Mining Bitcoins – A Private Currency

Bitcoin is an open source product. It is a digital coin. It is a private currency. It can be mined. Massive computer resources are needed to auto-solve complex mathematical algorithms. Once the problem is successfully solved a bitcoin is generated.

Source Forge, an on line platform enables the download of the Bitcoin mining programme.

Bitcoins are purchased and sold against real currency at the prevailing exchange rate. ( $ 8.06 in India ). On purchase Bitcoin moves from the wallet of the seller to that of the buyer. Each wallet has its own unique 33 characters.

Trading is done in pseudonyms. The wallet stores the history of every transaction.

Many initial holders of bitcoins

                # either mined these coins

               # or received it as fees from overseas clients.

Linden dollars is the game currently for virtual world. it is called Secondlife. It can be exchanged for Bitcoins.

Bitcoin Exchange

MtGox.com is the bitcoin exchange. You can sell the bitcoins through this exchange. The money will flow into your bank account in India.

Trading

Step 1

Network with experts and learn the trends

Step 2

Open a Wallet

Bitcoin.org or coinbase.com offer free wallet setups.Each wallet has unique id code. It is required for bitcoin buy and sell.

Step 3

Find a reputed Bitcoin exchange.

MtGox.com is the largest.

Buysell bitco.in is India centric.

Step 4

After creating an account with exchange, you can place a buy order and make payment to the exchange via wire transfer or other permissible payment mechanisms.

When the transaction is settled, the Bitcoins are credited to your wallet.

Snowden announced that he is ready to accept the donations in Bitcoins since the US has put a blockade on Wikileaks. That drew the attention of the world to Bitcoins. This protocol of Bitcoin was started by Satoshi Nakamoto, a mysterious person, probably a pseudonym derived from brands Samsung and Toshiba.

The Bitcoin algorithm produces 12 Bitcoins every few hours. It is designed in such a way that the total number of Bitcoins will never exceed 21 million.This figure will be reached by 2020. Today, each Bitcoin is worth $ 600 but it had touched a high of $ 1200.

There are estimated 5000 Bitcoins in India, and the number is increasing.

Bitcoins in its current form are bad since they use a protcol called TOR: The Onion Router that allows the giver and receiver to remain anonymous. This is the danger.