Hashingnews

Bitcoin: Top 5 Tips For Beginners

HashFlare

The Bitcoin (bitcoin) rate suddenly began to grow rapidly from the beginning of the year, breaking the $ 2000 mark for 1 BTC a month ago. Naturally, against the background of such unprecedented growth, the public has increased interest in this crypto currency.

For those who decided to purchase or most “namaynit” bitcoin, I will give five practical tips for beginners.

What is Bitcoin?

Bitcoin is a digital crypto currency created in 2008 by some mysterious genius-mathematician Satoshi Nakamoto.
Live them can not touch – they are exclusively in the World Wide Web, like your bank account. But at the same time, they are not controlled by anyone (even the inventor himself), open and accessible to everyone. They are distributed and stored on the principle of p2p networks, like Torrent.

Anyone can trace all the transactions of any Bitcoin, which makes them transparent, but at the same time, the owners can not be found, which makes them attractive to those who like anonymity.

What is Bitcoin?

A robust encryption mechanism that is used in SSL, in SSH and even in banking networks, has a 100% resistance to hacking, which means it guarantees that even the Pentagon will not be able to reach the bitcoins.

For example, to crack the network bitcoin, not enough power of all supercomputers in the world.
The biggest surprise is that the number of Bitcoins is limited and they can not be extracted indefinitely. It is estimated that the total number of available bitcoins should be 21 million, and by 2025 the last BTC will be produced.

The catch is that the Bitcoins get more and more difficult to mine (mine) every year – it’s done specifically to constantly increase the value of the crypto currency.

From 2009 to December 2012 the amount of remuneration for one extracted block was 50 BTC. Then this number dropped to 25 BTC. When the number of produced bitcoins passes through half, the reward is reduced by 2 times. When their number reaches 75%, the reward will fall another 2 times, and so on.
Based on the above facts, it can be assumed that the Bitcoins value will only grow, especially when more and more people start using them, and the new BTC will appear less and less until it runs out and will have to use what will be available in circulation.

The cunning move of bankers and politicians with a printing press for banknotes in the case of Bitcoin will not be possible. This fact only increases the value of the crypto currency and causes hatred on the part of those in power.

Bitcoin Mining

The main way to extract Bitcoins is still “mining” (mining). Obtain them with a special utility installed on your home computer. Their list can be viewed on this link – they are all free.
A gaming desktop is required (laptops are absolutely not suitable) with a powerful graphics card, at least GeForce GTX 1060 or ATI Radeon RX 480 with good cooling, because the video card will be loaded 100% day after day. It’s the video cards that decrypt the data for Bitcoin mining.

But even if you have the same configuration, and have already decided to become a “miner” – not so simple.

The above configuration is the minimum tool for mining. Profitability of production on the computer described above will not exceed $ 2 per day (0.000794 BTC).

nicehash miner

Therefore, to increase the production speed, crypto currency is usually bought by special “farms” – bundles of several video cards connected together (from 3-5 and more). The price for such a kit comes to the cost of used foreign cars. Payback in about 2-3 years and this with a round-the-clock “mining” and a load on the grid of 800-1500 watts.
For those who are looking for options for “mining” quickly, they can pay attention to ASIC-miners. The cost of such computing “monsters” starts from $ 2500 – they are created exclusively for “mining” and outperform the farms of 30 video cards, but they are no longer suitable.

Bitcoin-wallet

To get Bitcoins, you need an electronic wallet. All types of purses can be studied on the official website. They are quite numerous, with different interfaces, advantages and disadvantages. Therefore, better study them in detail, before creating a purse. We can recommend Simple Bitcoin, Electrum or Breadwallet.

Bitcoin wallet

Important: when creating a wallet, securely store your login and password, otherwise it will not be possible to restore it in any way.

To receive Bitcoins, you will need the recipient’s address – it is issued in text format as a random sequence of numbers and letters, and also in the QR code version. This is convenient when someone wants to send a crypto currency through a smartphone or simply write down the address for the future.

The wallet can not be cracked with the selection of keys, since it is generated in a reliable way using the SHA-256 encryption method.

How to Buy Bitcoin?

If “mining” for you is more expensive than money, then you can purchase Bitcoins on reliable resources. As practice shows, bitcoin will only go up in time, but it is subject to currency fluctuations.

Buy Bitcoin

Bitcoins sell and buy several online exchangers: Coinbase, Coinmama, Coinhouse, Bitpanda.

What can I buy for Bitcoin?

In the world, bitcoin can already be paid for almost any services and goods in which this currency is not yet banned. Very often bitcoins are calculated on the Internet for goods that are difficult to obtain or require complete anonymity – yes, they are often used for any criminal transactions, since it is impossible to track the seller / buyer.

The list of what to spend bitkoin, you can see here – the site is a modular hodgepodge of everything, for which you can pay off the crypto currency. And those interested in luxury goods for bitcoins can look at this site – here you can buy everything from gold watches to the island in the Caribbean Sea.

Add comment