In recent months, everybody has been foaming at the mouths over how to invest in bitcoins and doubling its worth in a matter of days. Sure every day you read about it or hear somebody talking about it, however many of us still don’t really know what it exactly is. Basically, Bitcoin is the very first fully distributed virtual cryptographic currency. It isn’t tied down by any government institutions like the traditional money we are used to dealing with. You can purchase and sell using it from any country, not just that of your country of citizenship.
One of the big differences between how people transact and how people talk about it is the very simple fact that this new type of currency is entirely controlled by its users. Unlike regular money which goes through certain bodies like banks and central banks, this form of transaction happens on the internet. Transactions are managed and controlled by the network of users, and not by any particular institution. There is no physical money to be destroyed or stolen in the process. All transactions made via the protocol are encrypted. The fact that nobody can trace where all the transactions came from or who owns them opens up the opportunity for free flows of money and provides a level of fungibility that is simply not duplicated by any other existing form of transaction.
By decentralizing the ownership of these currencies, the network of users has created an environment where there are no large scale efforts at regulating the use of the coins. This includes how the miners are chosen to participate in the scheme. The miners that control the majority of the hash power to decide the rules of the network. These miners act as gateways to the bitcoin network and determine the kind of transactions that take place.
There are two distinct types of miners that decide how the new blocks are mined. One is called the pools that work collectively to increase the difficulty of solving for blocks. They are paid for this service by the users of the bitcoin network. This means that when you request a transaction, you might be able to get it much faster than if you go with a pool. The other kind of miner is called the solo miners. They mine their own blocks, and their decision is not subject to anyone else’s.
It’s important to know that one of the major benefits of this technology is that it allows us to utilize a massive amount of computing power to solve problems that appear to be impossible to find a solution to. A simple example is computing the fact that two given numbers are prime. The number of such prime numbers is P, then the cube of P is the sum of the first N numbers, and so on. If we use a large enough computing power, we’ll eventually find the prime number that lies between 0 and 1, which are also the sum of the squares of P. Thus, computing P is impossible without using a computing rig. With a virtual machine, anyone can start to compute P, and verify for themselves that it’s indeed the solution to the equation.
There’s a lot more that can be learned about how to buy bitcoins. You’ll discover how easy it is to store money in this currency, how it works, and how you can participate in the global network of bitcoins. But you don’t have to learn these things from an introductory course on how to buy bitcoins, or even buy one to begin using the currency. Start looking for a course on how to buy bitcoins today!