Mom, where do bitcoins come from? Bitcoin Mining Explained

“Mom, where do bitcoins come from?” Well, you know when a shiny young bitcoin catches the eye of an aspiring miner and because they love each other so much…

Wait, that’s obviously too hard to solve here. Besides, my whole point is to keep things simple. Anyway, bitcoins are made by solving complex math problems. This is done by a powerful machine designed to solve these mathematical problems. This process is called mining. The people who own these machines to earn money from mining bitcoins are called miners. When a group of problems is solved, it becomes known as a block. Blocks are verified by other users, and once verified, they are added to what is called a block chain. This chain continues to grow, with a new block added to it approximately every 10 minutes. This chain is actually just a ledger that will continue to grow and never end.

The very powerful machines they mine take a lot of energy and add to the miner’s monthly utility bill. The reason it requires so much energy is the genius of the mathematics involved. This requires the mining machine to run complex cryptographic algorithms. Once a math problem is solved by the machine, a block of coins is born. Every time 210,000 blocks are created, the miner reward is halved. It takes 4 years to achieve this. So it’s kind of like the Bitcoin Olympics. Currently, the block reward is 12 bitcoins (on June 23, 2020, the reward will be only 6 coins). These coins go to the miner whose machine was the lucky winner of the lottery at that time. There is a winner every 10 minutes. There are also many miners competing. Said miner now has something of value. Mine enough coins and you pay your electricity bill and then some.

There is another way to mine. It’s called cloud mining. With this type of mining, you are paying to use someone else’s network and this significantly reduces your profits. The positives of this method are that it does not require the use of electricity or even the purchase of a machine.

Sounds good to me. I want to start mining now. Is it a good idea and can I generate passive income regularly? Possibly. Wait for now and you can call later.

Let’s try to break this down.

Going back to the original way of machine mining, you will need to start by purchasing a quality mining machine. This will set you back about $2,000. Here is a picture of a good machine (Antminer S9 by Bitmain) capable of producing a high hashrate of 14 TH/s. 1 TH/s is 1,000,000,000,000 hashes per second. This machine does 14 times more. That’s a lot of hashing power. A hash is simply a very long number that the machine creates each time it tries to solve the algorithm. Again, to use my lottery analogy, all of these machines are hashing themselves in hopes of being the next winner.

Then your chances of winning become more and more difficult with more competition. Further complicating this issue is that each time a math problem is solved, the next problem becomes increasingly difficult to solve. The difficulty of the Bitcoin network changes approximately every two weeks or 2016 blocks. The number of Bitcoins that will ever be created is limited. That number is 21,000,000. Once we reach that number, there can never be any more bitcoin mined. However, the blockchain itself will continue to expand because it is used to verify every transaction or purchase.

Remember that alias Satoshi Nakamoto I wrote about too? Did you know that today’s math problems are more than 70,000 times harder for machines to solve than us, he mined the first bitcoin in 2009?! The final coin is predicted to be mined in 2140 as the system halves every four years (210,000 blocks). 16,400,000 coins (78%) have already been mined and every coin from now on will be mined at a much slower rate. Yes, you read that right. Basically 80% is mined in the first 8 years and it will take more than 100 years to mine the last 20%. If any of my great, great, great grandchildren are reading this, I hope you feel good about our family’s bitcoins now valued at 220,000 per bitcoin. We can all dream right!

Buying a mining rig or buying a cloud mining contract is risky. While there are some great success stories out there, be sure to research them thoroughly before deciding whether mining is right for you. For every person who makes money, there are many people who lose money.

By the way, a great place to see all the cryptocurrencies out there and their total coins and market cap, Coin Market Cap is a great resource. You can see all 700+ flying altcoins there. Altcoin is just another way of saying any cryptocurrency coin that isn’t Bitcoin. By now you probably know that Bitcoin is like the Rose Bowl, the granddaddy of them all! I would really try to limit my focus and research to the top 10 for now. Not that there won’t be success stories from one of the near-useless now. Simply finding one is like picking the right penny. Sticking with established companies that are recognized by mainstream analysts is a much safer play. The same goes for the exchange you use to buy, sell and trade. This is why I use Coinbase to do my trades as they are the most reliable, secure and convenient exchange. They also have the most thorough vetting process when it comes to adding altcoins.

Here is a summary of the key points from this article:

-Bitcoins are created by mining

-Mining is done by powerful machines that solve complex mathematical problems. You can also buy contracts called cloud mining if you don’t want to buy a machine.

-Problems get harder as coins are mined and the production rate slows down

-As of May 2017, there are only 72 bitcoins mined per hour (12 every 10 minutes)

-On June 23rd, 2020 this will be halved again to only 6 created every 10 minutes

-Nearly 80% of the final 21,000,000 Bitcoin coins have already been mined

– Competition between miners and increasingly complex math problems make it harder to turn a profit from mining

– The final coin is expected to be mined in 2140

The benefits of paying with Bitcoin

Because virtual currencies have a unique nature, they offer many advantages over traditional currencies. The digital currency world has been going through a lot of positive changes over the past few years. There are many cryptocurrencies, but Bitcoin is one of the most popular. In this article, we will look at some of the most notable advantages of paying with Bitcoin. Read on to learn more.

