#How to use LibertyX Bitcoin ATM with cash | Explore Tumblr posts and blogs

ageloire · 7 years ago

Text

How to Get Bitcoins: 6 Tried-and-True Methods

It’s a cliche, but, growing up, my Dad always preached about how there’s no free lunch in life. If you want something valuable, you need to put in the work to earn it -- or spend money to buy it.

This timeless notion also applies to getting bitcoins. If you want to get a substantial amount of bitcoins fast, you need to spend money buying them. If you want to get a substantial amount of bitcoins for free, you need to spend a lot of time earning them on websites called bitcoin faucets.

Expending monetary or mental resources to get bitcoins is a necessity. But some methods of buying and earning bitcoins are more effective than others. Read on to learn the best ways to buy bitcoins and the best ways to earn them for free through bitcoin faucets.

How Do You Get Bitcoins?

There are two ways you can get bitcoins:

Quickly purchase a substantial amount of bitcoins on the internet or in person.

Slowly earn a substantial amount of bitcoins for free through bitcoin faucets, like playing mobile or online games, completing tasks on websites, or writing about cryptocurrency.

How to Get Bitcoins Fast

1. Buy Bitcoins Online

To buy or earn free bitcoins, you first need to download a bitcoin wallet, which is software that allows you to securely send, receive, and store funds in the bitcoin network. There are four types of bitcoin wallets that you can use: mobile, web, desktop, and hardware.

Once you download a wallet, you need to set up an account on a cryptocurrency exchange that’s approved by your wallet provider. Cryptocurrency exchanges are market places where sellers trade cryptocurrencies to buyers in exchange for fiat money or other digital currencies.

Most exchanges accept bank transfer or credit card payments, and some even accept Paypal payments. They’ll also charge you a transaction fee for every trade you make. You can choose from hundreds of crypto exchanges, but the most popular and reputable exchanges are Bitfinex, Bitstamp, Coinbase, and Coinmama. Here’s a list of more popular crypto exchanges.

2. Buy Bitcoins in Person

If you’d rather buy bitcoins in person, you have four options to choose from:

Use websites like Coin ATM Radar to help you find a Bitcoin ATM, which works very similarly to a regular ATM, except you trade your cash for bitcoin.

Use websites like LibertyX to find retail stores across the United States that will give you bitcoin in exchange for cash.

Use websites like Paxful to find bank branches that will give you bitcoin in exchange for cash deposits.

Use websites like LocalBitcoins to find people who are willing to exchange Bitcoin for cash, in person.

How to Get Bitcoins for Free

1. Play Mobile or Online Games to Earn Bitcoins

One of the most entertaining and fun ways to earn free bitcoins is by playing mobile or online games. That’s right -- you can play games on your phone or computer and actually get paid in bitcoin. But if these bitcoin faucets want to make money and pay their players, they have to serve a lot of advertisements to their users.

To avoid the ads, you can join a bitcoin casino, where you bet your own money or bitcoin on traditional casino games, sports matches, and lotteries to potentially win a higher payout in bitcoin.

Here’s a list of some of the most enjoyable bitcoin games that you can play on your phone.

2. Do Odd Jobs Online to Earn Bitcoins

Another way to earn free bitcoins is by completing tasks on websites. Some companies will pay you in Bitcoin to test their web sites, take their surveys, retweet their posts, and complete other small tasks.

There are also websites that let people offer small bitcoin rewards to the person who can give them the best answer to one of their questions.

You can find odd-jobs that pay you in Bitcoin on BitcoinGet, and you can answer questions for Bitcoin on Bitfortip.

3. Read Classic Books to Earn Bitcoins

Paying people to play simple games and complete repetitive jobs sounds like a great way attract a lot of users and, in turn, tons of advertisers. But there are hundreds of bitcoin faucets competing for users and advertisers’ attention, making it hard to stand out from the crowd.

Users also don’t rely on faucets as a main source of income, so, a lot of the times, a small bitcoin reward isn’t enough to coax them into doing boring tasks during their free time.

To generate more user activity and advertising revenue, bitcoin faucets, like Bitcoin Aliens, knew they needed to find a better way to engage their users. So they decided to pay people to read. Their service, PaidBooks, compensates people in Bitcoin to read classic books like Pride & Prejudice, War of the Worlds, and over 600 other titles on their website. If you love a good book and want to earn free Bitcoin, consider trying it out.

4. Write About Cryptocurrency to Earn Bitcoins

Certain cryptocurrency blogs, news outlets, and forums will pay you in bitcoin to contribute your insights and write for them, if you have a lot of knowledge about the industry.

You can find article writing gigs for crypto blogs and news outlets on job boards like Coinality.

Popular cryptocurrency forums, like Bitcointalk, offer monetization opportunities to their established members -- companies can advertise their product or service in the signature of their posts.

