On Bitcoin Mining 2016 – in 2017 have become a very well known and popular question over time. OK, so what’s Bitcoin?
It’s not an actual coin, it’s “cryptocurrency,” a digital form of payment that is produced (“mined”) by lots of people worldwide. It allows peer-to-peer transactions instantly, worldwide, for free or at very low cost.
Bitcoin was invented after decades of research into cryptography by software developer, Satoshi Nakamoto (believed to be a pseudonym), who designed the algorithm and introduced it in 2009. His true identity remains a mystery.
This currency is not backed by a tangible commodity (such as gold or silver); bitcoins are traded online which makes them a commodity in themselves.
Bitcoin is an open-source product, accessible by anyone who is a user. All you need is an email address, Internet access, and money to get started.
Is Bitcoin A Good Investment?
Bitcoin is mined on a distributed computer network of users running specialized software; the network solves certain mathematical proofs, and searches for a particular data sequence (“block”) that produces a particular pattern when the BTC trading is applied to it. A match produces a bitcoin. It’s complex and time- and energy-consuming.
Only 21 million bitcoins are ever to be mined (about 11 million are currently in circulation). The math problems the network computers solve get progressively more difficult to keep the mining operations and supply in check.
This network also validates all the transactions through cryptography.
How Does Bitcoins work?
Internet users transfer digital assets (bits) to each other on a network. There is no online bank; rather, Bitcoin has been described as an Internet-wide distributed ledger. Users buy Bitcoin with cash or by selling a product or service for Bitcoins. Bitcoin wallets store and use this digital currency. Users may sell out of this virtual ledger by trading their Bitcoin to someone else who wants in. Anyone can do this, anywhere in the world.
There are smartphone apps for conducting mobile Bitcoin transactions and Bitcoins exchanges are populating the Internet.
How is Bitcoin valued?
Bitcoin is not held or controlled by a financial institution; it is completely decentralized. Unlike real-world money it cannot be devalued by governments or banks.
These cashless transactions are fast and the processor can convert bitcoins into currency and make a daily direct deposit into the establishment’s bank account. It was announced in January 2014 that two Las Vegas hotel-casinos will accept Bitcoin payments at the front desk, in their restaurants, and in the gift shop.
It sounds good – so what’s the catch?
Business owners should consider issues of participation, security and cost.
• A relatively small number of ordinary consumers and merchants currently use or understand Bitcoin. However, adoption is increasing globally and tools and technologies are being developed to make participation easier.
• It’s the Internet, so hackers are threats to the exchanges. The Economist reported that a Bitcoin exchange was hacked in September 2013 and $250,000 in bitcoins was stolen from users’ online vaults. Bitcoins can be stolen like other currency, so vigilant network, server and database security is paramount.
How Much To Invest In Bitcoin
• Users must carefully safeguard their bitcoin wallets which contain their private keys. Secure backups or printouts are crucial.
• Bitcoin is not regulated or insured by the US government so there is no insurance for your account if the exchange goes out of business or is robbed by hackers.
• Bitcoins are relatively expensive. Current rates and selling prices are available on the online exchanges.
The virtual currency is not yet universal but it is gaining market awareness and acceptance. A business may decide to try Bitcoin to save on credit card and bank fees, as a customer convenience, or to see if it helps or hinders sales and profitability.
Are you thinking about accepting Bitcoin? Do you already use it? Share your thoughts and experiences with us.
Looking for a Bitcoin Buying Guide? Wondering where to start? People have a lot of misconceptions about bitcoin – the very first widely known and accepted cryptocurrency worldwide.
A lot of people think for example that only hackers and shady people use it. However bitcoin is actually going mainstream with everyone from TigerDirect to Expedia.com to Dell and even Subway accepting payments in bitcoin now.
