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Bitcoin Miner

July 26th, 2011

Bitcoin MinerUse your Joomla website to mine bitcoins!

If you are new to bitcoin mining go here: http://www.bitcoin.org/ and here: http://en.wikipedia.org/wiki/Bitcoin

This module uses the cpu of the user or guest on your joomla website to mine bitcoins during the time that they are on your website (in the background).

How Bitcoin Works
Bitcoin is a “peer-to-peer virtual currency”. That doesn’t tell you much – here are the main differences of bitcoin compared to cash.

Bitcoin vs cash

Payments are public. It’s possible to look at every single payment that’s been made.
Payments are anonymous. Well, kind of anonymous. You need to give out a bitcoin address to receive a payment, but addresses are free and aren’t linked to who you are.
Payments take time to be confirmed. You can make a payment and the receiver will see it almost immediately, but you have to wait for it to be accepted by other people (this is the “peer-to-peer” part).
Bitcoin can be created from nothing. Actually, not exactly from nothing – it’s created by performing calculations in order to solve a puzzle.

Solving the puzzle
When you’re a part of the bitcoin network, your computer can try to solve a kind of puzzle. When your computer solves the puzzle, you get 50 bitcoins. The puzzle difficulty keeps changing so that around 6 computers solve it per hour.

Why it has value
If bitcoin can be created by computers without you doing any work, you might wonder why it has any value. The answer is simple: it has value for the same reason the pieces of paper in your pocket (aka “cash”) have value: people are willing to give you things in order to get it. There are even places where you can exchange bitcoins for cash.

What’s it worth?
The price has been around $15 per bitcoin lately (as of May 17th, 2011). You can see the current price of bitcoins in US dollars at Mt Gox.