1. User autonomy

For many users, digital currencies allow them much more freedom than conventional currency. People can have better control over how they can spend their money. The good thing is that they don’t have to deal with an intermediary like the government or the bank.

2. Discretion

Another advantage is that things purchased with bitcoins are discreet. Only the user can post their bitcoin transactions. Also, transactions don’t have their name next to them. Moreover, these transactions are almost impossible to trace.

In truth, each transaction has a different Bitcoin address. But that doesn’t mean these transactions can’t be traced. So if you don’t want others to know where you spent your money, you can use cryptocurrencies to make payments.

3. Peer-to-Peer focus

Another great advantage of the Bitcoin payment system is that it is peer-to-peer based. In other words, users can receive and send payments without getting approval from any authority. Payments can be made in seconds as long as the user is connected to the Internet.

4. No bank fees

Unlike traditional fiat currencies, Bitcoin does not come with deposit fees, overdraft fees or minimum balance fees. Hence, you don’t have to worry about maintenance or balance fees.

5. Low transaction fees

Foreign purchases and regular bank transfers usually involve costs and exchange fees. Since cryptocurrencies do not require the involvement of a government or any intermediary institutions, transaction costs are quite low. If you are a traveler, this can be a great advantage for you. In addition, Bitcoin transfers are very fast, eliminating the need for authorization and long waiting periods.

6. Mobile payments

Just like any online payment system, cryptocurrency users can make payments through their mobile phones as long as they are connected to the internet. Therefore, they don’t have to travel to their bank to make a purchase. Also, you don’t need to show your personal identity to complete the transaction.

7. Accessibility

Genuine users can receive and send bitcoins using their computer or smartphone, no need to involve a traditional bank or other authority. Also, users don’t have to use their credit cards to make payments. So, Bitcoin allows more affordability than other options you can try.

In short, these are just some of the main advantages of making Bitcoin payments instead of using traditional means of payment. We hope this article will help you understand cryptocurrencies better.

9 ways to improve your immediate workplace

The current Covid pandemic has not been easy for anyone. Not many people will forget 2020 and beyond. No one was spared from the disruption of the daily routine. What makes it worse is that it comes along with the need to wear a mask, social distancing and vaccination. In some more unfortunate cases, this brings with it the grim reaper.

From my own observations, many travel plans have been put on hold and dining out is a surprising luxury. Our primary ability to communicate has been modified to be taken over by Zoom, and many students have become accustomed to the term homeschooling (HBL).

Even the workplace is not spared. After expectations in the period until 2020, when there is a heightened fear that artificial intelligence (AI) and robotics could take away our valuable jobs and the mass adoption of cryptocurrencies, which promises us better returns with even more volatility of investments , we are now encouraged to work from home and get used to Zoom-communications. Never before have we faced feelings of isolation, confusion and helplessness at the same time.

Here are some tips to help us out:

1. Delay

We need to learn to slow down and take stock of what has happened in the last two years. There should be a quiet and modest reflection of past events. Take your time. You are not forced to use timing on Tiktok.

2. TV streaming

Sometimes it’s good to catch up on our favorite programs through streaming services. We can use our mobile device to connect to this world. Netflix and Disney + browsing… why not.

3. Review our goals

Our life goals may have been created before Covid and may not be relevant in light of Covid now. On the other hand, Covid may have brought new business opportunities and we may have to revise our sales forecast.

4. Work from home

The current situation of working from home may not appeal to many because these workers miss the social nature of meeting colleagues. There’s the added stress that the boss may not find enough evidence to be satisfied with our work and that we may have to throw key performance indicators (KPIs) out the window. Try to make the work area in your home more conducive and secluded.

5. New training

We can learn from YouTube platforms and always keep our minds open for upskilling.

6. Travel

Maybe we should get used to no more business trips and learn to use Zoom to connect with our foreign business associates.

7. Exercise

Use this opportunity to exercise more and have a better diet.

8. Don’t hoard

Perhaps you can rethink your immediate environment and start clearing things out. You can also start color coding your stuff so you can save more time and find what you need much faster.

9. Listen to podcasts

I’m a business podcaster and I’ve also found great satisfaction in being able to focus on the message and takeaways of podcasts.

All the best in your future professional life.

Targeted leads using Facebook

Facebook is not only used to communicate with your friends and family. It is used correctly targeted leads using Facebook can be achieved both organically and paid. There are several ways to help grow your business when it comes to this popular social media site. The information that follows can help you use Facebook to promote your personal brand and offer to grow your customer base.

