Bitcoin For Dummies

Book Description

Learn the ins and outs of Bitcoin so you can get started today

Bitcoin For Dummies is the fast, easy way to start trading crypto currency, with clear explanations and expert advice for breaking into this exciting new market. Understanding the mechanisms and risk behind Bitcoin can be a challenge, but this book breaks it down into easy-to-understand language to give you a solid grasp of just where your money is going. You'll learn the details of Bitcoin trading, how to set up your Bitcoin wallet, and everything you need to get started right away. An in-depth discussion on security shows you how to protect yourself against some of the riskier aspects of this open-source platform, helping you reduce your risks in the market and use Bitcoin safely and effectively.

Bitcoin uses peer-to-peer technology to operate with no central authority or banks, with transaction management and issuing of Bitcoins carried out collectively by the network. Bitcoin allows easy mobile payments, fast international payments, low- or no-fee transactions, multi-signature capabilities, and more, but the nuances of the market can be difficult to grasp. This informative guide lays it all out in plain English, so you can strengthen your understanding and get started now.

Understand the ins and outs of the Bitcoin market
Learn how to set up your Bitcoin wallet
Protect yourself against fraud and theft
Get started trading this exciting new currency

The Bitcoin market is huge, growing quickly, and packed with potential. There's also some risk, so you need to go in fully informed and take steps to manage your risk wisely. Bitcoin For Dummies is the clear, quick, easy-to-follow guide to getting started with Bitcoin.

Part I Bitcoin Basics
Chapter 1 Introducing Bitcoin
Chapter 2 Buying and Storing Bitcoins
Chapter 3 Bitcoin Pros and Cons
Chapter 4 Making Money with Bitcoin

Part II Banking with Bitcoin
Chapter 5 Your Bitcoin Wallet
Chapter 6 Bitcoin Transactions
Chapter 7 The Blockchain

Part III Using Bitcoin in Business
Chapter 8 Using Bitcoin in Commerce
Chapter 9 Staying on the Right Side of Legal
Chapter 10 Bitcoin Security
Chapter 11 Mining for Bitcoins

Part IV The Part of Tens
Chapter 12 Ten Great Ways to Use Bitcoin
Chapter 13 Ten (or So) Other Crypto-Currencies
Chapter 14 Ten Online Bitcoin Resources

Bitcoin Explained for Dummies

Bitcoin was invented as a peer-to-peer system for online payments that does not require a trusted central authority. Since its inception in 2008, Bitcoin has grown into a technology, a currency, an investment vehicle, and a community of users. In this guide we hope to explain what Bitcoin is and how it works as well as describe how you can use it to improve your life.

What is Bitcoin?

Since anything digital can be copied over and over again, the hard part about implementing a digital payment system is making sure that nobody spends the same money more than once. Traditionally, this is done by having a trusted central authority (like PayPal) that verifies all of the transactions. The core innovation that makes Bitcoin special is that it uses consensus in a massive peer-to-peer network to verify transactions. This results in a system where payments are non-reversible, accounts cannot be frozen, and transaction fees are much lower.

Where do bitcoins come from?

We go more in-depth about this on the page about mining, but here’s a very simple explanation: Some users put their computers to work verifying transactions in the peer-to-peer network mentioned above. These users are rewarded with new bitcoins proportional to the amount of computing power they donate to the network.

Who controls Bitcoin?

As we mentioned above, there is no central person or central authority in charge of Bitcoin. Various programmers donate their time developing the open source Bitcoin software and can make changes subject to the approval of lead developer Gavin Andresen. The individual miners then choose whether to install the new version of the software or stick to the old one, essentially “voting” with their processing power. It is in the miners’ best interest to only accept changes that are good for the Bitcoin currency in the long run. These checks and balances make it difficult for anyone to manipulate Bitcoin.

How to get started with Bitcoin

The best way to learn about Bitcoin is to get some and experiment. We have written articles about how to set up your own Bitcoin wallet, how to acquire bitcoins, and how to use bitcoins to help you get going.

Also, if you’d like to get a crash course in the basics of Bitcoin… What it is, why it’s so revolutionary, and most importantly, how to safely invest in it without making costly mistakes, we strongly recommend you check out this completely free, 90-Minute Training Seminar with Bitcoin Academy.

What is Bitcoin

Last updated on January 2nd, 2018 at 12:00 am

It seems almost impossible to explain ״What is Bitcoin” to someone who is new to it. After going through every possible tutorial I decided that the main reason people don’t understand what Bitcoin is, is due to the fact that the explanation is usually too technical. So I decided to create my own “What is Bitcoin for Dummies” video. 2:40 minutes of a completely non technical, simple explanation.

And here’s the text version:

Imagine for a second that you are in charge of the task of inventing money. But you get this task today, not in the 12th century when money was initially invented. You’re basically asked to find a way for people to exchange an agreed value between one another.

I know it’s hard, but try to think, if this was done today, would we really be using metal coins and paper for this ? Perhaps we can find a better way ?

What if we wrote down somewhere, maybe in an electronic ledger what value each person has. This way we can keep track of how much value every person can spend. So if I for example do some work for you, you would probably give me some of your value in exchange. Let’s name this value “Bitcoin”.

