Bitcoin price soars over$1000,trading robots realizing huge profits

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Bitcoin price soars over $1000, trading
robots realizing huge profits

Greg Challis December 03, 2013

Today the price of Bitcoin is reached $1027.50, with a

growth in the last 3 months of just over 500%. Users of

the first ever bitcoin trading robot are laughing all the

way to the `BTC bank'. So what is Bitcoin & and how

can people profit?

( -- December 3, 2013) -- Bitcoin reached a

whole new milestone, with the price of bitcoin on Mt. Gox -
Bitcoin trading robot - trades 24/7

the world's largest Bitcoin exchange rising above $1,000.

The price briefly topped the equivalent of $1,000 on Chinese exchange BTC China back on
19th November, but this is the first time this level has been reached in a US dollar denominated
exchange rate.

What is Bitcoin?

Bitcoin is a purely digital currency also referred to as a crypto currency. Its denominations are
referred to as bitcoins or BTC for short. It was created by Satoshi Nakumura (a pseudonym) in

2008. Bitcoin is a peer to peer currency that is not controlled or facilitated by any central
government, bank or any single entity. It provides anonymous transactions and is being widely
accepted worldwide for anything from products at physical stores, online services and more.
Anyone can accept bitcoin payments very simply. Using a BTC wallet, the user is provided with a
unique transaction code to accept payments.

It could be better to think of its units being virtual tokens rather than physical coins or notes.

With this in mind, as with all currencies its value is determined by how much people are willing
to exchange it for.

So how do they come into existence?

Bitcoins are generated by a process called "mining". Think of it as physically mining for gold,
however in this case the mining is computational. This involves a computer solving a difficult
mathematical problem with a 64-digit solution.

Each problem solved generates one block of bitcoins, at this time a block is 25 Bitcoins. In
exchange for expending processing time, the miner is rewarded with new Bitcoins.

This method of mining provides an incentive for people to provide computer processing power to
solve the equations.

Each time a block is generated the difficulty of the problem is adjusted to compensate for the
growing power of computer chips, as well as the increasing number of miners, to ensure a stream
of approximately 3,600 new bitcoins per day.

At the time of this article there are over 12 million Bitcoins in existence.

To exchange bitcoins each user must have a Bitcoin address, a string of 27-34 letters and
numbers, which exists as a kind of virtual postbox from which the bitcoins are sent and received.

Bitcoin is anonymous

No registry exists of these addresses which personally identifies people. There is however a
history of all transactions called a blockchain, the blockchain is publicly available.

The Bitcoin addresses are stored in wallets which are used to receive and send the coins.

In many ways they operate like privately run bank accounts, with the exception that if the data
is lost, so are the bitcoins owned.

Make Money with Bitcoin

There are really only two was to profit with bitcoin. The first is mining, as mentioned earlier this is
the computational process with which bitcoins are generated into the currency. However mining is
now big business, with companies scrambling to make ever increasing hardware speed
improvements to a very hungry audience. However this has 2 major problems.

Firstly, all of the big players providing the hardware are fully booked up with pre-orders,
the earliest you can buy a decent system is now around January 2014.

The up-front costs are now running into the thousands for a system and will be profitable for up
to approximately 1 year. Powerful systems such as the TerraMiner II -1TH/s, ASIC Miner are
under pre order for $3,599. Experts state if actually delivered sometime in January, the devices
will pay for itself in a matter of days.

Most people would agree that this sounds fantastic and very profitable. But there is one
major hiccup; It must be noted that these are dedicated bitcoin machines and will be
useless within a year as the difficulty of the Bitcoin algorithm difficulty increases.

However there is the second method to profit from bitcoins - trading. Trading has all the benefits
and none of the downsides. The most important of which is that mining suffers from a large up-
front investment, with trading it is perfectly profitable with an investment in Bitcoins of only $100.
Secondly, mining has a decreasing level of profitability, trading bitcoins will always be a part of
bitcoin. Finally and most importantly, bitcoin trading works whether the value of a bitcoin goes up
or down.

Getting Started

Bitcoins can be traded on Exhange websites. Before you get started, you'l need to buy the
bitcoins themselves, there are many sites to purchase them from but the most popular is which provides a list people in your local area who sell bitcoins via bank
transfers, moneywires or even in person if you are uncomfortable with providing bank details and
retaining internet anonymity. It is recommended you register there first, for more information visit

As bitcoin is trading 24/7, how do you maximise your profit? Do you really want to be awake all
day to make take advantage of the price fluctuations? Just like Forex, the price of bitcoin changes
by second. There is only one method to make sure you don't miss out on large trades and that is
automation. If you've been involved in Forex you have probably heard of Forex trading robots. A
group of clever programmers have done exactly that. A fully automated trading system which can
run on your PC/Mac or even on a server hosted for you, ensuring completely uninterrupted trading.
For more information visit and enjoy the world of Bitcoin

This article was written by Greg Challis, writer and a heavy support of crypto currencies. Engage
with him on his Google+ profile.

Article Source:

Greg Challis