Because advertisers usually want to partner with top-ranked members, and since the forum increases its members’ rank based off their activity, Bitcointalk makes it nearly impossible for them to spam their way up from the lowest rank of Newbie to the highest rank of Legendary Member. The only way you can increase your rank and earn free bitcoins is by providing a high quantity of high quality posts.

Bitcointalk lists all bitcoin signature campaigns and rates in this overview.

from Marketing https://blog.hubspot.com/marketing/how-to-get-bitcoins

#Marketing

0 notes

fmm85 · 5 years ago

Link

payments apps and entertainment platforms seeing a boost in users with people spending more time online, crypto and bitcoin ATMs, the physical manifestation of this network, seem an unlikely adjunct to this market growth.

Despite wide-reaching shelter-in-place rulings meant to keep people indoors, some bitcoin ATM operators are reporting an increase in transactions, while others are taking advantage of this intermission to expand their networks.

Perhaps people are scared and are prepping in the most immediate way: the nearest ATM. Bitcoin-related Google searches are skyrocketing, but for the many intimidated by the world of wallets, private keys and QR codes, bitcoin ATMs (sometimes called BTMs) provide a convenient onramp to these “safe haven” assets.

“Even during a global pandemic, and perhaps more so, bitcoin and bitcoin point-of-sale services meet our customers’ essential needs in participating in this next-generation of banking, remittance, and e-commerce,” Marc Grens, co-founder of DigitalMint, a Bitcoin ATM operator, said over email.

Approximately 95 percent of DigitalMint machines are located in or outside of essential businesses and still accessible to the public. While the firm has seen a “slight decline” in overall volumes, Grens said, “we’re still driving a consistent amount of new and existing customer traffic, even during the lockdown.”

Since March, DigitalMint has expanded its kiosk and teller services to a few dozen new locations in Boston, Los Angeles and Philadelphia. According to Coin ATM Radar, the total number of ATMs has increased 5.6 percent to 7,417 machines on April 1, up from 7,023 on March 1.

Similarly, LibertyX, which was granted a “BitLicense” to operate in New York last year, has finally begun to expand to locations in the state. “We’ve gone from zero to several hundred ATMs in a little over a month,” CEO and co-founder Chris Yim said. Including expansions across the country, LibertyX has added approximately 1,000 machines in the last two months.

Chris Yim, CEO of LibertyX, displays an upgraded non-bank ATM in Las Vegas before the pandemic.

LibertyX doesn’t own the actual physical machines but licenses software to non-bank ATMs manufactured by Genmega and Hyosung or operated by Payment Alliance International, which in turn are maintained by private owners across the country. At some point LibertyX’s software will be installed by default in new machines, but for now ATM operators have to manually update their software to support crypto transactions.

“Timing-wise, it’s a little unfortunate,” Yim said. But, under quarantine “I don’t think these operators have much else to do.”

Transaction volume across LibertyX’s 3,000 ATM network dropped approximately 20 percent in March. “We’re almost back to where we were pre-[COVID-19].” Yim added: “April 15 was one of our highest volume ATM days, the day many taxpayers received their stimulus check.”

The company has also seen an increase in customer support tickets asking how the product works, suggesting an uptick in interest among new users.

Unlike LibertyX and DigitalMint, a recent market entrant is reporting a surge in transaction volume, despite the shrinking footprint of its ATM network. Coinsquare, which bought a controlling stake in crypto ATM startup Just Cash last summer, said about 350 of its 800 total ATMs are currently inaccessible.

These numbers are staggering. Fewer machines, more overall transactions, and far more value per transaction.

According to CEO Cole Diamond, the average transaction size in the past seven days is up 167 percent compared to the average transaction in 2019. While the average transaction size for the entire month is up 158 percent on last year’s average.

“These numbers are staggering. Fewer machines, more overall transactions and far more value per transaction,” Diamond said. “The average number, and average volume of transactions, is the highest it’s ever been.”

Coinsquare operates a similar business model to LibertyX, providing software to non-bank ATMs to enable crypto transactions. He expects to roll out to several thousand new operators in the coming months.

Still, aren’t these things germy?

Bricks-and-mortar banks are modifying or curtailing in-person services, like all businesses trying to adhere to social distancing mandates. Some retail branches have cordoned off access to ATMs, while others are converting to “drive-through only.”

This is a level of control many Bitcoin ATM manufacturers are unable to exert. As providers of software, or companies that franchise machines to private owners, it’s up to operators to determine how, if they choose to, sanitize these screens.

Grens, Yim and Diamond have reached out to machine operators to recommend best practices in disinfection. But there really isn’t much they can do.

“It’s not responsible for us to push people to go out and touch screens,” Yim said. His firm, like the others, has low variable costs, little overhead and nearly pure profits when times are fat so, he said, there’s runway for the company to wait out the COVID-19 crisis.

