How to get started mining for Cryptocurrency

How to get started Mining

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Part 1: Do I have to know what I’m doing?

This is the first of a three part blog series designed to help anyone with Crypto mining ambitions to get their first rig set up and underway. By way of general introduction, let me first explain that your ‘rig’ is what all Crypto miners refer to their mining computer set-up as, and by the end of these three blogs you’ll know everything you need to go out and buy / build your own.

While Cryptocurrency mining may at first seem daunting, and I’m sure most people think that Crypto miners must have an absurdly high level of IT and computer skills, but the truth is that it’s far simpler to become a Crypto miner and it is actually absurdly simple to build your mining PC to the required specs.

So the first thing we need to decide together is which of the many Cryptocurrencies out there are we going to be mining for? As an aside here, by the way, the term ‘mining’ isn’t an entirely accurate one. Really, what Crypto miners are doing is calculating the computations that protect the integrity and security of the distributed blockchain ledger that tracks each transaction. In exchange for completing those calculations, the miners are all paid a share of the currency transaction they’ve just verified.

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Back to your first decision: which currency are you going to mine? Bitcoin is the most popular, but is actually the least profitable to mine due to the high cost of the equipment you’ll require to mine it. Bitcoin is now so competitive for mining shares (as in, there’s so many people doing it now) that special purpose computers built with Application Specific Integrated Circuits (ASICs) are required as the norm. A general, purpose built computer is just too slow to earn you anything in the Bitcoin mining world.

Image result for crypto part 1 The second most popular and well-known Cryptocurrency is Ethereum, and it turns out that Ethereum is actually also really well known for being insanely easy to mine and really profitable too….so for me, that’s ideal for us to use in this series of set-up scenarios.

Next month’s two blogs will focus firstly on the equipment needed to set up our first ever Ethereum mining rig, and then finally on getting underway and actually beginning our mining adventure. So until then, enjoy the summer heat, and check back for parts 2 and 3 next month!

_Blog post by Bob Pattni_

 

Cryptocurrency stability

In times of turmoil, look to Cryptocurrency for stability

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With massive economic uncertainty everywhere you look due to Brexit, the US Trade Wars, and the deterioration of the EU in general, where should you invest your money to enjoy a little more stability?

If you look at the UK financial markets right now, there’s no really good savings investment opportunities. No matter what you choose, the % return on investment is pretty dire. Property investment for leasehold seems to still be a pretty safe bet, but even that market is struggling to remain buoyant in these uncertain times.

So is investing in Cryptocurrency really a truly safe bet?

Well firstly, it’s important to understand that as with all investment opportunities – the value of your investment may of course go down as well as up. So if this is your first time investing in Cryptocurrency, be sure that you’re following the safe rules of investing in general and only invest a small proportion of your overall wealth, and don’t invest more than you can afford to live without should the worst happen and the Crypto markets take an unexpected dive.

The easiest way to get involved is by signing up to a Cryptocurrency wallet service Online – a quick Google search will point you in the right direction.

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Most Cryptocurrency wallet services now offer desktop and mobile services, meaning you can manage your account anywhere and at any time of the day. You can sign up to these as you would sign up to any website. Enter your name and email address and set a password to get started, choose a user name and password (for added security you should ensure that this password is totally different to any others so that it could never be cracked).

After that, it’s time to connect your bank account, debit card or credit card. Use two-factor authentication to secure your account, but don’t use your phone number or mobile number – it’s best to set up a new email account, separate to your main email, so you have a totally separate email account for all your Crypto dealings and no-one can then use that random email address for anything else of yours. According to security researchers, criminals only need to know your name and number in order to steal from your Crypto wallet so make sure you follow the above rules and stay safe. (NB. Some places will also let you use Google Authenticator – a quick Google search will tell you how if you don’t already know).

Once you’ve done this, you can start investing in Crypto. Whichever service you decide to use, you’ll be able to access a graph showing how your chosen currency’s value has changed over time.

From there on in, you’re likely to become hooked and you’ve taken your first important steps to becoming a genuine Crypto trader….enjoy the ride!

