How are bitcoins created?
FAQ - Bitcoin
** FAQ **
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Here you will find answers to the most commonly asked questions.
· 1 General
· 1.1 What are bitcoins?
· 1.2 How can I get bitcoins?
· 1.3 Does Bitcoin guarantee an influx of free money?
· 1.4 Can I buy bitcoins with Paypal?
· 1.5 Where can I find a forum to discuss Bitcoin?
· 1.6 How are new bitcoins created?
· 1.7 What's the current total number of bitcoins in existence?
· 1.8 How divisible are bitcoins?
· 1.9 What do I call the various denominations of bitcoin?
· 1.10 How does the halving work when the number gets really small?
· 1.11 How long will it take to generate all the coins?
· 1.12 If no more coins are going to be generated, will more blocks be
· 1.13 But if no more coins are generated, what happens when Bitcoins
are lost? Won't that be a problem?
· 1.14 If every transaction is broadcast via the network, does Bitcoin
· 2 Economy
· 2.1 Where does the value of Bitcoin stem from? What backs up Bitcoin?
· 2.2 Is Bitcoin a bubble?
· 2.3 Is Bitcoin a Ponzi scheme?
· 2.4 Doesn't Bitcoin unfairly benefit early adopters?
· 2.5 Won't loss of wallets and the finite amount of Bitcoins create
excessive deflation, destroying Bitcoin?
· 2.6 What if someone bought up all the existing Bitcoins?
· 2.7 What if someone creates a new block chain, or a new digital
currency that renders Bitcoin obsolete?
· 2.8 Is Bitcoin open to value manipulation?
· 3 Sending and Receiving Payments
Bitcoin - Wikipedia, the free encyclopedia
** Bitcoin **
From Wikipedia, the free encyclopedia
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A digital Bitcoin walletA digital Bitcoin wallet
Ledger The majority of the Bitcoin peer-to-peer network regulates
transactions and balances.^^
Date of introduction 3 January 2009
Source Bitcoin Genesis Block
Issuance Limited release
Source Total BTC in Circulation
Method The rate of new bitcoin creation will be halved every 4 years until
there are 21 million BTC^
.001 mBTC (millicoin)
.000001 Î¼BTC (microcoin)
Symbol BTC, XBT,^BitcoinSign.svg, à¸¿,^ É
A common Bitcoin logo.
*Bitcoin* (sign: BitcoinSign.svg; code: *BTC*) is a cryptocurrency where
the creation and transfer of bitcoins is based on an open source
cryptographic protocol that is independent of any central authority.
Bitcoins can be transferred through a computer or smartphone without an
intermediate financial institution.^ The concept was introduced in a
2008 paper by pseudonymous developer Satoshi Nakamoto, who called it a
peer-to-peer, electronic cash system.^^^
The processing of Bitcoin transactions is secured by servers called bitcoin
miners. These servers communicate over an internet-based network and
confirm transactions by adding them to a ledger which is updated and
archived periodically using peer-to-peer filesharing technology.^ In
addition to archiving transactions, each new ledger update creates some
newly minted bitcoins. The number of new bitcoins created in each update is
halved every 4 years until the year 2140 when this number will round down
to zero. At that time no more bitcoins will be added into circulation and
the total number of bitcoins will have reached a maximum of 21 million
bitcoins.^^ To accommodate this limit, each bitcoin is subdivided
down to eight decimal places; forming 100 million smaller units called
satoshis per bitcoin.^
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