Bitcoin is a new form of currency that seeks to change how online business is done. This instructable seeks to not only get you to understand what bitcoin is, but how you can get started mining your own bitcoins at bitcoin client for ubuntu! Check out this quick video for a better understanding of bitcoin.
Why would you even bother using bitcoin? Well in some ways bitcoin can help people transfer funds easily in the digital realm. First off Bitcoin is decentralized, there is no overarching controller of the currency, the information about the transactions are held by everyone in the network. Next bitcoin transactions are recorded anonymously. This means that people can see that bitcoins are being traded, but the recorded transaction does not have a name attached.
Lastly bitcoin is a worldwide currency and has a constant rate between countries. This allows people regardless of borders to trade funds easily. If you think you could benefit from bitcoins or just want to geek out on the next cool thing, setting up bitcoin is an easy process. Setting up Bitcoin solo mining is pretty easy. Bitcoin works in linux, mac and windows. Next just run the program, you will soon see an increase in the number of “blocks” these blocks are all of the transactions that exsist in the bitcoin world. Before you start mining your client needs to download all of these blocks.
The main part of your bitcoin experience will be your bitcoin address, this will be what you send to people when you make transfers and vis versa. Another part will be your “wallet” which is in your settings file for bitcoin. This keeps all of your bitcoin data, so keep it safe and keep a copy of it somewhere. Once the blocks are downloaded, you can test bitcoin by using the bitcoin faucet.
It will send you . 02 bitcoins to test your setup. You will see the transaction in your main window soon after requesting them. Now that you verified its working, time to make some money! To actual make bitcoins is not as simple as it sounds. Running bitcoin can be annoying because you don’t see any real progress.