Why would I want to buy bitcoin?
With Bitcoin, global transactions (that's right, from ANYWHERE to ANYWHERE) take minutes, and cost cents. And there is no middle-man, and no questions asked. Can your bank beat that?
Why does it cost so much?
It depends on what you think is much. People thought it was expensive when it cost 100$, 300$, 1000$. PayPal CEO said it will cost a million in a decade. Now THAT is expensive. Besides, unlike a dollar, you can have 0.00000001 btc, which means you can buy a 100$ worth of bitcoin today.
How do I get a bitcoin wallet?
Super easy. Just go to blockchain.info, or coinbase.com and you are all set for a quick start.
Or, if you want to, you can use Electrum wallet for PC, Mac or any mobile device.
Where do I buy bitcoin?
This is what this website is all about. Check the markets section above.
- No single authority to tell you what you can and can't do with your money.
- Fast transactions.
- Low-to-none transaction costs.
- All transactions are final and cannot be reversed. Meaning if you sold your car for bitcoin, the car is not your problem anymore no matter what.
- Enchanced privacy. Where you spend your money is your business.
- Transportability. Have bitcoin on your mobile device anywhere, pay by simply scanning the QR code.
- You cannot reverse transactions. Be triple-cautious with whom you send your bitcoins. Always use trusted services.
- System gets slower over time, as more people join it. There are solutions already being tested for that, but right now transactions can take 5-10 minutes.
- People can steal your bitcoins, if you store them locally, just like cash. Always use cloud wallet as your main wallet.
How does bitcoin work?
Bitcoin is the currency of the new age, it's concept differs vastly from conventional money. When you send some amount of bitcoin from your wallet to another wallet, every other machine in the system knows about this transaction.
But all they know, is that wallet A transfered to wallet B 1 bitcoin, for example. What nobody knows exactly, is who owns neither wallet A, nor wallet B, all they know that the transaction took place.
In this system, there exist machines, that, by spending computational power, add your transaction to the new block of fresh transactions. When the computation is done, the block is added to the chain of blocks of all transactions since the beginning of times, and the chain is sealed until the next block is added. This process is called mining, and the chain of blocks, as you may have guessed it, is called the blockchain. In this blockchain anybody can look at any bitcoin address (wallet) and see the whole history of this wallet's transactions, but nobody knows who owns it.
This concept, that the transactions are added to the chain makes all transaction final and impossible to reverse, as it would take more than 51% of the whole network's computational power on average. Given that bitcoin network's current computational power is far greater than the computational power of all humanity's supercomputers combined, this is unlikely to happen in any forseeable future. However, just to be sure that the transaction has been completed successfuly, you better wait for 1 or 2 blocks to be added to the blockchain after your transaction. The deeper your transaction is in the blockchain, the more secure it is. You can observe live transactions on blockchain.info.
So what should I do?
The first bitcoin payment was 10,000 bitcoins for two Papa John's pizzas. That's right, a guy bought a pizza for now is about 23,000,000$. It was dirt cheap back then. Later, when it cost 100$ everybody thought "that's too expensive to buy already". They thought the same when it cost 300$. They thought the same when it cost 1000$. At the time of this writing it costs around 2300$. There will be people who will think the same when it will hit 10,000$ and 100,000$. Don't be one of them.