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FAQ

There are many frequently asked questions about Bitcoin, Bitcoin Funding Team, Wallet Security and more.

Bitcoin FAQ

I'll just quote Google on this one. If you need to know more, go ask them.

bit·coin
noun

noun: bitcoin; plural noun: bitcoins
a type of digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.

"bitcoin has become a hot commodity among speculators" a unit of bitcoin. "bitcoins can be used for online transactions between individuals"
There are many sites you can go to online to purchase Bitcoin. CoinMama.com
Uphold.com
Gemini.com
Coinbase.com
LocalBitcoins.com
It's even possible to purchase Bitcoin at an ATM. To find out of there is one near you please visit CoinATMRadar.com or Easy Bit.
These are by far not the only places you can spend your Bitcoin, but Coinbase and Coindesk both have a list of retailers that accept Bitcoin.
The price of Bitcoin changes often, just like the price of Gold or Oil on the open market.
Current price of Bitcoin is:
In Euro the price is
While you don't need to know how Bitcoin works to use it, you may like to know why it works before you do.

Bitcoin is an Internet peer-to-peer currency system, that has no central bank or authority. Bitcoin has its own unit of currency, the bitcoin, that has no set value in relation to government-issued currencies-- it is valued separately on the merits of its usefulness and scarcity.

Bitcoin is also a computer network of users and organizations that communicate and store information about Bitcoin address balances with each other over the Internet, primarily by running the original Bitcoin software on their computer.

The design of Bitcoin includes unique methods to transmit payments, to create and distribute new bitcoins at a known and limited rate, and to cryptographically protect a shared record of all past Bitcoin operations.
You may have seen people on the Internet posting their Bitcoin address. A Bitcoin addresses is randomly generated by your Bitcoin software, and is given to others so they may send you a payment, just like how you provide your email address to receive email. An address is usually 33-34 characters long, and consistently starts with the number "1" (or "3", for a newer type of address which requires two or more parties to consent when sending).

An address can not be mistyped, as input errors are spotted as false addresses. Rather than typing though, most users will be cut-and-pasting on computers, or scanning address QR codes, due to an address's length.

An address is really made of two parts-- the public address that is safe to give to anyone, and a complimenting secret part used behind the scenes by Bitcoin software when transmitting a payment. Only an address's owner can send a payment from an address, because only an owner's wallet includes the secret private key.
Most people's introduction to Bitcoin is by using a Bitcoin wallet. A wallet is the equivalent of a Bitcoin financial account, and is what enables sending and receiving payments with others. A Bitcoin wallet contains a collection of Bitcoin addresses owned by you. A nearly unlimited number of addresses can be created and stored by your wallet, so that you can give different addresses to different people and track payments you've received. When a payment is sent to one of your addresses, your Bitcoin wallet will reflect your new balance-- you've got bitcoins!

In addition to wallet software that runs on your computer or mobile phone, web wallets-- cloud services run by independent organizations-- can also maintain a wallet with addresses, or can operate like a bank where your bitcoins are simply stored as an account balance in their Bitcoin wallet. Decide on a wallet that is appropriate for you.

If the wallet data stored on a computer is deleted, or the computer hard disk drive dies, then the owner loses the ability to send their bitcoins to anyone else-- they are lost. This is why it is vital to make a secure backup of the wallet before using Bitcoin for significant amounts.

If another party gains access to your computer or the wallet data, they can spend your Bitcoins. Bitcoin-Qt allows encrypting a wallet with a passphrase, so even if the wallet data is stolen, the bitcoins contained in the wallet addresses can not be sent or stolen without hacking the password.

The Bitcoin network doesn't directly store a balance for each of its users. Instead, Bitcoin uses a record of all transactions that have ever taken place, allowing each node to uncover genuine payments to any Bitcoin address. A wallet will display a user's current balance after collecting information about payments made to and from all wallet addresses.

A transaction doesn't transfer discrete units or "coins". Instead, it describes a monetary amount that should be transferred to other addresses. Bitcoin values can be combined in transactions from numerous previous payments, and can be divided again among several payee addresses. A whole bitcoin is not the smallest increment that can be sent by users either-- a bitcoin amount can be specified down to eight decimal places.

When you send a payment to somebody else on the Bitcoin network, you are creating a transaction. A transaction is a digitally signed unchangeable message that moves ownership of bitcoins to another address. A transaction is instantly communicated with other Bitcoin network nodes, which verify its authenticity and temporarily store it as a pending transaction for further processing.
The Bitcoin blockchain is a public ledger that describes the initial creation and chain-of-ownership of every bitcoin amount. This sequential record of all accepted purchases allows a Bitcoin client to determine the genuineness of any past or future payment. Significantly, this solves the problem of identifying when a bitcoin amount has been spent, so further attempts to double-spend particular bitcoins are not possible.

About every ten minutes, a group of pending transactions is packaged together into a transaction block, which is sent to all Bitcoin nodes. When a transaction has been included in a block, it is considered to have been validated, meaning that it very likely to become part of this record of transactions.

The contents of a block are safeguarded from alteration by a cryptographic hash function which is very difficult to compute. Each block also contains identity information about the correct previous block, so as future blocks are added to this chain of blocks, altering the contents of the blockchain or replacing a block with another becomes even harder. By this mechanism, the blockchain becomes a cryptographically secured irreversible store of all past deals.

The size of the blockchain is continually growing, and the reference Bitcoin client requires a complete download of the whole transaction record to work as a wallet. Using a full Bitcoin client supports the operation of the Bitcoin network, but new users may find a "light" client or a web wallet a faster intro to Bitcoin.
The procedure of securing the blockchain is called mining. Great numbers of dedicated computers and high-end computing devices are constantly seeking to compute a valid block hash and add a new block of transactions to the blockchain. The Bitcoin software run by miners enforces the rules of Bitcoin, turning down any invalid transactions or blocks, such as those that might try to use bitcoins that have already been spent.

The lottery of block-finding is incredibly difficult and competitive, so that it is more profitable for a would-be attacker to simply make new blocks than to attempt to replace past blocks or "erase" stored transactions. To compensate for a growing computing power of miners, the difficulty of discovering a block hash automatically adjusts about every two weeks to maintain an average of six blocks per hour.

Mining is also the method by which new bitcoins are created. As a reward to encourage a higher difficulty against attack, mining a block includes a reward-- newly created bitcoins paid to the miner. The quantity produced per block started at 50 bitcoins in 2009, but the reward amount is halved roughly every four years (every 210,000 blocks). This formula ensures a maximum money supply of 21 million bitcoins will be circulated.

While mining was initially performed using general-purpose computers and the reference Bitcoin client, and then high end graphics cards (GPUs), it is no longer sensible or energy efficient to mine using less than specialized hardware devices designed only for mining (using FPGA and now ASIC technology).

Since it may take years for an individual miner to find a Bitcoin block and claim the full reward, most miners pool their resources into a mining pool, to get regular reward payments. A pool is an individually run organization running Bitcoin that coordinates computing resources and pays out fractional rewards to individual miners.

Bitcoin Funding Team FAQ