Buy Bitcoin Instantly With Debit Card
Well, bitcoin has a lot of benefits over other currencies. For example, you can send bitcoins to someone as payment without having to go through the bank middleman (and get hit with extra fees). It’s also much faster than sending money via a bank wire or transfer. You can send bitcoins to someone and have them receiving the coins in seconds.
With all of this, it’s no surprise that many people are now trying to buy bitcoin for the first time. However it’s not as easy as going to your bank and withdrawing bitcoins – or going to a store and plunking down some hard-earned cash for bitcoin.
The system works a bit differently than that. This Bitcoin Buying Guide will go over a few things you need to know before you buy – so you can buy safely and securely.
Take your time and research the different places to buy before you decide. Factors to consider include coin prices, extra fees, method of payment and customer service.
Lets Learn Bitcoin Trading in South Africa
Once you’ve found a place to buy, get your funds ready (i.e. you may send a wire transfer or use your Visa to fund your account). Then wait for a good price. (Bitcoin prices are always fluctuating 24 hours, 7 days a week). Then place your order when you’re ready.
Once your order is filled and you have your coins, you’ll want to send them to your wallet. Simply enter your bitcoin address and get the seller to send you your bitcoins. You should see them show up in your wallet within minutes to an hour (depending on how fast the seller sends them out).
Voila, you are now a bitcoin owner. You can now send coins to pay for other goods and services, or hang on to them for a rainy day.
One last thing to remember: bitcoin is still in its infancy. There are huge price swings and the currency can be risky. Never buy more bitcoins than you can afford to lose.
Bitcoin Mining 2016 – in 2017 ?
Bitcoin is a virtual currency. It doesn't exist in the kind of physical form that the currency & coin we're used to exist in. It doesn't even exist in a form as physical as Monopoly money. It's electrons - not molecules.
But consider how much cash you personally handle. You get a paycheck that you take to the bank - or it's autodeposited without you even seeing the paper that it's not printed on. You then use a debit card (or a checkbook, if you're old school) to access those funds. At best, you see 10% of it in a cash form in your pocket or in your pocketbook. So, it turns out that 90% of the funds that you manage are virtual - electrons in a spreadsheet or database.
But wait - those are U.S. funds (or those of whatever country you hail from), safe in the bank and guaranteed by the full faith of the FDIC up to about $250K per account, right? Well, not exactly. Your financial institution may only required to keep 10% of its deposits on deposit. In some cases, it's less. It lends the rest of your money out to other people for up to 30 years. It charges them for the loan, and charges you for the privilege of letting them lend it out.
How does money get created?
Your bank gets to create money by lending it out.
Say you deposit $1,000 with your bank. They then lend out $900 of it. Suddenly you have $1000 and someone else has $900. Magically, there's $1900 floating around where before there was only a grand.
Now say your bank instead lends 900 of your dollars to another bank. That bank in turn lends $810 to another bank, which then lends $720 to a customer. Poof! $3,430 in an instant - almost $2500 created out of nothing - as long as the bank follows your government's central bank rules.
Creation of Bitcoin is as different from bank funds' creation as cash is from electrons. It is not controlled by a government's central bank, but rather by consensus of its users and nodes. It is not created by a limited mint in a building, but rather by distributed open source software and computing. And it requires a form of actual work for creation. More on that shortly.
How can I spend it?
There are hundreds of merchants of all sizes that take BitCoin in payment, from cafes to auto dealerships. There's even a BitCoin ATM in Vancouver, British Columbia for converting your BTC to cash in Vancouver, BC.
Money has had a long history - millennia in length. Somewhat recent legend tells us that Manhattan Island was bought for wampum - seashells & the like. In the early years of the United States, different banks printed their own currency. On a recent visit to Salt Spring Island in British Columbia, I spent currency that was only good on the lovely island. The common theme amongst these was a trust agreement amongst its users that that particular currency held value. Sometimes that value was tied directly to something solid and physical, like gold. In 1900 the U.S. tied its currency directly to gold (the "Gold Standard") and in 1971, ended that tie.