“Although the country may be shut down, our lives and financial responsibilities cannot be put on hold,” Grens said. “Fortunately for our customers, bitcoin never goes on hold, either.”

Disclosure strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

The post Bitcoin ATMs Expand Despite Shelter-in-Place Rules appeared first on Future Money Matters.

#CryptoBlog #Bitcoin #Crypto #Expand #Markets #money

0 notes

rabexir · 5 years ago

Text

What is Bitcoin?

Chapter 01

What is Bitcoin?

To cut through some of the confusion surrounding bitcoin, we need to separate it into two components. On the one hand, you have bitcoin-the-token, a snippet of code that represents ownership of a digital concept – sort of like a virtual IOU. On the other hand, you have bitcoin-the-protocol, a distributed network that maintains a ledger of balances of bitcoin-the-token. Both are referred to as “bitcoin.”

The system enables payments to be sent between users without passing through a central authority, such as a bank or payment gateway. It is created and held electronically. Bitcoins aren’t printed, like dollars or euros – they’re produced by computers all around the world, using free software.

It was the first example of what we today call cryptocurrencies, a growing asset class that shares some characteristics of traditional currencies, with verification based on cryptography.

Who created it?

A pseudonymous software developer going by the name of Satoshi Nakamoto proposed bitcoin in 2008, as an electronic payment system based on mathematical proof. The idea was to produce a means of exchange, independent of any central authority, that could be transferred electronically in a secure, verifiable and immutable way.

To this day, no-one knows who Satoshi Nakamoto really is.

In what ways is it different from traditional currencies?

Bitcoin can be used to pay for things electronically, if both parties are willing. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.

But it differs from fiat digital currencies in several important ways:

1 – Decentralization

Bitcoin’s most important characteristic is that it is decentralized. No single institution controls the bitcoin network. It is maintained by a group of volunteer coders, and run by an open network of dedicated computers spread around the world. This attracts individuals and groups that are uncomfortable with the control that banks or government institutions have over their money.

Bitcoin solves the “double spending problem” of electronic currencies (in which digital assets can easily be copied and re-used) through an ingenious combination of cryptography and economic incentives. In electronic fiat currencies, this function is fulfilled by banks, which gives them control over the traditional system. With bitcoin, the integrity of the transactions is maintained by a distributed and open network, owned by no-one.

2 – Limited supply

Fiat currencies (dollars, euros, yen, etc.) have an unlimited supply – central banks can issue as many as they want, and can attempt to manipulate a currency’s value relative to others. Holders of the currency (and especially citizens with little alternative) bear the cost.

With bitcoin, on the other hand, the supply is tightly controlled by the underlying algorithm. A small number of new bitcoins trickle out every hour, and will continue to do so at a diminishing rate until a maximum of 21 million has been reached. This makes bitcoin more attractive as an asset – in theory, if demand grows and the supply remains the same, the value will increase.

3 – Pseudonymity

While senders of traditional electronic payments are usually identified (for verification purposes, and to comply with anti-money laundering and other legislation), users of bitcoin in theory operate in semi-anonymity. Since there is no central “validator,” users do not need to identify themselves when sending bitcoin to another user. When a transaction request is submitted, the protocol checks all previous transactions to confirm that the sender has the necessary bitcoin as well as the authority to send them. The system does not need to know his or her identity.

In practice, each user is identified by the address of his or her wallet. Transactions can, with some effort, be tracked this way. Also, law enforcement has developed methods to identify users if necessary.

Furthermore, most exchanges are required by law to perform identity checks on their customers before they are allowed to buy or sell bitcoin, facilitating another way that bitcoin usage can be tracked. Since the network is transparent, the progress of a particular transaction is visible to all.

This makes bitcoin not an ideal currency for criminals, terrorists or money-launderers.

4 – Immutability

Bitcoin transactions cannot be reversed, unlike electronic fiat transactions.

This is because there is no central “adjudicator” that can say “ok, return the money.” If a transaction is recorded on the network, and if more than an hour has passed, it is impossible to modify.

While this may disquiet some, it does mean that any transaction on the bitcoin network cannot be tampered with.

5 – Divisibility

The smallest unit of a bitcoin is called a satoshi. It is one hundred millionth of a bitcoin (0.00000001) – at today’s prices, about one hundredth of a cent. This could conceivably enable microtransactions that traditional electronic money cannot.

—

Read more to find out how bitcoin transactions are processed and how bitcoins are mined, what it can be used for, as well as how you can buy, sell and store your bitcoin. We also explain a few alternatives to bitcoin, as well as how its underlying technology – the blockchain – works.

Authored by Noelle Acheson. Network image via Shutterstock.

DISCLOSURE Read More

Chapter 02

How Can I Buy Bitcoin?

