Friday, September 2, 2016

Bitcoin: What Is It, and Is It Right for Your Business?

OK, so what's Bitcoin?

It's not an actual coin, it's "cryptocurrency," a digital form of payment that is produced ("mined") by lots of people worldwide. It allows peer-to-peer transactions instantly, worldwide, for free or at very low cost.

Bitcoin was invented after decades of research into cryptography by software developer, Satoshi Nakamoto (believed to be a pseudonym), who designed the algorithm and introduced it in 2009. His true identity remains a mystery.

This currency is not backed by a tangible commodity (such as gold or silver); bitcoins are traded online which makes them a commodity in themselves.

Bitcoin is an open-source product, accessible by anyone who is a user. All you need is an email address, Internet access, and money to get started.

Where does it come from?

Bitcoin is mined on a distributed computer network of users running specialized software; the network solves certain mathematical proofs, and searches for a particular data sequence ("block") that produces a particular pattern when the BTC algorithm is applied to it. A match produces a bitcoin. It's complex and time- and energy-consuming.

Only 21 million bitcoins are ever to be mined (about 11 million are currently in circulation). The math problems the network computers solve get progressively more difficult to keep the mining operations and supply in check.

This network also validates all the transactions through cryptography.

How does Bitcoin work?

Internet users transfer digital assets (bits) to each other on a network. There is no online bank; rather, Bitcoin has been described as an Internet-wide distributed ledger. Users buy Bitcoin with cash or by selling a product or service for Bitcoin. Bitcoin wallets store and use this digital currency. Users may sell out of this virtual ledger by trading their Bitcoin to someone else who wants in. Anyone can do this, anywhere in the world.

There are smartphone apps for conducting mobile Bitcoin transactions and Bitcoin exchanges are populating the Internet.

How is Bitcoin valued?

Bitcoin is not held or controlled by a financial institution; it is completely decentralized. Unlike real-world money it cannot be devalued by governments or banks.

Instead, Bitcoin's value lies simply in its acceptance between users as a form of payment and because its supply is finite. Its global currency values fluctuate according to supply and demand and market speculation; as more people create wallets and hold and spend bitcoins, and more businesses accept it, Bitcoin's value will rise. Banks are now trying to value Bitcoin and some investment websites predict the price of a bitcoin will be several thousand dollars in 2014.

What are its benefits?

There are benefits to consumers and merchants that want to use this payment option.

1. Fast transactions - Bitcoin is transferred instantly over the Internet.

2. No fees/low fees -- Unlike credit cards, Bitcoin can be used for free or very low fees. Without the centralized institution as middle man, there are no authorizations (and fees) required. This improves profit margins sales.

3. Eliminates fraud risk -Only the Bitcoin owner can send payment to the intended recipient, who is the only one who can receive it. The network knows the transfer has occurred and transactions are validated; they cannot be challenged or taken back. This is big for online merchants who are often subject to credit card processors' assessments of whether or not a transaction is fraudulent, or businesses that pay the high price of credit card chargebacks.

4. Data is secure -- As we have seen with recent hacks on national retailers' payment processing systems, the Internet is not always a secure place for private data. With Bitcoin, users do not give up private information.

a. They have two keys - a public key that serves as the bitcoin address and a private key with personal data.

b. Transactions are "signed" digitally by combining the public and private keys; a mathematical function is applied and a certificate is generated proving the user initiated the transaction. Digital signatures are unique to each transaction and cannot be re-used.

c. The merchant/recipient never sees your secret information (name, number, physical address) so it's somewhat anonymous but it is traceable (to the bitcoin address on the public key).

5. Convenient payment system -- Merchants can use Bitcoin entirely as a payment system; they do not have to hold any Bitcoin currency since Bitcoin can be converted to dollars. Consumers or merchants can trade in and out of Bitcoin and other currencies at any time.

6. International payments - Bitcoin is used around the world; e-commerce merchants and service providers can easily accept international payments, which open up new potential marketplaces for them.

