BITCOINS

WHAT IS BITCOINS ?

Bitcoin is a consensus network that enables a new payment system and a completely digital money.

It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen.

From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.

BITCOIN HISTORY

The first Bitcoin specification and proof of concept was published in 2009 by Satoshi Nakamoto.

Bitcoin is the first implementation of a concept called "crypto-currency", which was first described in 1998 by Wei Dai

HOW BITCOIN WORKS ?

As a new user , we have to install digital wallet in the mobile or computer.

You can open three type of wallet : software wallet , mobile wallet or web wallet .

Each address has its own Bit coins balance, so all you need to do is acquire a number of Bit coins that will be held at one of the addresses in your wallet.

You can purchase bit coins in number of way : like buying from bitcoin currency exchange etc .

HOW BITCOINS WORK ?

Then make sure you create a new address for each transaction as a means of ensuring privacy and enhancing security.

Once you have created a Bitcoin address and have acquired Bitcoins, you can use them for an online transaction with a company that accepts Bitcoins as a payment mode.

ADVANTAGES OF BITCOINS

Low Collapse Risk Low Inflation Risk Easy and Fast Payment Secure (Cryptography)Low or no Transaction feeEasy to Carry Untraceable

DISADVANTAGE OF BITCOINS

Payment are IrreversibleNot widely AcceptedUntraceableSimple to useExperimental currencyCannot buy everythingVolatileLosing your wallet

WHERE TO BUY BITCOINS ?

BITCOIN currency Exchange (MT. Gox,Bitcon – 24 , Camp BX)

BUY it from some at Localbitcoin.com or bitcointalk.org

BITCOINS RATES

1BTC = 1127 USD

1BTC = 821.9 EURO

1BTC = 1233 AUS DOLLAR

1BTC = 7322 SEK

1BTC = Rs 72297

(Note these rates keeps on fluctuating )

MY OBSERVATIONS

As per my observation I don’t recommend people to put a huge amount of money in it but I will suggest them to just get familiar with this new system .The another thing concerns me is the santoshi anonymity .So I don’t completely trust the system as well .In bitcoins , you are of your own . So , I suggest people to do considerable amount of study and expect advice’s and then only invest any amount on it.