BitCoins

Recently, I took the plunge. I decided to get into BitCoins. I think it's a very effective way of making money (and fast too). A handful of people think it's a scam and the people who are telling you this are, indeed, already investing into BitCoins. The reason they don't want you to know is because the ease it is to make money.

Let me explain what BitCoins are. BitCoins were developed by a Japanese cryptographer whos goal is to create a universal and international business-tier economy. This means he means to cut out the middle man as well as the little man. This form of economy is structured to support big business payments and transactions over the internet. So the question is: how do you get BitCoins? The answer is simple; buy them using any form of legal currency. This is where people begin to get skeptical. No, you do not pay the developers and BitCoin staff for BitCoins. That's because there is no staff! BitCoin is developed and improved by the man who started it and only runs off donations. He makes zero profit. So who do I pay for BitCoins? You pay whomever already has BitCoins for thier BitCoins. How much does one cost? It costs whatever you agree it costs. If you follow the markets for buying and selling BitCoins, each coin costs about $135 USD as of right now. Since BitCoins are relatively new (2 years old), the market for each coin fluctuates in a very predictable way. This allows for maximum profit in a short amount of time. The low for each coin is around $60 and the high being around $160. That's a $100 profit per coin! Already, I have made $643.42 profit from marketing coins. This is rediculus and cant be legal, but it is! The developer decided to go to over 62 different countries and obtain legal contracts to have BitCoins recognized as a real currency!

There arises one issue. The BitCoin economy does not have a central bank to process payments and make transactions and regulate the economy. Like most economies, each one has a single bank or orgainization which regulates the economy. For the US, the organization is the Federal Reserve Bank of the United States. They are responsible for printing money and assuring its legitimacy. BitCoins do not have a central bank. Who is responsible for verifying transactions? How does BitCoins prevent conterfeit coins? The answer is simple. Anyone who wants to! Why would anyone want to do that? Like any bank around the world, each bank charges a fee for making a transaction. Banks check legitimacy of a transaction and charge a very small percentage for doing this work. Anyone who would like to verify payments and transactions using thier computer can and will get paid a small percentage. This is called BitCoin mining. Miners get a program which generates hashes for a block which assigns 25 coins to the block. Each block is so encrypted it takes roughly 10 minutes to create the block running about 35 MH/s (Mega Hashes per second). This takes a lot of computing power. If you have the PC power to handle this type of work, you will get a small percentage for checking each coin in a transaction with the block and verifying that a payment is legitimate. Miners get a very small profit but it's technically free money. If you do the math, the cost it takes to run the electric bill to run 40 MH/s for the time it takes to generate 1 BitCoin, you will have made a $40 profit. This means, if you leave your computer on, your electric bill will be paid off as well as earning a $40 profit (when the market it as $155 / BitCoin).

Eventually, BitCoins will reach a point where mining coins wont be worth it any more and then we reach the price point. This is the exact point where there are just enough coins in the economy to stimulate everyone who is in BitCoin. At this point, BitCoins are projected to cost about $1000 each. This is the primary reason why BitCoins are designed for a business aspect rather than the consumer aspect. This will take about 6 years to happen but in that time, any consumer who has collected coins are garunteed a profit as businesses will be searching out BitCoins and buying them off people to use for thier businesses and trade.

I think BitCoins are on the rise and I'm glad I'm dipping into a pool of money that's just sitting there. I urge you to do the same before it's too late.