7. Easy to track -- The network tracks and permanently logs every transaction in the Bitcoin block chain (the database). In the case of possible wrongdoing, it is easier for law enforcement officials to trace these transactions.

8. Micropayments are possible - Bitcoins can be divided down to one one-hundred-millionth, so running small payments of a dollar or less becomes a free or near-free transaction. This could be a real boon for convenience stores, coffee shops, and subscription-based websites (videos, publications).

Still a little confused? Here are a few examples of transactions:

Bitcoin in the retail environment

At checkout, the payer uses a smartphone app to scan a QR code with all the transaction information needed to transfer the bitcoin to the retailer. Tapping the "Confirm" button completes the transaction. If the user doesn't own any Bitcoin, the network converts dollars in his account into the digital currency.

The retailer can convert that Bitcoin into dollars if it wants to, there were no or very low processing fees (instead of 2 to 3 percent), no hackers can steal personal consumer information, and there is no risk of fraud. Very slick.

Bitcoins in hospitality

Hotels can accept Bitcoin for room and dining payments on the premises for guests who wish to pay by Bitcoin using their mobile wallets, or PC-to-website to pay for a reservation online. A third-party BTC merchant processor can assist in handling the transactions which it clears over the Bitcoin network. These processing clients are installed on tablets at the establishments' front desk or in the restaurants for users with BTC smartphone apps. (These payment processors are also available for desktops, in retail POS systems, and integrated into foodservice POS systems.) No credit cards or money need to change hands.

These cashless transactions are fast and the processor can convert bitcoins into currency and make a daily direct deposit into the establishment's bank account. It was announced in January 2014 that two Las Vegas hotel-casinos will accept Bitcoin payments at the front desk, in their restaurants, and in the gift shop.

It sounds good - so what's the catch?

Business owners should consider issues of participation, security and cost.

• A relatively small number of ordinary consumers and merchants currently use or understand Bitcoin. However, adoption is increasing globally and tools and technologies are being developed to make participation easier.

• It's the Internet, so hackers are threats to the exchanges. The Economist reported that a Bitcoin exchange was hacked in September 2013 and $250,000 in bitcoins was stolen from users' online vaults. Bitcoins can be stolen like other currency, so vigilant network, server and database security is paramount.

• Users must carefully safeguard their bitcoin wallets which contain their private keys. Secure backups or printouts are crucial.

• Bitcoin is not regulated or insured by the US government so there is no insurance for your account if the exchange goes out of business or is robbed by hackers.

• Bitcoins are relatively expensive. Current rates and selling prices are available on the online exchanges.

The virtual currency is not yet universal but it is gaining market awareness and acceptance. A business may decide to try Bitcoin to save on credit card and bank fees, as a customer convenience, or to see if it helps or hinders sales and profitability.

Are you thinking about accepting Bitcoin? Do you already use it? Share your thoughts and experiences with us.

You can learn all about bitcoin mining, block chains (the database), miner pools, wallets, and transactions at or as well as YouTube videos.

How to Buy a Bitcoin

There is no doubt in the fact that bitcoin trading is slowly taking the world of trading by storm. There is some hype, which says that bitcoin trading can be dangerous and difficult but honestly, it is a lot easier to get bitcoins, even easier than you think it is.

Here are some simple steps to buy bitcoin:

· Find A Wallet

First of all, you have to find an e-wallet. It is basically a store or a provider that offers software from where bitcoins can be bought, stored, and traded. You can easily run it on your desktop, laptop, and even smartphones.

· Sign Up

Next, you have to sign up with e-wallet. You will make an account that will let you store your bitcoins. The e-wallet trader will offer you a chance to convert your local currency into bitcoin. Therefore, the more local currency you have, the more bitcoins you can purchase.

· Connect Your Bank Account

After signing up, the trader has to connect his bank account with his trading account. For this purpose, some verification steps are to be performed. Once the verifications are performed, then you can start purchasing bitcoins and get started.

· Buying And Selling

Once you are done with your first purchase, your bank account will be debited and you will get the bitcoins. Selling is done in the same way purchasing is done. Keep in mind that the price of bitcoin changes time after time. The e-wallet you are working with will show you the current exchange rate. You should be aware of the rate before you buy.