So you’ve learned the basics about bitcoin, you’re excited about the potential and now you want to buy some*. But how?

(*Please, never invest more than you can afford to lose – cryptocurrencies are volatile and the price could go down as well as up.)

Bitcoin can be bought on exchanges, or directly from other people via marketplaces.

You can pay for them in a variety of ways, ranging from hard cash to credit and debit cards to wire transfers, or even with other cryptocurrencies, depending on who you are buying them from and where you live.

1 – set up a wallet

The first step is to set up a wallet to store your bitcoin – you will need one, whatever your preferred method of purchase. This could be an online wallet (either part of an exchange platform, or via an independent provider), a desktop wallet, a mobile wallet or an offline one (such as a hardware device or a paper wallet).

Even within these categories of wallets there is a wide variety of services to choose from, so do some research before deciding on which version best suits your needs.

You can find more information on some of the wallets out there, as well as tips on how to use them, here and here.

The most important part of any wallet is keeping your keys (a string of characters) and/or passwords safe. If you lose them, you lose access to the bitcoin stored there.

BUYING ONLINE

2 – open an account at an exchange

Cryptocurrency exchanges will buy and sell bitcoin on your behalf. There are hundreds currently operating, with varying degrees of liquidity and security, and new ones continue to emerge while others end up closing down. As with wallets, it is advisable to do some research before choosing – you may be lucky enough to have several reputable exchanges to choose from, or your access may be limited to one or two, depending on your geographical area.

The largest bitcoin exchange in the world at the moment in terms of US$ volume is Bitfinex, although it is mainly aimed at spot traders. Other high-volume exchanges are Coinbase, Bitstamp and Poloniex, but for small amounts, most reputable exchanges should work well. (Note: at time of writing, the surge of interest in bitcoin trading is placing strain on most retail buy and sell operations, so a degree of patience and caution is recommended.)

With the clampdown on know-your-client (KYC) and anti-money-laundering (AML) regulation, many exchanges now require verified identification for account setup. This will usually include a photo of your official ID, and sometimes also a proof of address.

Most exchanges accept payment via bank transfer or credit card, and some are willing to work with Paypal transfers. And most exchanges charge fees (which generally include the fees for using the bitcoin network).

Each exchange has a different procedure for both setup and transaction, and should give you sufficient detail to be able to execute the purchase. If not, consider changing the service provider.

Once the exchange has received payment, it will purchase the corresponding amount of bitcoin on your behalf, and deposit them in an automatically generated wallet on the exchange. This can take minutes, or sometimes hours due to network bottlenecks. If you wish (recommended), you can then move the funds to your off-exchange wallet.

BUYING WITH CASH

2 – choose a purchase method

Platforms such as LocalBitcoins will help you to find individuals near you who are willing to exchange bitcoin for cash. Also, LibertyX lists retail outlets across the United States at which you can exchange cash for bitcoin. And WallofCoins, Paxful and BitQuick will direct you to a bank branch near you that will allow you to make a cash deposit and receive bitcoin a few hours later.

ATMs are machines that will send bitcoin to your wallet in exchange for cash. They operate in a similar way to bank ATMs – you feed in the bills, hold your wallet’s QR code up to a screen, and the corresponding amount of bitcoin are beamed to your account. Coinatmradar can help you to find a bitcoin ATM near you.

(Note: specific businesses mentioned here are not the only options available, and should not be taken as a recommendation.)

Authored by Noelle Acheson. Bitcoin image via Shutterstock.

DISCLOSURE Read More

Chapter 03

How to Store Your Bitcoin

Before owning any bitcoin, you need somewhere to store them. That place is called a “wallet.” Rather than actually holding your bitcoin, it holds the private key that allows you to access your bitcoin address (which is also your public key). If the wallet software is well designed, it will look as if your bitcoins are actually there, which makes using bitcoin more convenient and intuitive.

Actually, a wallet usually holds several private keys, and many bitcoin investors have several wallets.

Wallets can either live on your computer and/or mobile device, on a physical storage gadget, or even on a piece of paper. Here we’ll briefly look at the different types.

Electronic wallets

Electronic wallets can be downloaded software, or hosted in the cloud. The former is simply a formatted file that lives on your computer or device, that facilitates transactions. Hosted (cloud-based) wallets tend to have a more user-friendly interface, but you will be trusting a third party with your private keys.

Software wallet

Installing a wallet directly on your computer gives you the security that you control your keys. Most have relatively easy configuration, and are free. The disadvantage is that they do require more maintenance in the form of backups. If your computer gets stolen or corrupted and your private keys are not also stored elsewhere, you lose your bitcoin.

They also require greater security precautions. If your computer is hacked and the thief gets a hold of your wallet or your private keys, he also gets hold of your bitcoin.

