+ 5 Bitcoin...Your Complete Guide
Preface
Bitcoin abbreviated by the mnemonic BTC, is the first decentralised form of digital currency, which is available to trade over the internet for products or services. The primary form of Bitcoin is data, which is available to be traded over the internet. Bitcoins have many advantages, such as being able to trade peer-to-peer (person to person) without the use of an intermediary such as a bank.......why is this good?.......well it reduces the transaction fees. Also, it can be used in every single country and your account cannot be frozen, neither is there any limits.
The following post will outline all the essentials every Bitcoin user needs to know, following the subsequent roster;
- What is Bitcoin (BTC)?
- Acquiring Bitcoins
- Buying Bitcoins
- Mining Bitcoins
- What are Bitcoins Used For?
- Other Useful Bitcoin Links
What is Bitcoin (BTC)?
Coins are created all over the internet, by anyone who has access to free software programs called a Bitcoin Mining applications. Mining a Bitcoin requires resources for each Bitcoin mined and the number of Bitcoins mined per specific time frame is adjusted so that they are always created at a predictable and limited rate.
Bitcoins are stored in a digital wallet and per transaction a unique electronic signature is added, which will then be verified by a minor and will then be permanently stored in a network.
Acquiring Bitcoins
In order to acquire Bitcoins, there are a number of procedures you can entail. You can either purchase Bitcoins which takes the least amount of effort or you can mine Bitcoins, where the power used from your computer(s) will be used in a pool to help generate Bitcoins in return for a percentage of the rewards;
Buying Bitcoins
In order to buy Bitcoins, you must have available a wallet to store your coins in. There are two forms of a Bitcoin wallet; an online version and an offline version. An online Bitcoin wallet makes transactions easy and simple...and here's how to set up a wallet, ready for you to purchase your first Bitcoin;
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To create an online Bitcoin wallet, register an account at https://blockchain.info/wallet/new (UK citizens) and https://coinbase.com/ (US citizens) and follow the instructions to creating an account.
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Use the 'buy Bitcoins' option and link up your bank account in preparation for your first Bitcoin purchase, once linked and the Bitcoin(s) have been purchased then this transaction may take you anywhere from instantaneously receiving Bitcoins to a few days.
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Once you've successfully linked your bank account with your Bitcoin account you can now buy and sell (trade) Bitcoins. To buy Bitcoins you follow the same process as before and to sell Bitcoins you follow the instructions on screen.
Mining Bitcoins
To mine Bitcoins you need to run a Bitcoin Mining piece of software on your computer, this software will process/hack complex mathematical equations. On the basis that one of these equations is solved by yourself then you have successfully mined a Bitcoin and you will receive a Bitcoin reward in return.
Now all this mining seems easy, well not quite.........your 1 computer is up against thousands of other computers who have pooled together their processing power in groups to collectively mine Bitcoins before you anyone else.
- *This is the most popular mining group, called slush's pool - https://mining.bitcoin.cz/
- *The Business Insider's article on how to mine Bitcoins - http://www.businessinsider.com/how-to-mine-bitcoins-2013-3?op=1
What are Bitcoins Used For?
Ok, so now you've got your Bitcoins, but wait........what can you do with them now?..........well you can buy gear online and more! More and more eroids sources are accepting Bitcoins so that makes life easier and cheaper for you, since you don't have to visit a Western Union transfer agent and you also don't have to pay as high Western Union transfer fees.
*Other Useful Bitcoin Links
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Anonymous & Disposable online Bitcoin wallet - https://instawallet.org/w/aIHlHmEBAosJOSVWR3jchJ8CQA1JZ7JEEw
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Bitcoin trading - https://mtgox.com/
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Buy Bitcoins from CVS, Cash deposit, Jewel, Osco, Duane Reade, Stater Bros., Albertsons, Wallmart and more - https://bitinstant.com/
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Bitcoin wallet address creator - https://www.bitaddress.org/bitaddress.org-v2.4-SHA1-1d5951f6a04dd5a287ac...
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Bitcoin Wiki page - https://en.bitcoin.it/wiki/Main_Page
Mining Hardware Comparison & Energy Consumption Tools
The most effective Bitcoin mining GPU's use high Mhash rates to solve the complex codes. Here is a link to several GPU's which you can use to compare against one another to determine the effectiveness of each GPU.
Bitcoin Projection Calculator
In order to estimate the number of Bitcoins your GPU set up is able to mine, this calculator will estimate the hourly, daily, weekly, monthly and annual earnings from mining Bitcoins in both the Bitcoin currency and US dollars. It will also estimate the cost to generate 1BTC including and excluding the hardware costs associated with the BTC generation. This calculator will also estimate the annual blocks your GPU set up can crack and also estimate the time taken to crack 1 block.
