The acquisition of bitcoins has become an ever popular undertaking for businessmen who are techno savvy, and many are wondering what bitcoins are, what their value is, how they can be acquired, how to buy bitcoin online, and what bitcoins mining is. For conservative and conventional businessmen, bitcoins may be more of a gamble than an actual investment, but for others, bitcoins have become a promising source of fortune in a field that has not yet been saturated.
So, what is bitcoin? In the simplest of terms, bitcoins are digital currency. They are not printed on paper, and their issuance is not determined by governments or central banks. Bitcoins are created and used through open source software, which was introduced in 2009. This digital currency is also referred to as cryptocurrency, virtual currency, or electronic money. When the word bitcoin appears, people are actually referring to the currency, when the word first letter is capitalized as in "Bitcoin", people are referring to the network and the technology.
Bitcoins are are not controlled by a single entity or a government. In a broad sense, people create bitcoins through a process called bitcoin mining. Once a bitcoin exists, it can be used as currency to make payments, it can be stored in electronic wallets, and it can be used in exchange for services, products, or even for the purchase of paper currency.
Mining for bitcoins refers to the process by which a miner or a pool of miners works to solve digital, transaction-related algorithms which come in blocks. Once the algorithm has been solved, the miner or the mining pool is awarded bitcoins as payment. Nevertheless, if the process seems complicated, know that you can always buy bitcoin online.
Acquiring bitcoins entails going through a process, but first of all you need to get into the Bitcoin world by opening an account registering with a broker or an exchange. Once you have your user name and your password, you can acquire bitcoins through several methods. You can start accepting this currency as payment for goods or services by from other people who also have a Bitcoin account. Salaries can be paid out in bitcoins, and some people gamble for bitcoins. Bitcoins are also received and sent through the internet by anyone who has an account.
A more proactive and aggressive way of acquiring bitcoin, however, is through mining. In summary, these are the steps that need to be taken:
- Register online with a Bitcoins exchange or broker. You will be asked personal information such as you SSS number, driver's license, and you will be asked to link your bank account to your bitcoins account.
- Equip yourself with the proper hardware. You will need state of the art devices that operate on custom chips that will make your computer perform a hundred times more that an ordinary one with an ordinary system.
- Once you have the hardware, you will need to download the software that will enable you to do the virtual mining you want to do.
- Set up your Bitcoin wallet for mining. This wallet can be web-based, mobile, or software based. This wallet will have a unique address that you will need to make strongly secure.
- Join a mining pool. A mining pool is comprised of a group of miners who use their computers to solve an algorithm block and share in its rewards.
Remember, there are many ways to acquire bitcoins. However, if you have a proactive streak in you, mining might do you good.