Bitcoin is an online currency program, which claims to be the first decentralized digital currency. It is no secret that the world's financial institutions are not doing very well. Bitcoin hopes to revolutionize currency using the power of the online free market, in the same way that the internet changed publishing.
Paypal was a good first step in bringing currency exchange away from banks and financial institutions, and back to a more personal experience. However, Paypal has many limitations, including exorbinant fees and frozen accounts. If Bitcoin catches on, it could be a great alternative service for people fed up with bad experiences with Paypal. This program is open source, and free for all users. It can be installed on every Windows, Mac and Linux computer.
There are several different ways to start padding your digital wallet with bitcoins. Bitcoins are generated by what is called digital mining. The average Bitcoin user will not do any mining. It requires advanced technical knowledge, and special software and hardware requirements. Miners have the option to use their computers to generate bitcoins, and keep all the proceeds for themselves, which can be a slow process. Another option is to join a mining pool, in which your computer joins the resources of others in the pool and profits are shared.
There are other slow bitcoin-generating programs available online, such as freebitcoins.org, where you can get bitcoins from referral and bonus programs. The best way to get bitcoins, however, is to find local Bitcoiners to trade with. Whether you trade locally or internationally, there is a minimum fee of $15 to trade cash for bitcoins. Since you have to pay this fee anyway, it makes more sense to trade with someone local, who you can look in the eye, as opposed to someone unknown, across the globe.
Lastly, if you have a marketable skill or service, you can accept bitcoins as payment for free. There is no cost to accept bitcoins for your online shop. This is one of the most direct ways to make bitcoins.
Many online services and stores have started accepting bitcoins for payment. Check with your favorite companies and charities to see if they will take those bitcoins off your hands. If they don't take bitcoins yet, send them an email mentioning that it wont cost them anything to start accepting this new currency.
Forbitcoin.com is an established bitcoin-only trading portal. People already using Bitcoin, are posting items and services for sale. Professional writers and web designers are offering their services for bitcoins. You can also use your bitcoins to buy music, video games and much more.
The Bitcoin Difference
The main benefits of Bitcoin is that there are no financial institutions getting in the way of financial transitions between people. There is still plenty of room for banks, when it comes to loans and a place to securely save money. Often times, when financial institutions get involved with smaller transactions, it means that you are going to have to pay fees for their "services." Bitcoin doesn't involve banks or any third party institutions. This means your accounts will never be frozen, and fees are significantly reduced.