Introduction to Bitcoin and other cryptocurrencies

[Jimmy]

Hello, MCM!

Here's my basic introduction to Bitcoin and various other cryptocurrencies.

Bitcoin came to be in 2009 following a major economic downfall, and currency devaluation.
Bitcoin is an unregulated currency, meaning the free market dictates what it's worth.
Basically, a Bitcoin can only be created provided the cryptographic equation allows it to. Once all of the BTC in that equation is found, that's it. Inflation proof!

Here's basic info on how it works:
Think of your local bank. They keep a ledger of how much each person has in their accounts, so they control your account. With Bitcoin, every single individual keeps a copy of the ledger, so it's impossible to counterfeit a Bitcoin, and there's other cryptographic equations to prevent people from cheating the ledger. When you send a Bitcoin, the fee is fractions of a cent, which is usually a few "Bits" (fractions of a full BTC) per kilobyte of data. Basically, you broadcast to the Bitcoin network that you want to send a Bitcoin, so everyone updates their ledgers.

Here's how to get started:

1. Download a Bitcoin wallet, or find a hosted one.
You can download Bitcoin Classic here.
A good hosted wallet is blockchain.info, which is a free wallet that you can take on the go.
Personally, I use the Bitcoin Classic on my storage server to accept payments, and then transfer it to my hosted wallet.

2. Get some BTC!
I know Zap exchanges PayPal for BTC, and I will too soon, but you can also look for an exchange online.

3. Start using it!

Hope this helps at getting you started with Bitcoin!

 

[vhckxgpzVK]

Nice! Thanks for taking the time to write this.

 

[Blowns]

Once all of the BTC in that equation is found, that's it. Inflation proof!

I never really understood that. BTC will eventually run out?

 

[Jimmy]

I never really understood that. BTC will eventually run out?

Not run out, but eventually (estimated around 2140) that all of the Bitcoin would be found. Basically, once it's all found, you can't make any more.

 

[Poker1st]

Bitcoins are really cool. I am so fascinated by them and wouldn't mind being paid by them.
But that is a tad risky, as the value of Bitcoin goes up and down all the time.

What's worth $500 USD one day could've worth only $300 USD the next. It's a high risk venture, but is SO COOL.

 

[mrpetfreak]

Bitcoins are really cool. I am so fascinated by them and wouldn't mind being paid by them.
But that is a tad risky, as the value of Bitcoin goes up and down all the time.

What's worth $500 USD one day could've worth only $300 USD the next. It's a high risk venture, but is SO COOL.

Yes it is. And there are coin exchanges where you can trade with bitcoins and other crypto currencies. Makes a lot of fun sometimes and there a really small fees. It's possible to double your bitcoins in less than a day if you trade with the right coins at the right time :tup:

 

[Poker1st]

Yes it is. And there are coin exchanges where you can trade with bitcoins and other crypto currencies. Makes a lot of fun sometimes and there a really small fees. It's possible to double your bitcoins in less than a day if you trade with the right coins at the right time :tup:

Yeah, exchanges are pretty fun, there's TONS of em!

 

[mrpetfreak]

Yeah, exchanges are pretty fun, there's TONS of em!

I recommend Poloniex...
Low fees and very professional.