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When users buy, sell or transfer Bitcoins to other users, merchants or anything else there will not be a physical piece of paper or anything similar showing the transaction actually happened. instead the transaction will appear on the blockchain, which is a public transaction log that keeps tracks of everything happening. The blockchain is not centralized in any way either and provides timestamps as well as information to who holds what in the world of Bitcoins. 

Despite a rough start for the Bitcoin, it became increasingly popular over the years, especially thanks to SilkRoad, an underground underweb website where people were able to buy drugs using Bitcoins, completely anonymously. With the steady Bitcoin flow and the increased interest about SilkRoad, the first articles about Bitcoins began to hit mainstream news. The news however were far from positive, creating an imagine that only crooks and drug addicts used the cryptocurrency for their illegal matters. This was as far from the truth as possible and the Bitcoin began to brand itself as a new way of paying and sharing funds across the globe instantly. 

With the closure of SilkRoad in 2013 by the FBI, the value of the Bitcoin began to increase slowly from being worth around $50 to around $200 within a couple of weeks. From there the value of the Bitcoin went up and down until early September of 2013. The Chinese entered the Bitcoin market at this point and the value of 1 Bitcoin rose from $200 to $1,200 at its peak. More and more merchants started accepting Bitcoins, the first Bitcoin ATM's were installed across the world and gambling sites also started to accept the different cryptocurrencies that were now available to the general public. The Bitcoin has since then stabilized at around $600-$800, which is great for the coin as it provides a greater safeness for new potential Bitcoin enthusiasts.

Experts believe that the Bitcoin will continue to rise slowly over the next many years, potentially becoming worth around $2,000 within the next 5-6 years. Furthermore the future looks very bright for the coin as more and more companies understands the value of having a decentralized currency and invest heavily into the market. What makes the coin so attractive to merchants is the extremely low transaction costs that follows the coin, at around 0.2-1% of the amount, where traditional payment methods charge between 2-5% and in some cases even more.

Below you will find a short video presentation about Bitcoins, made by the Bitcoin association:

Bitcoin Mining

Bitcoins are unlike regular currencies not just something that is printed or that some guy in a suit decides that there should be more of. Bitcoins has to be mined out by users, using sophisticated algorithms and has a limited amount of coins that can be mined in total, instead of having limitless coins like we are currently seeing with many major currencies across the world.

The mining itself is quite simple as you will simply just have to download the Bitcoin mining program and begin to mine, but doing so will not really bring you any Bitcoins and just use a lot of electricity for nothing.

The best way to start mining Bitcoins is by joining a mining pool, so you will be mining Bitcoins together with other miners and by that reach the target of a Bitcoin block faster. While this may pay smaller amounts, you will get a steady amount of Bitcoins instead of getting a few only once in a while.

We suggest you have a look at this site: http://www.weusecoins.com/en/mining-guide to get to know all about the best way to mine Bitcoins, as they are experts on the area.

 

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