But how will people be defined in this ledger ? I mean, how will someone send me value or Bitcoins….I guess we will have to give each person a unique identifier or address. We will keep track of which address (or person) holds which value. These addresses are known as “wallets”.

So we’ve decided to write down in our ledger which address, or wallet, holds which amount of value. This ledger is called “The block chain” – and it keeps all of the transactions from the beginning of time.

Now it’s time to make sure that everyone follows the rules. How can we do this ? How can we insure that no one cheats and says that their address has more value then what they actually own ?

I know! We’ll spread this ledger around to tens of thousands of people, so whenever someone wants to transfer some of his value in order to get something we can check to see if his story adds up to what everyone else thinks. If he’s good for his value, we will let him spend it.

But why would these people want to carry this ledger on their computer, and who has time to verify all of this each time a transaction is made ?

Well, what if we rewarded people who did this with value, that could be a good idea. Hence the “miners” were born. Tens of thousands of people who get paid in Bitcoins for going through the ledger, making sure that everything is in order and that no one is cheating (including themselves).

You’ve just invented a modern solution for money! And that’s exactly what Bitcoin is…A digital decentralised currency…

Bitcoin For Dummies Cheat Sheet

Bitcoin has gotten a lot of press, and not all of it good. So is it Internet money, an alternative currency, a parallel financial system, a new way of life? The answer is yes, it’s all of those things and more. Start by finding out the basics of what it is, where it came from, what it does. You can buy bitcoins just like you can buy ice cream and concert tickets. But you can’t really keep them under your mattress or in your piggy bank — or your regular bank account, for that matter. In fact, you had better pay some extra attention to securing your bitcoins once you get some. Bitcoins don’t come from any gothic-columned mint, but from a complicated digital calculating process known colorfully as mining.

Bitcoin Basics

Bitcoin is an alternative type of payment system that is sometimes mentioned in the media. Is it “Internet” or “digital” money? Is it a way to conduct business outside the mainstream financial infrastructure? Is it a new way of life that could transform multiple aspects of society in the future? The answer is yes.

Origins: Bitcoin was created by developer Satoshi Nakamoto in 2008.

Purpose: Bitcoin provides a viable decentralized alternative to the current mainstream financial infrastructure.

Method: Bitcoin enables spending with full transparency through a publicly available ledger known as the blockchain.

Security: A bitcoin transaction involves both a public key, which is generally known to everyone, and a private key known only to the bitcoin user. No coins can be spent without knowing the private key.

Buying Bitcoins

To use bitcoins, at some point you actually have to acquire some bitcoins. Unfortunately, doing so is not quite as easy as sticking a card into an ATM. The following are a few of the ways you can get your hands on some bitcoins.

Establish that the platform you are using or the person you are buying from is legitimate, as you would with any other online transaction.

Use an exchange such as Gemini to purchase. You register your details through this trusted exchange, deposit your local currency such as USD or GBP, and then purchase the bitcoin at the current rate of exchange.

Buy in person by purchasing directly in the same way.

Remember that once you have purchased your bitcoin, move them to a location that is in within your control. Don’t store them long-term on an exchange.

Storing Bitcoins

Don’t use exchanges to store your bitcoins for any length of time. Exchange storage is only as secure as the exchange’s security infrastructure, so although many people do use this option, the coins are still not within your control. Storing on an exchange should not be considered as anything other than a temporary option.

Instead, use a software wallet (such as the Bitcoin QT client) to store your bitcoins. A software wallet allows you to secure your bitcoins on your own computer. Encrypt the wallet and make backups to ensure your bitcoins are safe. This option requires you to carry out virus checks and have a good understanding of Internet security. Alternatively, you can try a popular online wallet such as the one offered at Blockchain.info while you become familiar with the workings of a wallet. This can simplify the process for you.

Another option is to use a paper wallet to send your coins to a bitcoin address that is not connected to any online exchange nor to software that is on your computer. This bitcoin can only be spent when you decide to manually redeem it through using your private key.

Securing Bitcoins

Security is as paramount with bitcoin as it is with your personal bank account. The more secure you make access to your bitcoins, the less likely somebody will succeed in nabbing them. When asked to provide a password, for example, make sure it is unique. Don’t use any password that you use on any other website, in case that website is compromised.

When using any online service, look out for additional security such as 2FA, which stands for two-factor authentication. With 2FA, even if somebody else discovers your password, they would also need to gain access to the second-level password which normally is reset every 20–30 seconds using a device such as a smartphone. Always immediately enable this additional security feature if offered.

Mining Bitcoins

Bitcoin mining is accomplished with very fast computers solving complex equations, not with picks and shovels. It’s how bitcoins are created. Without bitcoin miners, no transactions could be processed, and no confirmations could be given to validate your bitcoins were genuine. And of course no new coins could be brought into circulation, because no rewards would be given.

The bitcoin network is only as strong and secure as the people and companies who are supporting it, either by running a bitcoin node or by dedicating computational power to the mining process, which is what miners do.