Mining bitcoin

There is another way through which you can purchase bitcoins. This process is known as mining. Mining of bitcoins is similar to discovering gold from a mine. However, as mining gold is time consuming and a lot of effort is required, the same is the case with mining bitcoins. You have to solve a series of mathematical calculations that are designed by computer algorithms to win bitcoins for free. This is nearly impossible for a newbie. Traders have to open a series of padlocks in order to solve the mathematical calculations. In this procedure, you do not have to involve any kind of money to win bitcoins, as it is simply brainwork that lets you win bitcoins for free. The miners have to run software in order to win bitcoins with mining.

Bitcoin is a digital currency that is here to stay for a long time. Ever since it has been introduced, the trading of bitcoin has increased and it is on the rise even today. The value of bitcoin has also increased with its popularity. It is a new type of currency, which many traders are finding attractive just because of its earning potentials. At some places, bitcoins are even being used for purchasing commodities. Many online retailers are accepting bitcoin for the real time purchases too. There is a lot of scope for bitcoin in the coming era so buying bitcoins will not be a bad option.

Forexminute is a best platform to buy and trade bitcoins online. Here you will also get an insight of the foreign stocks, Forex, financial charts, trends and much more.

Bitcoin and Binary Options Trading

Binary options have been becoming more and more popular in the last 2 years. This type of trading has been desired among new traders as they don't need to actually buy anything, just predict whether the asset will move up or down in specified time frame. Those trades are happening in short time frames (30 sec, 1 min, 5 min) but might be months too. If the trader predicted wrongly, they will obviously lose their money. If the trader was right in his/her prediction, they will receive 80-85% payout, depending on the broker.

Bitcoin and Binary Options Trading

Binary options are sometimes referred to as 'all-or-nothing options', 'digital options', or 'fixed return options' (FROs), which are traded on the American Stock Exchange.

Bitcoin (BTC) is a digital currency which is created and held electronically and no one controls it. "Bitcoin is an online payment system invented by Satoshi Nakamoto, who published his invention in 2008, and released it as open-source software in 2009. The system is peer-to-peer; users can transact directly without needing an intermediary.Transactions are verified by network nodes and recorded in a public distributed ledger called the blockchain. The ledger uses its own unit of account, also called bitcoin. The system works without a central repository or single administrator, which has led the US Treasury to categorize it as a decentralized virtual currency. Bitcoin is often called the first cryptocurrency... "

Bitcoin as a currency in binary options trading

Bitcoin is now widely used currency and many trading platforms accept it as a method of payment for their clients' trading deposits. There are many benefits using Bitcoin as a currency. The first benefit is "the fact that the cost of transaction is the lowest among all forms of online payment. This is the very reason why Bitcoin was created in the first place, to lower the cost of online transaction. Since there is no central authority managing Bitcoin, no service fee is paid when receiving or transmitting payment." Another reason for traders to use Bitcoin as a currency is that Bitcoin itself is tradeable and they can earn extra Bitcoins that way.

"By having all the trading transactions denoted in Bitcoin, a trader is able to shield himself from the fluctuation of this crypto currency while at the same time earn more of it through profits earned in trading."

Bitcoin as a commodity in binary options trading

With a recent popularity of Bitcoin and its acceptance as a currency, many binary options platforms started using Bitcoin as one of the currencies to trade. so as an asset. Stockbrokers are seeing the value in trading BTC against flat currencies, mainly versus American Dollar.