_Blog post by Bob Pattni_

 

Crypto ‘Whales’ controlling Bitcoin

Blog And Thoughts By Bob Pattni, Crypto-Guide

What is a Bitcoin Whale? A whale, in Crypto terms, is a big money Bitcoin player who can manipulate the Crypto market by selling their holdings in large – sometimes staggeringly so – numbers.

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Last year, someone moved almost 25,000 Bitcoin (worth about $159 million in US Dollars at the time), to one of the main Cryptocurrency online exchanges. The news soon rippled through online forums, with Bitcoin traders arguing amongst themselves about whether it meant the owner was about to sell the digital currency and whether they should follow suit. This uncertainty caused massive price fluctuations in the market – and it wasn’t the first time.

Bitcoin whales are fast becoming the main cause of concern for investors. They can send prices plummeting by selling even a portion of their holdings. And those sales are more probable now that the Cryptocurrency is consistently high and continuing to gain recognition in the public consciousness.

About 40 percent of Bitcoin is held by perhaps 1,600 users, with most online forums estimating these users know each other and are groups who collaborated to invest in Bitcoin in the very early days of the currency, and in some cases right from the very inception of this new form of money. It’s considered highly likely that these whales actually co-ordinate their moves – or preview them to a select few – and they can also therefore potentially band together to tank or prop up the market as they choose to dictate.

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Regulators have not yet caught up with Cryptocurrency trading, so many of the rules are still murky or in point of fact non-existent. This ‘grey area’ allows the Bitcoin whales to dictate and control the market to their own ends – which is, obviously, to turn themselves the maximum amount of profit possible.

When you see a huge drop in a coins price, people will sometimes blame it on whales that are dumping on the market. Typically when this occurs more inexperienced investors will start panic selling so they can buy back into the coin at a cheaper price. However, the best strategy is likely to be to hold on to everything and in fact to increase your holdings by buying additional coins at the lower price so that when the price rises again, as it inevitably will, you’ll be in a better position overall.

C:\Users\Aaron\AppData\Local\Microsoft\Windows\INetCache\Content.Word\cryptowhale1.png Whales will use often use this tactic, calling it ‘rinse and repeat’, and this method can be extremely profitable to the whale if timed right. Once the whale starts selling off lower than the market rate, this causes people to start panic selling. Then the whale will watch and re-buy back in when the price of the coin reaches a new low. They just keep on repeating this process over time, thereby accumulating more wealth, more coins, and more control over that coin.

As well as the early Bitcoin investors, whales can also be risk-loving high-net-worth individuals who have recently discovered the Cryptocurrency market as a new arena for money making; or even major institutional investors such as hedge funds and proprietary trading desks that are placing large bets on where the market will move next. There’s a lot of money in Cryptocurrency and so there’s a lot of people now banking on it creating them a massive amount of wealth.

In the early days of the currency, Bitcoin whales traded on only the largest exchanges, and some still do use only these exclusively. However, as the Crypto market has developed and gained recognition, more and more over-the-counter brokers have launched to service large (and small) Bitcoin investors who are trading digital currencies to be able to access more liquidity than the rigid, old-fashioned exchanges can provide.

So if you do trade in Crypto, keep an eye out for the obvious signs of whale activity. If there’s a large, sudden change in the value of a particular Cryptocurrency, that does not seem to relate to any major project announcement or market-moving news then there’s pretty obviously some whale activity behind the scenes. The same goes for a seemingly inexplicable increase in volatility or price spikes in a specific Cryptocoin as it could well mean that a whale has begun to manipulate the market.

 

How to avoid the most common Cryptocurrency mistakes

How to avoid the most common Cryptocurrency mistakes


There’s quite a lot of rookie mistakes that you can learn to avoid when beginning your Cryptocurrency trading career. The most common traps, and what you should do to prevent yourself from falling into them, are listed below for your education!