Benefits of a group

A Facebook group can benefit all members by sharing relative and relevant content with each other. A group can encourage subscribers to join an online community and communicate regularly. It will also give you the opportunity to inform your subscribers about updates, create engagement and share each other’s business, content and ideas.

It is not advisable to buy Facebook fans just to have the “number”. While it may be tempting, it doesn’t always produce the results you’d like. These fans are not necessarily targeting your niche and will bring relatively nothing to the table.

Make sure your Facebook group is aligned with your niche and personal brand. Appearance is important in marketing your personal brand. If your page isn’t attractive, people are less likely to want to visit it, let alone return.

Share valuable content

Make valuable, content-rich posts and videos. Fans will follow you if they get value and engagement from your content and community. Use Facebook as an engagement vehicle, not as a platform to push or try to “sell” your product(s).

Regularly posting videos to Facebook, either uploaded or live, is another way to share your information and further brand yourself. It’s easier to get someone’s attention through video. You can also share your article information in print along with your video for further exposure.

Encourage engagement

Encourage communication with your audience. If a customer posts a comment, respond and engage. If you find a follower who offers quality information or products, let them know and share them in your group. Social media is vital to your brand and business growth.

Try to keep the information you post fresh and relevant. Your posts should stay on topic and in your niche. Use different methods to engage your fans, some of which could be:

  • Video clips

  • Articles

  • Studies

  • Contests

  • A meme

Customize your video ideas accordingly to grab your audience’s attention. For example, if you are selling a product, make a video describing the product, how to use it, benefits, etc. rather than just trying to sell the product. Always lead with benefits and value.

More than a social networking site

Facebook is not only a social network but also a strong marketing business platform. Facebook can be used to reach and grow your business as there are millions of users on this site daily; why not use it to your advantage.

Using Facebook correctly can be the catalyst to launch your brand. Get it right from the start, allowing it to be the foundation for your targeted Facebook-using prospects.

The Five Laws of Gold

We live in an impatient age and when it comes to money, we want more of it now, today, not tomorrow. Whether it’s a mortgage deposit or clearing those credit cards that drain our energy long after we’ve stopped enjoying what we bought with them, the sooner the better. When it comes to investing, we want easy withdrawals and quick returns. Hence the current cryptocurrency craze. Why invest in nanotechnology or machine learning when Ethereum is locked in an endless upward spiral and Bitcoin is the gift that keeps on giving?

A century ago, the American writer George S. Classon took a different approach. In The Richest Man in Babylon, he gave the world a treasure trove—literally—of financial principles based on things that might seem old-fashioned today: prudence, prudence, and wisdom. Klasson used the sages of the ancient city of Babylon as spokespeople for his financial advice, but that advice is as relevant today as it was a century ago when the Wall Street Crash and Great Depression loomed.

Let’s take the five laws of gold as an example. If you want to put your personal finances on a solid footing, wherever you are in your life, this is for you:

Law #1: Gold comes happily and in ever-increasing quantities to anyone who puts at least one-tenth of his earnings into an estate for his future and that of his family. In other words, save 10% of your income. minimum. Save more than that if you can. And that 10% isn’t for next year’s vacation or a new car. This is for the long term. Your 10% could include your pension contributions, ISAs, premium bonds or any type of high interest/restricted access savings account. OK, interest rates for savers are at historic lows now, but who knows where they’ll be in five or ten years? And compound interest means your savings will grow faster than you think.

Law #2: Gold works diligently and happily for the wise owner who finds profitable employment for it. So if you want to invest instead of saving, do it wisely. No cryptocurrencies or pyramid schemes. We focus on the words “profitable” and “busy”. Make your money work for you, but remember that the best you can hope for this side of the rainbow is consistent returns over the long term, not lottery winnings. In practice, this probably means shares in established companies offering a regular dividend and a steady upward trend in share price. You can invest directly or through a fund manager in the form of unit trusts, but before you part with a penny, see Laws 3, 4 and 5…

Law No. 3: Gold clings to the protection of the prudent owner who invests it according to the advice of those who handle it wisely. Before taking any action, speak with a qualified, experienced financial advisor. If you don’t know one, do some research. Check them out online. What expertise do they have? What customers? Read the reviews. Call them first and find out what they can offer, then decide if a face-to-face meeting will work. See their commission arrangements. Are they independent or tied to a specific company under contract to promote that company’s financial products? A decent financial advisor will encourage you to secure the basics: a pension, life insurance, a place to live, before guiding you toward investing in emerging markets and space travel. When you’re satisfied you’ve found an advisor you can trust, listen to them. Trust their advice. But review your relationship with them at regular intervals, say annually, and if you’re not happy, look elsewhere. Chances are, if your judgment was right in the first place, you’ll stick with the same advisor for many years to come.

