Bitcoin provides a new approach to payments and, as such, there are some new words that might become a part of your vocabulary.Don't worry, even the humble television created new words!Address Bit Bitcoin Block Block Chain BTC Confirmation Cryptography Double Spend Hash Rate Mining P2P Private Key Signature Wallet A Bitcoin address is similar to a physical address or an email.It is the only information you need to provide for someone to pay you with Bitcoin.An important difference, however, is that each address should only be used for a single transaction.Bit is a common unit used to designate a sub-unit of a bitcoin - 1,000,000 bits is equal to 1 bitcoin (BTC or B⃦).This unit is usually more convenient for pricing tips, goods and services.Bitcoin - with capitalization, is used when describing the concept of Bitcoin, or the entire network itself."I was learning about the Bitcoin protocol today."bitcoin- without capitalization, is used to describe bitcoins as a unit of account.

"I sent ten bitcoins today.";it is also often abbreviated BTC or XBT.A block is a record in the block chain that contains and confirms many waiting transactions.Roughly every 10 minutes, on average, a new block including transactions is appended to the block chain through mining.The block chain is a public record of Bitcoin transactions in chronological order.The block chain is shared between all Bitcoin users.It is used to verify the permanence of Bitcoin transactions and to prevent double spending.BTC is a common unit used to designate one bitcoin (B⃦).Confirmation means that a transaction has been processed by the network and is highly unlikely to be reversed.Transactions receive a confirmation when they are included in a block and for each subsequent block.Even a single confirmation can be considered secure for low value transactions, although for larger amounts like 1000 US$, it makes sense to wait for 6 confirmations or more.Each confirmation exponentially decreases the risk of a reversed transaction.

Cryptography is the branch of mathematics that lets us create mathematical proofs that provide high levels of security.Online commerce and banking already uses cryptography.In the case of Bitcoin, cryptography is used to make it impossible for anybody to spend funds from another user's wallet or to corrupt the block chain.It can also be used to encrypt a wallet, so that it cannot be used without a password.If a malicious user tries to spend their bitcoins to two different recipients at the same time, this is double spending.litecoin worth itBitcoin mining and the block chain are there to create a consensus on the network about which of the two transactions will confirm and be considered valid.litecoin daily newsThe hash rate is the measuring unit of the processing power of the Bitcoin network.ryan charles bitcoin

The Bitcoin network must make intensive mathematical operations for security purposes.When the network reached a hash rate of 10 Th/s, it meant it could make 10 trillion calculations per second.Bitcoin mining is the process of making computer hardware do mathematical calculations for the Bitcoin network to confirm transactions and increase security.As a reward for their services, Bitcoin miners can collect transaction fees for the transactions they confirm, along with newly created bitcoins.bitcoin bonus poolMining is a specialized and competitive market where the rewards are divided up according to how much calculation is done.bitcoin b2b paymentsNot all Bitcoin users do Bitcoin mining, and it is not an easy way to make money.bitcoin to hit 10000Peer-to-peer refers to systems that work like an organized collective by allowing each individual to interact directly with the others.bitcoin amazon gpu

In the case of Bitcoin, the network is built in such a way that each user is broadcasting the transactions of other users.And, crucially, no bank is required as a third party.A private key is a secret piece of data that proves your right to spend bitcoins from a specific wallet through a cryptographic signature.Your private key(s) are stored in your computer if you use a software wallet; they are stored on some remote servers if you use a web wallet.Private keys must never be revealed as they allow you to spend bitcoins for their respective Bitcoin wallet.bitcoin pibA cryptographic signature is a mathematical mechanism that allows someone to prove ownership.bitcoin thai clubIn the case of Bitcoin, a Bitcoin wallet and its private key(s) are linked by some mathematical magic.When your Bitcoin software signs a transaction with the appropriate private key, the whole network can see that the signature matches the bitcoins being spent.