  1. Image result for pump and dump cryptoAvoid Pump & Dumps.

This is mostly perpetuated on lesser known coins with low volumes by a few individuals with deep pockets (whales) who are capable of ensuring wide swings on these lesser known cryptos in order to cash in on a windfall when they get the price to rise exponentially. It’s great to see that graph of your crypto moving upwards quickly but beware of large rises in short timescales, as you could be seeing a few individuals deliberately misleading the you and the marketplace. When the whales then dump their purchases, that graph is going to go tumbling down so don’t be seduced by sudden large price rises, particularly in the lesser known coins.

  1. Avoid Setting the Wrong Price.

It is easy to misread or mistype a decimal point or number of zeros. You could set your sell order ridiculously low because you misread the market, or made a typo, and by the time you realize the mistake another trader sees opportunity and quickly snaps up your trade. For example, you could have placed a sell order at 0.0005 BTC instead of 0.005 BTC and that one extra zero can cost you significant funds whiles another trader smiles all the way to his or her wallet. Try to double check your “sell” and “buy” orders every single time before a trade order is placed.

  1. Avoid Sending the Wrong Coin to the Wrong Exchange or Wallet Address.

There have been instances when people have mistakenly sent the wrong coins to the wrong wallet address and have lost funds. For instance, it is possible to send Bitcoin to say a Bitcoin Cash or Bitcoin Gold wallet. It can also happen that Ethereum could be unintentionally sent to an Ethereum Classic wallet or some other digital currency with similar names. This mistake could mean that you have lost your coins forever, as if you send coins to the wrong wallet you are highly unlikely to be able to get them returned to you.

  1. Avoid Markets with Little or Low Liquidity. 

It is important to recognise those crypto-coins with relatively high volumes and stick to buying and trading these. For a coin to appreciate in value, there must be a crowd of potential buyers to drive up demand. If you buy lesser known coins, you might get your capital locked up unless you’re prepared to wait years for the coin to gradually increase in recognition and value.

  1. Play the Long Game.

As a newcomer to crypto-trading, you buy a coin and the next day you realize it has appreciated northwards of 20% in value, meaning you might want to quickly cash out and take profit. But then again, if you hold on a bit, you could see that coin witness higher and more astronomical increase in value over the next couple of months to years. Several coins on the Cryptocurrency markets have seen value growth in the thousands of % over the last couple of years. Crypto trading is the right market for people with patience and the vision to have long term gains. This is not a short term game.

  1. Control your Emotions.

One sure way to losing money is trading with emotions. You may be angry that you missed out on buying a coin before it went up, or maybe you lost a trade bet on a coin so you intend to pile up the rest of your entire funds into another with the hope of making windfall profit…..this should never be a trading strategy. Emotions in crypto-trading should be avoided as much as possible. Detaching emotions from trade transactions gives a better and more objective perspective which is an important tool to making profit.

  1. Beware of Overconfidence.

Confidence is good, but being overly confident and throwing caution to the wind is something to avoid. Overconfidence could lead to one ignoring market signals and just placing trades based on hunches. This could work sometimes, but there is a high probability this will likely lead to loss of funds. It is important to perpetually study and read wide since the Cryptocurrency world is a fast moving and changing one which could leave one rusty if continuous education and research are left to chance.

Above all, enjoy yourself! The challenge of navigating the tricky Crypto waters can be an extremely rewarding one, and as it’s going to be taking up increasing amounts of your day you may as well enjoy what you’re doing!

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Blog by Bob Pattni

Up and Coming Crypto Coins

Upcoming Crypto Coins

Bitcoin is the first decentralised digital currency, as the system works without a central bank or single administrator. Transactions take place between users directly, without an intermediary.

However, there are several other crypto coins emerging in the digital marketplace. So, which coins are becoming worthy of future consideration for investors? Here are some of the newer online currencies to explore in the up and coming crypto currency landscape:

Ethereum is an open-source computing platform and operating system featuring smart contract functionality. Ether is a crypto currency generated by the Ethereum platform. Ether can be used to compensate participant mining nodes for computations performed.