Today there are 2 main types of Bitcoin binary options platforms:

First-generation brokers - binary options platforms that allow trading on Bitcoin
Second-generation brokers - platforms that offer both Bitcoin funding and Bitcoin trading

First generation brokers - brokers who offer Bitcoin trading:

Coinut - only Bitcoin options exchange platform; programmed as a robust and distributed on Linux operating system
BTClevels - Bitcoin binary options trading platform; with or without registration, hassle free
24 Options - one of the first brokers who started offering BTC as an asset

Second-generation brokers - brokers who offer Bitcoin funding and trading:

Traderush binary platform - accepts BTC deposits
Nadex trading platform -accepts BTC funding and allows BTC trading; offers limited risk, short-term trading, transparency and full regulated market
Satoshi Option trading platform - accepts BTC funding and allows BTC trading; doesn't require account registration neither personal details. Payouts are near instantaneous and the service is accessible from anywhere in the world
BTCOracle platform - Bitcoin only platform - allows BTC funding and trading offering few wallet options and full transparency
Bitstamp platform - As above, BTC only platform - allows BTC trading and funding but requires login
Bitcoin Wisdom - allows trading 3 digital currencies, Bitcoins, Litecoins, Altcoins versus other flat currencies and requires login
Beast Option - allows BTC funding and trading of Bitcoins and Litecoins; guarantees fairness in pricing regardless of market fluctuations

When choosing a Bitcoin broker it is important to check their terms and conditions, paying a particular attention to the information whether their Bitcoin Assets are stored in "Deep Cold Storage". It means that Bitcoins are insured and stored offline, where they are not susceptible to hackers.

Trading binary options can be lucrative but only with the right tools. To compare top binary options signals visit

How Bitcoin Works

Bitcoins are a decentralized form of crypto currency. Meaning, they are not regulated by a financial institution or the government. As such, unlike a traditional bank account, you do not need a long list a paperwork such as an ID in order for you to establish what's known as a bitcoin wallet. The bitcoin wallet is what you will use to access your bitcoins and to send bitcoins to other individuals.

How To Setup An Account

You can acquire a bitcoin wallet from a bitcoin broker such as Coinbase. When you open up a wallet through a certified broker, you are given a bitcoin address which is a series of numbers and letters, similarly to an account number for a bank account and a private key which is a series of numbers and letters as well, which serve as your password.

How Does Bitcoin Work As An Anonymous Payment Processor

You can do 3 things with bitcoins, you can make a purchase, send money anonymously to someone or utilize it as an investment. More and more merchants have been accepting bitcoins as a form of payment. By utilizing bitcoins instead of cash, you are essentially making that purchase anonymously. The same thing goes for sending money, based on the fact that you do not have to submit a mountain of payment in order for you to establish a bitcoin anonymously, essentially you can send money to someone else anonymously.

How Does Bitcoin Work As An Investment

The price of a bitcoin fluctuates from time to time. Just to put things in perspective, back in the beginning of 2013, the average price of a bitcoin was approximately $400 per bitcoin, but by the end of 2013, the price for bitcoin rose to over $1000. This meant that if you had 2 bitcoins worth $800 in the beginning of 2013 and you stored it as an investment by the end of 2013 those two bitcoins would have been worth over $2000 instead of $800. Many people store bitcoins due to the fact that the value of it fluctuates.

Bitcoin Casino and Poker Sites

Due to the anonymity of bitcoin the gambling industry has taken up bitcoin as a payment method. Both bitcoin casinos and bitcoin poker sites are coming to life and offering their players to make deposits, play with bitcoin at the tables and withdraw directly to their bitcoin wallet. This means that there's no taxes or possibilities for government control. Much like a regular Nevada casino where do you don't need to register anywhere and all your transactions are anonymous.

How Do You Send Bitcoin

In order for you to pay for goods and services or to send bitcoins to an individual, 3 things are needed. Your bitcoin address, your private key and the individual's bitcoin address. From that point, through your bitcoin wallet, you will put 3 pieces of information, which are: input, balance and output. Input refers to your address, balance refers to the amount of bitcoins you are going to send and output is the recipient's address.

Learn more about how it works and find bitcoin casinos and bitcoin poker sites at Here we explain further about how to use this currency and how everything works with the wallet and where to best get your own wallet. We also explain further on the use for online casino and also for other areas. This is a very exciting currency. With many possible areas of usage.

We also provide in depth reviews of mobile casinos and an extensive guide to gaming online. You can play for free and take up free spins offers and free bonuses. Or you can read further about your favorite casino game.