Law #4: Gold eludes one who invests it in a business or purpose with which he is not familiar or which is not approved by the specialists in it. If you have deep knowledge of food retail, by all means invest in the supermarket chain that is increasing market share. Similarly, if you work for a company that has an employee share scheme, it makes sense to take advantage of it if you are sure that your company has good prospects. But you should never invest in a market or financial product that you don’t understand (remember the Crash!) or can’t fully research. If you’re tempted to try your hand at forex or options trading and you have a financial advisor, talk to them first. If they are not aware, ask them to refer you to someone who is. Best of all, avoid anything you’re not sure about, no matter how great the potential return.

Law No. 5: Gold flees from one who seeks impossible gains, or who follows the tempting advice of swindlers and schemers, or who trusts in his own inexperience. Again, the fifth law follows the fourth. If you start searching the internet for financial advice and wealth building ideas, your inbox will soon be full of “scammers and schemers” promising you the land if you invest £999 in their ‘system’ of turning £1 into £ 1XXXXXX on the Chicago Mercantile Exchange. Remember, the only one making money in a gold rush is the one selling shovels. Buy the wrong shovel and you’ll quickly find yourself in debt. Not only will you be paying through the nose for a system that has no proven value; by following it you are likely to lose much more than the price you paid for it. At the very least, you should check the genuine product reviews. And never buy any system, investment vehicle or financial product from any company that is not registered by a national regulator such as the UK’s Financial Conduct Authority.

Guide to Buying Bitcoin – An easy 3 step guide to buying your first Bitcoin

Looking for a guide to buying bitcoins? Wondering where to start? People have many misconceptions about Bitcoin, the first widely known and accepted cryptocurrency in the entire world.

Many people think, for example, that only hackers and shady people use it. However, Bitcoin is actually going mainstream, with everyone from TigerDirect to to Dell and even Subway now accepting Bitcoin payments.

Why so popular?

Well, Bitcoin has many advantages over other currencies. For example, you can send bitcoins to someone as payment without having to go through the banking intermediary (and incur additional fees). It’s also much faster than sending money via bank transfer or wire transfer. You can send bitcoins to someone and they will receive the coins in seconds.

With all of this, it’s no surprise that many people are now trying to buy Bitcoin for the first time. However, it’s not as easy as going to your bank and withdrawing bitcoins – or going to a store and picking up some hard-earned bitcoins.

The system works a little differently than that. This Bitcoin Buying Guide will go over a few things you need to know before you buy – so you can buy safely and securely.

First, even though the price can be over $2000 per coin, you don’t have to buy an entire bitcoin. Most places will let you buy bits of bitcoin for as little as $20. So you can start small and go from there when you feel more comfortable with the way things work.

Second, this article is for general purposes only and should not be taken as financial advice. Bitcoin can be risky and before making any purchase you should consult your financial advisor to see if it is right for you.

So here are 3 easy steps to buy bitcoins:

#1 Get a Bitcoin wallet

The first thing you need to do before buying your coins is to get a virtual wallet to store your coins. This wallet is a string of text that people can use to send you bitcoins.

There are a number of different types of wallets, including ones you download to your phone or computer, online wallets, and even offline cold storage wallets.

Most people prefer to get a wallet on their phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium and Xapo.

This is usually as simple as downloading the wallet to your phone as an app or downloading the software to your computer from the main wallet website.

#2 Decide where to buy

There are several types of places to buy, and each one is a little different. There are online sellers who will sell you bitcoins directly for cash (either bank transfer or credit card).

There are exchanges where you can buy and sell bitcoins from others – much like the stock market. There are also local exchanges that connect you with sellers in your area who want to sell.

There are also ATMs where you go to shop in cash and get your coins delivered to your wallet within minutes.

Each Bitcoin seller has its advantages and disadvantages. For example, ATMs are great for privacy, but they will charge you up to 20% on the going rate, which is ridiculous. (At a BTC price of $2000, that $400! So you pay $2400 instead of $2000).

No matter where you decide to buy, be sure to do your research and go to a trusted seller with a good reputation and good customer service. First-time buyers will especially have questions and may need additional support to help them with their first transaction.

Take your time and research the different places to buy before you decide. Factors to consider include coin prices, additional fees, payment method and customer service.

#3 Buy Bitcoin and move it to your wallet

Once you’ve found a place to buy, prepare your funds (ie you can send a wire transfer or use your Visa to fund your account). Then wait for a good price. (Bitcoin prices always fluctuate 24/7). Then place your order when you’re ready.

Once your order is fulfilled and you have your coins, you will want to send them to your wallet. Just enter your bitcoin address and have the seller send you your bitcoins. You should see them appear in your wallet within minutes to an hour (depending on how quickly the seller ships them).

There you go, you are now a Bitcoin owner. You can now send coins to pay for other goods and services, or keep them for a rainy day.

One last thing to remember: Bitcoin is still in its infancy. There are huge price swings and the currency can be risky. Never buy more bitcoins than you can afford to lose.

What is bitcoin, how is it different from "real" Money and how to get it?