Tezos is decentralised and governs a true digital commonwealth to facilitate formal verification which boosts the security of smart contracts. The Tezos block-chain claims it will underpin secure, decentralised applications, and smart contracts, while avoiding some of the political and technological problems which earlier efforts such as Bitcoin and Ethereum have faced. However, the Swiss Tezos Foundation is currently being sued in the United States by Bitcoin investors. The Tezos Foundation is under investigation over allegations of mismanagement and false marketing.

Litecoin is a peer-to-peer crypto currency, and is based on an open source cryptographic protocol, which is not managed by any central authority. This crypto coin is nearly identical to Bitcoin.

 

Monero is an open-source crypto currency that focuses on privacy and decentralisation. It uses a public ledger to record transactions while new units are created through a process called mining. Monero aims to improve crypto currency by obscuring sender, recipient, and amounts on every transaction made, as well as providing equal opportunity in the mining process.

Pascal Coin is the first crypto coin designed to work without a historical operations requirement, and yet is still able to control double spending, or check balance. Unlike other crypto currencies, the block-chain can be deleted at any time, and will continue working perfectly. It uses a “SafeBox hash”, modified each time a new block is generated. Pascal Coin is being marketed as crypto currency for humans, not only for geeks! It is very similar to a bank, using easy to remember accounts instead of cryptographic addresses, and requires having a personal account to receive and send coins.

There are a multitude of options out there in the vast and changing world of online crypto currencies. So, how does one get started? Going to a local bank won’t help. A bank account logged into and ready as needed to register on crypto currency exchange web sites, such as https://www.kraken.com/, is a good option. There a multitude of web sites to get started and there are even more crypto currencies to invest in.

In the future, crypto currency will likely challenge the status quo of traditional banks as crypto coins increasing flood the digital marketplace.

For more information, visit Bob Pattni.

What Does the Future Hold for Bitcoin

Future of Bitcoin

The year 2017 was a monumental year for the cryptocurrency ecosystem. In January 2017, Bitcoin prices rose almost 2000% from $1,000 to more than $19,000 in December. The same year saw Ripple, Litecoin, Ether and other leading cryptocurrencies experience similar spikes as well as the emergence of new cryptocurrencies.

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The year 2018 could be another breakthrough year for cryptos. Here are some of the top predictions:

1. Bitcoin’s value will continue to rise

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The increase in the value of Bitcoin last year makes its growth and dominance unstoppable. Despite being volatile – which increases the chances of melt-downs – the belief is that Bitcoin will still be a market leader through 2018.

2. Financial institutions will get involved

Image result for Chicago Board Options Exchange In December 2017, the Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME) announced that they would start trading in Bitcoin futures. This move will not only bring cryptocurrencies closer to traditional financial markets in 2018 but will also add legitimacy to the crypto.

Goldman Sachs was one of the first companies to consider clearing futures for its clients. The company is also set to establish a cryptocurrencies trading desk by mid-2018. Other institutions are expected to follow suit since most clients are demanding access to cryptocurrencies.

3. The rise of new platforms

Image result for Ethereum Today’s leading platforms, Bitcoin and Ethereum, face numerous challenges which make us question their long-term capabilities. Bitcoin transaction times range from 10 minutes to several days and transaction fees have risen to more than $4.75 per transaction. The worst part is that the fees are expected to increase as more people join the network. Mining Bitcoins on a world-wide scale consumes a lot of power – about the same as Denmark. Some even claim that in two years time mining Bitcoins will consume more electricity than the whole world uses today.

As people become increasingly aware of the downsides to Bitcoin and Ethereum, they will search for alternatives leading to the rise of other platforms. 2018 will see the launch of new platforms such as Cosmos, ICON, Polkadot, Aion, and Chia. These platforms could help address critical issues of interoperability, scalability, and governance.

4. ICOs will professionalise and attract professional investors into the market

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Last year, large amounts of capital were raised via ICOs with projects such as Tezos and Filecoin raising more than $200 million in just one round of funding. This year, investors are expected to get involved with this new type of funding. This will call for further transparency and business validation, bringing the ICO process closer to conventional venture fundraising. Platforms such as Balanc3 – provides crypto firms with accounting and reporting software – and CoinList – screens and selects blockchain companies – will emerge to support this trend.

