Anonymity-Bitcoin for your privacy
Of bitcoins, you simply lie in one or more of the address that you have. And the number that belongs to someone is bitcoins holds the private key (located in the wallet.dat file), and only when there is the private key which then can send bitcoin is, because if there is no private key then would not "sign your name" (sign). When you send to a person, they only bitcoins learned of bitcoin it is from you send, but do not know who owns the number that bitcoins before you.
One can know the number of the bitcoin is an address and not know who owns the list of destination addresses. So, for example, you have 1 billion money bitcoins, wouldn't you made to a single address, which is divided into many different addresses. Because the money will be increasing as networks, and such is the truth.
Anyone? Would the company run Bitcoin?
No one or any company operating the Bitcoin. Bitcoin is operated by all those users who are using Bitcoin Bitcoin Client.
What is Bitcoin Client?
Bitcoin clients are software, programs run Bitcoin, also has a conventional name is Wallet. There are many different types of clients are used for many different purposes. Such as:
Bitcoin-QT Client: the original program was programmed by Satoshi Nakamoto, the birth of Bitcoin. Accordance with the enthusiast, the miner, developers, programmers, business.
MultiBit Client: Compact medium-fast, consistent with the average user.
Electrum Client: the most compact Quickly. Can fit for all.
How to mine Bitcoin?
Basically, the dig bitcoins is a process together emulation of the "miner" (miners) seek out answers, answers to solve a difficult problem. The difficulty of this problem is automatically adapted to average just about every 10 minutes, there will be a miner (or a combined group) scattered all over the world it was a block.
This problem can understand Nom we similar to lottery tickets, buy as many of the chances to hit as high, the job of digging machines bitcoins is trying to find out the number hit by ... guess, generate out billions of billions in "lottery ticket" seconds, not just a person that is both a network of Miner back together to do this job, is averaging just about every 10 minutes, there will be a person or a group of people finds numbers hit. Maybe everybody knows, have been hit by the hard numbers rather than "of" because of the time-consuming, effort, energy, check back to view it correctly, then it is very easy.
Because technology and the increasingly technical progress should the computers of the miner was also increasingly strong and fast led to degrees of difficulty will increase on the rise. You know, your computer (computing power) of the Bitcoin network currently has stronger 256 times the Top 500 Supercomputers in the world COMBINED!
As mentioned in the previous article, when each block was the prize find is the solution that will be "rewarded" some bitcoin, like the one who temporarily finds a lump of gold buried under a tree behind the House. Bitcoin is not from the air that out as paper money (fiat currency) of any Government in the world. Need to spend time and energy to operate the computer stock dig bitcoin. Just as the need to waste resources to dig up gold from the ground.
Many wills that if that so then Bitcoin is indeed a waste of terrible power. I will give two reviews as follows:
- "The industry" dug bitcoins is a very competitive market critical rather than what the play that the current computer in the House you can participate. Need to have a great investment to create the "field" (farm) computers. In addition to the terrorist machine that the biggest cost is the money power. So in any place, the country would have cheap electricity the operations there will be more beneficial. Such as Iceland is a country that has electricity bills have to say is a lot cheaper than the other countries in the world, because of supply and demand, because these technologies in renewable energy (clean energy, can recycling, reuse) because electricity is difficult to transport, waste when transported, hard stock ...
Increasingly advanced techniques led to the digging machine bitcoins will increasingly more powerful and consume less energy. Plus the people can take advantage of the heat, the heat radiating from the machine to use in other applications. When it is not completely wasted, it just created are bitcoins, just created is heat: 1000 Watts of electricity will produce was 1000 Watts of heat. Law of conservation of energy states that energy is never lost, it just moved from this format to other formats. The problem is you have to know to take advantage of the conversion or not.
Why there are only 21 million bitcoins?
- Dismisses Bitcoins merely because it is power without pondering over the benefits of it indeed is flawed, and childish. You must continue to pose such questions as: does Bitcoin will help the development of the economy or not when it opened the new deals, new payment methods ...? Does it have sped the development of technologies, in clean power technology ... Say that Bitcoin electric charge is the same as saying that the creation of the Windmill to generate electricity are harmful to the environment because to create the steel must also consume energy.
As well as the limited gold bitcoins also has limits. The main limitation of this created a scarcity, generates a value of bitcoins, because often what you are rare. Because of the limited bitcoins should this creates an effect less seen, is that deflation (deflation) (instead of inflation (inflation): an abuse of issuing currency). One of the arguments often put forward to refute bitcoin is: If there is deflation, leading to increasing bitcoins coins price, then people will just hoarding bitcoin, leading to economic stagnation was not developed because nobody bought anything else. However, this argument is incorrect. I can review again as follows:
Laptops increasingly faster, cheaper. If according to this reasoning, then no longer will anyone buy a laptop anymore because with some of that money each year people will buy a machine the faster, cooler than that. But the reality, in fact, when it is needed is people will buy, rather than because the money of people increasingly value (because the buyer was the better machine) (price increases) that people will never buy.