the time this was written, BTC value was 14.2 USD per BTC
First thing to learn is how to have a wallet:
You can have an anonymous/disposable wallet or one linked to you, your name, your social etc. Each wallet can be used to transfer funds from one wallet to another.
Examples
http://instawallet.org Anonymous/Disposable NO LONGER ACTIVE
http://blockchain.info Anonymous
http://mtgox.com May require you to submit more info than you would like to verify an account, also a buying site
To understand our wallet in as little time as possible. we're going to use the following address as our wallet example.
Your wallet is comprised of two pieces.
Address (Used to receive deposits)
Private Key (Much like a password but far more complex and uncrackable)
There are:
1,461,501,637,330,902,918,203,684,832,716,283,019,655,932,542,976 possible bitcoin addresses.
Chances of generating the same one twice are very very very slim..it'll take years, more years than you have to live.
If you go to this address you will see a BTC address that is made to be used as a paper wallet.
http://bitaddress.org
I know what you're thinking "WAIT what's this about paper wallets!? Doesn't even sound possible!"
Well it is and I'll explain the best I can before leaving you to read the educational links listed below.
You will notice to sets of jumbled numbers/letters with a scannable QVC code. The first set in the top left hand corner is your address.
Now in order to access that address and remove funds you need to possess the private key located in the bottom right hand corner.
These are both case sensitive, when you generate an address offline you can use the address to send funds to (online) while keeping the private key tucked away off a computer and off the net.
I won't explain HOW to make a paper wallet, you can find that in the links I've provided. My goal here is to help you understand.
How an online wallet works is it combined the key and the address together. For example:
https://instawallet.org/w/rO2JBiWiSRU42e3vYbqcMqKvLW062UqWlQ
Bitcoin address: 1DsyfyL72ZNko36L6ra44h1VjxGy4FWEWM
Key is the url: rO2JBiWiSRU42e3vYbqcMqKvLW062UqWlQ
Now how do we get BTC? I'm not going into all the ways people get BTC but I'll mention the most practical way.
You buy them it's damn near that simple. You buy BTC from websites (or people) and you have them sent to your wallet.
Popular BTC distributors include the following:
https://Bitinstant.com (Very simple way to buy BTC from places like Moneygram, 7/11, CVS, etc)
https://Localbitcoins.com (Place to meet people in person and buy or sell BTC with cash)
I can't really go into much with the sites up top, they're self explanatory.
To sum it up
What is a Bitcoin: It's digital currency
How do I use them: You get a wallet and transfer to and from that wallet to another address
How do I get them: Bitinstant.com is the easiest way for most people
What if I don't want them, what then?: Sell them or use them, I'll even buy them.
Why should we use BTC: Because sooner or later the other payment options are going to become harder to use for both the buyer and seller.
Educational Links:
https://en.bitcoin.it/wiki/
http://www.instructables.com/id/Understanding-Bitcoin/
https://en.bitcoin.it/wiki/How_bitcoin_works
https://en.bitcoin.it/wiki/Block_chain
Paper wallets:
http://www.reddit.com/r/Bitcoin/comments/15t8xx/explain_offline_paper_wa...
https://en.bitcoin.it/wiki/Securing_your_wallet
https://en.bitcoin.it/wiki/Paper_wallet
http://www.slideshare.net/piuk/bitcoin-paperwallet
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AnonBTC are gaining popularity, their price has been going up exponentially over the last few months. 2$ in the last 2 weeks.
If I were you guys, I would buy a handful just for your next order and watch them appreciate in value.
I'm on board.. I see this as a necessity just like running a proxy now days. .. When SRC's start offering this I won't hesitate to start using it. thanks for the this post ++
Wanna know something awesome???
On the road
Some transactions
You don't release the funds till after you have received your pack!!!!
Very nice !
AnonThis is true. I like the escrow system they have in place but it could back fire with some of the dirt bags that run around.
The SR folk are mostly pretty straight forward so far.
BB, I know you showed a big interest in this and was waiting patiently for you to enlighten us. Great post! Definitely adding this to my favorites! +1 Brother!
AnonI got caught in my A phase of ADD and stayed up for a few days reading none stop, When I become interested in something I become hyper focused and it'll drive me mad until I understand it.
I once played a puzzle game for 14 hours in the parking lot of a super market because I couldn't stop until I beat it, so it's not always a healthy thing having ADD and OCD triggers bundled up together
Very good post, Another online currency to look into maybe Liberty Reserve. Their market value dosen't fluctuate as much as BC in my opinion. But I'm sure that will change as it gains more ground.
Don't worry about their AML policy, I would imagine 75% of LR's transactions are Grey Market which they are aware of.
For more information on online currencies, talkgold forums has a lot of documentation.
56tooNice post
You hit the nail on the head with this one ... Bitcoin is the way of the future, like it or not. At least for online/anonymous shopping particularly online. And it couldn't of started to catch on at a better time for this lucrative business
Interesting read
thanks bro
I cant ever see myself supporting a global currency such as this.
I really think this or a system like this will replace cash eventually.
edit- Also, that paper wallet thing looks pretty damn cool.
AnonIt's very cool. I take 100 BTC at a time and put them in the paper wallets than lock em up.
I just imagine Buff Badger's safe full of those paper wallets haha. Sending bitcoins costs damn near nothing, but converting it to and from actual money seems to have a 5% fee, and the bitcoin sellers in the area charge a premium. But, a hell of alot cheaper than any other ways to send any money. Cut costs on both ends ='s better business.
God, this just looks like pure genius to me the more I look into it. I'm reading the MIT article on its proposal and development.
AnonIt really is, the design behind it is pure genius.
You ever try something 10 times and fail than stop for a minute, think about it and perform flawlessly after that?
That's how I felt after I was able to comprehend bitcoins, LOL.
Such accomplishments.
By the way if anyone has anything to add let me know and I'll edit the original thread