If you hang out on the Internet regularly, you probably have heard about Bitcoin. Bitcoin is a virtual currency that works without having anyone in the middle. That means that money is exchanged from one person to another directly. Servers verify transactions and data is recorded and published on the Internet, primarily a ledger of transactions.
So, how is this different from regular transactions?
When it comes to digital spending, you have to make sure that the money doesn’t get spent more than once. So for example, if you use PayPal and you send money to someone, they act as the central authority and take the money out of your account. But with Bitcoin, there is no central authority; there is no one making sure that each and every transaction is correct and that when you buy something, the correct amount leaves your account and goes into the sellers.
The interesting thing is that Bitcoin relies on the computing power of a peer-to-peer network consensus to verify the transactions, which means that accounts cannot be locked, and payments cannot be reversed. Also, with Bitcoin, your payment is anonymous. That’s why this currency was a favourite of users of the now shut down black market website Silk Road.
Users that are allowing their computing power to be part of the P2P network receive Bitcoins as payment. The more computing power they share, the more Bitcoins they receive. Unfortunately, people with a laptop or desktop computer do not participate in this “mining” as it is called, because the cost of electricity is higher than the value of the Bitcoins that they receive. You need hardware that can do faster computing for less energy to participate.
How Did Bitcoin Start?
In 2008, a programmer named Satoshi Nakamoto introduced the idea for Bitcoin and a year later open-source software was released. After an exploit allowed two users to give themselves billions of Bitcoins the code was rewritten and the vulnerability fixed.
What is the Value of Bitcoin in Relation to the Dollar?
There are more than 13 million Bitcoins in circulation. Each Bitcoin is worth around $600 but you can break up the Bitcoin into much smaller currency units. Interestingly, the first actual purchase with Bitcoins was an indirect purchase of two Papa John’s pizzas.
How to Get Started with Bitcoin?
So, how do you get started with Bitcoin? The first thing that you have to do is open a Bitcoin Wallet. There are several companies out there that do this, but you need to do your research carefully and make sure you choose one that lots of people are using and are trustworthy. Once you have a Bitcoin Wallet, you need to put Bitcoins in it. You will buy your Bitcoins through an exchange program. Finally, you start using your Bitcoin. The list of online businesses and brick-and-mortar services that accept Bitcoin is growing every year, and you will be able to find lots of places to spend your Bitcoin if you look online.
Buying Host Surf UK Unmanaged Dedicated Servers with Bitcoin
Host Surf UK now accept Bitcoin payments for all our UK Unmanaged Servers. My.HostSurf has been fully integrated with Bitpay to allow for payments to be made with Bitcoins.
When you place a Dedicated Server order, at the checkout select Bitcoin as the payment method. Once complete you order will be processed.