What to expect

 

What to expect:
I plan to set this up as more of a help and tutorial to those new to bitcoin, litcoin, darkcoin. The posts to follow will be helpful for new miners on how to mine with cpu, gpu(graphic cards or video cards, amd based ones), asics and cloud mining. While I dont recommend mining with them but the idea is to teach people how to get started. Dont think of this as a get rich quick scheme. Mining takes a bit of effort, very powerfull hardware and some common sense. The idea here is to teach people what to expect.

 

Brief History:
Bitcoin as described by its maker (Satoshi Nakamoto) is a payment system based on open source standards that was presented to the world in 2008. Who is Satoshi Nakamoto no one knows there are many ideas who he might be but no one knows for sure who he/she is. Think of bitcoin as a torrent where bitcoin works peer to peer only. Meaning it can be transferred from me to third-party without any administrator with close to very little or no fees. To make this transaction possible different users have mining hardware running. This hardware can be in the form of a cpu, gpu, asic and cloudmining, heck there is even paper mining which you can do yourself it wont earn you anything but you will learn something(Will get into more details on each in later details). At this point I would like to inform you that there are only 21million bitcoins that can be mined from which about 61% have already been mined. At this point you can hop over to Bitcoin Wisdom to check out what current rates are for 1 bitcoin converted to usd. The idea presented by satoshi was to have a decentralized currency which can be termed as “Money without Boarders”. Today Paypal(For US Only), Dell, Expedia, Overstock are the big giants who have started accepting bitcoin, btc or xbt(xbt is being used by bloomberg as tracker on commodities market to give rates of bitcoin) other then these there are numerous other smaller companies accepting bitcoins. All mining hardware manufactures accept bitcoin, litecoin for payments. Bitcoin now works on a blockchain which is basically a public ledger of all transactions. The idea was to keep everything anonymous so a wallet and sha256 encryption was introduced. Hence when ever you talk about btc, xbtc and its mining it will be refereed to  as sha or sha256 hashing.

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The Wallet:
The wallet is basically where you store coins. Do remember if this wallet is stolen you have lost all your bitcoins permanently. Some people like online wallets some people like offline ones some like cold storage wallets which can be printed or engraved onto paper metal silver gold etc. You can pretty much google for different types of wallets for bitcoin and you will find alot. The best online and most trusted one is at blockchain. There are many android wallet available, you can just search blockchain or if you prefer another wallet search for bitcoin or bitcoin wallet on Google Play Store.

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How to Get bitcoins:
There are many websites that explain this. You can trade bitcoin for fiat(other printed currencies) through online exchanges such as Cryptsy or bittrex or btc-e just to name a few. Most of these sites support wiring money but if you prefer to use credit card which is an untrusted method since there can be chargebacks you can pay a little extra and use this blog to buy through credit card.

Other Sites to buy bitcoin from webbased atms:

Coinsafe
Bitcoinpk

 

Other interesting Coins:
The idea of bitcoins was really appreciated and it really took off around 2009 and 2013 respectively. There were many others who presented other ideas on coins which brought value. Coins like namecoin or nmc (a blockchain based domain of .bit and is not governed by any authority so you can host anything you want without any restrictions), primecoin or xpm(which uses its hashing power to produce prime numbers), korecoin, kore(a more recent coin with anonymous voip calling and later cheaper then skype calls), litcoin or ltc(A copy of bitcoin based on scrypt algorithm much faster transactions then btc, xbt ) and also darkcoin or drk (a truly untraceable coin also relatively new) based on x11 algorithm. Please take note there are about 400+ plus different types of coins some very unique some even arent open source I cant get into them all but these are the coins I personally like and therefore I have mentioned them here.

 

Going Forward:
This technology is still very immature at best there are things happening as we speak. Bloomberg has started carrying the symbol XBT to denote btc. Its being listed as a commodity in the US market. And should hit NASDAQ after December 2014. More and more companies as mentioned above in the brief history are starting to accept it. There are some negatives too like the Mt-Gox scandal, then a few hack attempts where people compromised pcs to mine for them. Bangladesh ban. Russian considering a Ban are at the center of btc and lets see where it takes us. but I for one believe that it is here to stay and it will be hard to ban people who you cant track and are dealing in this. My next post will get you started with mining we will proceed with cpu mining, followed by gpu, asic and round it up with cloud mining.

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