In this tutorial, we will cover everything you need to know about bitcoins.
The tutorial starts off with the basics of installing the computer
software to make bitcoins work, but moves into the more advanced parts
very quickly. After reading this Instructable, you will have learned
all the basics for starting your work with bitcoins. Whether you know
what bitcoins are, or if you're just here to start making free money by
doing almost nothing, you've come to the right place.
Read on to learn what bitcoins are, and how they can be used in a everyday computer-person life.
Understanding Bitcoins
After reading many, many different articles all over the internet, I
still didn't have a good idea of what bitcoins were, how they could be
made, and if it was possible for the average person to use them. The
first few things I read, they were made out to sound like you had to
have a computer science degree to get them.
However, after reading on about them, I learned that they are a type of
currency that is 100% virtual. There is no government that regulates
the currency, like almost every other single currency in the world.
Instead, it is all virtual. The bitcoins that you own are stored on
your computer. You can sell these bitcoins for real US or Canadian
dollars.
Below is a YouTube video explaining the whole concept of bitcoins. While good for visual learners, some like to read to learn.
Bitcoins are a virtual currency. The currency is stored locally between
peers. The currency (bitcoins) is transferred from computer to
computer. Every transaction (transfer of bitcoins from one computer to
another) is verified by "mining" for bitcoins.
When first learning about bitcoins, you learn that bitcoins are stored
directly on your computer. So, does that mean that by doing a bit
of computer hacking you can give yourself thousands of dollars worth of
bitcoins? The answer to this is NO! The system is worked out so well
that hackers cannot do this. The reason is because for bitcoins to
be transferred from computer to computer, the transaction has to be
verified. This verification is done by "mining." Mining is a process
where everyday people like you and I install some software onto
their computer This software is very advanced and hard to understand,
but basically it does some high-level computing (SHA256 decoding) to
verify transfers of bitcoins.
The next question that often comes up is: Why would anyone want to just
give up their computer to help decode these encryption things? Well,
the answer is that you get paid to do it. Well, you don't get paid, but
you get free bitcoins for letting your computer work for you. This is
almost the same as being paid, as you will learn in later steps. This
is the ONLY way that new bitcoins are created. They can't just come
from nowhere, making the system hacker-proof.
Mining can be very simple, but it can also be very complicated. By
following this Instructable, you will learn one of the easiest ways to
mine bitcoins and gain money.
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