You have the option of setting up your own “rig” by buying your own hardware (very expensive) or alternatively using a third-party cloud-mining service such as Genesis Mining, which allows you to mine bitcoin without the hassles of maintaining your own hardware.

Bitcoin for dummies

Bitcoin for Dummies

What is Bitcoin?

Bitcoin is a form of currency, known as a cryptocurrency, which is similar to the former US “Gold Standard” currency, but operates like its own internet and is the world’s first free market, decentralized global currency. Bitcoins can be exchanged for other currencies, goods or services.

Bitcoin should be thought of in layers since it offers much more than standard currencies.

Where do Bitcoins come from?

Bitcoins are created out of thin-air through an open-source computer mining system similar to a lottery, yielding a commodity like gold.

I’ll now try to explain the key words here “lottery” and “gold” as they relate to Bitcoin mining.

“Lottery” meaning that your computer is basically trying to decipher a a large number before anyone else on the mining network does. Each time your computer gets the string correct before anyone else, a new block is created and 12.5 BTC (currently) is awarded to the miner or pool (group of miners). But this isn’t a normal lottery. This lottery is millions of times more difficult than a normal lottery, thus why miners spend a lot capital on new hardware for mining. Therefore, the faster your system can mine the higher probability you will be rewarded. Rewards for mining a block decrease in half every 4 years making bitcoin finite in creation.

“Gold” meaning only 21,000,000 Bitcoins will ever be created just as only X amount of gold will ever be discovered on Earth. Thus, this form of payment tends to see an opposite affect of that which you are used to. Bitcoins become worth more as time goes on (finite supply) vs. traditional currencies today which lose more value as time goes on (infinite supply; central banks can print money at their discretion, and they do).

How do Bitcoins work?

Bitcoins are bit more different than a standard currency since it has it's own built in transaction system through its mining process. If the dollar, gold and visa had a baby we'd call it Bitcoin.

Bitcoins operates on a open transaction ledger called the 'Blockchain'. All transaction data on the network is recorded on the blockchain. Each time a new block is mined the transaction data held inside that block is added to the blockchain and confirmed. The blockchain is then downloaded by every wallet making it irreversible. All information on the network is encrypted to create anonymity, but this still needs more improvement.

How are Bitcoins stored?

Bitcoins are stored on wallet which essentially serving as their own bank for the user. A wallet program is provided by the Bitcoin network which allows users to transfer bitcoin between one another. Wallets can be stored in a variety of ways:

online wallet provider
CPU wallet
Paper wallet
Mobile wallet device
Smartphone apps
In your brain

Bitcoins are stored on the blockchain so they're essentially like cloud money. Your accessing the rights to them when you exchange them through a wallet or service provider.

How do Bitcoins have a real world value?

As Bitcoins continue to be mined they begin to create more value since more and more people begin to own them. You can kind of think of them as trading cards or beanie babies. The longer you hold onto these things the more value they tend to take on as more and more people begin collecting them. The biggest difference is you can’t take your Babe Ruth rookie card to the car dealership and trade it for a car because it’s not a universal means of exchange like Bitcoins or a credit card. You have to go through the painstaking process of finding a buyer and turning that card into money. Bitcoin itself has consolidated that process.

People worked hard for months or years to mine these things, investing time, hardware, and energy in the process. This is where the initial value of the currency is born, since time and money was used to create them.
Put yourself in the shoes of a miner: you invest time, money and brainpower into mining these coins against thousands of other people around the planet. You’re not just going to give them all away for free. Everyone wants to get their money back from an investment, so people started exchanging Bitcoin for different things including currencies like the US dollar and the Euro. In return this allowed new people outside of the mining ring to collect and exchange Bitcoin, thus the currency began to grow which started to create a networking effect.

Now normal everyday people are exchanging cash for Bitcoins, wondering what the hell can I do with these things?

Why are people investing so much money into Bitcoin?

Because it’s like gold, or more accurately, the gold of the Internet. As long as people trust that this currency has value, people will continue to invest in Bitcoin. Bitcoin is open-source software, so it has no central control with corrupt bankers and politicians, just really smart people working for free to keeping it running.

Given all the problems we see in world economies, people are rapidly beginning to lose faith in conventional legal tender like the EUR and USD. Governments have demonstrated that they can seize your bank-accessible assets if necessary. With Bitcoin, this is not possible as they have no access to your funds. Your Bitcoin wallet is essentially your own bank. It’s similar to the idea of people stuffing cash into their mattresses, except this is a lot more profitable and accessible. People will perhaps one day refer to this era as the gold rush of the 21st century.

Bitcoin or cryptocurrencies are not an easy thing to wrap your head around. Imagine trying to explain the internet to someone who lived in the 70′s, they might think they get it, but without actually experiencing it, they’d never truly understand. So dive in because this idea is spreading and I don’t believe cryptocurrencies like Bitcoin are going anywhere. I’m having a hard time wrapping my head around what the world may be like 5-10 years from now if cryptocurrencies really do take off, but I’m excited for the possibilities.

Whomever Satoshi Nakamoto is, they’re a freaking genius and a humanitarian in my opinion.

