Tuesday, May 20, 2014

What is bitcoin for me and its future

What is bitcoin for me and its future?

When I met this Bitcoin , I regarded it is just one of many methods in earning online income because it can be generated for free, purchase and used as currency on the internet like money . It is a way to earn extra income for my needs . I was previously seeking different ways on the internet how to earn extra money.  I was active then  in the " coingeneration.com " I used  bitcoin  to purchase  " thread " on this site , the thread was worth $ 50. The bitcoins came from my  mining software eobot.com . So no need for the dollar to pay the coingeneration.com . The problem came when coingeneration.com stop paying the members .There were also plans , promises and lies on this site so much so that many members shy away and had not  been activate.  It is just very sad  that up to now coin generation.com is still on" bitcoin " a great invention that should not be used to scam people.

Because I met the " bitcoin " in eobot.com.  I got that  interest in understanding more deeply about bitcoin . I researched the origin , nature of bitcoin , what is  this system , where and what is its future.  Besides " bitcoin " I also met the emergence of different " coins " or so-called " crypto coins " including bitcoin . I also learned the characteristics of current money and fiat currencies dollar .  It was also a requirement to understand the current money or fiat currencies and which  the " bitcoin " is positioned. 


1.  Background about  "Bitcoin"  Peer to Peer Electronic System ,  or the group Satoshi Nakamoto   ( Abstract. A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network. The network timestamps transactions by hashing them into an ongoing chain of hash-based proof-of-work, forming a record that cannot be changed without redoing the proof-of-work. The longest chain not only serves as proof of the sequence of events witnessed, but proof that it came from the largest pool of CPU power. 

As long as a majority of CPU power is controlled by nodes that are not cooperating to attack the network, they'll generate the longest chain and outpace attackers. The network itself requires minimal structure. Messages are broadcast on a best effort basis, and nodes can leave and rejoin the network at will, accepting the longest proof-of-work chain as proof of what happened while they were gone.  ( If there's a need you can read this original writings of Satoshi Nakamoto-  Peer to Peer Electronic System, this is where it all began)

2.  What is bitcoin ;  In Satoshi Nakamotos paper there was no mentioned that it will be called bitcoin  but anyway  bit is a basic unit of information in computing and digital communications. The term bit is a portmanteau of  binary digit.  So without being so technical  "bitcoin" as it now popularly known  is a digital currency or a payment system online, which is person to person , re-distributed  with a bit stamped transactions verfiable , open and public.   

With bitcoin system it let's you send money to any part of the world using a computer on any amount without any third party institutions on a lesser cost , fast , secure and easy. Bitcoin system is community run not by a bank or government.  It is still on an experimental stage where it is cap to produce 21 million bitcoins up 2140 , so there is a need to adopt this system to develop and use its potential. 

Mining is a very important part in the bitcoin system . Mining is just doing computational work to secure the transaction block chain. A side effect of mining is creation of new coins and earning additional money by signing on transactions. 

3.  How do we get bitcoins or adopt the bitcoin system? 

  
We usually used the currency that we used in whatever country you are living. But since we want to adopt  the bitcoin system we have to get  the bitcoin or adopt the bitcoin system through the following; 
        Cloud Mining
It may be worth investigating cloud mining options such as provided by CEX.io. This type of market provides a trade platform for buying and trading hashing power in terms of GHS/BTC (Giga hashes per second per bitcoin). There are other mining sites like eobot.com, the lowest cost of mining site i am using. 
   Sites Gives Free Bitcoins 
You just visit the site either you click on the ads,  play the games , gamble or do the task they are offering and then you will be paid with  "bitcoins'  click on this site that i  group               for  bitcoins and  to share to others  "generatebitcoin "
    Local / In Person
You can use tools such as localbitcoins.com to find people near you who will trade cash for bitcoins. (Note, however, that localbitcoins strongly encourages you to use their service despite the fact bitcoin does not require using a 3rd party to do in person transactions)
 Exchanges
You can use an online exchange such as the following for US dollars
(As well as many others for dollars, and other currencies.)
See the wiki for a full list of ways to buy bitcoins.
I believe by far the best way to get bitcoins is to provide goods and services for bitcoin. This stimulates the bitcoin economy which in turn makes the bitcoins you receive more valuable.

Do no forget that you need a bitcoin wallet ;

There are many wallets to choose from and here are our recommendations:
Web Wallets - Web wallets are the easiest & most convenient to use, but are potentially less secure than wallet software run on your own computer.
Software Wallets - Software wallets are downloaded and run from your computer. They're considered more secure because the user has more control and doesn't depend on a 3rd party service. Most software wallets require nearly a full day constructing a local copy of the blockchain before use.
  • BitcoinQT - The original Satoshi wallet from bitcoin.org
  • Armory - (Recommended) Armory is the most mature full featured wallet.
  • Multibit - This is the easiest to use because it doesn't require a full download of the blockchain.
Mobile Phone Wallets - iphone & Android apps are available.
Hardware Wallets - Hardware wallets are the most secure because they don't expose your private keys to the network.
  • Trezor - (not yet available, coming soon)
  • BitSafe - (not yet available, coming soon)

Using your bitcoins helps to push the goal of the 

new system ;

Bitcoins can be used to purchase just about anything you want. Dental services, a brand new car, travel and even luxury real estate.
We recommend searching the merchant directories below to locate the merchants you're interested in. You can buy gift cards with bitcoin and spend them in most of the stores you already use.
Merchant directories
Gift Cards - Available from Gyft.com and spendable at:
Bitcoin Store - Electronics & everything else for Bitcoin
Charity
  • Bitcoin Foundation - The Bitcoin Foundation standardizes, protects and promotes the use of Bitcoin cryptographic money for the benefit of users worldwide.
  • BitGive - BitGive is a non-profit foundation that is accepting donations from the Bitcoin community and providing charitable gifts to environmental and public health causes worldwide.
  • Bitcoin Development Fund - A charity devoted to helping further the development of bitcoin, the open source community and causes of humanity.
What's is store for the new digital currency system; 

If we are for change and we are not satisfied with the present financial system that for years
we had been using.  If by adopting the new bitcoin system had been true to its features then
and it is very useful for us and our family then we adopt this system. But  be ready to face the
challenges ahead because  it is not that easy for those on power and big boys to change. So the future of bitcoin depends on the consumers that will be using it, promoting and if needed defend it.