Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.
It’s the first example of a growing category of money known as cryptocurrency.
What makes it different from normal currencies?
Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally.
However, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. No single institution controls the bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money.
Who created it?
A software developer called Satoshi Nakamoto proposed bitcoin, which was an electronic payment system based on mathematical proof. The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees.
Who prints it?
No one. This currency isn’t physically printed in the shadows by a central bank, unaccountable to the population, and making its own rules. Those banks can simply produce more money to cover the national debt, thus devaluing their currency.
Instead, bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are ‘mined’, using computing power in a distributed network.
This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network.
So you can’t churn out unlimited bitcoins?
That’s right. The bitcoin protocol – the rules that make bitcoin work – say that only 21 million bitcoins can ever be created by miners. However, these coins can be divided into smaller parts (the smallest divisible amount is one hundred millionth of a bitcoin and is called a ‘Satoshi’, after the founder of bitcoin).
What is bitcoin based on?
Conventional currency has been based on gold or silver. Theoretically, you knew that if you handed over a dollar at the bank, you could get some gold back (although this didn’t actually work in practice). But bitcoin isn’t based on gold; it’s based on mathematics.
Around the world, people are using software programs that follow a mathematical formula to produce bitcoins. The mathematical formula is freely available, so that anyone can check it.
The software is also open source, meaning that anyone can look at it to make sure that it does what it is supposed to.
What are its characteristics?
Bitcoin has several important features that set it apart from government-backed currencies.
1. It's decentralized
The bitcoin network isn’t controlled by one central authority. Every machine that mines bitcoin and processes transactions makes up a part of the network, and the machines work together. That means that, in theory, one central authority can’t tinker with monetary policy and cause a meltdown – or simply decide to take people’s bitcoins away from them, as the Central European Bank decided to do in Cyprus in early 2013. And if some part of the network goes offline for some reason, the money keeps on flowing.
2. It's easy to set up
Conventional banks make you jump through hoops simply to open a bank account. Setting up merchant accounts for payment is another Kafkaesque task, beset by bureaucracy. However, you can set up a bitcoin address in seconds, no questions asked, and with no fees payable.
3. It's anonymous
Well, kind of. Users can hold multiple bitcoin addresses, and they aren’t linked to names, addresses, or other personally identifying information. However…
4. It's completely transparent
…bitcoin stores details of every single transaction that ever happened in the network in a huge version of a general ledger, called the blockchain. The blockchain tells all.
If you have a publicly used bitcoin address, anyone can tell how many bitcoins are stored at that address. They just don’t know that it’s yours.
There are measures that people can take to make their activities more opaque on the bitcoin network, though, such as not using the same bitcoin addresses consistently, and not transferring lots of bitcoin to a single address.
5. Transaction fees are miniscule
Your bank may charge you a $10 fee for international transfers. Bitcoin doesn’t.
6. It’s fast
You can send money anywhere and it will arrive minutes later, as soon as the bitcoin network processes the payment.
7. It’s non-repudiable
When your bitcoins are sent, there’s no getting them back, unless the recipient returns them to you. They’re gone forever.
So, bitcoin has a lot going for it, in theory. But how does it work, in practice? Read more to find out how bitcoins are mined, what happens when a bitcoin transaction occurs, and how the network keeps track of everything.
Coinearner acts as ledger wallet for our BTC arbitrage platform. You can deposit as little as $10.00 in BTC and start earning a daily return of 1% on all active deposits.
Essentially arbitrage algorithm that operates on a secure network 24 hours a day buying and selling thousands of bitcoins from the total balance held in our partner pool, consistently locking in micro-profits at various different price points across hundreds of automatic Arbitrage trades, as the market constantly moves up and down.
When you make a deposit with us, your BTC goes into our partner pool with the funds of other depositors and is automatically traded by our Algorithm. While major losses are rare, any losses incurred are automatically absorbed by us in our profits from previous trades, which allows us to pay a guaranteed return of 1% daily on all active deposits.
The average daily profits our algorithm is able to generate range far exceed out daily payouts. While major losses are rare, minor losses do happen from time-to-time. Any losses incurred by our platform are automatically absorbed by us in our profits from previous trades, which allows us to pay a guaranteed return of 1% daily on all active deposits.
Absolutely not! You are free to withdraw your deposits with interest at anytime up to one time per 30 days by simply submitting a withdrawal request. Unless you choose to take advantage of our Instant 2.0% Interest Upgrade which requires you keep your deposit with us for a minimum term of 180 days.
Opening an account with can be completed in 3 easy steps!
