How does the creator of Bitcoin get paid?


The creator, Satoshi Nakamoto (referred to as a "he" hereafter even though it might be a woman or a group of individuals), seems to have mined many of the early Bitcoin blocks. There have been several analyses identifying blocks mined by a specific single program, based on the nonce and so on, and it is mostly rational to assert that this was Satoshi.

There are other theories as to who this miner is, but it is naive to imagine that the system's creator wouldn't at least be somewhat interested in mining and supporting the network, and the evidence is consistent with that.

Either way, those mined coins have not moved as yet, and it is possible that he burned the private keys for them.

Of course, it is likely that there are other blocks he mined that have not been identified as his, and he has a reasonably sized stash he can spend as he sees...

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Find answers to recurring questions and myths about Bitcoin.

Table of contents


What is Bitcoin?

Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence.

Bitcoin is the first implementation of a concept called "cryptocurrency", which was first described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control its creation and transactions, rather than a central authority. The first Bitcoin specification and proof of concept was published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project in late 2010...

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This article is a gentle introduction to bitcoin and assumes minimal technical knowledge.

Shorter companion pieces to this are:

In the popular media, you will often read comments like “Bitcoins are stored in a digital wallet”, or “You can send money using blockchain technology”. These comments can be misleading and can confuse. By the end of this you should understand enough to participate in a dinnertime conversation about bitcoin, and not be mystified by the topic.

Although people refer to bitcoin as a decentralised digital currency, I prefer to think of it as an electronic asset, to sidestep questions around which government backs it and who sets the interest rate, which are often a mental block in understanding bitcoin.

As an electronic asset, you can buy bitcoins, own them, and send them to someone else. Currently (Sep 2015) there are around 14 million bitcoins that have been created, increasing by 25 bitcoins every 10 minutes or so, with an agreed...

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I discovered bitcoin in early 2011. At first it was something that felt like play money and almost surreal. I didn’t fully understand all the details back then, but a decentralized, peer-to-peer digital currency was just too crazy and I became intrigued.

Over the years I started diving deeper and deeper into bitcoin. Along the way, the true power of it really jumped out at me:

I ended up doing some freelance bitcoin development just before I joined Buffer. It’s often a topic that my brother and I can talk about for ages. There’s tons of potential here, and VCs see it too.

Using bitcoin for coffee, hotels and more

Bitcoin is often seen as a speculative investment, like a digital asset. However I’ve often been intrigued to explore using bitcoin more often.

Although I do keep part of bitcoins as an investment, the times that I have used bitcoin to transact online, it’s been an absolute joy. I’ve made many purchases, such as booking hotels in New...

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How to Get Bitcoin: Bitcoin is the currency of the future, and that’s no secret. But money doesn’t grow on trees, be it any currency, does it? So this piece breaks out of the eggshell answering a very demanding question, that of how to get Bitcoins.

There are a number of ways to get Bitcoins, some require a lot of hardwork, others not so much, and a few almost none at all. So without beating around the bush, let me walk you around how to get Bitcoins.

How to Get Bitcoin ?

There are a number of ways to get Bitcoins without having to rob a bank (or a Bitcoin wallet in this case!).

Let’s start with a list of all the possible options before diving into the details:

1). Get Bitcoin by MicroTasks

Microtasks are also termed as GPT(Get paid to). Meaning they are websites offering you small tasks (like watching a video, completing a survey, refer someone to a website etc). Which require negligible time and efforts (hence the “micro”) and...

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How do I get started?

Simply register with your email and you are ready to go. Your account will guide you through the setup. For compliance reason we require information about your business or website, and we may require certain documents for verification purposes.

What fees do you charge?

We charge 0.8% transaction processing. We also charge certain bank fees that are incurred when sending funds to your bank. These fees are displayed when you create your settlement.

How can I start accepting Bitcoin on my website?

