@ -142,7 +142,7 @@ Alice is now ready to start using her new bitcoin wallet.((("", startref="GSquic
[[getting_first_bitcoin]]
==== Getting Your First Bitcoin
The first and often most difficult task for new users is to acquire some bitcoin. Unlike other foreign currencies, you cannot buy bitcoin at a bank or foreign exchange kiosk, yet.
((("getting started", "acquiring bitcoin")))The first and often most difficult task for new users is to acquire some bitcoin. Unlike other foreign currencies, you cannot buy bitcoin at a bank or foreign exchange kiosk, yet.
Bitcoin transactions are irreversible. Most electronic payment networks such as credit cards, debit cards, PayPal, and bank account transfers are reversible. For someone selling bitcoin, this difference introduces a very high risk that the buyer will reverse the electronic payment after they have received bitcoin, in effect defrauding the seller. To mitigate this risk, companies accepting traditional electronic payments in return for bitcoin usually require buyers undergo identity verification and credit-worthiness checks, which may take several days or weeks. As a new user, this means you cannot buy bitcoin instantly with a credit card. With a bit of patience and creative thinking, however, you won't need to.
@ -164,7 +164,7 @@ Alice was introduced to bitcoin by a friend so she has an easy way to acquire he
[[bitcoin_price]]
==== Finding the Current Price of Bitcoin
Before Alice can buy bitcoin from Joe, they have to agree on the _exchange rate_ between bitcoin and US dollars. This brings up a common question for those new to bitcoin: "Who sets the bitcoin price?" The short answer is that the price is set by markets.
((("getting started", "pricing bitcoin")))Before Alice can buy bitcoin from Joe, they have to agree on the _exchange rate_ between bitcoin and US dollars. This brings up a common question for those new to bitcoin: "Who sets the bitcoin price?" The short answer is that the price is set by markets.
Bitcoin, like most other currencies, has a _floating exchange rate_. That means that the value of bitcoin vis-a-vis any other currency fluctuates according to supply and demand in the various markets where it is traded. For example, the "price" of bitcoin in US dollars is calculated in each market based on the most recent trade of bitcoin and US dollars. As such, the price tends to fluctuate minutely several times per second. A pricing service will aggregate the prices from several markets and calculate a volume-weighted average representing the broad market exchange rate of a currency pair (e.g., BTC/USD).
judymcconville@roadrunner.com
7 years ago