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Bitcoin aren't stored on a machine, but they are held in a distributed public ledger known as the blockchain. The blockchain is a database which is replicated over the machines of everybody who participates by running the bitcoin software. This means that the database you hold locally on your machine is just a copy of the one which the network as a whole ...


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Bitcoin mining involves setting up and running highly specialized computer machinery called ASICs (application specific integrated circuits). If you are being told you will be 'mining', but are not setting up and running these machines yourself, then chances are you are being scammed. Pretty much every instance of 'cloud mining' through some website service ...


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Addresses are textually encoded public key hashes, which means that somebody in possession of only the address cannot read the public key - but eventually the public key must be revealed in order to spend the funds which are locked by an address - so it may become a privacy concern if addresses are reused, which is discouraged anyway. With a HD wallet, we ...


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Mark’s answer is great and extremely comprehensive, but I think it’s worth adding a shorter version as well: You are correct that anyone can modify the code of their local bitcoin wallet/node. If you wanted to edit wallet files to display a balance of 1 million BTC in your screen, you could do so. However, the problem is that every single node on the ...


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