Introduction to Bitcoin

Bitcoin has been in the news the last couple of weeks, but a lot of people are still unaware of them. Could Bitcoin be the future of online currency? This is just one of the questions, frequently asked about Bitcoin.

How Does Bitcoin Work?
Bitcoin is a type of electronic currency (CryptoCurrency) that is autonomous from traditional banking and came into circulation in 2009. According to some of the top online traders, Bitcoin is considered as the best known digital currency that relies on computer networks to solve complex mathematical problems, in order to verify and record the details of each transaction made.

The Bitcoin exchange rate does not depend on the central bank and there is no single authority that governs the supply of CryptoCurrency. However, the Bitcoin price depends on the level of confidence its users have, as the more major companies accept Bitcoin as a method of payment, the more successful Bitcoin will become.

Benefits and Risks of Bitcoin

One of the benefits of Bitcoin is its low inflation risk. Traditional currencies suffer from inflation and they tend to lose their purchasing power each year, as governments continue to use quantative easing to stimulate the economy.

Bitcoin doesn't suffer from low inflation, because Bitcoin mining is limited to just 21 million units. That means the release of new Bitcoins is slowing down and the full amount will be mined out within the next couple of decades. Experts have predicted that the last Bitcoin will be mined by 2050.

Bitcoin has a low risk of collapse unlike traditional currencies that rely on governments. When currencies collapse, it leads to hyperinflation or the wipeout of one's savings in an instant.

Bitcoin exchange rate is not regulated by any government and is a digital currency available worldwide.

Bitcoin is easy to carry. A billion dollars in the Bitcoin can be stored on a memory stick and placed in one's pocket. It is that easy to transport Bitcoins compared to paper money.

One disadvantage of Bitcoin is its untraceable nature, as Governments and other organisations cannot trace the source of your funds and as such can attract some unscrupulous individuals.

How to Make Money with Bitcoin
Unlike other currencies, there are three ways to make money with Bitcoin, saving, trading and mining. Bitcoin can be traded on open markets, which means you can buy Bitcoin low and sell them high.

Volatility of Bitcoin
The value of Bitcoin dropped in recent weeks because of the abrupt stoppage of trading in Mt. Gox, which is the largest Bitcoin exchange in the world. According to unverified sources, trading was stopped due to malleability-related theft that was said to be worth more than 744,000. The incident has affected the confidence of the investors to the virtual currency.

According to Bitcoin chart, the Bitcoin exchange rate went up to more than $1,100 last December. That was when more people became aware about the digital currency, then the incident with Mt. Gox happened and it dropped to around $530.

In 2014, We expect exponential growth in the popularity of bitcoin around the world with both merchants and consumers, Stephen Pair, BitPay's co-founder and CTO, รข€œand anticipate seeing the biggest growth in China, India, Russia and South America.

India has already been cited as the next likely popular market that Bitcoin could move into. Africa could also benefit hugely from using BTC as a currency-of-exchange to get around not having a functioning central bank system or any other country that relies heavily on mobile payments. Bitcoin's expansion in 2014 will be led by Bitcoin ATMs, mobile apps and tools.

World Experiences Bitcoin
More people have accepted the use of Bitcoin and supporters hope that one day, the digital currency will be used by consumers for their online shopping and other electronic deals. Major companies have already accepted payments using the virtual currency. Some of the large firms include Fiverr, TigerDirect and Zynga, among others.

The Future of Bitcoin

Bitcoin works, but critics have said that the digital currency is not ready to be used by the mainstream because of its volatility. They also point to the hacking of the Bitcoin exchange in the past that has resulted in the loss of several millions of dollars.

Supporters of digital currencies have said that there are newer exchanges that are supervised by financial experts and venture capitalists. Experts added that there is still hope for the virtual currency system and the predicted growth is huge.

I hope this article has helped you all gain a much more clear understanding of Bitcoin, the potential, does Bitcoin work and how Bitcoins work. For more articles about Bitcoin, weekly trends, information and updates, subscribe to our blog post.