Categorized | Bitcoins

Introduction to Bitcoins

coinstack1btcBitcoins are completely digital currencies that are not regulated by financial institutions. As such, they can be used globally and converted into Euros, British Pounds, US Dollars, or any other world currency. Users access bitcoins through a digital wallet. Initially, a user will need to accept bitcoins as a payment for services or purchase bitcoins through an exchange with his or her bank. Then, they can use bitcoins to send money using a digital address.

Bitcoin miners use special hardware to create a limited number of bitcoins. The bitcoin coding limits the number of bitcoins that can be created by making mining more difficult as more bitcoins come into circulation. The system is set to max out at 21 million bitcoins although this will not happen until the year 2140. Though this seems like a small amount for a global currency, whole bitcoins are only used to send large amounts of money. As of the writing of this article, 1 British Pound is equal to about .002 bitcoins. 1 bitcoin is equal to about 511 British Pounds. Since Bitcoins are a very volatile currency, this information could stay the same for weeks, or change tomorrow. An accurate exchange rate calculator can be found at Coinmill.

The number of merchants that accept bitcoins is growing. Over 2,000 merchants accept bitcoins. Most of these merchants are online but some brick and mortar businesses do accept bitcoins as well. The most accurate and up-to-date list of merchants that accept bitcoins can be found at UseBitcoins.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>