How are new bitcoins created?

Bitcoins are created using a process called “mining” which involves a computer on the bitcoin network solving a complex mathematical problem which creates a new “block.”  The mathematical problem is something that is difficult to solve and demonstrates that work was done, which is called “proof of work.” The reward for solving a block is…

Bitcoin Confirmation times: If confirmation takes 10 minutes, how will I buy coffee at Starbucks?

There are many misunderstandings about bitcoin transactions, and we’ll explain the facts here.  First, there are two components, the transaction and then the confirmation.  Transactions themselves are nearly instant, often less than a second to reach the majority of the bitcoin network.  Once a transaction is in the bitcoin network with fees (and usually without)…

Is bitcoin volatile?

The question is often asked, isn’t bitcoin volatile?  In bitcoin’s 5 year history (January 2009 to December 2013, as of this update), there have been a number of instances of volatility.  The question is though, which do you prefer:  an asset/currency that is increasing in value even though it is volatile or an asset which…

Benefits of Using Bitcoin

What are some benefits of bitcoin? Nearly instant transfers worldwide Free or very low cost transfers worldwide As of December 2013, bitcoin is accepted at over 15,000 businesses (see https://bitpay.com). Ability to protect yourself from government seizures of your money as happened in Europe in the Spring of 2013.  (Cyprus bank bail-in.) When the authorities in…