Now currency is traded like any other commodity, although a particular country's currency value can be propped up or diminished through actions of their central bank. BitCoin is an alternate currency that is also traded and its value, like that of other commodities, is determined through trade, but is not held up or diminished by the action of any bank, but rather directly by the actions of its users. Its supply is limited and known however, and (unlike physical currency) so is the history of every single BitCoin. Its perceived value, like all other currency, is based on its utility and trust.
As a form of currency, BitCoin not exactly a new thing in Creation, but it certainly is a new way for money to be created.
Bitcoin Mining 2016 – in 2017
The Bitcoin is a type of currency designed digitally and encrypted for verification of transactions of assets, and to control creation of currency; the name given to this type of currency is cryptocurrency. This worldwide famous currency was developed in 2009 by Satoshi Nakamoto. This Peer-to-peer electronic cash system was given the symbol XBT for market usage. As any other currency, the Bitcoin has its own unit system which goes from the millibitcoin (0.001) to the satoshi (0.00000001).
The design of the Bitcoin is extremely complex, but very reliable. First, one of the questioned subjects on this matter is its security. Believe it or not, Bitcoins are more secure than regular currency. The obvious thing is that, it cannot be stole physically, and although it can be stole electronically the following explanation will show you how hard it is to do this.
Bitcoins are already gaining acceptance worldwide. As now, Bitcoins can be used in over 100,000 institutions around the world and is expected to keep growing. Although the insecurity behind the fact that there is no governmental support makes it hard to believe that this will be the currency of the future, but watch out, it might impact the world.
Bitcoins - Why you should not invest in 2018?
Bitcoin hey guys Simon Jordan here co-founder of lay CEOs and today I'm gonna be explaining why I'm not investing in Bitcoin, and why I think you shouldn't either Alright guys, so I know this is probably gonna piss a lot of people off But I wanted to give you my thoughts on building real businesses and investing in real income producing assets, and why in 2018 I'll be focusing all my energy of things I can actually control now of course I'm not saying you can't make any money on Bitcoin of course you can but the truth is the vast vast Majority of people are gonna lose all their investment than this so in order to explain Why more clearly I'm gonna jump on my computer right now, and show you Alright guys, so I know this is gonna turn a lot of people off and you know that's fair enough If this isn't what you want to hear then you know you can watch another video telling you how amazing? Bitcoin is and that you should be investing your Remortgaging your house and throwing it into Bitcoin You know if that's if that's what makes you happy then you know stick with those videos but I want to give my own opinion on Bitcoin and In my opinion bitcoin is a complete waste of money for the vast vast majority of people now joining in the hype train and Investing into it so so right now bitcoin is the hot new thing and therefore.
I'm sorry before Before that it was gold and it was silver and before that it was the dot-com bubble and so on and so on and so on right we see these things come Upon us all the time now all of this What bitcoin is it? This is speculative investing and if you're looking for a way to change your life and make Lots of money online.
This is probably the worst possible way you could go about doing it So you're essentially gambling in my opinion okay? You may as well take your money whatever money You're willing to invest and you know head down to Vegas and throw it in some you know some blackjack games or slot machines Because you have as much chance there of becoming a millionaire or losing your money as you have in investing in such a volatile and Commodity like Bitcoin now.
I wouldn't even call it a commodity because it's backed by nothing and has actually no intrinsic value whatsoever except the value that a newbie investors and put on it, so The thing about Bitcoin let me just get my pan out here right so Bitcoin mm-hmm Well the first thing to say that people are extremely Emotional when it comes to money okay, and so right here right here this is Emotional investing this is what you're seeing here these are That's what we're experiencing right here with people getting at the Bitcoin who think that they know what they're doing and they're being driven By extreme optimism right so everyone's telling them that this is amazing it's gonna go up to this much, and it's gonna keep going on forever and They're more driven by the fear of missing out right they're seeing news reports They're seeing experts and they're seeing all these YouTube videos of different people telling them to invest and they're seeing it grow and grow and grow and they're So scared of missing out that they take their money, and they pump it in and that's why you're getting this spike Right here, that's what that is.