For a more technical explanation, see the official PDF on the original whitepaper on Bitcoin here at http://bitcoin.org/bitcoin.pdf . I hope you enjoyed my beginner’s guide to Bitcoin, “Bitcoin for Dummies”. If you liked the tutorial, please upvote!

Where can I buy Bitcoins?

For novice users in the US I'd highly recommend using Coinbase, it offers ACH bank transactions and friendly user interface, its also the most heavily funded Bitcoin company at this point in time. It doesn't work like a typical exchange, but offers a secure method of attaining bitcoin easily and securely online. Use this referral link and we both get free Bitcoin:

Bitcoin for Dummies

Explaining Bitcoin So You Can Actually Understand It

To start, do not let the title of this piece make you feel any less of a human being or think that you are in fact a bitcoin dummy. That is not the case! Bitcoin is complex. There have been several very intelligent computer programmers and system developers (We are talking people who have invented the very technology that allows us to even get online!) who are on record as saying that they even have trouble understanding Bitcoin fully.

Introduction to Bitcoin

Bitcoin is the first ever invented digital currency. It works the basis of the blockchain technology. It is continuously being created through a process called mining that involves computers solving cryptographic puzzles. Each block has its own cryptographic puzzle, and the unique solution represents 1 Bitcoin and the current state of all pending transactions.

Bitcoin is a digital currency.
Using encryption techniques is how it is created and how transactions are verified as legitimate and recorded to the ledger.
Operating independently of a central bank means that there is no person, company, government agency or any other single entity that controls bitcoin, it is governed by the very people who use it.

But before we can delve into the peculiarities of Bitcoin we need to lay some foundations.

What is Cryptography?

Imagine you have a letter, cut it to little pieces and scramble them. By doing so you are encrypting the information that is contained in the letter. Meaning that when someone stumbles upon the scattered pieces, they would not be able to understand anything. That is until they decipher, decrypt the message by placing the pieces in the right order. This visualization of sorting algorithms explains the process best.

What is Blockchain?

Blockchain quite resembles a database. However, while traditional databases have a couple of locations where the information is hosted, blockchain hosts the information on each computer on the network. Hence the term decentralized.

Traditional banking works like Microsoft Office Documents and blockchain is like Google Docs. For the sake of simplicity let us assume that there is one spreadsheet that contains the state of all accounts balances and transactions.

If Sally sends John 10$ via a bank wire.

To reflect this transaction Sally’s bank credits her account in the spreadsheet, then the file would be sent to John’s bank to make their changes and then sent back to Sally’s bank so that they both have the updated version of the spreadsheet. Although there is no such spreadsheet, bank settlements operate in relatively the same manner – a lot of files being exchanged to reflect every transaction.

With blockchain when Sally tells her bank to send 10 BTC to John, the two banks simply both edit the Google spreadsheet and without any time wasted on exchanging files, the transaction is recorded.

If you have ever edited a Google spreadsheet simultaneously with many people, you would know that it will start bugging, the new information is just too much to be reflected at once. Therefore, the network separates the whole spreadsheet (there is no actual spreadsheet we are continuing the example) into smaller blocks of information that can be more easily processed.

Want a quick and condensed guide about the Blockchain Technology? Read our Blockchain Guide

What is Bitcoin?

The Oxford English Dictionary defines Bitcoin as “a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank”

However, this definition is for the whole system of Bitcoin. Each Bitcoin is nothing more than a 12-digit code that is encrypted.

Bitcoin is a Digital Currency! What is a Digital Currency?

A digital currency is money that has no physical form. Reach into your pocket, wallet or wherever it is you keep your dollars, Euros, Yen, Rupies, etc.. and pull out the equivalent of 1 US Dollar, or even a quarter, dime, nickel or penny. Hold it. Look at it. Feel it. That is called fiat, which is the currency of your nation (or some nation depending on what you may have.)

With digital currency, you cannot hold it. You cannot feel it. You cannot look at it. It only exists as a number entry in a transaction ledger on a network somewhere. Now, while this may make some people shun digital currencies, they are simply being childish and sort of ignorant. Think about it. Most people simply swipe a card and their money is magically moved from there account into the account of the store that they are paying, right? So technically, we all use digital currency already, we just have the ability to actually get some of the money to put in our pockets or respective money holding places.

A Really Deep Understanding of Money in General

Then to get even more technical about it, the money you may have in your pocket is nothing more than cheap paper and ink or cheap metals that have been stamped by a machine. It technically is not worth anything. It is nothing more than a marker that says you have the rights to spend the amount indicated on the bill or coin and the bill or coin simply is a guarantee from the national bank who issues it that they will cover the debt.

If you owed someone five dollars and wrote them an IOU on a piece of paper, it is no different than a 5-dollar bill in the sense that the money you have is nothing more than an IOU from the national bank who issued your particular currency. I can go to the store right now and buy a ream of copy paper, the 500-sheet pack for about $7 USD. You can fit 4 US Dollar bills of any denomination on each sheet, so if I used 100-dollar bills, that would be $200,000.00 USD. Does that make the paper worth $200,000.00 USD? I think not. So why would the paper that the national bank prints currency on be worth anything more? Well, it isn’t.

