What is Bitcoin? How to make your First Bitcoin? Whale

Hi #Steem. I decided to write an article that is #Bitcoin and how to earn it. I decided to do this because, myself, did not know when to come steem what it is, what it is.

So, what is Bitcoin?

Bitcoin - This is the first and most famous of the set cryptocurrency, as well as the monetary unit of the same name, which is drawn within the system. Later in this article we'll show you how it works cryptocurrency on Bitcoin example.

What is the most significant feature of Bitcoin in terms of economics?

 This digital good with limited supply and its algorithm is designed so that the system may be a maximum of 21 million units, each of which is also called "bitcoin". Schedule of issuance program defined and known in advance. After the last coin to be generated, their number will not change. Bitcoin economy is built on the deflationary model, which is a concern for many economists. But they do not find practical justification.

In fact, such a relatively small number of coins is sufficient for routine calculations, as divided in 1 bitcoin 100000000 sections called "Satoshi" after the creator of the system. Sometimes used the concept of "millibitkoyn" (mBTC, one thousandth) and "mikrobitkoyn" (uBTC, one millionth).

What is the difference?

Features Bitcoin, distinguishing it from other forms of electronic and paper money:

1. Decentralization and availability. Bitcoin network is a combination of all client programs (purses) and a distributed database blockchain (blokcheyn, chain blocks), which is stored on each computer where the full client. Blokcheyn is completely open to view a register of all operations in the system. Connecting to this registry possible with the help of his own purse or a web interface for monitoring special services from anywhere, without passwords or any other authorization.
2. Full transparency of the calculations. The history of any payment can be (theoretically) be traced to the moment of generation of coins and it will never be deleted from the database. Knowing only the Bitcoin address, you can at any time to find out all transactions taken this address or posted to him.
   
3. Free choice of the level of participation. You can set the Bitcoin Core official client, which stores all transaction history. If you do not need a stand-alone operation and analysis blokcheyna, you can install one of the lungs or mobile wallets that require significantly fewer resources. If you are only going to pay for small purchases along the way or just to try the technology - it will be enough mobile or online wallet. For maximum security, there are hardware purses with additional degrees of protection.
4. Lack of control over the network. Since blokcheyn - a distributed database, created on the basis of peer, Bitcoin network has no control center, which can freeze any account, change the number of monetary units in the system, block or cancel the payment. There is a small fee, the amount of which, in practice, almost imperceptible and does not depend on the amount transferred. Transactions in the system are sunk as well as cash transactions.
5. The possibility of anonymous payment. Bitcoin provides convenient and if you want an anonymous means of payment, e - account number in the system - is not related to the owner, and to open it does not require any documents. This string of about 34 characters of numbers and letters of the alphabet in a different register. Address looks like this: 1BQ9qza7fn9snSCyJQB3ZcN46biBtkt4ee. It can be converted into the form of a QR-code or other two-dimensional code for the convenience of calculation, as well as pass as is.
6. The reward for their support network. The new bitcoins enter into circulation in the form of rewards for those who carry out computational operations, providing transaction transmission. Calculations were called "Mining", from the English word "mining" - mining. Those who are engaged in these calculations is called "miners,". Their goal is to be written in one block all transactions that have occurred in the network since the previous release (an average of 10 minutes), and "seal" its complex cryptographic signature. The next block is calculated based on the previous signature, which guarantees irrevocability of transactions, as well as prevents the system "false" currency. Since the blocks are concatenated together to form a chain - blokcheyn.
   
7. Unparalleled protection. With each new unit increases the computing power required miners to calculate the whole chain from scratch, and the longer the chain - the more difficult to "crack" the network. Today Bitcoin - a decentralized computer network, the performance of which is more than 8 times (speed calculation hash SHA-256) is greater than the total computational power of supercomputers in the world. In order to grab over her even limited control, we need tremendous resources, and costs hundreds of millions of dollars.

This schedule difficulty Bitcoin mining

How do I get or make Bitcoin?

Work for Bitcoin

Mining - no easy matter

Just two years ago the main method of production was Bitcoin mining. miners work paid cryptocurrency, but the period of a simple and profitable production has long ended. Now, only the owners of large "farms" can effectively Mein with cheap or free electricity, and the entry threshold is getting higher.

Business owners can earn bitcoins by connecting receive payment for their goods and services. For example, the US retail giant Overstock when summing up the first year of this integration has confirmed the appearance of a large number of new customers.

In some countries, BTC may receive as a salary. For example, there are already sites that offer employers and job seekers the opportunity to advertise the recruitment of cryptocurrency. Popular and most often offered options - payment of developer productivity, journalists, photographers, designers and other freelancers. Payment for bitcoin and translations

Purchas

Buy bitcoin can be in exchange for stock exchanges, via terminals and ATMs that support their purchase.

Exchange services

The most simple, but at the same time and not always profitable way - buy bitcoins via exchangers.

Exchange services allow you to convert common money in the BTC and back at the internal rate. It is quite another thing, if you want the proposed sharing the cost. Keep in mind that the price of a particular point in time is determined by the owners of these services, plus add to this commission for bank or wire transfers.

Easy and convenient solution to find the best rate in exchange offices already invented. Establish a specific monitoring sites, where only the proven and reliable services. Such information provides BestChange.ru and Web-payment in the form of graphs and tables that display information about the proposed cost of these reserves, and bitcoin exchange points.

Before using the services of the exchange service, look for reviews about it on the Internet, and a previously unknown and suddenly very profitable exchanger sure to check the blacklist.

A compromise option between Exchange and the exchanger can be a private person - money-changers, who buy and sell cryptocurrency. As a rule, they offer more favorable terms than the exchangers. But to use their services is risky. However, there are private sellers with good reputation.

Cryptocurrency Exchange

Exchange - is a platform for trading cryptocurrency, where there are both professional traders and investors, and fans who have come to buy your first Bitcoin and remained, fascinated by the exchange game. The number of stock exchanges amounts to several tens and constantly growing. Any member of the stock exchange can recharge its internal account and invite others to buy or sell the required number of cryptocurrency at a certain price.

The principle of operation of the exchanges is the same:

First you need to make money on the account created when registering on this exchange, usually with the help of electronic payment systems

As soon as the money will appear on the balance sheet - you can create an order, setting the price and amount of purchase, or buy at the proposed orders. As a rule, for the commission of the exchange operations charge a commission of 0.1 to 0.5%

As soon as a buyer or seller, which like the price, the transaction takes place and the BTC come to your balance. You can then output the bitcoins to your personal wallet. Again, Exchange will take a small commission.

Besides the fact that exchanges are growing like mushrooms after the rain, some of them have a tendency to suddenly disappear without saying thank you to former customers for the money. Trade on large, time-tested markets. But even this does not give you full guarantees.

Exchange differ in the number of currency pairs and language support. Which one to choose - it's up to you.

If you have any questions, please write them in comments.

With you was Vyacheslav Smirnov.

See you soon!!