How does bitcoin work yahoo answers

Answer this question Flag as. Flag as. Show more unanswered questions.Join the 200,000 developers using Yahoo tools to build their app businesses.People transfer around the clock Bitcoins over the Bitcoin network, but even if all transactions are recorded,.Karma Koin transforms your cash into virtual currency that you can spend in your favorite online games.A single Bitcoin can be divided down to 8 decimals, and people can transact with fractions of Bitcoins, known as satoshis, so even if one Bitcoin is worth a lot, the system is still useful for very tiny transactions.

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There is a built-in limit of 21 million Bitcoins, meaning when this many have been mined, production will stop completely.

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A new exchange is courting users of the now-defunct BTC-e exchange, but it bears a striking resemblance to its illicit predecessor.Practices Regarding Your Ability to Update or Delete Information.

Once you have settled on a broker or exchange, you create an account with a user name and password and link your bank account. Mt. Gox (and others) ask for personal information and photographic scan of a drivers license, passport, or national ID card.We will take you through what Bitcoins are, how they are created, where to buy and sell them, how to store them safely, and where you can spend them.China-based cryptocurrency exchange Yunbi has announced the closure of its trading operations in the midst of a wider crackdown within the country.

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What is BitCoin and How Does It Work?

Because it has attracted low-quality or spam answers that had.Bitcoin can either be used to buy things online from merchants and organizations that accept Bitcoin, or it can be cashed out through an exchange, broker, or direct buyer.

Coinbase and Bitstamp make it pretty easy to buy Bitcoins, exchanging real-world money from your bank for the virtual currency, or vice versa.If we receive a valid court order we will work closely with the law.A new block is added to the blockchain an average of once every ten minutes.These cryptographic puzzles get increasingly harder as more Bitcoins enter circulation.While this is part of the appeal for many, it does make it easier to get swindled.The blocks created by mining make up the transaction record of the Bitcoin system.The public address and private keys are both required to trade, sell, and spend Bitcoin.Bitcoins are generated by using an open-source computer program to solve complex math problems in a process known as mining (more on that shortly).

In order to make transactions on an exchange, you must have a Bitcoin wallet (more about this later) to keep your currency in.

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The most well known and one of the largest Bitcoin exchanges is Japan-based.As mentioned above, every Bitcoin has a private, unique, and long numerical ID.Buying a Bitcoin can be thought of as buying a spot in the blockchain, which then records your purchase publicly and permanently.

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These can be digital wallets that exist in secure cloud environments or on a computer, or they can take physical form.Transactions happen digitally from person to person, without middlemen such as banks or clearinghouses.

Now Bitcoin is emerging out of its angsty adolescence into a more mature, adult, stable form.

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With news from China sending the bitcoin markets tumbling, technical analysis suggests key price indicators could determine when the selling will end.

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Transactions are currently quite difficult to trace, however, which is why Bitcoin has been associated with illicit activity, such as buying and selling drugs on the now-defunct Silk Road market.These miners then set to work doing the intensive number-crunching required to verify all the transactions in.All else equal, the market may take less time to recover from the latest sell-off than from the one that took place in December 2013.