If you have never stopped to really think about it, do so now. That money in your piggy bank is nothing more than a guarantee from the Federal Reserve (if you are in the U.S.), or national bank of some nation that you are entitled to that much of the gold* that they own, and that you have the rights to trade that guarantee for goods and service and upon doing so, the receiver of the money will then inherit the same guarantee for the same value that is shown on the piece of paper or metal coin.

You Are the bank… Sort of

So, in all reality, the only real difference that Bitcoin offers is that it does not have a physical marker, or guarantee in the form of a mass printed, regulated piece of paper guaranteeing the holder to the value of the Bitcoin.

That actually sounds horrible. No guarantee that you have a right to the Bitcoin in the national bank? Well, you don’t need it. Nope. Not at all. Why, you may ask? Why would you risk not having that guarantee? Well, because you have the actual Bitcoin. Th national bank doesn’t have it, in fact, no bank or any other person or business has it. You have it. You hold it and when you send it to someone, it goes directly from you to them. When you receive it from someone, you get it directly from them. So, there is no guarantee needed. You have the actual bitcoin in your hands, err, well, figuratively speaking of course.

The balance of your bitcoin wallet is public record. The encryption methods used, which will be explained in later chapters, ensures that any and all transactions are legitimate and that the balance are absolutely correct. Don’t worry though, while the ledger of balances is public record, your identity is not. More on that later. While an explanation of how it all works is the focus of this entire piece, I will try and put it into perspective for you:

The technology that ensures that all balances and transactions are valid and legitimate is so ingenious, so technologically advanced that every single one of the 50 United States, as well as the Federal Government of the United States, Governments of the entire European Union, China, Japan, South Africa, The United Arab Emirates and many more nations have legislation either already voted into law or are in the process of putting into law, statutes that integrate the technology with the government and how it does day to day business.

That Wraps Up Digital Currency

So, hopefully you have an idea of what bitcoin is by now, but i will spell it out for you anyways; Bitcoin is money. It isn’t money you can touch with your hands and it isn’t money that a bank or government holds or controls, but it is money. It can be used to buy things online from Microsoft, Dell, Walmart, Overstock and thousands of other retailers. You can use it in the United States to pay the IRS and other government entities and you can send it to anyone who accepts it personally. The difference between bitcoin and the money in your pocket is that bitcoin is the same value in North America, as it is in all of Europe, Asia, Africa, South America, Australia and even Antarctica. That includes every single Island, Atoll or other landmass and hell, even all of the pacific, Atlantic, Indian, Arctic and Antarctic Oceans as well. Basically, everywhere on the planet earth that you can go, Bitcoin will be worth the same exact amount.

*The gold reference is being used as a generalization. The national banks of the world hold more than just gold to determine their total wealth. It should be understood that other commodities, such as a nation’s chief exports, silver and other valuables are also used to back currency.

Who invented Bitcoin?

The simple answer? No one knows for sure. Someone, who was using the name of Satoshi Nakamoto is the creator of bitcoin. Whether that is a single person, a group of people, a man, a woman or someone who is gender neutral is simply not known. However, since the name that was used is a Japanese male’s name, Satoshi Nakamoto will be referred to as “he” or “him”, since typing Satoshi Nakamoto at every reference is simply horrible grammar.

There lies a shroud of mystery behind Satoshi Nakamoto. It is a great mystery that has the entire community enthralled. There have been a few educated guesses as to his actual identity and even one man from Australia who has claimed that he is the creator of Bitcoin, but there is no definitive proof. All that is known for sure is that he is a genius who had an ingenious idea and he implemented it in such a technologically advanced way, that there is nothing to even compare it to that has ever been done.

Science Fiction from the Future

To try and put this in perspective for you, imagine when you were a child and watched Star Trek. Those hand-held communicators were science fiction for us at the time. 25-30 years later, we carry around mobile phones that not only communicate, but play videos, music, talk to us, provide virtual reality, etc.… Science fiction turned into reality.

Well, Bitcoin, in comparison is like The Guardians of the Galaxy movies. Yeah, they just came out recently, no, we cannot even fathom being able to travel through space with a fox, intelligent plant or any of the other stuff in the movies. Depending on where you get your scientific information from, we are somewhere between 100 years and never being able to accomplish that stuff, so Bitcoin is like 100 years away, at least, from reality.

Except that it’s not, it’s here already and was actually here before The Guardians of the Galaxy movie was. That is how technologically advanced and ingenious Satoshi Nakamoto is; was; might be again.

How it All Went Down

In October of 2008, Satoshi Nakamoto published the first bitcoin paper via a cryptology mailing list. This paper described Bitcoin in detail. The title of the paper was, Bitcoin: A Peer-to-Peer Electronic Cash System. On January 9, 2009, The Bitcoin software version 0.1 was released publicly on SourceForge.net.

