Top 10 Old School Bitcoin Facts that every newbie should know

Call it a bit of Bitcoin nostalgia but I found this old school video so hilarious. I had to post it for the entertainment value. Just think Bitcoin is less then 10 years old but for me, watching this video felt the same as watching an old 80’s Top of the pops show. You know deep down you dressed and danced the same way but looking back at it really feels cheesy. Polyester may have been cool and hip in the 80″s but 40 years on you wouldn’t’ go near it with a barge pole. Likewise 10 years from 2009 we have come along way with the cryptocurrency and Bitcoin as a whole. It’s no longer the geeky fad it once was. Big Industry players and the finance sector are actively carving out there space in this Epoch of the world economy. Ask yourself the question which is more important email or money? Bitcoin is way bigger then email!
For those who prefer to read I have had it professionally transcribed below. We offer these services here at PC Hospital just call us on 0203 714 3567 or use the contact us form.

It’s time to put your money where your monitor is and while it doesn’t grow on trees it does grow in your hard drive welcome to watchmojo and today we’re counting down our picks for the top 10 Bitcoin facts. Number 10. Bitcoin basics otherwise referred to as electronic money or virtual currency. Bitcoin is a peer-to-peer payment system that offers a 21st century alternative to regular brick-and-mortar banking. A Bitcoin is something that most users will never see and never touch beyond their computer screens, exchanges are made via wallet software rather than the traditional wallet in your back pocket. There exists no central bank or authority so the value of your bank balance is set entirely by the supply and demand of the market. Number 9. Buying things with bitcoins as with all money it’s best if you’re able to spend it. It’s been gradual but there are more and more commodities becoming available to Bitcoin holders. Perhaps the most high-profile to accept the currency is Virgin Galactic, their upcoming space tourist flights are purchasable. If you prefer your transport a little more traditional than Lamborghini is the first motor company to give the go-ahead and what car-stereo would be complete without Spice Girl Mel B.  She was the first musician to recognise payments for her music.

Number eight. The numbers the Bitcoin supply is finite production of bitcoins is romantically called mining with millions of dollars worth mined or exchanged electronically each day. Every Bitcoin transaction is verified using an extremely complex algorithm. And these verification’s are done by a large network of mining computers competing against each other. When a miner successfully verifies a transaction he or she is rewarded with a small amount of bitcoins. This is also how new bitcoins are introduced into the system and mining is a lot of work globally. The network of mining computers is now over 250 times more powerful than the world’s top 500 supercomputers combined. Number 7. The value with nothing to hold in your hand the bitcoins value might seem indecipherable. As a new concept it does tend to fluctuate however in general the value seems to be increasing in November 2011 after a crash a Bitcoin was worth $2 u.s.

In November 2013 a Bitcoin topped $1,000 US and value and briefly was worth more than an ounce of gold though its value has since fallen just imagine the level of security when the first Bitcoin cash machine opened in Vancouver Canada the previous month. Number 6. Bitcoins and bankruptcy an old saying says you have to speculate to accumulate and there are speculators aplenty when it comes to Bitcoin while there are winners there are inevitably losers – in February 2014 Mount GOx the one-time largest Bitcoin exchange was forced to file for bankruptcy protection due to possible hacking theft or mishandling that cost them in excess of four hundred and fifty million dollars. Bitcoin is a currency that can lose up to 80 percent of its value in seconds. So mount GOx was in very big trouble very quickly.

Number 5. Banning the bitcoin, probably because it subverts the traditional banking system and works outside government regulation bitcoin is outlawed in many countries around the world and is heavily frowned upon by many others. In July 2013 Thailand  became the first country to completely ban the currency though they later relaxed the ruling and China with its higher global profile banned banks from trading bitcoins. In December of the same year the US Treasury has also flexed its monetary muscles by shutting down a physical Bitcoin production company in 2013.

Number 4. Know your limits, the number of bitcoins that can exist is limited to 21 million and the production rate is scheduled to be halved every four years to ensure that the value of a Bitcoin is not lost. This means that supply will run out around the year 2140 and although miners will no longer be rewarded with new bitcoins they will still be paid for their efforts through transaction fees. As it stands today over a century before the deadline roughly 64% of bitcoins sit unused in their respective accounts appreciating and depreciating with time.

Number 3. WikiLeaks the notorious organisation WikiLeaks relies very heavily upon this futuristic form of finance in mid-2011 the nonprofit whistleblower group began using Bitcoin as a method of processing donations because other money transfer companies wouldn’t deal with them. To become so dependent on something so unpredictable is perhaps not the wisest of moves but so far using the cryptocurrency hasn’t done a lot of harm to the media profile of Julian Assange and company. Julian says ” watching the world change as a result of your work priceless.”

Number two. Silk Road, the equally infamous Silk Road website used bitcoins as its form of currency a black-market trading site that specialised in illegal drugs and goods as well as some more reputable products. It provided browsers with anonymity and made its money using bitcoins when alleged site founder Ross Ulbricht was arrested his estimated fortune was so inconceivable that it’s believed that well over half remains unaccounted for. As a side note the name of Ulbricht alter-ego Dread Pirate Roberts was lifted from the movie “The Princess Bride” go figure! before we unveil our top pick here are a few honourable mentions(see captions).

Number one. Bitcoin beginnings, Satoshi Nakamoto is the person or persons behind Bitcoin launching the software in 2009 Nakamoto past majority control on to scientist Gavin Andersen in late 2010. And for this reasons his comments capture Bitcoin perfectly when he says “it’s like better Gold than Gold” Nakamoto’s believed to be in possession of 1 million bitcoins equivalent to a billion u.s.dollars but his name is probably a pseudonym the real identity of Satoshi Nakamoto is unknown it’s been suggested that electronics companies Samsung Toshiba Nakamichi and Motorola are the founders but there’s been no confirmation it’s a mystery for the modern world.

