What is Bitcoin and how to get it for free?
November 25 2013
Bitcoin prizes are now available in the GiftHulk Store! Now you can get free Bitcoins without spending any of your own money! Here are examples of the last payments to users that were made by GiftHulk:
Following many questions from our users we have decided to provide some explanation regarding Bitcoin, answering questions such as “What is Bitcoin?” and “What can I buy with Bitcoin?”
What is Bitcoin?
Bitcoin(or Bit Coin) is an online financial network that people use to send payments from one person to another.
In many ways, Bitcoin is similar to conventional payment networks like Visa credit cards or Paypal. While Paypal and Visa conduct transactions in conventional currencies, the Bitcoin network conducts transactions in a new monetary unit – called Bitcoin.
U.S. government sees a lot of potential in Bitcoin market. Earlier this month, Federal Reserver Chairman Ben Bernanke told Congress that, while there are potential problems with Bitcoin, he believes the currency “may hold long-term promise, particularly if the innovations promote a faster, more secure and more efficient payment system.” Other government officials echoed this positive sentiment during a Senate hearing early this week.
Where do bitcoins come from?
In a conventional financial system, new money is created by a central bank, such as the Federal Reserve. But the Bitcoin network doesn’t have a central bank. In Bitcoin – hundreds of computers(called “bitcoin miners”) scattered around the Internet work together to process Bitcoin transactions(this process is called “bitcoin mining”).
Every 10 minutes, on average, a Bitcoin miner wins a computational race and gets a prize – 25 bitcoins, worth around $20,000(at the current Bitcoin exchange rate).
There are almost 12 million bitcoins in existence, so the total Bitcoin value is now around $10 billion.
Where to buy bitcoins?
* One option is to mine them yourself, but that’s a very poor choice for beginners as you will have to compete in “bitcoin mining” of the same Bitcoin with hundreds thousands of other users.
* There is also an option to buy Bitcoins them with a conventional currency or trade Bitcoins with other users at Bitcoin exchanges.
* The best option – buy Bitcoins for Hulk Coins at the GiftHulk Store without hassle and without dealing with Bitcoin exchanges fees! This is your only place on the Web for fast and free Bitcoins, no Bitcoin faucet will give you this!
Okay, I bought some Bitcoins at the GiftHulk Store. Now what?
Bitcoins are stored in “Bitcoin wallets,” which in this case are just files that contain encryption keys, or secret codes that allow you to transfer your bitcoins to other people.
There are several options:
* One is to store them yourself using one of the Bitcoin programs available for Mac, PC and Android.
* Another option is to entrust them to a third-party Web site known as “online Bitcoin wallet.”
* A third option is what’s known as a “paper wallet,” where you print out your encryption keys and store them in a safe place, such as a safe deposit box.
Okay, I have some bitcoins and found a secure way to keep them. What do I do with them now?
* If you’re using Bitcoin to buy stuff, you’ll often deal with a third-party service, like Bitpay (supports 10,000+ merchants), which will process the Bitcoin transaction and convert Bitcoin to USD(ot other local currency) for vendors. For you, it’ll work almost exactly the same as paying with a credit or debit card; just put in your wallet address, the item’s amount, and hit “pay.” Easy.
* You can also spend bitcoins in “real life.” To spend them in person, you need a Bitcoin mobile app. Generally, the store you’re buying from will show you a QR code representing the Bitcoin transaction. You then scan this QR code with your phone, and the mobile app will send the required number of Bitcoins to the store. Then you walk out the door with your purchases.
We hope that this blog post helped you understand what is Bitcoin, how you can buy Bitcoins at GiftHulk and what you can do with your Bitcoins. You are welcome to ask questions in the comments below!
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