This is all the newbies that don't really know what they're doing being afraid that they're missing out and throwing their money in this super super high risk and volatile Bitcoin so All these people that are jumping in they do not have the skillset to be getting involved in this kind of investment They're total newbies being driven by emotion.
Okay, so what you have to understand is that there are people who have spent years Of their lives and hundreds of thousands of dollars on the best business and finance schools right there to get their education to know What they're doing in order to learn how to get in right here, okay? That's all the people who know what they're doing or even even beforehand even in here right all the people who? Have invested in their education and understand Vallot.
I'll and stocks shares These all these people have gone in here so that they can milk all the newbies Who they will inevitably? Come in here, okay? Thinking that this is going to go on forever and that they're gonna get rich quick.
It's fueled by that mentality You know that they want the easy? Sexy you get rich quick thing that's on the internet and right now bitcoin Is that at the point that I'm making here is that yes people who have years of experience? And a track record of investing in volatile High-risk stocks will make money But if you're new to all this and you're thinking that this is an easy get-rich-quick Investment that you just can't miss out on just be prepared to lose all your money That's what I'm saying in my opinion a good entrepreneur always minimizes risk in their investments and Should not be getting involved in something like this now as we all know as I've said before Bitcoin is hot right now and everyone and their grandmother are having these these small wins right so You know and there's certainly investment wizards and financial advisors And this gives people false confidence So they go for the next wing and the next wing and the next wing and then you know eventually the whole thing crashes and you know Uncle Bob the investment wizard for the last two months loses the majority of his investment and If you want to be successful online doing your own thing building your own business then you don't want to invest you're Already high risk online revenue into another high risk super volatile asset so Let's say you're in affiliate marketing like me or you've got a social media agency Or you're a drop shipping or whatever.
This is already a high risk activity, okay? It's already a high risk business like my business affiliate marketing in the beginning.
It's high risk cause you know you learn it You've got it you gotta figure it all out.
You've got to you know get some courses.
You don't get some sort of training I Figure this thing end and I'm tired it's high-risk, but the more you learn and the more you gain control You know the less the less high-risk It is so you know Let's say you make 100k right the last thing you want to do is drop that 100k into another high-risk stock Like Bitcoin all right you don't want to you don't want to put your money into something So you know as volatile as this it already takes a lot of time learning and Energy to manage.
You know my business affiliate marketing so I don't want to have my money in something so high-risk That's gonna.
Take a whole lot more time and learning and energy on top of that so You know and if you do have money to invest the smartest thing to do is really to put your money into something like real estate, or safe stocks that actually yield dividends year-on-year, you know like safe stocks and Assets that have actual real value behind them okay now I know that these aren't sexy stocks like Bitcoin But let's let's take a look at one of the best right the best investors in the world Warren Buffett So where does Warren put his money does he put it in Bitcoin? No, he does.
Not right let's have a look at Warren Buffett's and stocks I mean just get this pan off, so let's go into Warren's Stocks right now.
What's Warren got here? Okay, so if we have a look at What Warren Buffett is investing into they are all big safe reliable and? Stocks you know that are gonna yield dividends and like I said, they're not the sexy stocks They're not that you're gonna.
Make you know you're gonna quadruple your your investment overnight, but it's it's it's you know It's a it's gonna.
Do you see here? It's got a dividend growth streak 44 years, Walmart, okay, and dividend yield 2.
1 percent, right a Bank, or dividend growth streak six years right everything that he's putting his money in is You know it's big it survived Johnson Johnson fifty five years right and and these stocks are gonna Give you yields.
You know anywhere between sort of two three to ten percent per year Right, but he knows that he's protecting his initial investment He's not gonna lose his initial investment And his money is Working for him right so he has this diverse portfolio all these different things that he's investing his money And I'm like I said if it's not stocks.