There are several methods. The simplest way is by placing an HTML code into your website, which will display the „Pay with Bitcoin“ button. A more advanced option is to integrate your site’s payment method through our custom API. We also provide shopping cart plugins and email invoices. For in-person sales, you can use our Point of Sale payment terminal (see demo). Simply enter the type of...

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That the block chain cannot be easily forked represents one of the central security mechanisms of Bitcoin. Given the choice between two block chains, a Bitcoin miner always chooses the longer one - that is to say, the one with the more complex hash. Thusly, it ensures that each user can only spend their bitcoins once, and that no user gets ripped off.

As a consequence of the block chain structure, there may at any time be many different sub-branches, and the possibility always exists of a transaction being over-written by the longest branch, if it has been recorded in a shorter one. The older a transaction is though, the lower its chances of being over-written, and the higher of becoming permanent. Although the block chain prevents one from spending more Bitcoins than one has, it means that transactions can be accidentally nullified.

A new block chain would leave the network...

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Bitcoins are a relatively new digital currency that exists only on the world wide web. The cryptocurrency does not have any value on its own, but it is created in the process of social interaction. Only because of communication, the value – and price – is formed.

Bitcoin supply and demand

Everything in the world of Bitcoin is about supply and demand – those two basic economic categories. Humans tend to value those things the most which have a limited amount or a limited potential amount.
The supply of the coins is limited, as the system’s creator Satoshi Nakamoto has foreseen. There will be no more than 21 million Bitcoins. That’s it. This is what makes Bitcoin extremely valued. On the one hand, it is half-asset, half payment unit. On the other hand, it is an innovation which turns the whole financial system, along with its unresolved security issues, centralised control, or constant inflation, upside down. It is no wonder that the demand remains quite high...

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If you earn money online it can be withdrawn through some payment processors to your bank account. But, in case of bitcoins you cannot withdraw your earned bitcoins through any payment processors like Paypal, Payza, solid trust pay etc. To withdraw your bitcoins or to send and receive the bitcoins you need a bitcoin wallet. Through bitcoin wallet you can receive and send money without any transaction fees and few online bitcoin wallets have vault facility where you can store your accumulated bitcoins with multi level protection.

What is a Bitcoin wallet:A bitcoin wallet is a digital wallet or a software or an app or a website where bitcoins can be stored. You can create your own wallet anywhere like computers, smartphone, online wallets etc.

What is a Bitcoin address:

A bitcoin address is a unique address similar to a email address. To create a bitcoin address it is free like creating a email address. To send and receive bitcoins a bitcoin address is...
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What are Bitcoin

Bitcoin is a currency that runs on the internet. There is no bank or central entity that control its movement or emission. Anyone can participate in Bitcoin and there’s no approval needed to start using Bitcoin. Bitcoin is a borderless, trustless and decentralized payment system that no government can censored or regulate.

Does Bitcoin has value?

Bitcoin get value from its utility. Because Bitcoin is the first currency to allow people to do monetary transaction without a central authority, it became very popular very quickly. The value of Bitcoin went from a few cents when it started in 2009 to thousand of dollars today.

As long as people can keep using Bitcoin and find utility in it, it will stay valuable. Currently, many businesses and startup are working to create more use cases for Bitcoin which will further increase Bitcoin value.

Is Bitcoin secure?

Bitcoin transaction are secured by miners. Miners use very...

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How do I get Bitcoin?

Everyone knows that Bitcoins can be bought, but also you can get coins using your computer. The process of getting Bitcoins is similar to gold mining, but instead of nuggets extracted from the rock, Internet users solve problems using special programs, which provides a program algorithm. For each successfully extracted block of digits is possible to obtain a certain amount of Bitcoins, united in the block (with the passage of time the number of Bitcoins uniformly decreases). How person can be involved in this process? 1. Get a purse The first thing that needs to be done - get bitcoin-wallet for your virtual currency. The easiest way of getting wallet is visiting the site bitcoin and download bitcoin client for your operating system. After installing, it starts to download files from the history of all transactions Bitcoins. 2. Get the address of the purse When the client will be in the active state, press the button "Create" to get...