Additionally, another concern is the overheads and costs associated with producing these Bitcoins. This calculator also estimates the cost to mine per hour in US dollars, the net hourly, daily, weekly, monthly and annual profit.
All of this aforementioned projection calculations are based upon your current computing powers hash rate, difficulty levels, bitcoins per block and US dollar to BTC conversion rates. While also taking into account your rig costs, power consumption, price of power and investment period.
Litecoin Mining Calculator
This Litecoin mining calculator will project how many Litecoins your rig can mine, given your current hash rate and the difficulty level.
This link will present the current hash rates generated by a particular user on a ranking system, while also showing the pools current stats and who/which pool cracked the last Litecoins.
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Too bad this guy is banned..... he just saved me $800 USD..... I been going crazy on a lost wallett from years ago. I ordered from 'somebody' found on this site around the time of this post, because the seller was 'still' accepting bitcoins, when no one else was... and I had a friend who needed to dump hundreds of the 'worthless' things. Some were saying they were the future, some were saying they were shit.
I have an old eMachines hard drive that I pulled form a PC that I scrapped when the government decided to inventory my home, nearly a decade ago and it had all the saved logins to shit that I was sure could still be recovered. Anyhow, was trying to remember just how much of a bitcoint I had left.... was not sure if it was a fraction, or half.
Well..... recovery worked, and it was the wallett this guy recommended.... recovery emails worked and it was not quite the half I had hoped for, but is comes to $802.34 USD...not bad for an hour's research.
Well, here's a plug for blockchain.... 8-years since I touched my wallett and my little coin fragment is still in tact... that is nice.. I just need to remember the source who was trying to unload 4,000 of the buggers.
Remember when we were excited that bitcoin was up to $40 each? Fucking 'ell.... they are $49,702.29 at the writing of this message.
Fuck me.... in the five minutes typing this, bitcoin humped and now I have $805 USD to blow on gear! Hot diggity! What an awesome morning!
I wonder if the people who bought Bitcoin at $20T still think it's a great investment now that it's at $9T.
most bought at $900 and have seen a fantastic return.
Those who jumped in without research at 20K are under water but if they held on, they are apt to break even by years end and see profits next year.
I would suggest you research more on Bitcoin as it looks like you just read Warren Buffett's remarks and are now on a FUD champagne spamming our threads. Bitcoin on this and related sites tend to have a short lived "utilitarian" use and not so much as an investment vehicle.
I think that you are on point with this assessment. I would not buy in now, but if I had bought in at 20K I wouldn't sell at a substantial loss right now. Give it a little bit time for all of the talk of regulation mixed with getting the snub from big banks that cut its run short to fade away and they will start ticking back up. Also, another scenario that I have not heard many people mention, but I feel is very plausible would be another financial meltdown driving demand up again. Let the student interest bubble burst like the mortgage industry did back in '08, or a sharp sell off of the currently way overbought NYSE and consumer confidence in the Federal Reserve and traditional gold backed currency will follow suit and a new (even if temporary) demand for digital currency will emerge.
As it stands now, I hate that I missed the boom, I'm not interested in trying to get in for investment purposes now, but it's still a pretty neat idea.
If you had bought in at 5000'ish a couple months back you would have already made a fantastic profit. I get most do not understand crypto but those that do are making money, damn good money. In my life crypto is smartest and most profitable thing I have ever done. That said, even over the last year the market has changed so much, the exchanges, the alt coins, ICO's and BTC itself. We are still only in the first inning.
I agree with what you are saying. When I say that I wouldn't get in now I am speaking from the standpoint of someone who doesn't have the excess capital to tie up in long term investments outside of what I am contributing to my IRA and 401. I do think that crypto is the way of the future and a good long term investment. I just don't have the cash to tie up in it right now. Also, I imagine that when it does become mainstream it will be a form of crypto that is designed by the government (same thing as we have now, except the government will call it "official") and they will start doing everything they can to kill others like Bitcoin. This is coming from the standpoint of a political cynic though. Either way, I am interested to see how it evolves over time.
For one to succeed in putting forth a government crypto they would need to convince the crypto world which will not be an easy task.
I am thinking it will have to be at least two generations down the road. With how quickly technology is evolving and the increasing rate that younger people are becoming completely dependent on it I think that two generations out it could happen.
Companies in Sweden and the US are starting to instal RFID chips into their employees, these chips are used to clock in and out, purchase things, log into their computers, ect. It won't be long before we will have to get those just to purchase items. I think it's mentioned somewhere in the bible as the mark of the beast. lol
It has already started - the Marshall Islands are using crypto currency as legal tender - I don't know how well this has been received, but I guess that it is a start. https://futurism.com/marshall-islands-crypto-official-currency/
Two comments is not a champagne or campaign of spamming.