However, there is no way for the world to guess your private key to steal your hard-earned bitcoins.A Bitcoin wallet is loosely the equivalent of a physical wallet on the Bitcoin network.The wallet actually contains your private key(s) which allow you to spend the bitcoins allocated to it in the block chain.Each Bitcoin wallet can show you the total balance of all bitcoins it controls and lets you pay a specific amount to a specific person, just like a real wallet.This is different to credit cards where you are charged by the merchant.Bitcoin has been on a rollercoaster in the last few days.5 it came within a hair’s breadth of surpassing its all-time high; then it lost billions in market value on fears of a Chinese government clampdown.The traders responsible for these price swings are spread around the world.They gather on Reddit’s r/bitcoin, the legendary forum Bitcointalk, encrypted Telegram chat rooms, and Teamspeak servers (basically a rolling, public conference call, where traders can speak to each other using technology originally designed for multi-player games) such as WhalePool.

But try to join in their conversations, and you’ll likely be baffled.Why do traders persistently misspell “hold” even in the face of powerful autocorrect software?Is being a “bagholder” a pejorative?And why is the BearWhale spoken of in hushed tones?Even insiders marvel at the slang bitcoin culture has spawned.The lexicon of crypto trading community is fantastic: Plunge protection teamShillHodlWhalesRektBagholdersBuy wallTrollboxBear trap — Barry Silbert (@barrysilbert) December 21, 2016 Ever committed to exploring the new global economy, Quartz has demystified the jargon of the bitcoin trading floor for you.📈️ Hodl — To stay invested in bitcoin and not to capitulate in the face of plunging prices.It was established by a cri de cœur issued during the great bitcoin crash of 2013: “I AM HODLING” a post on Bitcointalk screamed.The post’s author, “GameKyuubi,” acknowledged that he had mis-spelled “Hold”, then went into analyzing why he was holding bitcoin even as prices collapsed.

His conclusion was he simply couldn’t sell: In a bear market, the only people who sell are savvy day-traders who get the timing just right, and “illusioned noobs” (unseasoned newcomers) who panic.For everyone else, there is only hodling.Bear — From Wall Street lingo: a trader who believes prices will fall.Whale — From casino parlance: a trader with a fat account, usually one who is bullish on the price of bitcoin.BearWhale — By extension, a big-time trader who is bearish on the price of bitcoin.A BearWhale is a dangerous creature because he/she/it tries to sell large quantities of bitcoin on the open market, lowering the price for everyone else.The only known sighting of one in the wild occurred on October 2014 on the Slovenian Bitstamp exchange.The BearWhale was trying to unload 30,000 bitcoins in a single order—at the time worth over $9 million, and today $26 million—for $300 apiece, well under the mid-$300 range that bitcoin was trading for at the time.The result was a sudden but temporary flattening of the bitcoin price.

It was temporary because hodlers and whales assembled to soak up the BearWhale’s coins, successfully slaying it.This event was commemorated with artwork of the battle, such as the picture atop this post.Bagholder — An investor who has been hodling for too long, and is left to face the consequences.Also refers to the many pump-and-dump schemes involving thinly traded “altcoins” (cryptocurrencies that aren’t bitcoin, which function more like penny stocks) on the scene.A versatile term that can also be used to refer to holders of state-issued “fiat” currency.fiat scrip bagholders are trapped in a financial-emotional sunk-cost fallacy.They've been trusting their wealth with government funny-money — Shit /r/Bitcoin says (@shit_rbtc_says) January 20, 2016 #Rekt — Borrowed from online gaming slang, to mean utterly destroyed or ruined.One trader on r/bitcoin put out this this elegiac call after one of bitcoin’s many crashes: “MOMENT OF SILENCE FOR ALL OF THOSE #REKT ON MARGIN CALLS” Choyna — A distortion of “China,” a country that is hugely influential to bitcoin because it’s where the most trading and mining activity occurs.