The original software wallet is the Bitcoin Core protocol, the program that runs the bitcoin network. You can download this here (it doesn’t mean that you have to become a fully operational node), but you’d also have to download the ledger of all transactions since the dawn of bitcoin time (2009). As you can guess, this takes up a lot of memory – at time of writing, over 145GB.

Most wallets in use today are “light” wallets, or SPV (Simplified Payment Verification) wallets, which do not download the entire ledger but sync to the real thing. Electrum is a well-known SPV desktop bitcoin wallet that also offers “cold storage” (a totally offline option for additional security). Exodus can track multiple assets with a sophisticated user interface. Some (such as Jaxx) can hold a wide range of digital assets, and some (such as Copay) offer the possibility of shared accounts.

Online wallet

Online (or cloud-based) wallets offer increased convenience – you can generally access your bitcoin from any device if you have the right passwords. All are easy to set up, come with desktop and mobile apps which make it easy to spend and receive bitcoin, and most are free.

The disadvantage is the lower security. With your private keys stored in the cloud, you have to trust the host’s security measures, and that it won’t disappear with your money, or close down and deny you access.

Some leading online wallets are attached to exchanges (such as Coinbase and Blockchain). Some offer additional security features such as offline storage (Coinbase and Xapo).

Mobile wallets

Mobile wallets are available as apps for your smartphone, especially useful if you want to pay for something in bitcoin in a shop, or if you want to buy, sell or send while on the move. All of the online wallets and most of the desktop ones mentioned above have mobile versions, while others – such as Abra, Airbitz and Bread – were created with mobile in mind.

Hardware wallets

Hardware wallets are small devices that occasionally connect to the web to enact bitcoin transactions. They are extremely secure, as they are generally offline and therefore not hackable. They can be stolen or lost, however, along with the bitcoins that belong to the stored private keys. Some large investors keep their hardware wallets in secure locations such as bank vaults. Trezor, Keepkey and Ledger and Case are notable examples.

Paper wallets

Perhaps the simplest of all the wallets, these are pieces of paper on which the private and public keys of a bitcoin address are printed. Ideal for the long-term storage of bitcoin (away from fire and water, obviously), or for the giving of bitcoin as a gift, these wallets are more secure in that they’re not connected to a network. They are, however, easier to lose.

With services such as WalletGenerator, you can easily create a new address and print the wallet on your printer. Fold, seal and you’re set. Send some bitcoin to that address, and then store it safely or give it away. (See our tutorial on paper wallets here.)

Are bitcoin wallets safe?

That depends on the version and format you have chosen, and how you use them.

The safest option is a hardware wallet which you keep offline, in a secure place. That way there is no risk that your account can be hacked, your keys stolen and your bitcoin whisked away. But, if you lose the wallet, your bitcoin are gone, unless you have created a clone and/or kept reliable backups of the keys.

The least secure option is an online wallet, since the keys are held by a third party. It also happens to be the easiest to set up and use, presenting you with an all-too-familiar choice: convenience vs safety.

Many serious bitcoin investors use a hybrid approach: they hold a core, long-term amount of bitcoin offline, while having a “spending balance” for liquidity in a mobile account. Your choice will depend on your bitcoin strategy, and your willingness to get “technical.”

Whatever option you go for, please be careful. Back up everything, and only tell your nearest and dearest where your backups are stored.

For more information on how to buy bitcoin, see here. And for some examples of what you can spend it on, see here.

(Note: specific businesses mentioned here are not the only options available, and should not be taken as a recommendation.)

Authored by Noelle Acheson. Wallet image via Shutterstock.

DISCLOSURE Read More

Chapter 04

How to Sell Bitcoin

These days virtually all the methods available to buy bitcoin also offer the option to sell.

The exception is bitcoin ATMs – some do allow you to exchange bitcoin for cash, but not all. Coinatmradar will guide you to bitcoin ATMs in your area.

All exchanges allow you to sell as well as buy. What type of exchange you choose to sell your bitcoin will depend on what type of holder you are: small investor, institutional holder or trader?

Some platforms such as GDAX and Gemini are aimed more at large orders from institutional investors and traders.

Retail clients can sell bitcoin at exchanges such as Coinbase, Kraken, Bitstamp, Poloniex, etc. Each exchange has a different interface, and some offer related services such as secure storage. Some require verified identification for all trades, while others are more relaxed if small amounts are involved.

(Of course, don’t forget to declare any profit you make on the sale to your relevant tax authority!)

You can, if you wish, exchange your bitcoin for other cryptoassets rather than for cash. Some exchanges such as ShapeShift focus on this service, allowing you to swap between bitcoin and ether, litecoin, XRP, dash and several others.

Another alternative is the direct sale. You can register as a seller on platforms such as LocalBitcoins, BitQuick, Bittylicious and BitBargain, and interested parties will contact you if they like your price. Transactions are usually done via deposits or wires to your bank account, after which you are expected to transfer the agreed amount of bitcoin to the specified address.

