Nextdaygear's picture
Nextdaygear
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+ 1 Intro to Bitcoin Currency

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First, there’s nothing illegal about Bitcoin, it’s just a type of currency. The advantages of Bitcoin are it’s anonymity and speed. Bitcoin is not backed by any commodity or government. With Bitcoin you can pay anyone, at any time, for anything.

The basics of bitcoin is this: You need to find a way to get them, store them, send them, and receive them. A Bitcoin wallet will allow you to store them, send them and receive them. They are free and there are many to choose from Here are a few:

www.blockchain.info/wallet/
www.coinbase.com
www.strongcoin.com

Now you just need a way to get bitcoins. As of right now 1 bitcoin is worth $13.95, you can view the exchange rate by going to www.mtgox.com There are many options for purchasing bitcoins as well. The fastest and easiest is www.Bitinstant.com However, there are fees with this. Alternately you can also buy bitcoins with www.CoinBase.com and with www.Mtgox.com and many others. If you plan on using bitcoins on a regular basis, it’s best to go ahead and go through the verification process with a reputable exchanger like www.mtgox.com This way you can buy Bitcoins directly with a bank account, and pretty much avoid fees.

For More Information on bitcoins, go to www.weusecoins.com

P's picture
Tobybunz's picture

Thought you all might get a kick out of this article.....man selling his house for bitcoins lol

http://gma.yahoo.com/blogs/abc-blogs/man-lists-bungalow-bitcoins-1157069...

robbyd's picture

Can someone explain to me why the fk on coinbase it costs 80USD per BTC, while on mtgox it's only 45USD per BTC?

Nextdaygear's picture

Coinbase charges 1% over the latest ask price for Mtgox....If bit coins are 100 on mtgox, they're 101 on coinbase.com

Muffins's picture

For the buyer, we just load them and send them. There is minimal fear of it dropping in value for us. You load the coins and send them. Some methods can get you the coins in under an hour. Your risk exposure to value loss is one hour, with the In store ATM method. You load cash to the Bitcoin ATM and they send it to your encrypted Bitcoin receive address. The ACH transfer, taking five days to clear, would be the largest risk. The value dropping drastically is small, but can happen.

You are able to purchase tenths of a Bitcoin to thousandths of a Bitcoin. You can get the exact amount you need. If you have the ATM option near you, there is no reason not to do this method. There are small transfer fees, less than a dollar per Bitcoin, compared to the other options this is my favorite.

Muffins's picture

Sweet, I was going to make sure someone else didnt already do it before I started.

Ninja's picture

Its all good, the more info the better.lol
Guys dont forget to save the link as a favorite for future reference.

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Muffins's picture

That's a good idea. As I was writing that post, I thought this could go on for awhile, to be all inclusive. I will write a fairly inclusive tutorial.

j223's picture

bitcoins is a little confusing and has its downsides

but the point is it's completely safe transaction and you don't have to worry about causing suspicion when using WU or MG.

also safer for the source. And hey the safer it is for the source the longer sources can stick around!

Nextdaygear's picture

If you're worried about bitcoin fluctuation, just wait and buy them when you plan on purchasing gear. Once you're set up, it only takes a few minutes...you do it all from your computer, and you don't have to worry about "security questions" or incompetent employees, and the fees are so low, they're almost nonexistent.

kodiakGRRL's picture

you can cash out your bitcoins at anytime..

B52-BODY's picture

can you transfer funds from Paypal to Bitcoins ?

HydeMind's picture

Short and sweet! Thanks for the info

Ninja's picture

So lets say you get verified and can directly buy bitcoins with a bank account. Wouldnt this make it traceable back to you? I figured it would be safer to purchase through bitinstant via cash at a local vendor/booth.

But would it matter if you purchase bitcoins with a bank account bc the transaction of purchasing produces online wont be traceable?

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Nextdaygear's picture

It's very easy to "wipe" bitcoins, so that it is impossible to tell where they originated from. Ultimately this will be up to the source, when (and if) they decided to cashout.

Ninja's picture

Awesome, thanks foe the 411. Makes bitcoin even easier with direct deposit.

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Nextdaygear's picture

Things got a little crazy today. I'm ready for it to level out....

Nextdaygear's picture

There's no shortage of people who think it will hit $100, and on the flip side of that, there are just as many that will think it will crash. There's some good speculation "chat" going on here: https://bitcointalk.org/index.php?board=57.0

mkp's picture

whats an easy way of getting the coins ???

drmusclepharma's picture

Make an account here they make it pretty easy to pay for coins https://blockchain.info/wallet/

Nextdaygear's picture

Many new blocks open every day. The amount of bitcoins in a block is what is impossible to know (prior to being mined), and the difficulty to solve a block, can be determined by the hashrate of the network . Bitcoins will always be produced at a predictable rate (because we know the hashrate).

Something to think about There is a finite number of bitcoins. There are only 21 million bitcoins that can ever be generated, and over half have already been mined. There are many charts on Blockchain.info so you can put together a comparative analysis, of all the factors that determine value. At the core, it's always going to be a supply and demand issue. We've been mining for over a year, and it's become harder and less profitable.

Tobybunz's picture

So just so i understand this, after i create my wallet then obtain bitcoins somehow, when i purchase from your site, instead of having to do WU i can just instantly transfer that way?

Tobybunz's picture

Thx! I sent you a friend request, have a few questions if you dont mind

Nextdaygear's picture

Although not backed directly by any "commodity", bitcoins are very hard to get. Bitcoins are mined via the internet, and the competition for mining them grows larger everyday, and thus the amount of energy required to mine a coin is quite significant these days. You're looking at this from US citizen standpoint, but bitcoin is not dependent on the US financial ecosystem or government approval.

MAC's picture

NDG that's awesome bro. This is the way of the future right here

drmusclepharma's picture

Hi everyone i want to urge everyone to make a bitcoin account it will make things so much simpler around here and remove a lot of the complications that exist which in turn will provide everyone with a much better experience.

i highly recommend
www.blockchain.info/wallet/
as it seems very easy to use

DBG's picture

hmmmm....this is very interesting.