What Is Bitcoin?

Bitcoin is decentralized digital currency which is owned by none. Government has no control over it. It uses peer to peer networking and cryptographic proofs to operate the system. Bitcoin is issued, operated and transferred by Bitcoin network. The system is controlled and made fraud free by recording transactions in block chain, a public history record, once they are validated with a proof of work system.

What Is Bitcoin And How To Learn About It?
By Thomas Champeval

Bitcoin is a decentralized digital currency which is owned by none. Government has no control over it. It uses peer to peer networking and cryptographic proofs to operate the system. The system is controlled and made fraud free by recording transactions in block chain, a public history record, once they are validated with a proof of work system.

The network began operating in 2009 and is a concept involving virtual currency which has no link to government regulated currency. The Bitcoin system has few advantages like:

• It is less expensive to operate and use this virtual money.
• It can be instantaneously transferred throughout the world and there will be no transaction fees. Moreover, you can use it and transfer it anonymously as well.
• Like other currencies, the quantity of this virtual money is fixed and no one has the right to create new Bitcoins. However, people can mine Bitcoins but there is a limit to it and mining Bitcoins is not at all cheap.
• Bitcoin is an independent currency; no organization has any control over it
• It is a democratic currency.
• It is the digital equivalent of something of value.
• As it uses a digital medium, it has the potential to become even more valuable than gold.

How to Learn About Bitcoin Conveniently

You can learn about Bitcoin from various sources on the internet. You can check blogs, magazines, articles etc. Internet is a very good source for a newbie to learn more about Bitcoin. Through blogs and forums, you'll learn technical, economical and political issues related to the Bitcoin system. These mediums are rich source of information and you can learn everything about this virtual currency. Furthermore, even if you are already in the system and know quite a lot about how it works, you can stay updated on every news and issue about the new digital currency system. It's also wise to get registered on related forums and start discussion with the experts. Post threads and ask whatever you are unclear about. Many forums also have blog section where experts post informative articles. This is the best learning source as you get benefited from other's experience.

The digital system of Bitcoin currency seems complicated to those who know nothing about it and most people find the concept hard to grasp and trust. It will not take long before people start accepting and then adopting to this virtual currency system, which is more secure, open and independent.

Are you interested in learning more about Bitcoin? Why not check the most authentic Bitcoin Magazine on the internet. Our Bitcoin magazine struggles to give reviews on Bitcoin as well as information to clear any doubts. It usually has a whole section that introduces the system to people who are new to it. It has tutorials that explain terminologies and the facts about how the system operates.

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The Bitcoin Mining Game Has Changed

ASCI or application-specific integrated circuit machines have arrived in the Bitcoin mining market. The first machine arrived at a miner's home in late January and ever since reports have been trickling in of shipped ASCI machines finding their way into miner's Bitcoin mining rigs.

The Bitcoin Mining Game Has Changed
By Robby Andrews

ASCI or application-specific integrated circuit machines have arrived in the Bitcoin mining market. The first machine arrived at a miner's home in late January and ever since reports have been trickling in of shipped ASCI machines finding their way into miner's Bitcoin mining rigs.

Since ASCI machines are designed specifically for the task of mining Bitcoin, they are highly effective machines at what they are designed to do. High end ASCI machines have a per second hash rate of over 1 million. A typical CPU running Bitcoin mining software has a per second hash rate of 1.5.

Needless to say the shipment of ASCI machines have been a game changer in the Bitcoin world. CPUs are no longer even supported by Bitcoin mining software because a CPU running 24 hours a day would likely not see a Bitcoin for several years, even if it was mining in a pool.

This trend favors those interested in mining who also happen to have thousands of dollars lying around to be used on expensive hardware, as well as the early adopters of Bitcoin mining who likely have made a hefty profit from their early mining efforts. Those early profits could be rolled into the latest and greatest hardware and rig setup to continue generating Bitcoins well into the future.

Those miner who are running relatively powerful GPUs are being hit the worst by the ASCI development. The difficulty in successfully mining a block of Bitcoin has increased to a level that may make the cost of electricity outweigh the payout a GPU miner will see in Bitcoin from year to year.

All of this speculation is tied heavily to the stability of the price of Bitcoin going forward. If Bitcoin stays around the current 30 usd level then innovation will continue to progress. ASCI in part has contributed to the rally that Bitcoin has seen over the last 2 months. The USD exchange rate for Bitcoin has soared from 10 usd to 30 usd. It is hard to find an investment with that kind of return anywhere on the planet, so it is natural for Bitcoin to be drawing attention in recent days. But will this attention last? And if so will it bring more scrutiny and volatility than stability on the young digital currency? In the long term relative stability is the one trait that Bitcoin must establish if it is to accomplish the original goal of being a viable and competitive currency on a world scale.

So will Bitcoin transcend the current label of speculative instrument? The answer lies in a tangled web of variables that include the broad spectrum of humanity: politics, psychology, finance, fear, freedom, privacy, security... etc. Regardless of the outcome it is sure to be a fascinating show.

http://miningforbitcoins.com

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