Or, you can sell directly to friends and family once they have a bitcoin wallet set up. Just send the bitcoin, collect the cash or mobile payment, and have a celebratory drink together. (Note: it is generally not a good idea to meet up with strangers to exchange bitcoin for cash in person. Be safe.)

(Note: specific businesses mentioned here are not the only options available, and should not be taken as a recommendation.)

Authored by Noelle Acheson. Graph image via Shutterstock.

DISCLOSURE Read More

Chapter 05

How do Bitcoin Transactions Work?

Simple version:

If I want to send some of my bitcoin to you, I publish my intention and the nodes scan the entire bitcoin network to validate that I 1) have the bitcoin that I want to send, and 2) haven’t already sent it to someone else. Once that information is confirmed, my transaction gets included in a “block” which gets attached to the previous block – hence the term “blockchain.” Transactions can’t be undone or tampered with, because it would mean re-doing all the blocks that came after.

Getting a bit more complicated:

My bitcoin wallet doesn’t actually hold my bitcoin. What it does is hold my bitcoin address, which keeps a record of all of my transactions, and therefore of my balance. This address – a long string of 34 letters and numbers – is also known as my “public key.” I don’t mind that the whole world can see this sequence. Each address/public key has a corresponding “private key” of 64 letters and numbers. This is private, and it’s crucial that I keep it secret and safe. The two keys are related, but there’s no way that you can figure out my private key from my public key.

That’s important, because any transaction I issue from my bitcoin address needs to be “signed” with my private key. To do that, I put both my private key and the transaction details (how many bitcoins I want to send, and to whom) into the bitcoin software on my computer or smartphone.

With this information, the program spits out a digital signature, which gets sent out to the network for validation.

This transaction can be validated – that is, it can be confirmed that I own the bitcoin that I am transferring to you, and that I haven’t already sent it to someone else – by plugging the signature and my public key (which everyone knows) into the bitcoin program. This is one of the genius parts of bitcoin: if the signature was made with the private key that corresponds to that public key, the program will validate the transaction, without knowing what the private key is. Very clever.

The network then confirms that I haven’t previously spent the bitcoin by running through my address history, which it can do because it knows my address (= my public key), and because all transactions are public on the bitcoin ledger.

Even more complicated:

Once my transaction has been validated, it gets included into a “block,” along with a bunch of other transactions.

A brief detour to discuss what a “hash” is, because it’s important for the next paragraph: a hash is produced by a “hash function,” which is a complex math equation that reduces any amount of text or data to 64-character string. It’s not random – every time you put in that particular data set through the hash function, you’ll get the same 64-character string. But if you change so much as a comma, you’ll get a completely different 64-character string. This whole article could be reduced to a hash, and unless I change, remove or add anything to the text, the same hash can be produced again and again. This is a very effective way to tell if something has been changed, and is how the blockchain can confirm that a transaction has not been tampered with.

Back to our blocks: each block includes, as part of its data, a hash of the previous block. That’s what makes it part of a chain, hence the term “blockchain.” So, if one small part of the previous block was tampered with, the current block’s hash would have to change (remember that one tiny change in the input of the hash function changes the output). So if you want to change something in the previous block, you also have to change something (= the hash) in the current block, because the one that is currently included is no longer correct. That’s very hard to do, especially since by the time you’ve reached half way, there’s probably another block on top of the current one. You’d then also have to change that one. And so on.

This is what makes Bitcoin virtually tamper-proof. I say virtually because it’s not impossible, just very very, very, very, very difficult and therefore unlikely.

Fun

And if you want to indulge in some mindless fascination, you can sit at your desk and watch bitcoin transactions float by. Blockchain.info is good for this, but if you want a hypnotically fun version, try BitBonkers.

(For more detail on how blocks are processed and on how bitcoin mining works, see this article.)

DISCLOSURE Read More

Chapter 06

How Bitcoin Mining Works

When you hear about bitcoin “mining,” you envisage coins being dug out of the ground. But bitcoin isn’t physical, so why do we call it mining?

Because it’s similar to gold mining in that the bitcoins exist in the protocol’s design (just as the gold exists underground), but they haven’t been brought out into the light yet (just as the gold hasn’t yet been dug up). The bitcoin protocol stipulates that 21 million bitcoins will exist at some point. What “miners” do is bring them out into the light, a few at a time.

They get to do this as a reward for creating blocks of validated transactions and including them in the blockchain.

Nodes

Backtracking a bit, let’s talk about “nodes.” A node is a powerful computer that runs the bitcoin software and helps to keep bitcoin running by participating in the relay of information. Anyone can run a node, you just download the bitcoin software (free) and leave a certain port open (the drawback is that it consumes energy and storage space – the network at time of writing takes up about 145GB). Nodes spread bitcoin transactions around the network. One node will send information to a few nodes that it knows, who will relay the information to nodes that they know, etc. That way it ends up getting around the whole network pretty quickly.