Bitcoin is a virtual currency. They do not exist in the kind of physical form that the currency and coin that we are used to exist in. They don’t even exist in a form as physical as Monopoly money. These are electrons – not molecules.

But think about how much money you personally handle. You get a paycheck that you take to the bank – or it’s automatically deposited without you even seeing the paper it’s not printed on. You then use a debit card (or checkbook if you’re old school) to access those funds. At best, you see 10% of it in cash form in your pocket or wallet. So it turns out that 90% of the funds you manage are virtual – electrons in a spreadsheet or database.

But wait – those are US funds (or whatever country you’re from), safe in the bank and guaranteed by the full faith of the FDIC up to about $250K per account, right? Well, not exactly. Your financial institution may only be required to hold 10% of its deposits on deposit. In some cases it is less. It lends your remaining money to other people for up to 30 years. It charges them for the loan and charges you for the privilege of letting them borrow it.

How is money created?

Your bank can create money by lending it out.

Let’s say you deposit $1,000 in your bank. Then they loan out $900 of it. Suddenly you have $1,000 and someone else has $900. Magically, there’s $1,900 floating around where there used to be just a thousand.

Now say your bank instead lends 900 of your dollars to another bank. That bank in turn lends $810 to another bank, which then lends $720 to a customer. Poof! $3,430 in an instant – almost $2,500 created out of thin air – as long as the bank follows your government’s central bank rules.

Creating Bitcoin is as different from creating bank funds as money is different from electrons. It is not controlled by the central bank of the government, but rather by the consensus of its users and nodes. It was not created by a limited mint in a building, but rather by distributed open source software and computers. And it takes some form of actual work to create. More on that in a moment.

Who Invented Bitcoin?

The first Bitcoins were in a block of 50 (the “Genesis Block”) created by Satoshi Nakomoto in January 2009. At first, it didn’t really have any value. It was just a cryptographer’s toy based on an article published two months earlier by Nakomoto. Nakotmo is obviously a made-up name – no one seems to know who he or she or they is.

Who keeps track of all this?

Once the Genesis Block was created, BitCoins have since been generated by doing the job of keeping track of all transactions for all BitCoins as a kind of public ledger. The nodes / computers performing the calculations in the ledger are rewarded for doing so. For each set of successful calculations, a node is rewarded with a certain amount of Bitcoins (“BTC”), which are then generated anew in the Bitcoin ecosystem. Hence the term “BitCoin Miner” – because the process creates new BTC. As the supply of BTC increases and the number of transactions increases, the work required to update the public ledger becomes harder and more complex. As a result, the number of new BTC in the system is designed to be around 50 BTC (one block) every 10 minutes globally.

Although the computing power to mine BitCoin (and to update the public ledger) is currently growing exponentially, the complexity of the mathematical problem (which by the way also requires a certain amount of guesswork) or “proof” needed to mine BitCoin and to settle is also growing of the transaction books at any given time. So the system still only generates one block of 50 BTC every 10 minutes or 2106 blocks every 2 weeks.

So, in a sense, everyone keeps track of it – that is, all the nodes in the network keep track of the history of every single bitcoin.

How much is it and where is it?

There is a maximum number of Bitcoins that can ever be generated, and that number is 21 million. According to Khan Academy, the number is expected to peak around the year 2140.

As of this morning, there were 12.1 million BTC in circulation

Your own BitCoins are stored in a file (your BitCoin wallet) in your own storage – your computer. The file itself is proof of the number of BTC you have and can move with you on a mobile device.

If that cryptographic key file in your wallet gets lost, so does your supply of Bitcoin funds. And you can’t take it back.

How much does it cost?

The value varies depending on how much people think it’s worth – just like “real money” exchanges. But since there is no central authority trying to keep the value around a certain level, it can fluctuate more dynamically. The first BTCs weren’t really worth anything at the time, but those BTCs still exist. As of 11 AM on December 11, 2013, the public value was $906.00 per Bitcoin. When I finished writing this sentence, it was $900.00. Around the beginning of 2013, the value was around US$20.00. On November 27, 2013, it was valued at more than $1,000.00 US per BTC. So it’s kind of volatile right now, but it’s expected to settle down.

The total value of all bitcoins – as of the period at the end of this sentence – is about 11 billion US dollars.

How can I get some?

First, you need to have a bitcoin wallet. This article has links to get one.

Then one way is to buy from another private party, like these guys at Bloomberg TV. One way is to buy some on an exchange, like Mount Gox.

Finally, one way is to dedicate a lot of computing power and electricity to the process and become a Bitcoin miner. This is well beyond the scope of this article. But if you have a few thousand extra bucks laying around, you can get some pretty big gear.

How can I spend it?

There are hundreds of merchants of all sizes that accept BitCoin as payment, from coffee shops to car dealerships. There is even a Bitcoin ATM in Vancouver BC to convert your BTC to cash in Vancouver BC.

And so?