...heading you off at the pass
Bitcoins may work for some people but my bank continuously blocks my payments can't be fucked with it.
They shouldn't
https://www.coindesk.com/coinbase-confirms-4-banks-blocking-bitcoin-purc...
i bought btc about 2 months ago and it was fine, i tried to buy more last week and my bank blocked the transaction :(
My bank has apparently blocked me from buying bitcoin...I just tried and was unable to make the purchase :(
I have been buying my hemroids online at CENSORED.us. Fast and discreet they accept both handjobs and blowjobs... I use them every week and am satisfied.
Good thing you read the rules before making a mistake posting something you shouldn't.
Nobody cares where you buy anything or how you pay for it. refer to the rules before posting.
Bitcoin Explained
Bitcoin & Litecoin Mining Projection Tools
Muscleg33kBitinstant video tutorial!! Worth watching! U wont be disappointed I promise
http://vimeo.com/44849463
anybody know what the fee's are at Cvs, etc for making the transfer?
I see that you pay a 3.99% at bitinstant/mtgox.... but do they double fuck you when you go to deposit cash at the vendor???
AnonThat's a good questions. I know Ninja could answer this one
Muscleg33kI'm a little bit confused: For example: What if i order my gears for 300 bucks total and then i went out to CVS or 7-11 eleven to buy 300 dollars worth of bitcoins. Then i went home and before I was about to email the source my bitcoin private key, I realized the market dropped by a huge percentage. The Question is Did i just lose 300 dollars of gears?
AnonNope. Once your order is locked in, it's locked in at the current rate. I see where you're going with it so we'll do this two ways.
The first way which is direct transfer of BTC. If your order cost $260 or 2BTC you can just transfer the 2btc and call it a day.
If you plan on buying the coins via bitinstant or some other route than you lock yourself in at the current rate. then immediately go to bitinstant and place your order in USD. It will handle the conversion. If there is a fluctuation in the price in the time it takes to transfer than that will be on the source. So long as you send $260 in USD you don't need to worry about what comes out on the other end.
Anonhttp://www.cnbc.com/id/100615508
Nice update. We need a group to put everything Bitcoin related into.
Anonif you build it..
http://www.eroids.com/og/bitcoin
FR Sent.
AnonDenied...jk accepted
AnonBTW if you guys have a lot invested in BTC I would suggest moving them into a paper wallet. With the price of coins there's going to be an excessively high number of people interested in hacking websites like mtgox, blockchain, coinbase, etc.
They can't hack your coins but they can sure as hell hack your accounts
Thanks P and Buff Badger for all the updates! I'm too busy currently to watch the value that closely and appreciate you keeping us in the loop
Thanks for the heads up! I'd also recommend using multiple bitcoin wallets so in case one wallet gets hacked your whole bitcoin stash won't be stolen.
AnonI've got mine spread out over a couple papers. I don't trust keeping them online with a private key attached. There's way too many instances of sites being hacked at the core and people having their accounts drained.
I use https://www.bitaddress.org for my papers. Load the page, go offline and make a few wallets. Once you have them you can load the address into your watch list and keep the keys stored away in a safe place. If you want to do it the right way you have to load up on a live os and never connect to the net but that level is for the most extremist of paranoid individuals...I might have to do it
AnonThese price increases are scaring me, it's happening way too fast.
$141.48, Im expecting a plateau/drop in prices fast. It will be interesting to see the aftermath of a drop in price and see how the market reacts for the first time.
AnonDitto I don't think it will drop below 75 but I am interested as well
137$ dollar atm, wish i invested back in the day when they were cheap
great article! thank you! one question - can you use a vanilla card instead of linking bitcoin to a bank account?
they have BTC paks ... kinda like money pak .. however, I have not seen them where I am at.. I think they are limited to certain regions.
yeah this is great. ive been watching the exchange right to and it was like 65$ last week and today its 88$. defiantly getting a couple just to see how much money they increase for future gear haha
Anon98 today. I'm blaming/thanking cyprus.
Thank Cyprus!
It's hit $99.81 just now and i hope it will go well over $100. I bought my bitcoins late, at $32 back in the day lol.
So the price of bitcoins fluctuates/increases over time like that of silver, etc?
Like that of any currency. It could go down as fast as its gone up.
Anonagreed but I don't see it dropping enough to make me take a loss. Especially since I've already pulled out as much as I've put in
I bought at $14-18
sounds like I should've gotten in on this a few months ago! Better late than never....