Some nodes are mining nodes (usually referred to as “miners”). These group outstanding transactions into blocks and add them to the blockchain. How do they do this? By solving a complex mathematical puzzle that is part of the bitcoin program, and including the answer in the block. The puzzle that needs solving is to find a number that, when combined with the data in the block and passed through a hash function, produces a result that is within a certain range. This is much harder than it sounds.

(For trivia lovers, this number is called a “nonce”, which is a concatenation of “number used once.” In the case of bitcoin, the nonce is an integer between 0 and 4,294,967,296.)

Solving the puzzle

How do they find this number? By guessing at random. The hash function makes it impossible to predict what the output will be. So, miners guess the mystery number and apply the hash function to the combination of that guessed number and the data in the block. The resulting hash has to start with a pre-established number of zeroes. There’s no way of knowing which number will work, because two consecutive integers will give wildly varying results. What’s more, there may be several nonces that produce the desired result, or there may be none (in which case the miners keep trying, but with a different block configuration).

The first miner to get a resulting hash within the desired range announces its victory to the rest of the network. All the other miners immediately stop work on that block and start trying to figure out the mystery number for the next one. As a reward for its work, the victorious miner gets some new bitcoin.

Economics

At the time of writing, the reward is 12.5 bitcoins, which at time of writing is worth almost $200,000.

Although it’s not nearly as cushy a deal as it sounds. There are a lot of mining nodes competing for that reward, and it is a question of luck and computing power (the more guessing calculations you can perform, the luckier you are).

Also, the costs of being a mining node are considerable, not only because of the powerful hardware needed (if you have a faster processor than your competitors, you have a better chance of finding the correct number before they do), but also because of the large amounts of electricity that running these processors consumes.

And, the number of bitcoins awarded as a reward for solving the puzzle will decrease. It’s 12.5 now, but it halves every four years or so (the next one is expected in 2020-21). The value of bitcoin relative to cost of electricity and hardware could go up over the next few years to partially compensate this reduction, but it’s not certain.

Difficulty

The difficulty of the calculation (the required number of zeroes at the beginning of the hash string) is adjusted frequently, so that it takes on average about 10 minutes to process a block.

Why 10 minutes? That is the amount of time that the bitcoin developers think is necessary for a steady and diminishing flow of new coins until the maximum number of 21 million is reached (expected some time in 2140).

If you’ve made it this far, then congratulations! There is still so much more to explain about the system, but at least now you have an idea of the broad outline of the genius of the programming and the concept. For the first time we have a system that allows for convenient digital transfers in a decentralized, trust-free and tamper-proof way. The repercussions could be huge.

Authored by Noelle Acheson. Bitcoin and bitcoin mining images via Shutterstock.

source: coindesk

0 notes

coin-news-blog · 6 years ago

Text

Buying Bitcoin on the Street Is Getting Easier

New Post has been published on https://coinmakers.tech/news/buying-bitcoin-on-the-street-is-getting-easier

Buying Bitcoin on the Street Is Getting Easier

Access to cryptocurrency, still a relatively new invention, requires some technological knowledge and computer literacy. In order to become more mainstream, however, Bitcoin will have to become more “main street” so to speak. Some crypto evangelists are finding ways to simplify the process of digital asset acquisition, making it easier for the average man or woman to get involved.

Bitcoin Vouchers Sold in Lithuanian Stores and Kiosks

New services offer newcomers to the crypto space an opportunity to buy their first coins on the street. Narvesen, a chain of convenience stores in Lithuania, and Lietuvos Spauda, a local network of press kiosks, are now starting to sell vouchers that can be exchanged for cryptocurrency. The driving force behind the project designed to bring more people into the crypto space is a local startup called Rebiton, Lithuanian news outlet Delfi recently reported.

According to the publication, Rebiton decided to partner with the two companies because of their positive attitude towards cryptocurrencies and the numerous stores they run across the country, which means the vouchers will be available to many potential customers. Buyers can use Rebiton’s online platform to redeem them in a few easy steps or buy cryptocurrency directly with a credit card.

“First of all, this project is aimed at simplifying the possibility to buy bitcoins, even for those who have never done that,” commented Raimundas Asauskas, a representative of the startup. “Despite the still rather high level of speculation involving this virtual currency, it’s obvious now that it will be an indispensable part of both the global financial system and online trade,” he emphasized.

Although Rebiton charges a 6% fee for card purchases and sells bitcoin core at an exchange rate that’s around 500 euros over Kraken’s price (at the time of writing), its service has its strong points. For example, the platform does not require registration and respects user privacy. It provides an easy way to buy small amounts of crypto and won’t ask you to reveal sensitive personal data or provide a copy of your ID.