Satoshi claimed that he was a male, living in japan and his profiles on the various forums and boards listed his birthdate as April 5, 1975. The first block (transaction verification) was mined by him on January the 3rd of 2009 and he left a text message within it that reads: ‘The Times 03/Jan/2009 Chancellor on brink of second bailout for banks‘ referring to an article in the New York Times that day. This has been dubbed, the Genesis Block and is timestamped at 18:15:05 GMT on January 3, 2009.

Satoshi Nakamoto or Houdini?

He handled all of the coding himself until mid-2010, when he handed over the project to the current lead developer, Gavin Andresen, distributed all of his digital assets, including domain names to other prominent members of the Newly Formed Bitcoin community and then simply vanished. His bitcoin Wallets have not had a single transaction since mid-2009 and currently contain approximately 1 million Bitcoins, valued at roughly 4.053 Billion US Dollars.

While you can search and find compelling stories that would prove to have discovered the true identity of Satoshi Nakamoto, in Newsweek, the New York Times, Investopedia and about a hundred other reliable Bitcoin news sources, the answer is still unknown. Whoever he or she is or they may be, bitcoin is a work of true and pure genius. There is no argument there.

How is digital currency created?

Each digit is unveiled by solving a cryptographic algorithm, or in simpler terms a something like a mathematical equation. The process of this calculation is called mining and is done by either processor-based operations or graphic-card based operations, performed by a large number of computers in complex installations. All of the transactions on the network are encrypted with a cryptographic puzzle that all participants race to solve. The solution of this puzzle creates and sets* the state of the network – all pending transactions and account balances. Once a computer on the network finds a solution it records the solution* on the blockchain; then all network participants update their ledgers. In the instant that this happens the information is set and sealed. No one can edit information on the blockchain unless their computational power is at least 51% of the whole network’s power, which almost impossible.

The money creation process of Bitcoin again involves solving cryptographic puzzles. We explained that the solution to the puzzle contains all transactional information; however, it also contains information about the digits of each Bitcoin. By helping people settle transactions, miners are also slowly uncovering the digits of new Bitcoins that would enter the system. There are only 21,000,000 Bitcoins. Once the last one has been mined there can be no further money creation.

How is its value determined?

When money was first created to determine its value, we used the gold standard. Each dollar or pound in circulation in the economy had a gold equivalent in the vault of the central bank. In other words, if someone went to the bank they could for their money get a certain amount of gold.

The value of bitcoin and other digital currency is backed by proof of work or computational power. The calculation of each BTC requires a certain amount of effort, think electricity, computers, software and rent. The network knows how much computational power is needed to uncover a Bitcoin, so once a computer calculates the 12-digit code, the network rewards miners for doing the needed amount of work.

Here comes the tricky part. Each next Bitcoin always requires a bit more computing power to be mined than the previous. As we said, each BTC can be mined only once. The first BTC mined requires only the solution to the algorithm, and that it is. However, for every next BTC to be mined, after calculating the code the computer has to go through all the previously mined BTCs and it has to check whether this one is a new BTC or not. The more BTC are mined, the more newly generated Bitcoin requires.

Currently, the value of BTC is determined by two factors. The first one is how hard is mining, i.e. how much computational power is required for the calculation and check with the database of existing BTCs. If before it took a couple of graphics cards to mine one BTC for a predefined period “x”, now it takes much more computing power to mine a BTC for the same “x” period. The other factor is Bitcoin’s attractiveness as an investment. Currently, most people do not use Bitcoin so much as a medium of exchange, than they use and perceive as an investment.

What happens when the last BTC is mined?

Then free markets take over. The value of Bitcoin would then be determined only by the amount people that will be willing to pay for it.

Still Don't Get Bitcoin? Here's an Explanation Even a Five-Year-Old Will Understand

If you still can't figure out what the heck a bitcoin is, this simple explanation for a five-year-old may help you .

We're sitting on a park bench. It's a great day. I have one apple with me, I give it to you.

You now have one apple and I have zero. That was simple, right?

Let's look closely at what happened:

My apple was physically put into your hand. You know it happened. I was there, you were there – you touched it.

We didn't need a third person there to help us make the transfer. We didn't need to pull in Uncle Tommy (who's a famous judge) to sit with us on the bench and confirm that the apple went from me to you.

The apple's yours! I can't give you another apple because I don't have any left. I can't control it anymore. The apple left my possession completely. You have full control over that apple now. You can give it to your friend if you want, and then that friend can give it to his friend, and so on.

So that's what an in-person exchange looks like. I guess it's really the same, whether I'm giving you a banana, a book, a quarter, or a dollar bill …

But I'm getting ahead of myself.

Back to apples!

Now, let's say I have one digital apple. Here, I'll give you my digital apple. Ah! Now it gets interesting.

How do you know that digital apple which used to be mine, is now yours, and only yours? Think about it for a second. It's more complicated, right? How do you know that I didn't send that apple to Uncle Tommy as an email attachment first? Or your friend Joe? Or my friend Lisa too?

Maybe I made a couple of copies of that digital apple on my computer. Maybe I put it up on the internet and one million people downloaded it.

As you see, this digital exchange is a bit of a problem. Sending digital apples doesn't look like sending physical apples.