Step 1. The first step in the process is simply completing our account creation form. (To protect your privacy as much as possible we require minimal information when opening an account)
Step 2. Next you simply need to decided how much in Bitcoin you would like to deposit into your account. We pay a guaranteed interest rate of 1% daily (The minimum deposit we can accept is the equivalent of $10.00 in BTC)
Step 3. Click the "Create Address" button on deposit page to generate a single use Bitcoin address and make a new deposit.! Once your deposit receives 3 confirmations, you’ll immediately be able to start watching your bitcoin account balance grow in real time!
NO! All of the BTC addresses our system generates are for a single deposit only as the private key is automatically destroyed making it unrecoverable. This is a security measure that we have implemented in order to protect the funds of our clients.
This is something that is out of our control. Most deposits are confirmed within a few hours, but some do get delayed when a sender has not included appropriate transaction fee to cover the mining fees. All transactions do eventually finalize, but can take up to 3 days when there is a load on the network.
Deposits are generally rejected and returned when a deposit is an amount that we deem to be excessive from new account holders with a limited transaction history. New account holders wanting to make a substantial deposit should contact us prior to receive written approval.
Interest Upgrade: All deposits are automatically given a time sensitive offer to double their daily interest from day 0 by upgrading directly to 2.0% interest daily, and locking in their deposit at this rate for a minimum period of 180 days. To lock in this rate, the offer must be accepted before the deposit receives its first interest payment.
Withdrawing your bitcoins is as simply as clicking the withdraw button on the particular deposit that you would like withdraw, so long at as you have not exceeded the maximum of one withdrawal per 30 days. Withdrawal requests are processed manually for security reason, and are usually processed within 12 hours, but can delayed up to 3 days if requested during weekends/national holidays, or during peak periods when the Blockchain network is congested.
Due to the frequent variations in mining fee’s being charge on the blockchain network, withdrawal fees are now calculated at the standard market rate, and being subtracted from the balance of the withdrawal amount at the time of processing. Withdrawal requests are processed manually for security reasons, and are usually processed within 12 hours, but can be delayed up to 3 days if requested during weekends/national holidays or during peak periods when the Blockchain network is congested.
Yes, all transaction on our website are secure. We also use the strongest DDoS protection in the industry with a 100% up-time guarantee. Our worldwide network of servers are protected by CloudFlare, the world's largest and most trusted DDoS protection and mitigation provider. All Bitcoins deposited with us are held securely on the Blockchain and traded by our algorithm between multiple exchanges.
Account holders may withdraw their funds at anytime, however deposits that remain active beyond 90 days are automatically upgraded to 1.5% interest daily, and deposits that remain active beyond 180 days are automatically upgraded to 2.0% interest daily. Interest Upgrade: All deposits are automatically given a time sensitive offer to double their daily interest from day 0 by upgrading directly to 2.0% interest daily, and locking in their deposit at this rate for a minimum period of 180 days. To lock in this rate, the offer must be accepted before the deposit receives its first interest payment.
One of the most popular things about Bitcoin is that there is a certain amount of anonymity in all transactions that happen on the Blockchain network. We believe individuals deserve the right to buy, sell, trade, and do business in private, and we support this by simply allowing our those that choose to deposit with us that same level of anonymity and privacy .
We have an extensive list of bitcoin exchanges that we recommend on our summary page inside.
Yes we do! Our referral program pays a generous 10% over-ride commission in BTC for every depositor you refer to coinearner.
Example: Let's say you referred your friend Joe to coinearner and he deposited 1 BTC at the fictitious market value of lets say $2500 USD, you would automatically receive a 10% over-ride commission of $250 directly from us in BTC. All affiliate commissions are automatically deposited as an active investment on your behalf and automatically start earning our standard interest rate of 1% daily. All commissions can be reviewed in the affiliate section of your account. (Due to past fraudulent activity we require all affiliate commissions to remain as active investments for a period of no less than 90 days, after-which they may be withdrawn or remain as an active investment. Please also note that referral commissions will not be paid if a referred depositor withdraws their deposit under 90 days.)
As a security measure we don't allow account holders to reset a lost password. If you lose your password, please contact us and we will manually reset it with a temporary password and send you detailed instructions of how to update it from within your profile once you are logged in.
It is extremely important that you keep your withdrawal pin in a safe place and do not lose it as it is required to make all withdrawals. As a security measure an accounts withdrawal pin is hash encrypted and can't be recovered if lost. This feature has been implemented to protect accounts from unauthorized withdrawals.
The US dollar amount shown beside each deposit fluctuates as a result of the value of BTC going up and down. However the amount deposited in BTC does not change.
As we have account holders worldwide and are liable for the funds we hold in trust, we require a written log of all correspondence, thus we have suspended all phone support as of June 7 2017 as legally advised.