Sunday, May 26, 2013


Before you start with Bitcoin, be sure to read what you need to know first.

Read more about securing your wallet.

This is why it is recommended for Bitcoin owners to use many different Bitcoin addresses; in fact, you should create a new one each time you receive money.

Bitcoin is a decentralized P2P electronic cash system without a central server or trusted parties. Users hold the crypto keys to their own money and transact directly with each other, with the help of the network to check for double-spending.

If you are new to Bitcoin, these wallets are a good place to begin.
  • Bitcoin-Qt is an app you can download for Windows, Mac, and Linux.
  • Bitcoin Wallet for Android runs on your phone or tablet.
 Download for Windows (zip) ~13MB

Unpack the files into a directory and run bitcoin-qt.exe.

If you have Microsoft Security Essentials, you need to add bitcoin.exe to its
"Excluded processes" list.  Microsoft Security Essentials->Settings tab,
select Excluded processes, press Add, select bitcoin.exe, OK, Save changes.

The software automatically finds other nodes to connect to.  You can
enable Universal Plug and Play using a menu entry or set your firewall
to forward port 8333 (TCP) to your computer so you can receive
incoming connections.  Bitcoin works without incoming connections,

but allowing incoming connections helps the Bitcoin network.

 Download for Windows (exe) ~9MB
 Download for Ubuntu (PPA)
 Download for Linux (tgz, 32/64-bit) ~12MB
 Download for Mac OS X ~13MB

Project Admins:
Windows only for now. Open source C++ code is included.
- Unpack the files into a directory
- It automatically connects to other nodes
If you can keep a node running that accepts incoming connections, you'll really be helping the network a lot. Port 8333 on your firewall needs to be open to receive incoming connections.
The software is still alpha and experimental. There's no guarantee the system's state won't have to be restarted at some point if it becomes necessary, although I've done everything I can to build in extensibility and versioning.
You can get coins by getting someone to send you some, or turn on Options->Generate Coins to run a node and generate blocks. I made the proof-of-work difficulty ridiculously easy to start with, so for a little while in the beginning a typical PC will be able to generate coins in just a few hours. It'll get a lot harder when competition makes the automatic adjustment drive up the difficulty. Generated coins must wait 120 blocks to mature before they can be spent.
There are two ways to send money. If the recipient is online, you can enter their IP address and it will connect, get a new public key and send the transaction with comments. If the recipient is not online, it is possible to send to their Bitcoin address, which is a hash of their public key that they give you. They'll receive the transaction the next time they connect and get the block it's in. This method has the disadvantage that no comment information is sent, and a bit of privacy may be lost if the address is used multiple times, but it is a useful alternative if both users can't be online at the same time or the recipient can't receive incoming connections.
Total circulation will be 21,000,000 coins. It'll be distributed to network nodes when they make blocks, with the amount cut in half every 4 years.
first 4 years: 10,500,000 coins
next 4 years: 5,250,000 coins
next 4 years: 2,625,000 coins
next 4 years: 1,312,500 coins
When that runs out, the system can support transaction fees if needed. It's based on open market competition, and there will probably always be nodes willing to process transactions for free. (many of the sites listed here are dead)

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