Bitcoins....Bit what? Let me tell you!!


SUBMITTED BY: Guest

DATE: Oct. 28, 2012, 9:47 p.m.

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  1. So I have been on the internet for awhile now and have heard of many different ways to pay for products, such as pay pal, credit cards, cash, and now bit coins. It took me awhile to try and figure out what bit coins were, how to get them and then how to use them. So first off bit coins are a digital currency, money that you never see or hold but buy things with, the value of bit coins right now is around 1 bit coin = 11$ but it does fluctuate up and down. Bit coins overall are a very private and secretive way to buy things, so if you are paranoid or buying some things that you don't want anyone to find out about then bit coins really are the way to go. To get bit coins you have to setup a wallet to hold them in and that wallet can be store on your computer or you can store them online. If you decide to let someone else to hold your wallet online then make sure that they are a reliable site so that they don't end up with your hard earned money, I use Bitcoin Block Explorer at https://blockchain.info/ to store my bit coins and I haven't had any problems with them at all or you can download a wallet (http://www.weusecoins.com/getting-started.php) and store them on your home computer but if your computer crashes and you have no backup them you lose all of your bit coins. Next thing that you have to do is actually get some bit coins so that you can spend them and buy some cool things but it isn't as easy as one would think because like I mentioned earlier a lot of people worldwide use them to buy guns, drugs and other criminal related products and services so they want to be secretive about it, for example the website the silk road (http://www.gwern.net/Silk%20Road) uses bit coins to sell drugs and drug related products to its customers. So one way to get bit coins into your wallet is to add coins through your wallet, print out the add funds form and then go to Walmart or seven eleven to add funds or if you are a Canadian you can use a wallet at https://www.cavirtex.com/home and add funds through Scotia bank, Royal Bank or Bank or Montreal. There are many other things you can do to get bit coins but the last I am going to talk about is bit mining which is when you use your computers CPU (central processing unit) or GPU (Graphics processing unit) to solve "blocks" on the internet. For each "block" solved a payment of 50 bit coins is given out but don't be fooled into thinking that your personal computer has enough processing power to solve it yourself so unless you are going to spend $5000 on a personal mining machine then your best option is to sign up for a pooled mining group such bitcoincz (http://mining.bitcoin.cz/). To begin mining in a pool one must sign up, get your user information and then download software on your computer that allows you to add your processing power into a pool of others processing power and when the "block" is solved then the 50 bit coins are then divided up among everyone who was in the pool per processing power that you added to the solving. So I wish you the best of luck with bit coins and I hope that this makes it just a little "bit" easier for you to start making a little "bit" more :-P.

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