It really should be real estate.
You know if you understand real estate and You know put it into property and investment property Rental property it has a little coca-cola right so I mean like I said these stocks are not big sexy you know mega You know quadruple your investment overnight, but what these things? Do is they mean that you're they mean that your investment is safe and that your money is yielding dividends okay, and that's what smart Investors do okay, so like I said they're boring But they're very safe stocks like I like we just went to like coca-cola like Apple like General Motors Okay Because he knows that his investment is very very low risk that's gonna give him those yields year-on-year Because these assets have real value and not imaginary value like Bitcoin okay so bitcoins value It means nothing okay, its growth is now determined by what a bunch of beginners Right think it's going to be worth in the future right.
It's it's value is is Determined by that so and those beginners are basing that belief on their emotions that greedy get-rich-quick fear of missing out And that drive that makes them jump in and take huge risks with their money ok Another better thing to invest your money on is yourself right so invest in books Books on investing you know books on building an online business digital courses.
You know things that you can actually use and grow and you know become successful and in whatever it is you're trying to do and obviously at life CEOs We're involved in affiliate marketing is our business And it's a business we have full and complete control over a safe and predictable monthly income stream ok so Like I said before it's it really isn't hard to do well in and it's you know It's a much safer bet than you know taking this big gamble on big point You know me mortgaging your house or selling your car to buy bitcoins.
You know, it's just there's so many better ways to invest your money guys really and so and Yeah, if you'd like more information on how to get started you know in affiliate marketing I'll leave a link to our website in the description below So you can start learning and growing a real online business with us instead of just throwing it all Into a Bitcoin which is a really really really bad idea in my opinion, so what do you think about Bitcoin? Are you investing or not leave it in the comments below? and if you enjoyed this video Don't forget to give us a thumbs up subscribe to the channel and click that Bell icon So you don't miss any videos from life CEOs in the future.
I'll see you guys in the next one.
What are Bitcoin Investment Opportunities?
The best way to learn about bitcoin, is to jump in and get a few in your "pocket" to get a feel for how they work.
Despite the hype about how difficult and dangerous it can be, getting bitcoins is a lot easier and safer than you might think. In a lot of ways, it is probably easier than opening an account at a traditional bank. And, given what has been happening in the banking system, it is probably safer too.
There are a few things to learn: getting and using a software wallet, learning how to send and receive money, learning how to buy bitcoin from a person or an exchange.
Before getting started, you will need to get yourself a wallet. You can do this easily enough by registering with one of the exchanges which will host wallet for you. And, although I think you are going to want to have one or more exchange wallets eventually, you should start with one on your own computer both to get a better feel for bitcoin and because the exchanges are still experimental themselves. When we get to that stage of the discussion, I will be advising that you get in the habit of moving your money and coins off the exchanges or diversifying across exchanges to keep your money safe.
What is a wallet?
It is a way to store your bitcoins. Specifically, it is software that has been designed to store bitcoin. It can be run on your desktop computer, laptop, mobile device (except, as yet, Apple) and can also be made to store bitcoins on things like thumb drives. If you are concerned about being hacked, then that is a good option. Even the Winklevoss* twins, who have millions invested in bitcoin, put their investment on hard drives which they then put into a safety deposit box.
*The Winklevoss twins are the ones who originally had the idea for a social networking site that became Facebook. They hired Mark Zuckerberg who took their idea as his own and became immensely rich.
What do you need to know about having a bitcoin wallet on your computer?
Below you can download the original bitcoin wallet, or client, in Windows or Mac format. These are not just wallets, but are in fact part of the bitcoin network. They will receive, store, and send your bitcoins. You can create one or more addresses with a click (an address is a number that looks like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will see a field where you can copy and paste a number like this from a person you want to send money to and off it will go directly into that person's wallet. You can even create a QR code which will let someone take a picture with an app on their phone and send you some bitcoin. It is perfectly safe to give these out - the address and QR code are both for my donations page. Feel free to donate!