5. Increased regulations globally

Professionalising ICOs will go hand in hand with increased regulation across the world. In 2017, the United States ruled that ICOs should be regulated accordingly and certain cryptos classified as securities. The same year also saw South Korea and China ban ICOs.

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Over the course of 2018, other countries are likely to follow suit. The UK, for instance, is currently planning to regulate cryptocurrency together with counter-terrorism and anti-money laundering rules forcing customers to reveal their identities when performing certain transactions.

With Bitcoin and other cryptos increasing in value and showing a lot of resilience in the market, it is evident that they’re here to stay. Cryptocurrency enthusiasts will, therefore, have a lot to expect this year.

Written by Bob Pattni

Where Can You Spend Crypto In The UK

The arrival of cryptocurrencies sparked mixed reactions among many people. A bigger percentage of people were sceptical about it but with time, cryptocurrencies such as Bitcoin managed to win the hearts of many investors and traders. Bitcoin was the first crypto to ever be used. However, after its release, plenty of other cryptos emerged. Despite a lot of criticism on the pioneering cryptos, the emergence of others clearly showed the determination and the brighter future cryptos would have in the economy. Presently, plenty of people are in the crypto business and this has attracted the major retailers and other online businesses. Cryptocurrencies can now be accepted as a means of payment across the UK, just like the normal currency.

Who Accepts Cryptocurrencies.

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In the UK, there are plenty of well-known business that are accepting crypto transactions. One of the major industries that are actively involved in crypto exchanges is the gambling industry. There are a lot of online casinos where players are able to bet using cryptocurrencies. An even better part of it is that there are emerging online casinos that strictly use cryptocurrencies. This offers a chance for cryptocurrency users to spend their cryptos for business and leisure purposes.

Gambling aside, some retailers have realised the potential that cryptocurrencies come with. For this reason, they too have embraced it and anyone with a cryptocurrency can trade with them. You might even be surprised, the first official Bitcoin valuation, which occurred in 2010, is considered to have been a transaction that led to two pizzas being traded for 10,000 Bitcoins. This transaction didn’t mean that Bitcoin was meant for buying pizza alone. Today, Bitcoin, Etherium, Ripple and Litecoin among other cryptocurrencies can be used to purchase various goods and services online. Web hosting services, clothing and accessories sellers, Charity contributions, Electronics sellers and Marketplaces among other many areas provide a convenient way to spend cryptocurrencies. Some of the retailers that accept cryptos include 5wire.co.uk, AntMiners.co.uk and AFK Apparel.

The Cryptocurrency Market.

The biggest place where you can spend crypto is in the cryptocurrency market. The cryptocurrency market is constantly getting popular, and this provides a lot of people with endless profit opportunities. The profits arise majorly from trading cryptos.

Image result for cryptocurrency Most people might be worried when they first encounter cryptocurrencies. Apart from being able or knowing where to spend cryptos, most people do not even know how to acquire the currencies. However, it’s easy to buy cryptocurrencies and once acquired, one can invest in the crypto market. Investing in crypto markets is one of the best ways to spend cryptocurrencies. Whether the cryptocurrencies prices are falling or rising, one can still be able to profit. Previous experience is usually not necessary to accomplish winning cryptocurrencies trades.

Bob Pattni

Cryptocurrency predicting the future

Cryptocurrency: predicting the future. – a blog post by Bob Pattni.

Predictions are a shaky business at best. Predictions about something as unpredictable as Cryptocurrency are even more so. But as we come to the end of 2017 and look forward to 2018, what predictions can the experts make that we should be paying attention to?


1. Bitcoin and Ethereum are here to stay.

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Most people who are enthusiastic about Cryptocurrency appear to agree that Bitcoin and its newer rival Ethereum have staying power, though they may be more bullish on one versus the other. Although Bitcoin is outperforming Ethereum in the marketplace at the moment, expect Ethereum to continue to rise and for the gap between the two to narrow.

