What is Bitcoin?

 

What is bitcoin and the string of characters called a address?

If you are new to bitcoin or don't know what it's about, keep reading.

 Comic death of paper money

 

Why should you use bitcoin?

 

Bitcoin is the money of the future. The adoption of the currency is constantly increasing. Paper money as we know it will eventually fall away as it systematically becomes worthless. Bitcoin is being used for more applications daily and more applications are being developed by various teams across the world. Soon many more applications will be used on the block chain networks. These applications will replace and transform many functions in our every day lives.

 

Many jobs will become absolute and many more will be created. One major factor slowing down any economy, is the speed of trading. Or in other words the speed at which money moves around. Bitcoin will solve this as money are easily transferred globally. Many inefficient government functions will be replaced by the block chain applications. In general everything will start working faster and more efficient as the network gets adopted more. Some countries have moved over to a crypto currency as their currency. 

 

 

How does it work?

The block chain and some of the alt coins are not controlled by any person or institution. Which means there is no single point of failure. Nobody can switch it off or disable it or close it down. It is run on thousands of computers across the world, and in order to shut it down, all those computers have to be taken down.

 

 

What are the disadvantages?

 

Currently the prices of Bitcoin and other crypto currencies are fluctuating a lot. This means that you might buy at a certain price and then it drops. So you would loose money if you sell at that point. Also many of the cryptos are only there to enrich their creators, and will eventually die out as it doesn't have any real application. At the end of this page I put a link for a course that will help you distinguish between the "probably good" and the "probably bad" currencies. As always, there is advantages in the disadvantages, it just depends how you see and use it.

 

You are in control of your own money/assets and need to safeguard it. You need to spend a little time learning how it works and what to do. The technology is still relatively young and not yet extremely user friendly. If you are not responsible and can't be precise, maybe wait until there is software developed to eliminate these problems. But then you might not be in control, which is a massive loss for you.

 Cryptocurrencies vs fiat currencies

 

What are the advantages of Bitcoin?

 

Bitcoin and some of the other currencies will eventually become the first global currencies. At the moment the adoption is still relatively low. With low I mean only 10-50 billion dollars worth of transactions a day. As adoption increase, so will the price also eventually stabilize. You can send money directly to another person's account in any country, and the transaction should be finalized in about 20 minutes. The transaction costs to send money is extremely low when compared to a banking system. The costs is to pay people for verifying the transactions.

 

The money is border less and is already there when you arrive in a new country. Some countries have ATM's where you can withdraw cash straight from the bitcoin network, although they are not very wide spread yet. Government corruption, quantitative easing, printing of money, etc doesn't affect bitcoin, as the amount of it is set in "electronic stone" so there is no inflation. 

 bitcoin atm

 

What else can be done with the block chain?

 

Bitcoin is the base currency on the block chain. But the block chain is much more than just electronic money. The block chain can store information that cannot be corrupted and are accessible anywhere in the world. That is why Bitcoin use it as a ledger for all the bitcoin transactions. It has uses for medical record storage, power generation payments, asset management like securing title deeds, financing, automated taxes/government, passports, death/birth certificates and many more.  

And because all transactions will eventually be electronic and traceable, a lot of problems with current paper money like corruption will simply disappear. People will be able to vote for a party and vote how much taxes should be deducted from transactions for governments to operate. In short it will remove a lot of middle men and give power back to people and make trading much faster and more efficient. You can trade directly with anyone in the world without any middle men and without anyone that can tell you that you can or can't.

 

 Blockchain applications

 

Is it the same as paypal and other electronic money?

 

No. Unlike all other electronic money before it, Bitcoin is the first currency which is not controlled by any one person or institution. If you don't think it is a big deal, think about it this way. What happens if one day they decide to close your account due to some reason. You might be totally innocent and might need to have a long expensive fight before you might get access to your own money again. Paypal for example can decide tomorrow to stop operating in a certain country and close all those accounts. Then what? With Bitcoin there is nothing like that. 

 

 

What was the designer's intention when creating it?

 

Satoshi Nakamoto who/m was the creator of the block chain and Bitcoin had the intention to put the power of money back into the hands of the people who worked for it. And out of the hands and control of the banks, financial institutions and especially governments. There is also a limited amount of Bitcoins that will ever be made, 21 million. This means there can not be any inflation due to more money that are being printed. This printing of money and creating money out of thin air is continuing in banks and governments across the world every single day. That is why everything's prices just keep rising endlessly. And your money's buying power keeps on decreasing. Well crypto currencies like Bitcoin will stop this. 

The block chain currently is like the internet many years ago before people really started using it every day. Satoshi knew that what he / they had started will never be stopped, and would keep empowering more people and help make the world better. Paper and other currencies have been failing one after the other since the very beginning of trading. Due to the people controlling it who always eventually start corrupting the system to enrich themselves. The designers intention was to stop this once and for all. This corrupting and printing of money have been accelerated by the 2020 global craziness.

 

 

Where do I start?

 

Let me be straight with you. There is a lot of information on the internet that shows you exactly how to open accounts. Deposit money and everything else you need to know. But it could be very overwhelming if you don't know where to start. There is a free basic course which teaches you all the basics to get started and how to avoid the pitfalls. There is no point for me to try and redo or summarize it here. So go check it out. The course also continue into a paid version if you are interested. The basics will be enough to get you started, but the paid part is definitely worth much more than the price asked.

 

Start with this free course to get to know the basics.

 

Get registered on exchange to start trading

 

 

 Images: Medium, BBC, Blockgeeks


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