Hey guys! I just wrote something to explain what bitcoin is and I want your inputs on this. I'm not done already but I want your inputs before I continue. We have a lot of random curious poeple unaware of bitcoin coming on our website everyday and the goal here is to explain them bitcoin and get them hooked as quick as possible. Secondly, it must pass the grandma test. Make it read by your grandma and if she understand something, it's a good sign. So let's make all the grandma of this world getting started with bitcoin!
http://thebitcoincatalog.com/what-is-bitcoin/Here it goes:
What is bitcoin?Bitcoin is a peer-to-peer cryptocurrency running on a decentralized network of users (it means that no one is in control of bitcoin). Bitcoin is also an open source software created by
Satoshi Nakamoto in January 2009. It officially entered the market on July 18, 2010 when Mt.Gox exchange first quoted it at 0.05 USD per bitcoin. Since its creation, bitcoin continues being developed by cryptographers, software programmers and many more to make it more useful, secure and user friendly!
Interesting facts about bitcoin!- No more than
21 million bitcoins will ever be created.
– One bitcoin can actually be divided up to 0.00000001
– Bitcoins are created by computational calculations called “mining” which has become a very competitive industry over time.
– Bitcoin is international and allows sending merely any amount of money anywhere, instantly and cheaply.
– Bitcoin transactions are irreversible.
– The network holds all transactions in what’s called the blockchain, which is 100% transparent.
– The network is also responsible for verifying that no one is cheating the transactions. The network has no transaction errors up-to-date.
– Bitcoin is very private but not anonymous by default. It can be though if used properly.
– Bitcoin’s value is regulated purely by free market.
– Bitcoin’s value is very volatile but that is also what allows it to gain value.
– Most of all, bitcoin is very secure!
How does bitcoin works?– Bitcoin is composed of a string of numbers/letters called a public key. That public key is your bitcoin receiving address that you may share with anyone.
– The public key can be compared to a locked box (account) that you can put bitcoins in it.
– Here is an example of a public key: 12mL7brZz9pa4yXN5pXmk86ivAKu4TxtTy
– Another string of numbers/letters is used to send the bitcoins. That string is called the private key.
– The private key can be compared to the key than opens the locked box (account) to get the bitcoins in it.
– Here is an example of a private key: 5Ja1AzstCBkxZQMNcwi7vJQHHgmYit1f4h5ceXTKCHmDetaWhBp
– YOU and YOU ALONE are responsible for hiding your private key from anyone you do not trust.
– Many available “wallet” applications can easily manage these keys for you on different device, such as computers and smartphones.
– The wallet software allows you to:
– See your bitcoin balance.
– Receive and send bitcoins to other users easily (Can use a QR code).
– Manage several public keys (accounts).
– “Hide” you private keys by encrypting them with a your password.
– If you lose your private key, your bitcoins are lost. If you forget your password, your bitcoins are lost!
– You can, and should properly backup your encrypted (hidden with a password) private keys on several kind of media that you will store securely. For example: USB key, CD, external hard drive, etc.
– Online servers (website) also offer to manage these keys for you. While they are very convenient, at this moment, you should never leave large amount of money in these servers.
– Always stay mindful of what you are doing with your bitcoin!
How to get started with bitcoin quickly, easily and securely?– Enter your email address (optional, but needed to recover your password if you forget it).
– Choose a password of at least 10 characters (make sure you won’t forget it or write it down somewhere secure).
– Enter the captcha and then click on “continue”.
– A Mnemonic phrase will be given to you. Write it down somewhere secure if you want to recover your password in case you forget it.
– When you are done with the Mnemonic, Click on “continue”.
– You will be redirected to a page containing an identifier number. Either save this identifier number somewhere or add this page to your browser bookmarks.
– Here is an example of an identifier number: ba808dd1-411d-40c3-a4b7-91df0ccfb52c
– NOTE: This identifier is NOT your public or private keys as described above. It is your online wallet identification.
– To access your wallet, make sure it is YOUR wallet identifier, fill in your password and click on “open wallet”
– On “Wallet home” you can see your bitcoin address which is your public key (account) that you need to share to receive payments.
– NOTE: You never need to deal with your private keys – your online wallet will do it for you.
–
CONGRATULATIONS! YOU ARE ALL SET TO RECEIVE AND SEND BITCOINS!Click here (coming up) to add security layers on your wallet and learn more about other type of bitcoin wallets.
How and where to get bitcoins?- Bitcoin is like cash, so just like cash you can work for it.
- You can also sell goods or services for it.
- You might find easier to buy them in an exchange with your local currency. You can find a list of these exchanges in the appropriate section of our catalog which you can
find here. There are plenty of methods to transfer fiat money to these exchanges so take the time to choose the one appropriate for you!
- Or you can simply buy them from a local reseller at
Local Bitcoin.
How to accept bitcoin in my business easily?- Several services offer to accept and manage bitcoins for you. A list these services can be found on the Merchant Solution section of our
catalog.
- These services allow you to:
- Accept bitcoin without the risk of bitcoin price volatility. They will convert all or partially (you decide) the bitcoins to your local currency deposited directly in your bank account.
- Generate a single bitcoin public address for each transaction so you know who is paying you.
- Generate invoices.
- And much more depending of the service your using.
- We highly recommend one of the following services:
-
Bitpay -
BIPS- For those how want to manage themselves the bitcoin transactions, you can open a bitcoin wallet and then use blockchain.info's API which you can find here:
http://blockchain.info/api- EDITED -