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Contents of Earn Bitcoins

Earn Bitcoins by accepting them as a means of...
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As long as we use video cards for mining it is generally agreed to measure their capacity in Kh/s. In fact, the productivity of video cards can be measured according to their cryptographic algorithm. For the capacity rating of video cards we use Scrypt algorithm.

What does "700 Kh/s = 1 Unit" mean?

We have introduced a concept of a “Unit” by which we understand the video card Radeon R9 280 X Gigabyte (GV-R928XOC-3GD) that has productivity around 700 Kh/s. From there, if the total capacity is 2 800 Kh/s we consider this as a combined working process of 4 video cards. And if we have your request for hardware purchasing you will get 4 video cards Radeon R9 280X Gigabyte...

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Arcade games saw a paradigm shift with the introduction of the smartphone. Many smartphone games were huge successes and became viral. Nonetheless, these games do not reward users with money. We now see another paradigm shift thanks to the invention of Bitcoin. The Android game Bitcoinbandit pays you bitcoins to play. We decided to interview Guillaume, one of the founders of this bitcoin reward-based game, right before they release a major update. Check it out. Could you please explain to our readers what Bitcoinbandit is all about?

Guillaume: Bitcoinbandit is a game of skills on mobile phones that offers to earn bitcoins. The player must propel Bandit the rabbit and its jetpack, avoid the cliff and his enemies and collect as many coins as he can. The coins collected in the tournament mode are added up and the rank of the players is defined at the end of the week. Each coin earned in the tournament represents one satoshi. Top-ranking players can earn...

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It’s been a while since I wrote a new post, and it feels good to be back! Today, I’m going to cover all of the available ways there are to to earn Bitcoins online. Before I begin, I just want to make something very clear:

There is no easy way to make a substantial amount of Bitcoins

Just like there’s no easy way to make a substantial amount of US dollars or any other valuable currency for that matter. The good news is that if you’re willing to put in the effort, you can achieve some very nice earnings online. Later on in this post, I’ll expose some of my own earnings so you can see what I mean.

Also, there’s no such thing as “free bitcoins”. It will always cost you something to get Bitcoins. It may not always be money, but something needs to be spent, whether it’s time, your email address, viewing ads or anything else.

I hope I didn’t burst your bubble too much right at the start of this post, but if you’re still here with me, let’s dive into the...

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The Complete Bitcoin Course: Get .001 Bitcoin In Your Wallet - is the only online course that lets you learn about Bitcoin right from the grassroots level, to actually getting involved with it by getting some Bitcoin of your own.

More About The Complete Bitcoin Course

You will be gaining a whole host of practical experience with Bitcoin, as well as theoretical within this course, and that’s going to start from the very first section. So you’ll be jumping straight into the deep end within the first part of this course.

Why Should You Get Involved With Bitcoin?

1. Bitcoin has become a global phenomenon in the short time it has been around, it serves many purposes with the main one being it is a currency that isn’t issued by any central governing body.

2. Bitcoin is an alternative investment which offers exponential returns, however the markets are volatile. It has a distinct advantage over other markets, that being it’s...

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This document provides a fast-paced interactive introduction to basic Bitcoin concepts. The purpose is to give you enough knowledge of the Bitcoin protocol to write micropayments-capable apps and demos. Let’s dive in!

How to learn (enough) Bitcoin in one week

Bitcoin is a very highly interconnected subject and it can be tricky to explain one piece without assuming some knowledge of other pieces (or prerequisites). The approach we recommend you take is as follows:

Step 1: First, go and read the original paper by Satoshi Nakamoto (bitcoin.pdf)

Step 2: Next, set up your development environment using the instructions below.

Step 3: Now go through the Introduction to Bitcoin section and read through the questions to get a high level overview of Bitcoin

Step 4: Next, do the Interactive Introduction section and type in the commands. You won’t understand everything, but will learn by doing - kind of like immersion in a foreign language.

