Bitcoin (BTC)

Bitcoin (BTC)
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Wikipedia:-
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Bitcoin is a peer-to-peer digital currency that functions without the intermediation of a central authority. The concept was introduced in a 2008 paper by a pseudonymous developer known as "Satoshi Nakamoto".
Bitcoin has been called a cryptocurrency because it is decentralized and uses cryptography to control transactions and prevent double-spending, a problem for digital currencies. Once validated, every individual transaction is permanently recorded in a public ledger known as the blockchain. Payment processing is done by a network of private computers often specially tailored to this task. The operators of these computers, known as "miners", are rewarded with transaction fees and newly minted Bitcoins. However, new bitcoins are created at an ever-decreasing rate.
In 2012, The Economist reasoned that Bitcoin has been popular because of "its role in dodgy online markets," and in 2013 the FBI shut down one such service, Silk Road, which specialized in illegal drugs (whereupon the FBI came into the control of approximately 1.5% of all bitcoins in circulation). However, bitcoins are increasingly used as payment for legitimate products and services, and merchants have an incentive to accept the currency because transaction fees are lower than the 2 to 3% typically imposed by credit card processors. Notable vendors include WordPress, OkCupid, Reddit, and Chinese Internet giant Baidu.
Speculators have been attracted to Bitcoin, fueling volatility and price swings. As of July 2013, the use of Bitcoin in the retail and commercial marketplace is relatively small compared with the use by speculators.
Bitcoins are stored by associating them with addresses called "wallets". Wallets can be stored on web services, on local hardware like PCs and mobile devices, or on paper print-outs. Thefts of bitcoins from web services and online wallets have been covered in the media, prompting assertions that the safest way to store bitcoins is on secure paper wallets.




How to earn BTC ?


The first thing you will need is to download BTC wallet


Goto bitcoin.org and download a wallet , i will suggest to download bitcoin-QT


After installation leave it so it download all the blocks , it will take a lot of time , approx couple of hrs. when all the blocks are d/l you are ready with BTC wallet.


now goto receive tab and you will c address this is your BTC address , you can use it to receive BTC , you can generate many address.





You can use a online wallet , its easy to use and you do not have to download blocks as well , most commonly used online wallet is blockchain.info , easy to use and mostly btc miners use it


Now you have wallet , lets start with earning BTC


Well the easiest way to earn free BTC is to get from sites which give Free BTC


Here is a thread from our TBN member , this is very useful thread for those who want free BTC , kindly say thanks to the member for this useful thread


http://thebot.net/cryptocurrency/235786-catchcoin-earn-bitcoins-without-mining-43-pages/ , this site contains pages of free BTC giveaway site , so u can get free btc from one site


Now the important part Mining BTC.


BTC are earned by mining , what is mining ?


Mining is the process of adding transaction records to Bitcoin's public ledger of past transactions. This ledger of past transactions is called the block chain as it is a chain of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. Bitcoin nodes use the block chain to distinguish legitimate Bitcoin transactions from attempts to re-spend coins that have already been spent elsewhere.

Mining is intentionally designed to be resource-intensive and difficult so that the number of blocks found each day by miners remains steady. Individual blocks must contain a proof of work to be considered valid. This proof of work is verified by other Bitcoin nodes each time they receive a block. Bitcoin uses the hashcash proof-of-work function.

The primary purpose of mining is to allow Bitcoin nodes to reach a secure, tamper-resistant consensus. Mining is also the mechanism used to introduce Bitcoins into the system: Miners are paid any transaction fees as well as a "subsidy" of newly created coins. This both serves the purpose of disseminating new coins in a decentralized manner as well as motivating people to provide security for the system.

Bitcoin mining is so called because it resembles the mining of other commodities: it requires exertion and it slowly makes new currency available at a rate that resembles the rate at which commodities like gold are mined from the ground. (again Wikipedia )


There is two type of mining , one is solo mining this means you mine alone and if a block is generated you will be the only owner of that BTC. and second is Pool mining this means a couple of people unite together and mine this is a fast process for those who do not have good GPU , when a block is generated , award is distributed to all pool miners equally


Miners:- There are plenty of software's which help you to mine BTC but in this thread i will use guminer as an example


NOTE: Since the difficulty is very high, unless you have an ASIC mining device and/or a very significant aggregate hash rate (over several TENS OF Ghash/sec or more) you are probably going to spend more on electricity than you can recoup in mined bitcoins, even when mining in a pool! If you have access to free electricity though, then there really is no argument against mining wink(aside from the *possibility* of shortening the lifespan of your graphics card(s)/mining hardware). For solo mining, you may end up waiting for many months/years to generate your own block and get 25 bitcoins (plus transaction fees), or use lots of electricity to maybe not ever generate a block at all.


Solo mining:-


1. Go to www.bitcoin.org, download and install the most recent version of bitcoin (the default file path should be fine).
2. run guiminer.exe.
3. From the GUIMiner interface, click solo utilities → set bitcoin client path. Point the dialog box to bitcoin-qt.exe; likely located at C:\Program Files (x86)\Bitcoin\bitcoin-qt.exe or C:\Program Files\Bitcoin\bitcoin-qt.exe. Next click solo utilities → create solo password. Pick anything arbitrary for username and password but remember it, as you will need to use this later. Then finally you want to click solo utilities → launch bitcoin client as server.
This will launch bitcoin ready to be mined with, you must first wait for all the blocks to be downloaded before you can start to mine, and this may take several hours; you can view the current block count here.
4. Once all the blocks are downloaded, select solo from the server drop down box, then enter the username and password that you used before, then click start mining. Congratulations, you are now mining for bitcoins


Pool Mining:- This thread will help you http://thebot.net/cryptocurrency/23...-own-mining-pool-lets-join-and-earn-some-btc/

Now i think you all know what is BTC and how to earn it , so start your BTC mining today

If you still have any question feel free to ask here

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