2. As yet unknown coins will hit the big time.

Bitcoin and Ethereum may have stolen the show at this point, but the innovation won’t end there. Expect more winners on the horizon, which also means there’ll be more losers so invest your money carefully!

Kathleen Breitman is hopeful that Tezos, her own blockchain bet, will fill a niche – and there’s some evidence to suggest she could be right. She and her project’s developers are designing Tezos to automatically push software updates out to the network, thus, in theory, avoiding the divisive feuding over upgrades that has wracked systems like Bitcoin over the past few years.

No one can say how many tokens and coins and blockchain protocols will eventually win out, but the experts seem to think there’s room for a multitude: so there could be more winners out there in the future that we just don’t know about yet. However for 2018, I’d suggest Tezos as the one to watch; while Ethereum continues to be a safe bet for investment.

3. Some people will get burned.

For the time being, Cryptocurrency might seem like a fantastic way to raise a lot of money quickly and with few questions asked. Will this lead to riches for some? Undoubtedly—and it already has. And rip-offs for others? Again yes, and again it probably already has.

There’s also a presumption that black market deals and insider trading are rife within Cryptocurrency transactions as its very nature of being unregulated attracts an unsavoury element. Although this doesn’t cover all Cryptocurrency transactions its undeniable that it does hold true for a proportion of them. So regulation is likely to come, and will likely be welcomed by the vast majority.

4. Cryptocurrency will give Silicon Valley and Wall Street a run for their money.

In a world where anyone can participate as an investor online, physical location matters much less. In the long run, what use is your bank manager or even your bank if you never need to use them to trade money?

Projects are already getting funded via Kickstarter and other similar Online methods. Breitman said she that when she set up Tezos’ token sale, she aimed to get as many people who wanted to participate in the ecosystem to contribute.” The company raised more than $200 million to date and, according to her, more than 30,000 Tezos wallets have been opened.

Will Cryptocurrencies ever replace banks and financial institutions though? It’s unlikely, even in the long run, however they will make a serious dent in the traditional power of these service providers by coming to rival them in terms of buying power.

5. Regulations will stick.

Elena Kvochko, chief information officer of the security division at Barclays, said that her bank has had talks with regulators about Bitcoin, blockchains, and their ilk. The rule-sticklers appear to be open to the idea as long as “know your customer” laws are obeyed, although it’s still early days.

Meanwhile, as governments settle on their own sets of rules, countries like Switzerland, Singapore, and Estonia are jostling to develop frameworks that easily accommodate the new technology. They’re seeking to displace geographic incumbents and become hubs for a new wave of business financing.

Until the new laws are created and decided upon, go for a policy of total honesty and keeping track of all your transactions. Honesty is, after all, always the best policy.

6. Speculation will subside as “killer apps” take hold.

As Cryptocurrency prices fluctuate wildly, speculators have been having a field day. However, there’s reason to believe the markets will become more stable, as Bitcoin gradually has over the past couple of years (despite its still big price swings).

In order for these computer coins to catch on big-time, they need a use-case that beats traditional money. And that’s where the new wave of Crypto apps, making it easier and more accessible to everyone, is going to really help this new currency take hold.

Of course Cryptocurrency is an international currency that crosses borders in the blink of a keystroke, so apps will have to be developed hand-in-hand with the developing laws and regulations within all countries of the world.

7. Cryptocurrencies will pressure traditional payment methods to improve.

Whenever a consumer swipes or dips a credit card, payment processors charge a fee.

Cryptocurrency could be the cause of big changes in traditional payment methods – changes we’re all going to feel the benefit from..

One potential outcome of the adoption of alternate systems, like Bitcoin, is to provide companies with the impetus to improve their services. Bitcoin it will make banks move toward the real cost of handling these transactions. It could also affect changes in companies like Amazon and Google in the future and the way they charge customers.

As I said at the beginning, a crystal ball to predict things with is going to be very murky at best. But the above points give a good synopsis of where the Crypto market is heading and what’s coming up for us.

_Written by Bob Pattni _

What is Bitcoin, And What Does it Do

Covering the Basics: What is Bitcoin, And What Does it Do?!

