Bitcoin & Cryptocurrencies
Any advice contained here relating to the using, purchasing or selling Bitcoin or other any other Cryptocurrency is purely for information purposes and we do not offer any financial advice. We accept no responsibility or liability against any form of losses or damages as a result of any information provided by us. For more information consult your financial advisor and do your research. Past performance of Bitcoin and other Cryptocurrency is no guarantee of future success and all responsibility is placed upon the user.
What is Bitcoin?
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren't printed, like dollars or euros, they're produced by people, and increasingly businesses, running computers all around the world, using software and hardware that solves mathematical problems. Users who solve the mathematical problems are rewarded for their efforts in form of Bitcoins. As more problems are solved and more Bitcoins are produced, the difficulty increases and the quantity of new coins are reduced, ensuring a limited supply. The value of Bitcoins increases over time due to the increasing demand and decreasing supply unlike regular cash where more is simply printed when supply is low creating deflation of the value of each note. Just take a look at some European and Asian countries where the value of the currency is not worth the paper it's printed on! That won't happen with Bitcoin.
What makes it different from normal currencies?
Bitcoin can be used to buy things electronically. In that sense, it's like conventional dollars, euros, or yen, which are also traded digitally.
However, Bitcoin's most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. No single institution controls the Bitcoin network. No bank or government owns it. It is a truly borderless, global currency that can be used by anyone. Remember what happened to the banks in Greece not long ago? Customers were blocked from withdrawing their own cash. The would not have happened with Bitcoin!
Who prints it?
No one. This currency isn't physically printed in the shadows by a central bank, unaccountable to the population, and making its own rules. Those banks can simply produce more money to cover the national debt, thus devaluing their currency.
Instead, Bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are 'mined', using computing power in a distributed network on the internet putting it in the hands of the ordinary man on the street. As long as there is the internet, there will be Bitcoin.
This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network. This allows any Bitcoin holder to send or receive Bitcoins to any other Bitcoin user directly to and from their Bitcoin Wallet, instantly, without a middle man, and virtually no transaction fees, unlike money transfer businesses or banks charging excessive fees.
Want to find out more?
Want to learn more about Bitcoin and get involved?. Check out 99bitcoins.com for excellent tutorials, advice, resources and more on how to aquire and trade in your very own Bitcoins. Join the newsletter and earn yourself 100 bits for free!
Here's a great blog from Unocoin that explains very well the concept of Bitcoin Mining and Blockchain Ledgers.
Do you reside in Melbourne? How about popping along to the Blockchain Centre where you can find out more and speak to other Crypto enthusiasts? It's a fanscinating space where you can learn about Bitcoin and Blockchain technologies, ask questions and even have a beer if the keg hasn't run dry!.
How to get your very own Bitcoins
The easiest and most convenient way to buy and trade Bitcoins you'll need to sign up with an exchange such as Coinjar or Coinbase. Both allow you to deposit funds from your bank account and then purchase Bitcoins and spend or send your Bitcoins to anyone around the world. Coinjar is an Australian based exchange/wallet provider that has allows your to trade Bitcoin through your personal bank account can even issue you a Coinjar EFTPOS swipecard so that you can easily make purchases at places that don't currently accept Bitcoin directly. For more information, check out the following links.
Join a Mining Pool
Another method of getting Bitcoins is by mining with your own computer or with specialised mining equipment. The most efficient method is join a pool so that you can combine your computing power with others and share the rewards. The more you contribute, the more you get rewarded. Check out the following links to see which method suits you best.
Online Merchant Bitcoin Payments
Using the Living Room of Satoshi portal you can accept crypto payments through your website. Once set up, you simply log in, type in the payment amount in dollars, and a QR code will pop up on your screen. The customer simply scans in the QR code through the wallet on their mobile device and instantly the payment is sent. LROS will then convert the Bitcoin payment into dollars and send it to your bank account as a cash deposit within 48 hours, the same as using Visa and Mastercard, but with NO FEES - cheaper than Visa and Mastercard!
We've integrated LROS into our OpenCart website, so paying with Crypto has never been easier.