Bitcoins...still confused

[Mandingo]

I have looked at numerous guides online yet I still don't really understand the process of bitcoins.

So first off, I used Blockchain to create a bitcoin account, but I still don't understand the process of safely receiving bitcoins without them taking it back, how much a bitcoin is worth, and how to exchange your bitcoins for cash. And how does bitcoin mining work? Is it literally you solve math problems and you get money for it? Sorry for the stupid questions :/, just new at all this, thanks in advance for the help!

 

There isn't a safer way tor receive bitcoins, all transactions are irreversible and final.

For price i use this site: https://bitcoinity.org/markets

If you live in the USA you can use coinbase to sell your bitcoins

 

[Mandingo]

There isn't a safer way tor receive bitcoins, all transactions are irreversible and final.

For price i use this site: https://bitcoinity.org/markets

If you live in the USA you can use coinbase to sell your bitcoins

So there is no way someone could make a false claim and recover their bitcoins?

and 1 bitcoin is equal to ~$480 right? and 1mbitcoin is equal to ~.48?

And do you understand how the mining system works?

 

[homm88]

So there is no way someone could make a false claim and recover their bitcoins?

and 1 bitcoin is equal to ~$480 right? and 1mbitcoin is equal to ~.48?

And do you understand how the mining system works?

All transactions are irreversible. This also means that if you accidentally send money to the wrong address, your money is essentially as good as lost.

You're right on the prices, yes.

What is Bitcoin mining?: https://www.youtube.com/watch?v=GmOzih6I1zs

 

[tehRonskie]

Why are bitcoins expensive?

 

I have looked at numerous guides online yet I still don't really understand the process of bitcoins.

I'll try and set you in the right direction.

So first off, I used Blockchain to create a bitcoin account, but I still don't understand the process of safely receiving bitcoins without them taking it back

I assume you're speaking of the website blockchain.info? The blockchain is a generic term for chain of transactions that make up the bitcoin network, every transaction ever made is recorded in the blockchain and the network uses it to verify new transactions.

Bitcoin cannot be charged back or taken back from you, it is impossible.

how much a bitcoin is worth

It fluxuates, for an estimate just google "Bitcoin to usd" and google will convert it.

and how to exchange your bitcoins for cash.

There are plenty of online exchanges (like coinbase). You can also sell to someone that you know or buy something online with it. You can use gyft.com to buy giftcards, you can order stuff from dell.com, you can purchase precious metals, etc etc etc.

And how does bitcoin mining work? Is it literally you solve math problems and you get money for it? Sorry for the stupid questions :/, just new at all this, thanks in advance for the help!

No, a bitcoin mining computer does calculations that contribute to processing transactions in the network. In return you can receive an amount of bitcoin back for the computers contribution. You'd need specialised equipment as a home pc is not going to be able to mine. Just buy some with USD.

Why are bitcoins expensive?

Why are paper dollars worth value? Because you can use them to buy things.

 

[Sempiternally]

I'll try and set you in the right direction.



I assume you're speaking of the website blockchain.info? The blockchain is a generic term for chain of transactions that make up the bitcoin network, every transaction ever made is recorded in the blockchain and the network uses it to verify new transactions.

Bitcoin cannot be charged back or taken back from you, it is impossible.




It fluxuates, for an estimate just google "Bitcoin to usd" and google will convert it.




There are plenty of online exchanges (like coinbase). You can also sell to someone that you know or buy something online with it. You can use gyft.com to buy giftcards, you can order stuff from dell.com, you can purchase precious metals, etc etc etc.



No, a bitcoin mining computer does calculations that contribute to processing transactions in the network. In return you can receive an amount of bitcoin back for the computers contribution. You'd need specialised equipment as a home pc is not going to be able to mine. Just buy some with USD.



Why are paper dollars worth value? Because you can use them to buy things.

For mining if I had a gaming rig would that work?

 

[Mandingo]

I'll try and set you in the right direction.



I assume you're speaking of the website blockchain.info? The blockchain is a generic term for chain of transactions that make up the bitcoin network, every transaction ever made is recorded in the blockchain and the network uses it to verify new transactions.

Bitcoin cannot be charged back or taken back from you, it is impossible.




It fluxuates, for an estimate just google "Bitcoin to usd" and google will convert it.




There are plenty of online exchanges (like coinbase). You can also sell to someone that you know or buy something online with it. You can use gyft.com to buy giftcards, you can order stuff from dell.com, you can purchase precious metals, etc etc etc.



