What is Bitcoin and how can it make me money

What is Bitcoin?



Bitcoin is the first open source peer-to-peer Cryptocurrency. One can simply describe it as a digital currency. Bitcoin can be earned by purchasing it through an exchange, trading or selling items for bit-coin, or Mining. You can mine bitcoins by setting up a processes that solves mathematical computations.

Setup a Bitcoin Wallet

Before we can mine bitcoins we first have to setup a wallet at Bitcoin.org

Once we have our Bitcoin wallet we can move on to purchasing coins from the exchange or even mining Bitcoins.

How do I mine bitcoin

So how do I mine bitcoin so I can trade them in for Fat Loots($$$$).

http://www.weusecoins.com/en/mining-guide is a great place to start. Basically mining bitcoins on an individual basis really isnt cost effective unless you have hardware specifically designed at mining bitcoins. For every block discovered 25 bitcoins are found. The exchange rate of bit coins varies but recently it has been in the realm of hundreds of dollars per a bitcoin. Using a standard CPU processing all the time may result in a block(25 coins) every couple of years. Some users choose to join a pool where many users collaborate their efforts. The profits are then split evenly among the pool. This allows for a steady small growth over time as apposed to a large infrequent growth. https://eclipsemc.com/ is a good place to start if you are interested in pooling. You could also create a piece of software that everyone uses and embed a bitcoin miner. utorrent recently did this in its software.

This video has a great explanation https://www.youtube.com/watch?feature=player_embedded&v=GmOzih6I1zs.

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