Rebiton’s vouchers, which you can also buy online, come in 50, 100, and 999 euro denominations. A holder has to share only a valid email and a crypto wallet address to redeem their value. According to Vigintas Bartasevicius, head of the firm that owns Narvesen stores, and Lietuvos Spauda kiosks, Reitan Convenience Lithuania, the bitcoin voucher trading system is targeting the young generation as well.

Buy Bitcoin Cash at 7-Eleven in the Philippines

A similar approach has been employed by another partnership in the Philippines. Abra, a company developing an investment application, has recently joined forces with a local payment services provider, Ecpay, to provide customers with the option to purchase cryptocurrency at 6,000 outlets in the country.

Users of the Abra wallet will have access to Ecpay’s retail outlets across the Philippines, including all stores of the 7-Eleven chain, which is also a partner in the initiative. They’ll be able to buy digital coins from 7-Eleven’s Cliqq kiosks in the stores or through the Cliqq mobile app, the wallet provider announced in a blog post.

The Abra app allows investors to buy, sell, and hold major cryptocurrencies such as bitcoin cash (BCH), bitcoin core (BTC), ethereum (ETH), and litecoin (LTC). They can purchase 25 coins and tokens in total, exchange between any two of the supported currencies, and also hedge their portfolio in stablecoin trueusd (TUSD).

To acquire cryptocurrencies, Abra users need to go to a Cliqq kiosk at any 7-Eleven store in the Philippines or install the Cliqq app. Abra is listed under “Bills Payment” in the menu. You can deposit between 500 and 100,000 Philippine pesos ($9 – $1,900) daily with a 2% transaction fee. After confirming the details, print the receipt and complete the transaction with the cashier. Once the money has been added to your wallet you can convert the fiat to crypto.

Libertyx Maintains Crypto Points of Sale Across US

Rebiton and Abra are just the latest entries in a growing list of companies working to make it easier for newbies to enter the world of decentralized digital currencies. Similar platforms operate elsewhere around the world as well. Libertyx, for example, is based in the United States and advertises itself as “America’s largest network of bitcoin ATMs, cashiers, and kiosks.”

Using its services, you can purchase cryptocurrencies in a variety of ways. To find a traditional teller machine through which you can pay for your bitcoin, use the website’s store locator which will show an ATM near you. The Libertyx website provides step-by-step instruction on how to buy coins from ATMs with a debit card.

Libertyx debit kiosks are another option. They are typically located at convenience stores, check cashing stores, and gas stations. The bitcoin purchase transaction is automated and you’ll complete it using your smartphone. But if you prefer to pay with cash or debit card in person, you can visit a Liberty cashier store, where an employee will help you finalize your purchase.

Other platforms allow you to buy cryptocurrency with a regular bank deposit or money transfer. You can buy both bitcoin cash (BCH) and bitcoin core (BTC) through Bitquick and pay by a cash deposit to a seller’s bank or credit union account or by sending the funds via Western Union and Money Gram. The platform collects a 2% fee for its intermediary services as well as the mining fee for the crypto transaction. Users who would like to preserve their privacy and don’t want to scan their ID have a limit of $400. Bitquick has offices in several major U.S. cities and the capitals of Columbia and Argentina.

Wall of Coins is a cryptocurrency marketplace that provides this type of services on a larger geographical scale. It operates globally connecting buyers and sellers of digital assets across the globe. To buy BCH and other major cryptocurrencies with fiat cash, you need to enter a wallet address, set a fiat amount in local currency and you’ll be provided with a payment option such as Western Union, Money Gram or a retail bank to make the transfer. Wall of Coins uses escrow for the crypto and is a cash-based system for the fiat. It does not accept credit cards in order to protect its sellers.

Bitcoin ATMs Are Always an Option

If you want to buy cryptocurrency with cash, bitcoin ATMs are always a working option. Their number is constantly growing around the world – over 5,500 machines are already in operation, according to data collected by Coinatmradar. Around 2,300 BATMs and tellers across the globe currently support bitcoin cash (BCH) among other leading cryptocurrencies.

Many of these devices not only sell but also buy coins. They can be very useful for travelers who would like to bring their digital cash with them. ATM operators usually charge a fee for their service that can be as high as 10% on the transaction amount. Make sure to always check the cost of your cryptocurrency purchase beforehand.

If you are new to the crypto space and are looking for a safe and secure way to acquire your first coins online, you can purchase bitcoin cash (BCH) and other major cryptocurrencies at buy.Bitcoin.com using a credit card. You can also freely trade your crypto assets on our noncustodial, peer-to-peer marketplace local.Bitcoin.com, which already has thousands of users around the world. Also, register and try our recently launched premier trading platform, exchange.Bitcoin.com.

Source: news.bitcoin

0 notes