No, a bitcoin mining computer does calculations that contribute to processing transactions in the network. In return you can receive an amount of bitcoin back for the computers contribution. You'd need specialised equipment as a home pc is not going to be able to mine. Just buy some with USD.



Why are paper dollars worth value? Because you can use them to buy things.

That helps ALOT thanks!!

One last question about blockchain, is it kind of like an online wallet where you store your money?

 

[Cas]

For mining if I had a gaming rig would that work?

Some gaming rigs can mine pretty efficient, but it's not really worth it power bill wise.

That helps ALOT thanks!!

One last question about blockchain, is it kind of like an online wallet where you store your money?

Blockchain isn't an online wallet. Blockchain is an online tracker of every transaction made with BTC.

 

[Syphillis]

For mining if I had a gaming rig would that work?

It's not worth it in terms of power consumption and the wear-and-tear on your rig. Otherwise everybody with any system would be doing it!

 

For mining if I had a gaming rig would that work?

No, it'd take too much electricity and tax your hardware. You wouldn't make anything.

That helps ALOT thanks!!

One last question about blockchain, is it kind of like an online wallet where you store your money?

You still didn't clarify if you're speaking about the generic blockchain, or blockchain.info the website. The latter is a wallet where you can store bitcoin.

 

[Mandingo]

To my understanding Blockchain also offers an online wallet - see https://blockchain.info/wallet

Yeah, I can confirm that blockchain does have a wallet, made an account yesterday

http://gyazo.com/02e06c6b56588a955d344194fc324e29

 

[Xolr]

Do not use an online wallet. If you don't own your private keys to your wallet then you don't own your bitcoins. Use bitcoinqt

 

[Mandingo]

Do not use an online wallet. If you don't own your private keys to your wallet then you don't own your bitcoins. Use bitcoinqt

what do you mean by private keys? And how come blockchain isn't a reliable online wallet?

 

[Xolr]

If blockchain ever gets hacked (like 90 percent of online wallets have) you lose your bitcoins.

 

[Mandingo]

If blockchain ever gets hacked (like 90 percent of online wallets have) you lose your bitcoins.

Wow thats a huge downside, is there any bitcoin wallet that can guarantee safety?

 

[Xolr]

If you can guarantee your own safety, then like I said, you need complete and utter control over your own private keys. For every public address (what you send bitcoins to) there is a private key. With that key, you can remove bitcoins from the address. Blockchain does not allow you control over private keys of the addresses you use with their service.

Armory is probably the strongest and most secure program to manage your bitcoins and private keys.

Imo, if you're not a expert in diehard bitcoin security, use a online wallet like blockchain if and only if you are willing to lose whatever you have placed there. Blockchain has never been hacked, but that's not to say they will never be hacked. If you're from the USA, use coinbase or circle.com. They are insured and if they ever get hacked then you may be able to get your money back.

 

[Mandingo]

If you can guarantee your own safety, then like I said, you need complete and utter control over your own private keys. For every public address (what you send bitcoins to) there is a private key. With that key, you can remove bitcoins from the address. Blockchain does not allow you control over private keys of the addresses you use with their service.

Armory is probably the strongest and most secure program to manage your bitcoins and private keys.

Imo, if you're not a expert in diehard bitcoin security, use a online wallet like blockchain if and only if you are willing to lose whatever you have placed there. Blockchain has never been hacked, but that's not to say they will never be hacked. If you're from the USA, use coinbase or circle.com. They are insured and if they ever get hacked then you may be able to get your money back.

Wow, that sucks. What do you mean by "may get your money back" from coinbase or circle.com? I'm currently in the US and have a wallet using Blockchain, but I currently don't have anything in it. I am hoping to eventually get bitcoins, but I don't want to have like $20 in there and have it disappear.

 

[Naxious]

All transactions are irreversible. This also means that if you accidentally send money to the wrong address, your money is essentially as good as lost.

You're right on the prices, yes.

What is Bitcoin mining?: https://www.youtube.com/watch?v=GmOzih6I1zs

Don't worry too much abotu the mining , I was confused abot that and still am. Best thing to do is tranfer either RSGP or other ingame coins to BTC and then using BTC to either gamble, or buy online products accepting BTC

 

[Xolr]

Wow, that sucks. What do you mean by "may get your money back" from coinbase or circle.com? I'm currently in the US and have a wallet using Blockchain, but I currently don't have anything in it. I am hoping to eventually get bitcoins, but I don't want to have like $20 in there and have it disappear.

They're insured, you may get your money back if you provide all details needed and required in the case that they are hacked. Circle hasn't officially released, but coinbase has been around for a while.