Article by Bob Pattni, Cryptocurrency expert.

It’s the question I’m most often asked when I tell people what I do for a living. ‘Oh’ they say, looking puzzled. Then, politely but still very puzzled, comes the same question time after time. ‘But what is a Bitcoin? What does it do?’

I’ll answer this here in the same way I answer it in conversation – quite lengthy, but in as plain English as I’m capable of giving!

Firstly, you’re going to need to understand – just briefly – what cryptocurrency actually is. A cryptocurrency is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.  It’s is a medium of monetary exchange like normal currencies such as USD, but designed for the purpose of exchanging digital information through a process made possible by certain principles of cryptography. 

Okay so far?! Great. Now you understand the basics, let’s look at Bitcoin.

Bitcoin was created in 2009 by an unnamed individual or group of individuals known by the pseydonum of Satoshi Nakomoto. It’s a digital and global monetary system and is now a recognised form of currency. It allows people to send or receive money across the internet, even to someone they don’t know or don’t trust. Money can be exchanged without being linked to a real identity.

The mathematical field of cryptography is the basis for Bitcoin’s security. It’s not controlled by any country or bank, rather anyone can ‘mine’ for Bitcoins using specialist computer equipment to solve mathematical equations online and gather the currency.

Simply put. It’s money. Online, digital money that you can use in real transactions and is now recognised in nearly every country worldwide.

Bitcoins are electronic currency, otherwise known as ‘cryptocurrency’. Bitcoins are a form of digital public money that is created by painstaking mathematical computations and policed by millions of computer users called ‘miners’.

Bitcoins are, in essence, electricity converted into long strings of code that have money value.

But What Do Bitcoins Do?!

They do the same things as other money does – buy and sell goods or commodities. Bitcoins are completely virtual coins designed to be ‘self-contained’ for their value, with no need for banks to move and store the money.

Once you own bitcoins, they behave like physical gold coins: they possess value and trade just as if they were nuggets of gold in your pocket. You can use your bitcoins to purchase goods and services online, or you can tuck them away and hope that their value increases over the years.

Bitcoins are traded from one personal ‘wallet’ to another. A wallet is a small personal database that you store on your computer drive, on your smartphone, on your tablet, or somewhere in the cloud. Bitcoins that you win by ‘mining’ go into your personalised wallet, and are there for you to spend.

Sound complicated?! Then it’s probably not for you. But if you’re a ‘tecchy type’ then this is something you should really be thinking of investing in. For your next step, read all about what equipment you’ll need to invest in and how to get started ‘mining’.

_written by Bob Pattni_

Factors That Influence The Value Of Bitcoin

Factors that Influence the Value of Bitcoin

Bob Pattni

The following are the factors that influence the value of Bitcoin:

  1. Demand: The increasing demand day by day is leading to appreciation in the value of bitcoin.
  2. Supply: The supply is reducing every second due to increased difficulty in mining that goes up and up. There can only be 21 million coins ever, out of which a large portion is lost already that can’t be recovered.
  3. Awareness: More and more people are getting aware about it, they wan’t their bit of the coins too.
  4. Digital Growth: More and more users of internet will demand more coins.
  5. Halving: The block reward that a miner gets for mining eventually get half after reaching a particular level. At present it is 25 coins per 10 minutes (approx) that is going to be half by July 22, 2016.
  6. Electricity: Mining has a variable cost in form of electricity that goes high and high. So more cost means more value for the bitcoin.
  7. Complex Hardware: Now it is a big game that needs a complex and specialized hardware called ASIC Miner. It is produced in very less quantity, the best in the class is AntMiner S9 that got sold out in 2 minutes at the launch early this June.
  8. Competition: More and more people are getting into mining that increase the difficulty thereby taking the value higher.
  9. Hoarding: The supply is controlled by large players like what happens in Diamond. They have the holding capacity for years, so scarcity leads to more value.
  10. Up Trends: Appreciation leads to more demand as people think it will go up and will continue to go up.

I have mentioned all the factors, if you can add up more, please mention in comments.