Bitcoins are a completely digital currency. Its distribution happens over so called peer-to-peer connections. All transactions are carried out through a strong encryption and a high grade of anonymity. Every transaction is traceable but not the user behind these transactions.
The system’s advantage is, that no bank or state can have influence on the price and cash flow. That means: Bitcoins have no standing orders or borders, every user everywhere can create and transfer Bitcoins.
Bitcoins are limited to 21 million. Doesn’t sound much but draw attention to the fact, that every Bitcoin can be divided into 100 million parts. That means there are 21 quadrillion single transferable Bitcoin units!
Your first task is: get the Bitcoin software from here. Start up the program abd create your first Bitcoin address. this address is 33 characters long, quite crypted and impossible to remember. With the Bitcoin software you can manage all your addresses. Right, you can create as many addresses as you want. All information are stored in your so called “wallet”.
Now you can start to get some free Bitcoins[nbsp]with your new addresses. Just use the offers from this list.
The second, more complex method is the so called mining – the creation of your own Bitcoins. To be a good miner you need a computer with a powerful ATI graphics card (or even mulitple cards). A special software, the so called miner, calculates high-complex mathematical problems and creates Bitcoins. these “problems” result in a so called block – this block is currently worth 25 Bitcoins. A single computer would need months to solve a complete block. That’s why users have created so called mining pools. Miners unite in these pools and create an extrem high performance to solve the blocks even faster.
The list of possibilities to use Bitcoins is growing every day.
One of the simplest form is to transfer the digital Bitcoins into “real” money like Dollars or Euros by selling them. Use the many trading platforms. Another way is gambling! There are some online casinos out there. Or play poker! You can also go shopping.[nbsp]Many online merchants and service providers offer Bitcoins as a payment method.
The list is long. Just have a look and get some inspiration.