 

Bitcoin investor teen and multi Millionaire Eric Finman talks about the best decision he ever made.

 

https://www.youtube.com/watch?v=k4FNmp3mKp4 

Teen Millionaire Eric Finman agreed to an interview and this is what he said “so I was 18 years old when I made my first million dollars it felt pretty great. I felt great you know, I did put some towards buying a Lamborghini’s, there’s a dealership in Newport Beach that takes Bitcoin for Lamborghini’s. “I’m Eric Finman and I am one of the youngest Bitcoin millionaires in the world”. We walk through his sizeable city apartment and he further explains. “In this bedroom we got a lot of beds here, I have a lot of friends over I don’t really like cuddling. And I am pretty minimalistic so I don’t like to have too many clothes that’s pretty much it I like to just live life in a gym t-shirt and gym shorts perpetually”. He opens a huge wardrobe with few garments casually thrown in the bottom corner. “Hey you know if you got money there is no point in dressing well. I check my Bitcoin every 30 minutes so I get a notification like of the price, so I originally got into Bitcoin when I was just 12 years old. When I was about ten, bitcoin was twelve dollars a coin and myself and one of my brothers, we really he really got into it and we were very close and then we really got into all this big bling stuff I was very fortunate enough to have a kind grandmother. She had an extra thousand dollars to give her kids for a scholarship fund, so I put that $1,000 into Bitcoin so I was able to amass about 400 plus bitcoins so there you go”. 

He continues, “This is purse this is a website that allows you to like buy things off of Amazon and then it also like gives you a discount because using Bitcoin rather than all the fees of you know credit cards and all that stuff so that’s where I have like I’d like a hardware key I like to check I have like a hard drive that I like keep it in secure location. Basically it is a disruptive technology it’s not regulated if it can’t be tracked and it tends to attract people who are doing illegal things.  

There are a couple people kind of top politicians some Wall Street people they’re saying that bitcoin is not gonna work out and bitcoin is  kind of used for the bad things and  that recently has affected the price because politicians and Wall Street  people are very afraid of what bitcoin will do to them in their industry. So school was maybe not the best thing for me to say the least I didn’t really particularly enjoy it I had a lot of teachers that were maybe not the most positive one teacher told me to drop out and work at McDonald’s because that’s  all  I’ll ever amount to in life so I left I dropped out when I was fifteen and I went to start an education company that would help people learn better, it was to give people access to good teachers if you didn’t have any locally I wonder how I came up with that idea.  I think you can learn a thousand million times more on the internet than in the classroom everything is there for you.  You just need to have the motivation most people think that they have to go through this traditional path and they have to do this,  I’m kind of more aware that that’s maybe not so much the case. I think about how can I completely do something my way so if this is a traditional way of doing it. I think about how to redo this from scratch. How could I do that. I think career that was one you know. School that was two you know three you know kind of currency Bitcoin and all that stuff. That’s what I think is that in a sense that, society and the world and the world’s rules limit you in so many ways if you completely rethought about how you could do something your way completely from scratch what would that look like?” 

Folks you just got a fractional insight into the very fortunate teen Eric Finman.  

Bitcoins

Litecoin mining my experiences, the good the bad and the ugly.

rg2b Litecoin mining my experiences, a place to discuss my own foray with Litecoin mining.

If you’re new to the world of Bitcoin, Litecoin and crypto currencies in general. A simple definition would be to say that they are a new form of digital currency. In very much the same way that we have adopted the credit card after years of using physical paper money (Cash), it is hoped that Litecoin and other crypto currencies will gain acceptance on the basis of their significantly lower transaction charges in comparison to credit cards and interbank cash transfers. This is achieved by a decentralised system where the transactions are checked and verified by the computers of ordinary members of the public. Typically referred to as “Litecoin miners”. All the transactions are secured with the highest forms of encryption, it’s very design makes the system almost impossible to take advantage of as it would mean an attacker would have to have the combined processing power of the entire Litecoin network at their disposal to even begin to attempt to compromise its security.

What’s in it for the Litecoin miners you may be asking yourself. Well the system is designed so that those members of the public using Litecoin mining machines made by companies such as Alpha Tec and KNC miners would themselves be given a reward of FREE coins as long as they kept their machines running on the network. This process is called mining as you are in fact generating new coins as well as assisting transactions between two parties. Possibly a buyer and a seller of Litecoins or simply the movement of Litecoins between two different accounts. These accounts can sometimes be referred to as your Litecoin address or wallet address. As this is a decentralised currency, securing  the PC with which your account is most commonly accessed is fairly important as with any form of currency. Securing a digital wallet is very simple it just requires  a few clicks on your mouse acknowledging you want the wallet encrypted and providing a passcode.  I would always recommend securing the wallet first before actually moving coin to it. Once encrypted the process of compromising it is very difficult. There are other options to use an online wallet  with 2 factor authentication and have them provide much of the security for you. There security policies will be in line with the global ISO 27001 standard.

The primary reason for starting this blog post is to publicly review my recent purchased Alpha Tech Viper mining machine in January 2014. Prior to this date I had built a couple of Litecoin minings rigs using 7950 and R290 I will be documenting my success and failures  in attempting to enter the crypto currency market at such a late stage. Come back to review later post and see how I am getting on with the project.

Litecoin Dream

 

The Litecoin mining Dream!