The key idea behind Bitcoin was the blockchain, publicly visible, largely anonymous online ledger that records Bitcoin transactions. The blockchain is a database that performs those tracking functions such as those of a bank, but without the bank or any other central authority.
These include online transfers, verification of funds, and such. Bitcoin transactions can be made through sites offering electronic wallets that upload the data to the network.
Once you’ve decided to start using Bitcoins, you need to get a unique bitcoin address or wallet to store your bitcoins. Your bitcoin wallet address is similar to an email address; people will send bitcoin to your bitcoin wallet address. You can share or publish your bitcoin address so that people can send you money at that address.
Bitcoin miners are the ones who with the new transactions are bundled together into a batch and broadcast to the network for verification. As there’s more to Bitcoin mining than the rights to newly created bitcoins.
A Bitcoin miner responsibility also includes verifying other bitcoin transactions, which users are rewarded for. Whilst also keeping transactions secure and reliable.
Mining is the central mechanic behind the bitcoin economy, and despite the myth that anybody can become a miner, it’s not true, as you have to have really fast computers and in most instances quite a bit of technical knowledge. Don’t stress though, there are MANY great online video’s on Youtube that can give you some tips and tricks on how to get started.
A couple of services has also sprung up and created software for the novice looking at trying out crypto currency mining. Our favourite is definitely Nicehash because of its fail safe simplicity! All you need to do is install the software, pop in your Bitcoin wallet address and sit back while the program does everything for you. You can’t get much more simple than that, and if you have some decent computer equipment standing around idle, we would suggest you head over to www.nicehash.com and download their software. Also be sure to check out some online stores where you can spend your newly earned Bitcoins!
Benefits of using a wallet with Bitcoin versus storing your money at a bank include:
- Anyone can use bitcoin, there’s no need for account verification, identity checks or proof of residence
- Privacy is enhanced with Bitcoin and it reduces identity theft.
- Bitcoin transfers are available within minutes, not like typical banking where it can take days
- Transactions cannot be reversed, so retailers no longer need to worry about credit card charge-backs
- Pay anyone anywhere in the world, without money transfers, complicated bank charges and government involvement. Quick, easy and reliable!