What is Bitcoin?
Bitcoin is a virtual medium of exchange for transnational payment transactions, which is being generated and jointly administered by all the partaking clients of the decentralised Bitcoin network and has already been brought to life in the year 2009. Thereby, it is the first and most widely spread, publicly traded, digital currency. Like other cryptocurrencies too, Bitcoins are being created through the use of cryptographic mathematical equations that are resolved by computers under high computational cost. A double SHA256 hash function is used for Bitcoin. The difficulty level of the calculation can be adjusted and regulated by the entire Bitcoin network at all times.
Upon finding a valid solution of the mathematical problem, a so-called block is being produced, which is then going to be proven and verified under relatively minor computational effort by the entirety of the Bitcoin network. A specific amount of Bitcoins is allocated to each block found and subsequently conceded to the discoverer(s) of the respective block. Prospectively until the year 2017, this amounts to exactly 25 Bitcoins per block. All the blocks, along with each transaction conducted therewith, are recorded inside a synchronised data base (the block chain) stored on every client.
An advantage of cryptographic currencies in general is, that the production of the currency - in this case coming in the shape of Bitcoins - cannot be hastened or impaired and, due to the resulting institutional independence, it consequently cannot be abused or manipulated by (central) banks, companies, national governments or other organisations and individuals. For more information on Bitcoin, we recommend the following Wiki: https://en.bitcoin.it/wiki/Introduction
How do I get Bitcoins? Exchange and Mining.
Bitcoins can either be exchanged directly for other currencies, by taking an exchange rate into account, or generated through so-called mining, by employing computational power of a computer. A plethora of internet marketplaces (Bitcoin Exchanges) qualifies for exchanging the currency in addition to an ever increasing number of existing Bitcoin ATMs.
For a start, common computer processors (CPUs) basically have the ability to dig up new Bitcoins, yet these can only calculate few (kilo-)hashes per second and are therefore ill-suited for mining in relation to the electricity consumed and time spent during the process. With regard to efficiency, they are being outclassed considerably by graphics processors (GPUs), whereby current graphics chips of AMD’s Radeon series in particular have proven themselves to be exceedingly powerful. Nevertheless, those are again outperformed by ASICs, specifically developed for that purpose and accordingly expensive, which currently show the highest efficiency at Bitcoin mining.
Since the likelihood of single-handedly finding a valid block is relatively small (Solo Mining), cryptocurrencies are usually mined in groups (Pool Mining), whereby all the participants of such a group eventually share the reward for discovered blocks adequate to the processing power procured.
Wallet and Transactions - Using the virtual purse.
In order to be able to receive, send and store Bitcoins, as a first step, it is necessary to open up a virtual account within the Bitcoin network by means of sundry software applications, to which a public key (equivalent to a bank account number) is allocated subsequently. In addition, any number of private keys (cryptographic character strings) can be created by the user. The latter are especially worthy of protection, since single transfers of specific amounts of Bitcoin can be signed and thus carried out with them.
The whole collection of private keys is being saved and stored inside of a so-called wallet (digital purse) in form of a data file. These private keys can theoretically also be transported on storage media like USB sticks or, for instance, also be distributed as QR codes or printed out as character strings on a sheet of paper. In order to make a payment, the sender needs to know the public key of the receiver. The ensuing signing procedure of individual transactions utilising a private key can be validated by the entire Bitcoin network at all times, which impedes any misuse of the account and secures the power of control over one’s own wallet.
How do I use my Bitcoin to pay at Caseking.de?
During the accustomed checkout process, you can simply select Bitcoin as the desired payment method. Upon confirming your order by pressing the “Buy Now” button, you will be forwarded directly to the payment service provider BitPay. Using the latest exchange rates, BitPay is then going to convert the purchase amount from Euro to Bitcoin. Afterwards, you will have 15 minutes to complete the payment. To accomplish that, it may be necessary to manually add the accruing Bitcoin transaction fee to the purchase amount, depending on the Bitcoin client (wallet software) that is being used! You can either scan the depicted QR code or transfer the total amount of Bitcoins indicated to the wallet address shown. You may need to hit the refresh icon in order to see that your payment has been completed.
Following the completion of your payment, the Bitcoin peer-to-peer network is going to validate the transaction. For this, six confirmations are required before your order can be picked and readied for dispatch. As a consequence, it cannot be ruled out, that the dispatch of your order may get delayed by not more than one day. This process usually takes less than five minutes, however, should your payment not reach full confirmation within the time frame of an hour, the transaction is considered to have failed and your order is going to get cancelled.
Hint: Any underpayment (check Bitcoin fee section!) will prevent us from accepting your order. Should such a situation occur anyhow, BitPay will inform you about the failed transaction in an automatic e-mail and return any amounts already paid, when necessary. Afterwards, the ordering process can be repeated. A more flexible procedure is currently not yet possible due to technical reasons. Overpayments can be refunded easily through BitPay and do not affect the acceptance of your order.
Are there any fees for payments via Bitcoin?
Yes, there are two distinct kinds of additional fees:
A) Caseking itself is charging a fee of 2 Euros per payment via Bitcoin, which will be added automatically to the payment amount.
B) The Bitcoin peer-to-peer network, that is being used to carry out the transactions, in general also demands a small fee for conducting transactions, on which Caseking has no influence whatsoever. The usual transaction fee amounts to 0,0005 BTC and is to be paid by the sender of the payment during the transaction process.
Attention! It may be necessary to manually add the accruing transaction fee to the purchase amount, depending on the Bitcoin client (wallet software) that is being used, otherwise the resulting underpayment will prevent us from accepting the order. Should such a situation occur anyhow, BitPay will inform you about the failed transaction in an automatic e-mail and return any amounts already paid. Afterwards, the ordering process can be repeated. A more flexible procedure is currently not yet possible due to technical reasons. Overpayments can be refunded easily through BitPay and do not affect the acceptance of your order.
Cancellation and Refunding
For cancellations, you can get in touch with our customer service at all times. If possible, refunds for returned or cancelled orders will be directly handled through BitPay and reimbursed in Bitcoin, by taking into account the respective exchange rate to Euro, valid at the moment of the refund. For technical reasons however, this is not possible at all times and therefore we reserve the option to refund the paid sum via bank transfer. Furthermore, Caseking is not accountable for any fluctuations of the Bitcoin exchange rate and therefore cannot assume liability for resulting losses or gains. A refunding of Bitcoins using the original exchange rate to Euro is not possible.