What is Bitcoin and How Does It Work?

What is Bitcoin?

BITCOIN is the world’s very first Digital Decentralized Cryptocurrency.  Bitcoin actually uses the Internet to send money or value directly person to person anywhere in the world without having to use any centralized entity like a Bank, Paypal or Western Union.  It’s completely safe, it’s anonymous, super fast and it works anywhere in the world.  Anybody can use Bitcoin.  There are no qualifications, basically no fees, no chargeback and no borders.  It really is the Future of Money.  

There are millions of people who are using Bitcoin and you can use Bitcoin to PURCHASE almost anything you can think of.  There are hundreds of thousands of businesses that accept Bitcoin.  You can pay for plane tickets, hotel rooms, electronics, cars, coffee and anything else.  

Another huge market that Bitcoin impact is REMITTANCE.  That is money being sent to friends and family from State to State or country to country all around the world.  We are used to doing this is through Banks, Paypal and companies like Western Union who charge fees from 5% up to as much as 30%.  That means we are talking about $60 Billion to $100 Billion per year.  A typical Bitcoin Transaction has a fee of about 2 1/2 cents.   This is an absolute Game Changer.

With Bitcoin, there is no Third Party presiding over the economic activity of the users. With Bitcoin, you don’t need anyone’s permission when you make a financial decision. This means people can contribute to causes they believe are important, with no government agency or financial company able to cut off the payment flow. It means an entrepreneurial child can start an Internet business before he or she is 18. It means a rural farmer can receive payment for crops from a neighboring city, even with no bank account. It means a citizen of a tyrannical nation can hide his financial assets from seizure. It means the wealthiest and the poorest of the world now have the same authority over their money – beholden neither to banks nor bureaucrats. Bitcoin democratizes Finance just as the Internet democratized Speech.

BITCOIN is a Currency just like the US Dollar, the Japanese Yen or the Chinese Yuan.  Except Bitcoin doesn’t belong to anyone, no government, bank, company or person.  It’s an invention that no one owns but anyone can use.  Kind of like an Email.  It was created in 2007 by a mysterious person or group of people named Satoshi Nakamoto.  The search for Satoshi Nakamoto has been going on for years, but no one has found him yet.  And since then the Total Value of Bitcoin network has grown from zero to over 5 Billion US Dollars.  Once you join the Bitcoin network by opening a wallet, it will generate 25 character public and private key using cryptography.  Hence why Bitcoin is called a CRYPTOCURRENCY.  


Explaining Bitcoin Mining in 2017


Bitcoin for Consumers Today

This is one of the first video I watched and made me understand what bitcoin is and how it works.


 Introduction to Bitcoin  (9/24/2016)


Bitcoin:  How Cryptocurrencies Work  12/21/2016


 What is Bitcoin?


Bitcoin:  All the Fact  (Apr 18, 2013)

Are we at the threshold of a new currency era? Bitcoin has exploded in popularity in recent months, leaving analysts conflicted as to its value. Is it real money? Should it be regulated? Will it threaten the dollar?

Bitcoin’s value has increased remarkably in the wake of the events in Cyprus. In a world where governments have indicated their willingness to seize euro-denominated assets, many are looking to alternative stores of value that government can’t touch.

But what exactly is a Bitcoin? In this Daily Reckoning video, we give you a brief tutorial about the red-hot digital currency and tell you why some are heralding it as the future of currency, free from central bank manipulation, inflation and government capital controls.


CryptoCurrency Technology and Blockchain Explained


Very Informative Description of Bitcoin


 From the Beginning of Internet Technology to Bitcoin Technology Today…


 Bitcoin Revolution Feb. 02, 2014


 When Wealth Grows Exponentially Dec. 05, 2014


 When the Dollar Collapses, Which is Better Money, Gold or Bitcoin? (Jan. 01, 2016)   Read More.


Four (4) Reasons Why You Should Invest in Bitcoin.

1: Bitcoin will let you be an early adopter in a potentially revolutionary technology.

Christmas bonus Most investors dream of getting in on the Next Big Thing. “If only I had invested in Microsoft in the late 1980’s, I would be worth millions now!” But finding such a company is like mining a new block with a CPU. For example, in the late 1990’s many investors wanted to find the Microsoft in the Linux world, because they saw the open-source software becoming a dominant force in the future. Although Linux did become dominant, no one Linux company at that time became a Microsoft, so no investment in a Linux company paid off as Microsoft did.

With Bitcoin, you have the chance to invest in the Next Big Thing. But you are not investing in an individual company, whose success depends on strong management, breakthrough research, and a little bit of luck. You are investing in an entire ecosystem that powers thousands of companies. If any of them create the “killer app” that puts Bitcoin in the mainstream, your investment in Bitcoin itself will pay off. It would be like investing in “Linux” in 1998.

2: With Bitcoin, your investment is completely under your control.

Most people who invest in stocks don’t realize that they are not really the “owners” of those stocks – the brokerage company is the owner. The investor is simply the “beneficial owner.” Usually this isn’t a problem, but what happens if the brokerage company goes under? Or is told by the government to freeze your assets? Then you find out very quickly how hard it is to access “your” money.

With Bitcoin, you are the owner of your money. Assuming you use your own wallet (and not a web wallet or exchange), you are in complete control of your funds, and no one can take them away from you. Perhaps the average American doesn’t appreciate the importance of this yet, but the bank customers in Cyprus and the clients at MF Global do.

3: Bitcoin has the potential for explosive growth.

If you invest in a small company today and that company takes off and becomes a dominant global corporation, your investment will surely pay off. As mentioned before, however, the chances are against your picking that one company. But even if you did, your returns would meet a threshold. One company can only get so big (see Microsoft and IBM).Christmas bonus

But what if you invested in a currency? One with the potential to become a global currency used by billions? If, for example, Bitcoin were to command a $1 trillion market capitalization, each individual bitcoin would be worth over $47,000. And that would still only be 1/80th of the total global money supply! Like any speculative investment, Bitcoin could go to zero, but the potential upside dwarfs any individual company’s.

4: With Bitcoin’s controlled money supply, you can become “1 in a million.”

One of the key features of Bitcoin is that it has a restricted money supply – there will never be more than 21 million bitcoins in existence. That means that if you own 21 bitcoins today (worth about $9,000 currently), you are “1 in a million!” No matter what the market capitalization of Bitcoin becomes, you will always be the owner of 1 millionth of its total supply.

Having a supply of 21 million bitcoins on a planet of 7.3 billion inhabitants means even 1 bitcoin will represent a great deal of wealth if Bitcoin goes mainstream. The owner of just 1 bitcoin will always be one of the richest Bitcoin owners on earth, for if all bitcoins were equally distributed to the population, there would only be .0028 bitcoins per person. As Bitcoin is the first currency that can be equally used by everyone on earth, the value of 1 bitcoin will greatly rise as its worldwide demand increases.


 

 

 

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