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Cryptocurrencies - Bit by Bit

CRYPTOCURRENCIES BIT BY BIT A cryptocurrency is a form of virtual currency first proposed in 1998 by Wei Dai. He suggested a new form of money that used cryptographic sequences to protect and control its creation and transactions. 70 CRYPTOCURRENCIES ARE BEING TRADED TODAY (AS OF 13TH JANUARY 2014) * BITCOIN: WHERE IT ALL BEGAN * The Bitcoin network was created in 2009 by a still unknown computer programmer under the pseudonym Satoshi Nakamoto. In July 2010, the first bitcoin transaction occurred for two Papa John's pizzas, equating to 10,000 bitcoins. In October 2013, 29,655 bitcoins equating to $3.6 million were seized Singer Lily Allen voiced her regret at refusing payment for a gig in Bitcoins, which would now be worth hundreds of thousands. from a Silk Foad server during a raid. * WHAT IS A BITCOIN MADE OF?* A public key determines who ouns the bitcoin. It's like a home address. A Bitcoin is made up of many of these digital signatures. These signatures are mathematical operations that prove the authority and integrity of its creator. A private key allows the ouner to control the bitcoin. If this key is made public, anyone who sees it can take control of the bitcoin from its original ouner. * HOW DO I GET A BITCOIN? * Bitcoins are obtained through mining a global database called the blockchain, which is a record of all transactions through the network. Mining bitcoins like this is expensive, costing $150,000 a day according to Bloomberg. The fastest way to obtain bitcoins is to buy them in person in cash, they can then be used to pay for products or services. In fact, transaction fees with bitcoin are lower than the 2-3% that is typically imposed on credit cards. Bitcoins can be bought and sold in many different currencies. However, their price fluctuates according to supply and demand. Bitcoin expects to reach its cap of 21 million around the year 2140. * HOW MUCH IS A BITCOIN WORTH? * USD $ GBR £ EUR € 1200 April 2013 $93 £55.97 66.80 € 1100 May 2013 $105 £63.19 75.41 € 1000 Jun 2013 $125 £75.22 89.78 € 909 Jul 2013 $90 £54.16 64.64 € Aug 2013 $104 £62.59 74.70 € 800 Sep 2013 $133 £80.04 95.53 € Oct 2013 $104 £62.59 74.70 € 700 Nov 2013 $202 £121.56 145.08 € z 600 Dec 2013 $1120 £674.01 804.42 € 500 Jan 2014 $934 £562.07 670.83 € Feb 2014 $820 £493.47 588.95 € 400 Mar 2014 $616.70 £371.13 442.94 € 300 200 100 APR '13 MAY '13 JUN '13 JUL '13 AUG '13 SEP '13 OCT '13 NOV 13 DEC '13 JAN '14 FEB '14 MAR '14 The world's first The Bitcoin has been In 2011, 60,000 user banned by Russia as lau stipulates that the ruble is the only Later, in February 2014, a man flew from London to names, passwords and email addresses bitcoin ATM, the Robocoin, was installed in a coffee shop in Vancouver, Canada in October 2013. It allows users to use cash to were leaked by Mt. Gox (Bitcoin's former exchange), Tokyo to stage a protest outside Mt Gox, holding a sign saying: 'Mt GX where is our money?' A short time later, the Mt Gox offices shut currency allowed to be used the obtain addresses that link to bitcoins and country. Russians who use Bitcoin could face jail. which saw thefts from about 600 users. provides those who already own bitcoins access to their money, doun after thousands of technical issues. * ARE THERE ANY OTHER CRYPTOCURRENCIES? * COINYE Coinye, formerly knoun as Coinye West, is a failed cryptocurrency that used Kanye West as a mascot. Lasting only 4 days, the satirical cryptocurrency's website was shut down after a trademark infringement lawsuit from Kanye West. Its parting words were: 'Coinye is dead. You win, Kanye'. RIPPLE Ripple is a payment system based on trust networks as part of a shared public database, first implemented by Ryan Fugger in 2004. Users extend 'trust' to a gateway that holds a deposit. Once a 'trustline' is established, a user can allow their deposit to 'ripple' across several gateways, changing who can issue it. LITECOIN 7- Litecoin is a peer-to-peer cryptocurrency aiming to improve on Bitcoin's alleged inefficiencies. It is the second largest cryptocurrency by market capitalization and aims to process a blockchain every 2.5 minutes. As of November 2013, 23 million Litecoins were in existence and the total number that can be created is 84 million. DOGECOIN Introduced in December 2013, Dogecoin is based on Litecoin and is often used as an internet tipping system rather than an actual currency. Dogecoin gets its name from the internet meme of the same name and even has its oun motto: 'to the Moon!". By the end of 2014 there will be approximately 100 billion Dogecoins in circulation. PEERCOIN Peercoin is the first cryptocurrency to be based on an implementation of a combined proof-of-stake / proof-of-work system. It is said to be the most environmentally friendly and sustainable of the cryptocurrencies, with 'proof of stake' requiring less energy. As of 8th February 2014, Peercoin has a market cap of $100 million. QUARKCOIN Quarkcoin is the most mined of all the cryptocurrencies, with 548,325 blocks created in just over 6 months. It is also the fastest, taking only 0.5572 minutes for a transaction to be confirmed. * HOW DO I MINE A CRYPTOCURRENCY? * SET UP A WALLET You can use this to store the coins you receive and to pay for goods and services. SET UP A MINING POOL ACCOUNT A mining pool allows you to contribute to the processing work of the Blockchain and collect coins as a reward. SET UP YOUR MINING SOFTWARE This software will do your hard work for you. Connect this to your mining pool and start mining! WAIT FOR YOUR COINS! As soon as you begin mining, you will be rewarded some coins for your work. Depending on how many people are mining a Bitcoin blockchain, you could earn a share of 25 bitcoins. BE PATIENT! Getting bitcoins can be a lengthy and difficult process. According to Bitcoin's Wikipedia page, "There are no guarantees that any elallet service won't one day take all your bitcoins and disappear." However, depending on your PC setup, you can earn from 0.01 to 0.05 bitcoin per day. With the right knouledge and the right setup, you could potentially earn considerably more! Good luck! * SOME RESOURCES TO GET YOU STARTED * WALLETS POOLS MINING SOFTWARE (slush's pool) 50BTC BitClockers Bitparking BitPenny BTC Guild BTCWarp CoinLab Protected Pool Eclipse Mining Consortium Horrible Horrendous TT MaxBтC WALLET SOFTWARE Bitcoin-QT Mutlibit Armory Electrum EASYMINER BFGMiner CGMINER 50Miner BTCMiner Poclbm MOBILE-BASED WALLETS Bitcoin Wallet Paytunia Poclbm-mod DiabloMiner GUIMiner RPC Miner Phoenix miner Cpu Miner Ufasoft miner Pyminer Remote miner Open Source FGPA Flash Player Bitcoin Miner WEB-BASED WALLETS: Bitcoin Wallet Paytunia NMCBI * FURTHER RESOURCES AND REFERENCES * - data accurate as of 19th March 2014 WebHostingBuzz VALUE IN US DOLLARS

Cryptocurrencies - Bit by Bit

shared by on Apr 15
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Everything you need to know about virtual currencies, from what they’re made of to how to mine them.


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