What is Bitcoin?

Who invented bitcoin?

An anonymous individual using the online name Satoshi Nakamoto is credited with creating the protocol and whitepaper for the technology in 2009. The project was taken over in 2011, by the bitcoin core team, which involves many volunteer developers worldwide to secure the network.

What is bitcoin used for?

1. A store of value

Rather than mining, storing and transferring large amounts of gold, bitcoin reproduces aspects of mining using technology and electricity. The finite supply of 21 million, creates scarcity within the protocol along with proof of work to ensure no double spending occurs.

Countries like Venezuela, India, Argentina, Greece, Russia, Brazil and Portugal have had enough “financial crisis” warnings, that citizens want to hold a currency, other than their national currency.

With 2 billion people in the world still unbanked, bitcoin is seen by many as a “better than nothing” solution for many.

2. Cheaper Foreign Exchange Transactions

Bitcoin sold for dollars in America can be sold for Euros in Europe, Pounds in England, Yuan in China and Rupees in India. Banks and foreign exchange services charge excessive fee’s to convert currency. Lowering and removing some of the fee’s financial institutions charge for exchanging currencies would save consumers worldwide billions of dollars.

3. Sending Payments with Lower Fees

Wires and bank draft fee’s will be lowered or removed as more people adopt digital payments using decentralized systems. Sending money home through Western Union, Moneygram or services similar can cost 7% of more in fee’s. Crypto currency and new financial startups should make these fee’s extremely low for consumers in the future.

4. Security

Banks are the biggest targets for hackers. The data they hold on all of their customers is valuable enough for hackers to always continue attacking these institutions. If your data is taken from one of these institutions, they aren’t liable or at fault because you gave them the information. Many people would rather avoid trusting third parties with their personal data and money.

5. Buying goods and services

Companies accepting bitcoin are always increasing, Microsoft, Reddit, CheapAir, Namecheap, Expedia, Gyft, Virgin Galactic, Zynga and pizzaforcoins currently accept bitcoin.

Bitcoin credit cards allow you to buy things like a normal credit card. Your bitcoin is loaded into a wallet, when you swipe to purchase anything the service removes the amount from your bitcoin wallet with the card.

6. Crypto Gambling and Drugs.

Obviously.

How can I mine bitcoin?

A decent bitcoin mining setup will cost a few thousand dollars to start and the competition is big in mining. Most miners will join a mining pool as there are many miners in these groups with other mining rigs to increase the profitability mining.

Where can I buy bitcoin?

Exchanges to buy bitcoin are the most common places beginners purchase their first bitcoins (or fractions of bitcoins). Residents of the USA and other countries “regulating” Bitcoin with strict KYC (know your customer) and AML (anti-money laundering) regulations have increasingly used anonymous exchanges.

Being paid in BTC is common and not just for techs and developers. Designers, traders, support and content creators are always finding or offering jobs on reddit.