Some brainy computer scientists actually have a name for this problem: it's called the double-spending problem. But don't worry about it. All you need to know is that it's confused them for quite some time and they've never solved it. Until now.

But let's try to think of a solution on our own.

Maybe these digital apples need to be tracked in a ledger. It's basically a book where you track all transactions – an accounting book.

This ledger, since it's digital, needs to live in its own world and have someone in charge of it.

Just like World of Warcraft, say. Blizzard, the guys who created the online game, have a "digital ledger" of all the rare flaming fire swords that exist in their system. So, cool, someone like them could keep track of our digital apples. Awesome – we solved it!

There's a bit of a problem though:

1) What if some guy over at Blizzard created more? He could just add a couple of digital apples to his balance whenever he wants!

2) It's not the same as when we were on the bench that day. It was just you and me then. Going through Blizzard is like pulling in Uncle Tommy (a third-party) out of court (did I mention he's a famous judge?) for all our park bench transactions. How can I just hand over my digital apple to you in the usual way?

Is there any way to closely replicate our park bench transaction digitally? Seems kinda tough …

The Solution

What if we gave this ledger to everybody? Instead of the ledger living on a Blizzard computer, it'll live in everybody's computers. All the transactions that have ever happened, from all time, in digital apples, will be recorded in it.

You can't cheat it. I can't send you digital apples I don't have, because then it wouldn't sync up with everybody else in the system. It'd be a tough system to beat. Especially if it got really big.

Plus, it's not controlled by one person, so I know there's no one that can just decide to give himself more digital apples. The rules of the system were already defined at the beginning.

And the code and rules are open source – kinda like the software used in your mom's Android phone. Or kinda like Wikipedia. It's there for smart people to maintain, secure, improve, and check.

You could participate in this network too – updating the ledger and making sure it all checks out. For the trouble, you could get like 25 digital apples as a reward. In fact, that's the only way to create more digital apples in the system.

I simplified quite a bit … But that system I explained exists. It's called the Bitcoin protocol. And those digital apples are the bitcoins within the system. Fancy! So, did you see what happened?

What does the public ledger enable?

1) It's open source, remember? The total number of apples was defined in the public ledger at the beginning. I know the exact amount that exists. Within the system, I know they are limited (scarce).

2) When I make an exchange I now know that digital apple certifiably left my possession and is now completely yours. I used to not be able to say that about digital things. It will be updated and verified by the public ledger.

3) Because it's a public ledger, I didn't need Uncle Tommy (third-party) to make sure I didn't cheat, or make extra copies for myself, or send apples twice, or thrice…

Within the system, the exchange of a digital apple is now just like the exchange of a physical one. It's now as good as seeing a physical apple leave my hand and drop into your pocket. Just like on the park bench, the exchange involved two people only. You and me , we didn't need Uncle Tommy there to make it valid.

In other words, it behaves like a physical object.

But you know what's cool? It's still digital.

We can now deal with 1,000 apples, or 1 million apples, or even .0000001 apples. I can send it with a click of a button, and I can still drop it in your digital pocket if I was in Nicaragua and you were all the way in New York.

I can even make other digital things ride on top of these digital apples! It's digital after all. Maybe I can attach some text on it – a digital note. Or maybe I can attach more important things; like say a contract, or a stock certificate, or an ID card …

So this is great! How should we treat or value these "digital apples"? They're quite useful aren't they?

Well, a lot of people are arguing over it now. There's debate between this and that economic school, between politicians, between programmers. Don't listen to all of them though. Some people are smart; some are misinformed. Some say the system is worth a lot; some say it's actually worth zero. Some guy actually put a hard number on it: $1,300 per apple. Some say it's digital gold; some say it's a currency. Others say they're just like tulips. Some people say it'll change the world; some say it's just a fad.

I have my own opinion about it, but that's a story for another time.

Hey kid, you now know more about Bitcoin than most.

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

US Search Mobile Web

Welcome to the Yahoo Search forum! We’d love to hear your ideas on how to improve Yahoo Search.

The Yahoo product feedback forum now requires a valid Yahoo ID and password to participate.

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Your search engine does not find any satisfactory results for searches. It is too weak. Also, the server of bing is often off

I created a yahoo/email account long ago but I lost access to it; can y'all delete all my yahoo/yahoo account except for my newest YaAccount

I want all my lost access yahoo account 'delete'; Requesting supporter for these old account deletion; 'except' my Newest yahoo account this Account don't delete! Because I don't want it interfering my online 'gamble' /games/business/data/ Activity , because the computer/security program might 'scure' my Information and detect theres other account; then secure online activities/ business securing from my suspicion because of my other account existing will make the security program be 'Suspicious' until I'm 'secure'; and if I'm gambling online 'Depositing' then I need those account 'delete' because the insecurity 'Suspicioun' will program the casino game 'Programs' securities' to be 'secure' then it'll be 'unfair' gaming and I'll lose because of the insecurity can be a 'Excuse'. Hope y'all understand my explanation!

chithidio@Yahoo.com

i dont know what happened but i can not search anything.

Golf handicap tracker, why can't I get to it?

Why do I get redirected on pc and mobile device?

