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Introduction to Bitcoin

What is Bitcoin?
Bitcoin is a global Peer-to-Peer currency that is designed for the Internet. It is modeled after gold and behaves like cash online, and can be used by anyone. It has no central authority, and is deflationary in nature.

There will only be a total of 21 Million Bitcoins created, and or mined between now and the year 2140.

Currently. This number halves approximately every four years.00000001) This number can be adjusted within the Bitcoin protocol if needed.(฿.What is Bitcoin? The only regulated factor built into the system is the number of coins generated through mining. . The currency is divisible by 8 decimal places. the network allows approximately 25 Bitcoins to be mined every 10 minutes.

When the first Bitcoin exchanges went **August 15.05*. Bitcoin reached its all time high in April of 2013 when it reached $266 per coin. 2013 .What are they worth? Like fiat currencies. Currently** the price has been hovering around $100 per Bitcoin.*Source: http://bitcoincharts. they are worth what we think they are. the price per Bitcoin was about $. Speculators anticipate it can go much higher.

Buying from an individual. ISO standards require an “X” in front of non-centralized currencies. The official abbreviation has yet been decided. Selling items for BTC Bitcoins are commonly abbreviated as BTC. Mining (Requires large investment) 2. Wiring in fiat currency to an BTC exchange. 3. 1. However. . 4.How do you get Bitcoins? There are currently four methods of acquiring Bitcoins.

Where do you store Bitcoins? Bitcoins are stored in what are called wallets. Example of a public key: 14GabW85FUMQy62CMWLCToQLo81w7iXL2x . A wallet is a randomly generated string of numbers and consists of two parts: the public key and private key.

ALWAYS KEEP YOUR PRIVATE KEY PRIVATE! . The reason it is called a private key is that it is intended that only you. the wallet owner. they will have access to all of your Bitcoins.Where do you store Bitcoins? The second half of the Bitcoin wallet is what is known as the private key. Disclaimer: If anyone gets ahold of your private key. has access to it.

Online Wallet Services: All that is required on your behalf is to create and remember a password. Considered safe. You can take measures to increase security.What is a Bitcoin wallet? There are three different types of Wallets. The most popular services are and Coinbase. . but still susceptible to network failures and hacking.

Considered safe. .What is a Bitcoin wallet? Local Wallets or Offline Wallets: A local wallet is an application that can be downloaded to your personal computer. Your private key(s) are stored locally on your hard drive. Also carries a risk of hacking or physical theft. yet is important to make backups of your private keys in case your hard drive fails. There are safeguards to make this method more secure.

. Arguably the most secure way to store your BTC. No record of the private key online or your hard drive. Impossible to be hacked. fire and water damage.What is a Bitcoin wallet? Paper Wallets: A paper wallet is a public/private key that is generated offline and printed on a physical piece of paper and then stored in a safe location. They are still susceptible to theft.

The transaction appears within the network almost . Both have security features that require you to use a PIN to make transactions. Simply scan the receivers QR. and you are done.How do I send Bitcoins to someone? Sending or receiving Bitcoins is as simple as scanning a QR code with your smartphone. Online services such as Blockchain. enter the number of coins to and Coinbase both use their own official apps.

QR Code Generated for the public key:14GabW85FUMQy62CMWLCToQLo81w7iXL2x .Example of a QR code.

Think of Bitcoin as cash. 4: Keep your paper wallets in a safe and secure place. 2: Use 2 Factor Authentication for online services.How can I keep my Bitcoins secure? Here are a few tips to keep your Bitcoins safe: 1: Use strong passwords.000 out in the open. 5: ALWAYS run antivirus software if you are on Windows. The same should be said for Bitcoin. As the Bitcoin economy continues to grow. 3: Always encrypt your wallet files. You would never leave $10. taking proper security measures will me much simpler for average users. .

it is recommended that you wire money into one of the many BTC exchanges. .Do I have to buy whole Bitcoins? No. requires a minimum of . Coinbase. The process of wiring money takes about 3-5 days.10 BTC to be purchased. if the market value is $105.50. then the minimum amount you can buy would be $10. Therefore. If you want to buy less. It is very easy to buy fractional amounts of Bitcoins. a service that lets you buy BTC with your bank account.

You can save them.What can I do with my Bitcoins? You can spend them. You can day trade with them. . You can invest in various BTC based companies. just like cash.

. Misinformed slandering by the Media.What are the risks involved? Bitcoin carries many of the same risks that cash does. Government intervention. Fluctuations of 10% or more are fairly common. Holes in online services could lead to hacking and theft. Susceptible to physical theft. The market is incredibly volatile.

the truth is that many of these individuals are perfectly fine with the system in its current form. whilst keeping the mainstream at bay. how much? Short answer. Rule #1 of investing: . For now. and if so. or a fad. It is highly likely that many of these talking heads are in fact investing heavily into BTC... Their arguments are very similar to those of the 90’s when the Internet was coming to fruition. While many traditional industry analyst still proclaim Bitcoin as a joke. yes.Should I invest.

.What is the potential outcome of Bitcoin’s price? Bitcoin will either succeed with the mainstream or fail. Below is an example of what the price may be by 2025: The estimated world GDP is expected to be around $71T in the year 2025. then the market price of one Bitcoin would be about.. If Bitcoin can establish a 0..1% Market Cap or $71B(APPL is $456B) and 25% are used for transactions.

$ .947 Source: http://www.btcglobe.

” “I should have invested in Microsoft.” If the answer is. ..Have you ever said one of the following to yourself? “I should have invested in Apple. “yes” then make sure that in ten or more years you are not stating to yourself.” “I should have invested in Google..

“I should have invested into Bitcoin.” .