Bitcoin 101

Another way to turn your rags into riches: Bitcoin!!!

But, you might say.. what? what is Bitcoin, and how do i handle a currency that is not even in a bank.

I have some great news for you my friend, this is the currency of the future.

Some might say it’s a bubble, but some others as Ricardo R. and  Dennis R. says actually, this currency is going to make history, and it will crush any  kind of “paper money” as we know it today.

I know…Now you’re asking yourself, who in the Lord’s name are this two guys.

First of all, let’s learn a simple 101 about Crypto-currencies. let’s understand the basics.

Cryptocurrencies, also often referred to as coins, are digital currencies that are secured through cryptography, the enciphering and deciphering of messages in secret code or cipher. Many of them rely on blockchain technology—a distributed ledger of all transactions that is decentralized and unable to be changed under most circumstances as long as nobody controls more than 50% of the computing power on the network.

Unlike traditional currencies, they are not controlled by any central government or authority. In the case of some of them (Bitcoin, Monero, and Litecoin for example), the supply of new coins is controlled by a process called mining, a computationally intensive process where computers (mining nodes) compete against each other to secure the network by solving mathematical equations, collecting bitcoins as a reward if they are the first to create a new valid block, which is then broadcasted to the rest of the network and added to the blockchain.

How it works:

Other coins are pre-mined, where the mining occurs before the public launch of the coin. Pre-mined coins are sometimes viewed in a negative light as they are often heavily promoted to increase demand and drive up the price, allowing developers to cash out.

With Bitcoin, the original developer Satoshi Nakamoto set out to create a “peer-to-peer electronic cash system”, according to the Bitcoin whitepaper.

> This guy… hmm.. yes, this guy it’s apparently the mastermind of this revolutionary phenomenon.

The whitepaper was written under what appears to be a pseudonym and there is much mystery around the original creator’s true identity. People that track the Bitcoin network’s early activity estimate that whoever Satoshi Nakamoto actually is holds roughly 1 million bitcoin, worth approximately $18.6 billion based on recent prices. To add further to the mystery, it seems a minimal amount, if any, of this bitcoin has been moved/spent.

One of the big innovations of Bitcoin was creating a system that did not rely on trusted third parties to process electronic payments; instead it relied on the consensus of the nodes on the network. It also created a currency where the supply could not be altered by any central bank or government. That might not seem like as big of a deal in a country like the U.S., but in places like Zimbabwe and Venezuela that have experienced hyper-inflation due to excessive money printing by corrupt governments, this is of greater concern.

Now!

How are Bitcoin and Cryptocurrencies Used?

There are some merchants that accept bitcoin and other cryptocurrencies directly from a user’s wallet. Even though some of them have very high prices, they are divisible into very small fractions. Bitcoin, for example, is divisible down to a “satoshi”, which represents 0.00000001 of one bitcoin.

Some companies have created ATMs where you can use U.S. dollars and other fiat currencies to buy bitcoin and sell them to get cash. There are also companies that have created debit cards where you can convert bitcoin into dollars and use just like you would any other debit card.

Other cryptocurrencies have more specific uses and are used to pay for services on a certain network. For example, Ether is the digital currency used for operating smart contracts on the Ethereum network.

Now, that we have learned a little bit about the Bitcoin, i can introduce you to Mr. Ricardo R. and his associate Dennis R.

Renovating Riches – Let’s talk about the Bitcoin and Crypto-currencies!

This two guys share a lot of knowledge on this subject. On the image above there is a link to the show. There, they talk about all of this, the video is on Spainsh. But don’t worry, soon will come in English. Meanwhile put some CC on.

Don’t miss the video, it will show you, and most important, prove you that you can indeed turn your rags into riches.!!!