Money has a long history – millennia long. Somewhat recent legend tells us that Manhattan Island was bought for wampum – clams and the like. In the early years of the United States, various banks printed their own currency. On a recent visit to Salt Spring Island in British Columbia, I spent currency that was only good on the lovely island. The common theme among them was an agreement of trust between users that this particular currency has value. Sometimes this value was directly linked to something solid and physical, such as gold. In 1900, the US pegged its currency directly to gold (the “Gold Standard”), and in 1971 ended this link.

Currency is now traded like any other commodity, although the value of a country’s currency can be bolstered or depreciated by actions of its central bank. BitCoin is an alternative currency that is also traded and its value, like that of other commodities, is determined by trading, but is not held back or reduced by the actions of any bank, but rather directly by the actions of its users . However, its supply is limited and known, as is (unlike physical currency) the history of each bitcoin. Its perceived value, like any other currency, is based on its utility and trust.

As a form of currency, BitCoin is not exactly a new thing in Creation, but it is certainly a new way to create money.

Bitcoin: what is it and is it right for your business?

Ok, so what is Bitcoin?

It is not a real coin, it is a “cryptocurrency”, a digital form of payment that is produced (“mined”) by many people around the world. It enables instant peer-to-peer transactions, worldwide, for free or at very low cost.

Bitcoin was invented after decades of cryptographic research by software developer Satoshi Nakamoto (believed to be a pseudonym), who designed the algorithm and introduced it in 2009. His true identity remains a mystery.

This currency is not backed by a tangible commodity (such as gold or silver); Bitcoins are traded online, making them a commodity in their own right.

Bitcoin is an open source product available to anyone who is a user. All you need is an email address, internet access and money to get started.

Where does it come from?

Bitcoin is mined on a distributed computer network by users running specialized software; the network solves certain mathematical proofs and looks for a specific sequence of data (“block”) that produces a specific pattern when the BTC algorithm is applied to it. Coincidence produces Bitcoin. It is complicated and takes time and energy.

Only 21 million bitcoins will ever be mined (about 11 million are currently in circulation). The mathematical problems that networked computers solve are becoming increasingly difficult to keep mining operations and supplies under control.

This network also validates all transactions through cryptography.

How does bitcoin work?

Internet users transfer digital assets (bits) to each other over a network. No online bank; rather, Bitcoin is described as a distributed ledger on the Internet. Users buy Bitcoin with cash or by selling a product or service for Bitcoin. Bitcoin wallets store and use this digital currency. Users can sell from this virtual ledger by trading their bitcoins to anyone else who wants them. Anyone can do this, anywhere in the world.

There are smartphone apps for making mobile bitcoin transactions and bitcoin exchanges populate the internet.

How is bitcoin valued?

Bitcoin is not held or controlled by a financial institution; it is completely decentralized. Unlike money in the real world, it cannot be devalued by governments or banks.

Instead, Bitcoin’s value lies simply in its consumer acceptance as a form of payment and because its supply is limited. Its global currency values ​​fluctuate according to supply and demand and market speculation; as more people create wallets and hold and spend bitcoin, and more businesses accept it, the value of bitcoin will increase. Banks are now trying to value bitcoin, and some investment websites predict that the price of one bitcoin will be several thousand dollars in 2014.

What are its advantages?

There are benefits for consumers and merchants who want to use this payment option.

1. Fast Transactions – Bitcoin is instantly transferred over the internet.

2. No Fees/Low Fees — Unlike credit cards, Bitcoin can be used for free or with very low fees. Without the centralized institution as an intermediary, no permits (and fees) are required. This improves profit margins on sales.

3. Eliminates the risk of fraud – Only the Bitcoin owner can send a payment to the intended recipient, who is the only one who can receive it. The network knows that the transfer has taken place and the transactions have been validated; they cannot be challenged or taken back. That’s big for online merchants, who are often subject to credit card processors’ evaluations of whether a transaction is fraudulent or not, or for businesses that pay the high cost of credit card chargebacks.

4. Data is secure — As we’ve seen with recent hacks into the payment processing systems of national retailers, the Internet isn’t always a safe place for personal data. With Bitcoin, users don’t give up personal information.

a. They have two keys – a public key that serves as a Bitcoin address and a private key with personal data.

b. Transactions are digitally “signed” by combining the public and private keys; a mathematical function is applied and a certificate is generated proving that the user initiated the transaction. Digital signatures are unique to each transaction and cannot be reused.

° C. The merchant/recipient never sees your secret information (name, number, physical address), so it is somewhat anonymous, but traceable (to the Bitcoin public key address).

5. Convenient payment system — Merchants can use Bitcoin entirely as a payment system; they don’t need to hold bitcoin currency as bitcoin can be converted to dollars. Users or traders can trade in and out of Bitcoin and other currencies at any time.

6. International payments – Bitcoin is used worldwide; merchants and e-commerce service providers can easily accept international payments, which opens up new potential markets for them.