Rahyaftco@yahoo.com

RYAN RAHSAD BELL literally means

Question on a link

In the search for Anaïs Nin, one of the first few links shows a picture of a man. Why? Since Nin is a woman, I can’t figure out why. Can you show some reason for this? Who is he? If you click on the picture a group of pictures of Nin and no mention of that man. Is it an error?

Repair the Yahoo Search App.

Yahoo Search App from the Google Play Store on my Samsung Galaxy S8+ phone stopped working on May 18, 2018.

I went to the Yahoo Troubleshooting page but the article that said to do a certain 8 steps to fix the problem with Yahoo Services not working and how to fix the problem. Of course they didn't work.

I contacted Samsung thru their Samsung Tutor app on my phone. I gave their Technican access to my phone to see if there was a problem with my phone that stopped the Yahoo Search App from working. He went to Yahoo and I signed in so he could try to fix the Yahoo Search App not working. He also used another phone, installed the app from the Google Play Store to see if the app would do any kind of search thru the app. The Yahoo Search App just wasn't working.

I also had At&t try to help me because I have UVERSE for my internet service. My internet was working perfectly. Their Technical Support team member checked the Yahoo Search App and it wouldn't work for him either.

We can go to www.yahoo.com and search for any topic or website. It's just the Yahoo Search App that won't allow anyone to do web searches at all.

I let Google know that the Yahoo Search App installed from their Google Play Store had completely stopped working on May 18, 2018.

I told them that Yahoo has made sure that their Yahoo members can't contact them about anything.

I noticed that right after I accepted the agreement that said Oath had joined with Verizon I started having the problem with the Yahoo Search App.
No matter what I search for or website thru the Yahoo Search App it says the following after I searched for
www.att.com.

WEBPAGE NOT AVAILABLE
This webpage at gttp://r.search.yahoo.com/_ylt=A0geJGq8BbkrgALEMMITE5jylu=X3oDMTEzcTjdWsyBGNvbG8DYmyxBHBvcwMxBHZ0aWQDTkFQUEMwxzEEc2VjA3NylRo=10/Ru=https%3a%2f%2fwww.att.att.com%2f/Rk=2/Es=plkGNRAB61_XKqFjTEN7J8cXA-
could not be loaded because:
net::ERR_CLEARTEXT_NOT_PERMITTED

I tried to search for things like www.homedepot.com. The same thing happened. It would say WEBPAGE NOT AVAILABLE. The only thing that changed were all the upper and lower case letters, numbers and symbols.
Then it would again say
could not be loaded because:
net::ERR_CLEARTEXT_NOT_PERMITTED

This is the same thing that happened when Samsung and At&t tried to do any kind of searches thru the Yahoo Search App.

Yahoo needs to fix the problem with their app.

Yahoo Search App from the Google Play Store on my Samsung Galaxy S8+ phone stopped working on May 18, 2018.

I went to the Yahoo Troubleshooting page but the article that said to do a certain 8 steps to fix the problem with Yahoo Services not working and how to fix the problem. Of course they didn't work.

Bitcoin For Dummies

Book Description:

Learn the ins and outs of Bitcoin so you can get started today

Bitcoin For Dummies is the fast, easy way to start trading crypto currency, with clear explanations and expert advice for breaking into this exciting new market. Understanding the mechanisms and risk behind Bitcoin can be a challenge, but this book breaks it down into easy-to-understand language to give you a solid grasp of just where your money is going. You’ll learn the details of Bitcoin trading, how to set up your Bitcoin wallet, and everything you need to get started right away. An in-depth discussion on security shows you how to protect yourself against some of the riskier aspects of this open-source platform, helping you reduce your risks in the market and use Bitcoin safely and effectively.

Understand the ins and outs of the Bitcoin market
Learn how to set up your Bitcoin wallet
Protect yourself against fraud and theft
Get started trading this exciting new currency

The Bitcoin market is huge, growing quickly, and packed with potential. There’s also some risk, so you need to go in fully informed and take steps to manage your risk wisely. Bitcoin For Dummies is the clear, quick, easy-to-follow guide to getting started with Bitcoin.

Bitcoin for Dummies

Explaining Bitcoin So You Can Actually Understand It

Introduction to Bitcoin

Bitcoin is a digital currency.
Using encryption techniques is how it is created and how transactions are verified as legitimate and recorded to the ledger.
Operating independently of a central bank means that there is no person, company, government agency or any other single entity that controls bitcoin, it is governed by the very people who use it.

But before we can delve into the peculiarities of Bitcoin we need to lay some foundations.

What is Cryptography?

What is Blockchain?

If Sally sends John 10$ via a bank wire.

With blockchain when Sally tells her bank to send 10 BTC to John, the two banks simply both edit the Google spreadsheet and without any time wasted on exchanging files, the transaction is recorded.

Want a quick and condensed guide about the Blockchain Technology? Read our Blockchain Guide

What is Bitcoin?

However, this definition is for the whole system of Bitcoin. Each Bitcoin is nothing more than a 12-digit code that is encrypted.

Bitcoin is a Digital Currency! What is a Digital Currency?