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Showing posts from June 7, 2015

Bitcoins

A Few days ago, I started to learn about bitcoins. They say we can "mine" bitcoins and then convert them to real money. So I got interested because money was kind of an issue for me. So the thing is, money can't just come out of nowhere, so how does mining work? I tried to learn from various sources but couldn't understand. So I had to use my financial accounting skills to figure things out. So here is a bit of info if you too are confused like I was. Bitcoins do not come from nowhere. The source of bitcoins is the pockets of people who buy it. But they are a commodity none-the-less. So, it starts like this. A person puts money into the system in return for bitcoins. Now usually it happens that we give money to someone and nobody knows that our transaction ever happened except us. But in the bitcoin industry, everyone knows where the money came from and where did it go. This is against our anonymity and security, but to keep this virtual money have it's valu