What is Bitcoin

Mark Lyford

“I first got into crypto-currency in April last year, when my good friend Brad Gosse told me about Bitcoin. I haven’t looked back since then. The money-making potential of Bitcoin is beyond anything I have seen to date.”

 

 

 

 

 

About the author

Mark Lyford is a bitcoin analyst and author of “Rebel Entrepreneur” and “Bitcoin Revolution”. He lives in the UK with his sons aged 10 and 13, and his two dogs. He is the owner and manager of http://bitbanx.com/, where he offers training and advice to people looking to get involved with bitcoin and other crypto-currencies.

 

What is Bitcoin and ‘crypto-currency’?

Crypto-currency in a form of decentralized digital-only currency. It is not controlled or regulated by any world government or central bank, and so offers a tremendous amount of freedom to its users. All transactions take place directly between buyer and seller, without the need for third party mediation, allowing funds to be transferred instantly anywhere in the world. As a result, transaction fees for using crypto-currency are negligible, and the need for currency exchange is removed altogether.

The first crypto-currency to be released was bitcoin. The Bitcoin client was developed by Satoshi Nakamoto, and made available to the public in early 2009. Last year bitcoin surged in value by over 10,000%, and at one point was worth more than gold. This sparked a massive interest in crypto-currency, and dozens of ‘altcoins’ have were developed in an attempt to replicate, or even surpass bitcoin’s success. These include Litecoin, Namecoin and Feathercoin, to name just a few.

The majority of crypto-currencies are ‘mined’ by powerful computers which perform complex mathematical equations in order to process transactions, maintain network security, and prevent fraud. Miners are rewarded for this service with varying amounts of new currency, and a portion of transaction fees.

Crypto-currencies have also very become popular with speculative investors who trade crypto-currencies against each other. The potential rewards are very high, as a crypto-currency can increase in value by as much as 50% in single a day. However, trading is not without risks, and should only be attempted by those with a good working knowledge of the market.
(You can visit http://bitbanx.com/ to learn more about crypto trading.)

Crypto-currency is already big business, and what we’re seeing now is just the tip of the iceberg. If anyone asks me if they should be investing in crypto-currency, I tell them –‘absolutely’. You don’t even have to be mine or trade crypto to be involved, a lot of people simply buy crypto-currency and hang on to it. One thing’s for sure though; however you decide to get involved in crypto, you definitely should be involved.

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