Category Archives: Bitcoin

Bitcoin – How’s It Work and Where Does it Come From

b1Nowadays, there is talk of Bitcoin everywhere due to the recent rise in the price of the digital cryptocurrency. However, if you’re just now hearing about Bitcoin, it can be a bit confusing. In this article, you’ll learn the basics about Bitcoin, including how Bitcoins are acquired, tracked, and traded. Originally created by a person or persons known as Satoshi Nakamoto in 2009, Bitcoin is gaining popularity around the world. There are currently at least 100,000 merchants and vendors who accept the Bitcoin currency, a huge increase from Bitcoin’s early days.

Mining

People can create bitcoins through a process known as bitcoin mining or hashing. Whereas with the paper money, the government decides how much to print, with Bitcoin, people can mine the currency by solving complicated mathematical equations. Once the equation is solved, a “block” is produced which is then traded for bitcoins. As people everywhere mine more and more bitcoins, the equations to be solved become more complicated and the returns for mining steadily decrease. The equations are already very difficult to solve, so to solve them, a person will need a specialized computer to run the Bitcoin mining software. If you’re looking into getting the hardware necessary to start mining Bitcoin, a great place to start would be at Shut Up and Take My Fiat, a website selling many different Bitcoin-related products, from hardware to books. The hardware they sell will be enough to get your started hashing, and the books will help you understand the truly complex concepts behind Bitcoin.

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Trading

Bitcoin buyers and sellers can exchange Bitcoin on online exchanges. In the same way that people keep their money in wallets, people keep their bitcoins in digital wallets, such as cloud based storage systems. The downside to this is that hackers could potentially steal your bitcoins if they gain access to your account. An upside to trading with Bitcoin is that it allows some anonymity, which is why Bitcoin has been associated with the buying and selling of illicit material such as drugs.

The Blockchain

The Blockchain is the virtual ledger that is used to track the purchase of bitcoins. Basically, when you purchase an individual bitcoin, you are essentially buying a piece of the Blockchain. This transaction forever records the information about the transactions. A decentralized network of computer systems controls the Blockchain, meaning that no government has control over the currency. This keeps Bitcoin independent from the control or influence of any government, making it a currency void of any connection to politics or governmental control. To find out more please visit bitcoin blockchain 

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Understanding Bitcoin is essential in as it become a more widely accepted form of currency. However, because it is new and different, it can be difficult to understand. Thankfully, the wise individuals at Shut Up and Take My Fiat have made it easy to acquire the resources to mine and understand Bitcoin. If you’re interested in knowing more about Bitcoin or in getting started hashing, then you should head over to their website and get started. Good luck and happy trading!  If you would like to find out more please don’t hesitate to visit http://shutupandtakemyfiat.com  you can learn more about the hardware they offer here or why not check out some of their accessories.