7. Easy to Track — The network tracks and permanently records every transaction in the Bitcoin blockchain (database). In the event of a potential breach, it is easier for law enforcement officials to trace these transactions.

8. Micropayments are possible – Bitcoins can be divided up to one hundred millionths, so making small payments of a dollar or less becomes a free or near-free transaction. This can be a real boon for convenience stores, coffee shops, and subscription-based websites (videos, posts).

Still a little confused? Here are some examples of transactions:

Bitcoin in Retail

At checkout, the payer uses a smartphone app to scan a QR code with all the transaction information needed to transfer bitcoin to the retailer. Tapping the Confirm button completes the transaction. If the user does not own Bitcoin, the network converts the dollars in his account into digital currency.

The retailer could convert that bitcoin into dollars if they wanted, there were no or very low processing fees (instead of 2 to 3 percent), no hackers could steal personal user information, and there was no risk of fraud. Very smooth.

Bitcoins in Hospitality

Hotels can accept Bitcoin for on-site room and board payments for guests who wish to pay with Bitcoin using their mobile wallets or PC-to-website to pay for a reservation online. A third-party BTC trade processor can help process the transactions it clears through the Bitcoin network. These processing clients are installed on tablets at the front desk of establishments or in restaurants for users with BTC smartphone apps. (These payment processors are also available for desktop computers, in retail POS systems, and integrated into food service POS systems.) You don’t need to change hands on credit cards or cash.

These cashless transactions are fast and the processor can convert bitcoins into currency and make a daily direct deposit into the establishment’s bank account. In January 2014, it was announced that two Las Vegas hotel-casinos would accept Bitcoin payments at the front desk, in their restaurants and in the gift shop.

Sounds good – so what’s the catch?

Business owners must consider participation, security and cost issues.

• A relatively small number of ordinary users and merchants currently use or understand Bitcoin. However, adoption is increasing globally and tools and technologies are being developed to facilitate participation.

• It’s the Internet, so hackers are a threat to exchanges. The Economist reported that a bitcoin exchange was hacked in September 2013 and $250,000 in bitcoins were stolen from users’ online vaults. Bitcoins can be stolen like any other currency, so vigilant network, server and database security is paramount.

• Users should carefully guard their Bitcoin wallets, which contain their private keys. Secure backups or printouts are critical.

• Bitcoin is not regulated or insured by the US government, so there is no insurance for your account if the exchange goes down or gets robbed by hackers.

• Bitcoins are relatively expensive. Current exchange rates and selling prices are available on online exchanges.

Virtual currency is not yet universal, but it is gaining market awareness and acceptance. Businesses may decide to try Bitcoin to save on credit card and bank fees, as a customer convenience, or to see if it helps or hinders sales and profitability.

Thinking of accepting Bitcoin? Are you already using it? Share your thoughts and experiences with us.

Surprisingly successful startups get instant results with paid offshore hosting

Website hacking statistics in February 2018 show that sites hosted in the United States were infected with more than 18,000 cryptocurrency mining malware attacks, causing thousands of government websites to go down. The number of hacked websites increased from 83% in 2017 to 90% in 2018.

The mirage of free hosting

Free hosting is gaining attention and seems to be a cost-effective alternative to paid hosting, which is why some website builders have become popular in recent years. Free hosting is limited in terms of user privileges, security and terms of service and policies. Many budding entrepreneurs had the opportunity to try new things before scaling website projects. But later he came back and haunted them so much because of their bitter experience. Eventually, they realized that the savings from free hosting were negligible and really not worth the risk.

Free hosting lacks the flexibility to meet customer requirements, security needs, and tight deadlines in complex projects. Effective planning and control of various project activities is necessary for companies to meet their deadlines, optimize resources and reduce waste to achieve their business goals.

Offshore hosting is complex and demanding

Sometimes security conscious businesses need offshore hosting services to have a great online presence and manage their sites in a country other than where they are physically located. When hosting a site in another country, customers are assured of the benefits of the legal data privacy regulations prevailing in their country, in addition to the company’s own data security protocols. in which cyber law is tight with a strict filter system. In some cases, the cost of offshore hosting plans can be low but with high standards and support. Then, when you pay for quality hosting, you’ll get significant benefits for your offshore business without the likelihood of security vulnerabilities, slow upload and download speeds, outages, poor customer service, and many other serious drawbacks. When you migrate your website to free hosting, you have nothing but problems. You realize it’s time to leave all the work to an offshore host with competitive pricing, great features, super fast loading and excellent support. It is full scale and has great value for money.

You will feel completely free that you have migrated your site in an incredibly short time and it works flawlessly. Websites provided by paid hosting companies provide a perfect 99.9% uptime, which is essential for business. Free hosting providers are prone to a lot of outages. Longer downtime can result in lost revenue and customers.

You will be forced to display ads all over the site on free web hosting platforms and you don’t make any money from it. Instead, the free hosting company generates revenue using your website. This leads to lower search engine rankings. Building a website with a professional company will ensure higher search engine rankings, improved brand awareness and online reputation.

