Bitcoin is a digital currency-old infant, but has quickly spread around the globe while behind the code and how it operates is the source of inspiration liberalism. Moreover, Bitcoin has enabled the passion of the economic debate about the value of money, while creating a wave raced from the world of information technology training as well as hacker Bitcoin worldwide. Here, we will send you read part 1 of this series on Bitcoin, entitled "virtual gold, real money, real risk".
Bitcoin miner machine 5GH / s Butterfly has a compact design
Two bedroom house on the hill Joel Flickinger Oakland (California, USA) day wine hum of computer platforms with custom configuration by Joel. Inside the room is a large screen is supported by local power supply with huge pile of cables snaked right and left towards two computers, the size of two beer. Flickinger has spent more than 20 thousand dollars to "rig" Bitcoin so that it can operate 24/24 and the heat from the plant can produce both heating buildings. On the wall, attach the pieces stick Flickinger Joel content combative: I make easy money, money flowing into my computer, I'm magnets for money. Flickinger, 37, a software engineer and IT consultant with pale skin so many days out of the house. He is a full-time Bitcoin miner model.
Bitcoin was born in 2008, an important moment for the world economy as the global financial crisis began to spread from the financial products risky in the US and Europe, pulling down big banks , forcing the government to take action in and pumped huge amounts of cash to reinforce the foundation.
11/2008, a mysterious character nickname Japan: Satoshi Nakamoto has put online research, describe how the organization and operation of electronic currency called Bitcoin under no subject to coordinated by the bank of any government. One of the major enhancements of Bitcoin virtual currency than was used previously as a direct payment users with the ability to forge each coin depends on the strength mining equipment compared to competitors. Therefore, although the proportion of low risk, but the risk of counterfeiting Bitcoin is real when an individual or organization strong enough to invest in hardware - software powerful, overwhelming compared to the others are involved in the process of coding in The string (block chaining) for Bitcoin.
Satoshi Nakamoto Is the whole school, a Japanese programmer? No one has answered this question. It is only known in Japanese Satoshi means wise. Someone arbitrary nickname is grafted from the first letters of the four technology groups (Samsung, Toshiba, Nakamichi, and Motorola). According to conspiracy theories, this is the group of people from the United States National Security Agency of America!
So why Bitcoin forcing many people to abandon the effort, money and time to participate in encoding (mining) it? With the existing specification, the activity generated by Bitcoin hash algorithm to create a new package on the character The character string (which has a capacity of 11GB). On average, about 10 minutes character will have a new package is created. In early 2009, when the participants less, with each new character package, participants will receive "compensation" 50 Bitcoin (BTC). Remuneration will be reduced by 50% when 210 thousand packs of characters in the string thing. In late 2012, the number dropped to 25 bonus contract BTC. It is expected that in 2140, with 21 million packages character is created, the number of Bitcoin will be limited to the script.
A "farm" messy Bitcoin mining equipment in Hungary
Whether virtual currency, but with limited numbers, operators difficult, expensive investment of effort to be used currencies nature secure payment, irrespective of national borders, as long as there internet access (no firewall) has made Bitcoin get the same monetary value. Main hash algorithm and how community participation in the process of coding detention and disclosure "records" transactions (transaction log) of all co Bitcoin was created. Thus, when the contract was made public Bitocin, who owns it can not be used to purchase multiple places at once.
By 2013, about 11 million Bitcoins in circulation despite the protests in many countries. BTC value against the US dollar has fluctuated at around $ 1,000. Although penetration of the currency market place BTC still dripping, but there have been notable landmarks as the retail giants and big investors in the United States stood ready the organization deals with this kind of money.
One corner of the training center based in Hong Kong Bitcoin ASICMINER
After Canada, beginning in 2014, Hong Kong will have a Bitcoin ATM 2nd, despite the position of co Bitcoin is free circulation has been the Chinese government to control and buffeted. Go along with it is the online hacker attacks violent outbreaks in BTC to steal wallets from online users to take advantage of the personal computer. On 09.01.2014, the world record wave of advertising messages containing malicious code has spilled into Yahoo mail system which has lax defense whose main purpose is to utilize the resources of the computer being attacked to dig Bitcoin.
Meanwhile, Silicon Valley in the US is becoming Bitcoin training centers as natural law. By This e-currency can only conceived and born in society "software" organization of modern society, the law sharply. Flooding everywhere billboards convey the message: "A revolution has begun ... You are standing where they are?" The "miners" of the industrial era of no blur in the dungeon that becomes the person operating the computer running complex algorithms. With the current price of each Bitcoin has touched nearly $ 1,000 chasing the selling price of an ounce of gold, so just create a new character packs, workers were collecting workers receive about 25 thousand dollars for 10 minutes. Dream enriched in cyberspace is approaching reality.
On 05/22/2010, programmers Laszlo Hanyecz became the first person to use 10 thousand BTC in exchange for two $ 30 worth of pizza in Florida (USA). According to the calculation of Hanyez, which is a reasonable price. But if put into the present time, the pizza was worth the equivalent of $ 10 million!
With Bitcoin miner small, just the laptop configuration strong enough, peripherals can be fitted to participate in the larger rigs. But the big hit dealers as the Winklevoss twins switched out of business matchmaking, dating love in the Netherlands through Bitcoin transactions. Winklevoss said they had owned a large amount of Bitcoin and had to submit to the US securities regulator proposes to allow investors to purchase such shares Bitcoin.
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