Bitcoin is a form of virtual currency – crypto-currency – that was created by Satoshi Nakamoto back in 2009. At that time, 21 million “coins” were “buried” online. This is the genius of this new type of money. In order to collect it, people need to solve complex math problems. It was unique when it was first unveiled because it uses cryptography for both creating and transferring the money.
In order to send or receive bitcoins, special client software is needed. The good news is that these are usually open source packages that are easily installed on your computer. Bitcoin-Qt – also known as the Satoshi client – is considered to be the reference client for other developers. The code is maintained and improved upon by a group of people around the world.
The main way to create bitcoins is to participate in what’s called Bitcoin mining. Basically, this is done by separate software (and hardware occasionally) that solves cryptographic puzzles in order to receive a BTC block. Currently, solving a block is worth 25 BTC. However, this will be halved to 12.5 BTC per block in 2017. The number will be further reduced as the 21 million BTC that’s going to be put into circulation are mined and assigned to people.
Other Ways to Get Bitcoins
The other obvious way to get some BTC of your own is to have someone send some to your Bitcoin Wallet. If you don’t know anyone, you can also go to a Bitcoin Exchange in order to purchase bitcoins with normal currency. This costs money, but it’s a quick way to get bitcoins in your wallet.
While we’ve gone over the basics, the best way to learn more about Bitcoin – including how you can make money with crypto-currency – is by downloading our free eBook. Inside, you’ll find everything you need to understand Bitcoin as well as how to make “real money” by mining for bitcoins or operating on one of the many Bitcoin exchanges online.