Free web hosting companies provide limited storage space and restrict user access, making it difficult to upload and transfer videos, photos, text, files, etc. without paying for additional storage.

The last word

Free hosting platforms do not have good customer support in case of technical issues. Complex websites will be severely affected as they rely on 24/7 customer service to run databases and scripts. On the other hand, paid offshore hosting will provide fast VPS, exceptional customer support, perfect uptime, security, flexibility, scalability, privacy protection, no phishing, scam or anything like that. Businesses have guaranteed 24/7 customer support by phone, email or chat, which promises peace of mind even in emergency situations. Try it, you won’t regret it. Paid offshore hosting services are driven by growth and provide great value for money for your business. It will also improve the image of the company, provide a unique identity and competitive advantage.

Top 5 Blockchain Implementations from China

Just like when Bitcoin became popular, Blockchain also saw a rise in its popularity. However, this was from a different perspective. Researchers have already discovered new applications of blockchain technology that can not only be revolutionary for businesses, but can also impact the nation’s economy. Blockchain finds application in various fields, from politics to financial transactions; now companies are exploring new applications of this technology.

An important point to note here is that despite the versatile applications and uses, many nations do not support this technology and one of the prominent names emerging is China. Initially, China had banned cryptocurrency, but now there is news that it is working on creating its own cryptocurrency and is also encouraging startups that are working on the development of Blockchain technology.

In this blog, I will highlight how China is promoting Blockchain and what are the significant steps taken by the nation. But before we delve into this topic, it is important to understand what makes China so aggressively push Blockchain development in the nation.

What Makes Blockchain Inevitable for China?

It is not only about China, but we must understand the fact that technological development is the key ingredient for an excellent recipe for success. Blockhan is a digital distributed ledger technology and is also known as DLT or distributed ledger technology. It promotes peer-to-peer transaction without the intervention of a third party. Its distinguishing feature is decentralization. These key features of Blockchain make it an inevitable technology for the growth of any business and the growth of the business directly affects the GDP of the nation. China is a major factor influencing the global economy. By making efforts to develop Blockchain, it will not only gain a competitive edge in the global market, but at the same time, it will also promote better job opportunities for growth.

In the next three years, Blockchain will be adopted in various sectors. Some of the prominent ones include supply chain, checking accounts, energy, healthcare, precision marketing and financial transactions in China.

Top 5 Implementation of Blockchain Technology:

1. Financial Transactions – Well, this is the most basic and conventional use of Blockchain and more and more nations are trying to explore this option. China is no different. The Bank of China, China Construction Bank and many other financial institutions in China have started making Blockchain part of their infrastructure for various purposes such as e-commerce. In addition, China’s National Audit Office has also proposed the use of this technology for big data audits.

2. Cryptocurrency Development – We all know that China’s ban on Bitcoin and other cryptocurrencies has caused digital currencies to plummet. But the fact is that China is working to develop its digital currency. China’s central bank, the People’s Bank of China (PBOC), collaborated together with a team of researchers in 2014 and have already conducted a trial of a Blockchain digital currency prototype for use in their economy. Companies like QTUM, eChain and NEO are attracting the attention of the national government. The government is actively supporting the rise of Blockchain

3. Intellectual Property – This is another aspect of intellectual property that is a major area of ​​concern for many nations. Currently, the state and functioning of this sector is conventional and has difficulties. The presence of Blockchain can help transform this industry.

With the use of this technology online content such as novels, a musical composition can be copyrighted the moment it is created. After the development of this platform, the content owner can directly upload all the information directly to the platform and it will be present in the book in chronological order. The platform gives the owner the right to grant access to reprint the citations of their work.

Companies such as Beijing Banquanjia Tech and Yuanben Blockchain are working to create solutions in this direction.

4. Adoption by big names – Amazon, Walmart, IM, Infosys are some of the big names working to explore the use of this technology. Chinese company Alibaba is exploring the use of Blockchain. Alibaba’s Ant Financial Service Group, part of the Alibaba group, has partnered with Globe Telecom, a Philippine telecommunications giant, to provide real-time cross-border payment services. This service will be useful for both SME industries and individuals. With the help of this technology, the user can send and receive the money quickly and easily.

5. Healthcare – It may sound a little unconventional, but Blockchain technology can be revolutionary even in the healthcare sector. The latest information in this area came when Ali Health or Alibaba Health Information Technology Ltd. will cooperate with the Chinese city government to establish a link between current medicine. The purpose behind this is to bring all the information to the Blockchain platform, thus making all the information easily accessible.


The bottom line is that Blockchain is a multi-faceted technology offering multiple benefits. However, we cannot ignore the fact that this is a fairly new technology and needs a lot of improvisation. Another important point to note is that China is actively promoting cryptocurrency and blockchain startups. The purpose behind this is to create a streamlined process of business operations that will help China gain a competitive edge in the market.