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We gave our Person of the Year award for 2013 to Satoshi Nakamoto, the pseudonymous creator of Bitcoin.

We know some of you laughed.

If you did, you may want to read on. It's becoming increasingly clear that Satoshi's creation has the potential to change how much of commerce itself works, and for reasons not even many Bitcoin fans realize.

By many accounts, Satoshi came up with a real-world solution to an actual longstanding computer science paradox known as the double-spend problem, or the Byzantine General's problem (the professor who named it thus explains why he did so here). The challenge is how to send and receive money online without the need for a trusted third party, like PayPal, ensuring that the same digital credit standing in for the amount being exchanged isn't being spent twice.

In the real world, this problem gets avoided with cash, which is quite difficult to counterfeit. In practice, digital counterfeiting is much easier....

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What is 'Bitcoin'

Bitcoin is a digital currency created in 2009. It follows the ideas set out in a white paper by the mysterious Satoshi Nakamoto, whose true identity has yet to be verified. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government-issued currencies. Today's market cap for all bitcoin (abbreviated BTC or, less frequently, XBT) in circulation exceeds $7 billion.

There are no physical bitcoins, only balances kept on a public ledger in the cloud, that – along with all Bitcoin transactions – is verified by a massive amount of computing power. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity. Despite its not being legal tender, Bitcoin charts high on popularity, and has triggered the launch of other virtual currencies collectively referred to as Altcoins.


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A newsstand located in downtown New York is now accepting bitcoin for purchases.

The owner, identified in a newly posted YouTube video as Kay, says he is the first newsstand in the city of 8 million to take the virtual currency.

Kay's stand, located on 34th street and 2nd avenue, sells typical newsstand fare, including: cigarettes, prepaid phone cards, magazines and snacks. Perhaps the most noteworthy aspect of the business, however, is that Kay accepts bitcoin, but does not take credit cards. He explained:

"I think it's riskier dealing with credit card companies than it is with bitcoins. With credit card companies you have chargebacks, whereas with bitcoin you don't."

Kay's bitcoin journey

In the video, Kay details his journey to becoming a newsstand owner, indicating that his parents owned a similar small business when he was young. Kay said he left a previous position to follow in the footsteps of his parents, noting that it's a job...

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Today, bitcoiners the world over will celebrate the anniversary of the most expensive pizzas in history.

Bought on 22nd May 2010 by Laszlo Hanyecz, the programmer paid a fellow Bitcoin Talk forum user 10,000 BTC for two Papa John’s pizzas. Back then – when the technology was just over a year old – that equated to roughly $25, but is $5.12m by today’s exchange rate.

At bitcoin’s all-time high last December, the pizzas would have been worth an eye-watering $11.47m, making them likely candidates for the most expensive pizzas of all time.

Now widely recognised as the first real-world transaction with bitcoin, May 22nd has come to celebrate 'Bitcoin Pizza Day', with cryptocurrency enthusiasts raising a slice to Hanyecz’s infamous hunger pangs that paved the way for early merchant adoption.

@BlueJayKay5 @CookiePounder Not on island at the moment, so I'll be celebrating #BitcoinPizzaDay with a big slice of Ham & Pineapple ;)

— Mrs P...

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Bitcoin Economy is currently in prelaunch with an announced launch set for February 3rd 2014.

The company’s website domain is registered anonymously (“”, registered 29th November 2013), however the Bitcoin Economy “Terms and Conditions” indicate that the company is registered in Seychelles (a known tax-haven):

This site (excluding third party linked sites) is controlled by the Company from its offices within the State of Seychelles.

Both you and the Company agree that the statutes and laws of Seychelles shall apply to any actions or claims arising out of or on relation to this Agreement or your use of this site.

The Bitcoin Economy affiliate agreement appears to contradict this, stating that

the formation, construction, interpretation, and enforceability of your contract with Bitcoin-Economy as set forth in this Affiliate Agreement and any incorporated documents shall be governed by and interpreted in all respects under...

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