11 May, 2020
 Posted by Ac2ality
6

WTF is Bitcoin? Bitcoin, explained for dummies

Wtf is Bitcoin? Why should I use Bitcoin? How many Bitcoins are there? Should I trust Bitcoin? Who are the miners? Why are Bitcoins so valuable?

TODAY’S ECONOMIC SYSTEM.

Everything we buy has to go through a bank or credit company. For instance,  when you buy a coffee with your credit card, you aren’t paying Starbucks directly, is your bank who pays them and records the transaction (for security).

BYE BYE BANKS.

In 2009 an anonymous person Satoshi Nakamoto created a system in which we don’t need that middle man (bank or credit card company) to verify the transactions: Bitcoin.

WHAT IS BITCOIN?

Bitcoin is digital money. Anyone can create a Bitcoin account & exchange Bitcoins. Something like a virtual wallet.

WHY SO VALUABLE?

There are only 21 million Bitcoins out there and no one can produce more. Today, 1 bitcoin = $8,900.

WHY WOULD I USE BITCOIN?

  1. No banks are needed, so no fees are applied when you send/receive money.
  2. Users are anonymous so no one knows who I pay or for what.
  3. Governments can’t interfere/put restrictions on transactions.
  4. Money transfers immediately.

CAN I TRUST BITCOIN?

Yes. There are people all over the world doing what banks would do. They use their computers to verify transactions and prevent fraud 24h a day. These people  are called miners.

WHO ARE THE MINERS?

Anyone can be a miner. However, it is expensive (i.e you need a special computer, hardware…), and you must resolve complex mathematical equations. As compensation for their efforts, miners are awarded bitcoin whenever they add a new block of transactions.   .bitcoin for dummies bitcoin for dummies

6 comments on “WTF is Bitcoin? Bitcoin, explained for dummies”

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  3. Zibik
    Reply

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