NOTE: This type of wallet acts both as a wallet for you and as part of the bitcoin system. The reason bitcoin works is that every transaction is broadcast and recorded as a number across the entire system (meaning that every transaction is confirmed and made irreversible by the network itself). Any computer with the right software can be part of that system, checking and supporting the network. This wallet serves as your personal wallet and also as a support for that system. Therefore, be aware that it will take up 8-9 gigabytes of your computer's memory. After you install the wallet, it will take as much as a day for the wallet to sync with the network. This is normal, does not harm your computer, and makes the system as a whole more secure, so it's a good idea.
- The original wallet.
- This is a full-featured wallet: create multiple addresses to receive bitcoins, send bitcoins easily, track transactions, and back up your wallet.
- Outside of the time it takes to sync, this is a very easy to use option.
- Search for Bitcoin Qt wallet download to find their site.
- Runs on top of Bitcoi Qt, so it has all of the same syncing requirements.
- Armory allows you to back up, encrypt, and the ability to store your bitcoins off line.
- Search for Bitcoin Armory Wallet to find their site.
* There is software to make printing your paper wallets easier. bitcoinpaperwallet.com is one of the best and includes a good tutorial about how to use them.
* The bitcoins are not actually in the wallet, they are still on the web. In fact, the outside of the wallet will have a QR code that will allow you ship coins to the wallet any time you like.
* The sealed part of the wallet will have the private key without which you cannot access the coins. Therefore, only put as many coins on the wallet as you want to be inaccessible. You will not be able to whip this thing out and take out a few coins to buy a cup of coffee. Rather, think of it as a piggy bank. To get the money, you have to smash it. It is possible to take out smaller amounts, but at this point the security of the wallet is compromised and it would be easier for someone to steal the coins. Better to have them all in or out.
* People who use paper wallets are usually security conscious, and there are a number of ways for the nefarious in the world to hack your computer. Bitcoinpaperwallet.com gives a lot of good advice about how to print your wallets securely.
Some people have also asked about buying bitcoins on eBay. Yes, it is possible, but they will be far overpriced. So, selling on eBay might seem to be a better option given the extreme markup over market value you might see. But, as with anything that is too good to be true, this is too good to be true. As I will explain in the next section, selling bitcoin this way is just way too risky.
How Not to Buy Bitcoin
In the next section, I am going to explain a couple of key points about buying from Bitcoin Exchanges. Before I do, let me give you a warning.
A short history lesson: When people first started setting up actual business based on bitcoin, they used all of the tools available to any merchant. They sold by credit card and PayPal. The problem with this business model was quickly spotted: bitcoin transactions are not reversible by anyone except the recipient of the money. Credit cards and PayPal have strong buyer protection policies that make it relatively easy for people to request a chargeback. So, nefarious individuals realized this and began making purchases of bitcoin and then sooner or later requesting a chargeback. And, since bitcoin is a non-physical product, sent by new and poorly understood technological means, the sellers were not able to contest this. Because of this, sellers stopped accepting credit cards and PayPal.
This was a big problem for the currency: How to move money between buyers and seller? Some business emerged that would credit you with bitcoin if you wired them money. Very often these businesses would give addresses in Albania, Poland, or Russia. The fact is that many of these did work and there are a lot of stories on the forums of people who bought bitcoins this way. But it took a lot of time and in the meantime the buyer just had to bite his or her fingernails wondering if they would get their bitcoins or kiss their investment goodbye.
I expect that as bitcoin becomes more acceptable and valuable, we are going to see a version of the Nigerian Prince scam. So the warning is this: we now have exchanges and other businesses that allow for moving money easily onto and off of exchanges. Never wire money for bitcoin. It was a short-lived, and well-forgotten, moment in the history of bitcoin.
Next, I will be talking about how to buy from a bitcoin exchange and give a review of the some of the best known exchanges.