Rumor has it that even Melania Trumpis seeking advice on Bitcoin. So maybe you should too. We’ll leave the boring techie stuff to Wikipedia and just tell you the basics in three minutes.
Bitcoin is a cryptocurrency. The first and the most famous. Kind of like George Washington of the cryptocurrenct world. Bitcoin first surfaced in 2009. Remember 2008? The economy was in shambles. The banking system collapsed. Millions of people went broke. Governments were blindly that once the economy was back on its feet the banks would pay everyone back. Well how much of a surprise. That didn’t happen at all. These tumultuous events became an inspiration to one man or a group of people who we now know as Satoshi Nakamoto.
They invented a currency that could cut out banks and government making them obsolete.
It was a Bitcoin and for the system to be transparent and fair. Those very smart people made it so that absolutely all transactions stopped.
One more time this is important.
All transactions are stored on one big single digital ledger. This ledger was named the blockchain. Bitcoin is like digital gold. Its maximum amount of 21 million coins is limited by a mathematical formula. We say coins but it’s just a word to describe a digital entity. There is no physical coin. Bitcoins are mined by performing very complex mathematical calculations on computers. Bitcoin is not under the control of banks or governments. It’s maintained by the cryptocurrency community. The community consists of people who mine new Bitcoins. Hence they’re miners. Almost like their ancestors who had to dig ditches in search of gold or coal. Modern miners dig complex equations and formulas. Not long ago you could use your P.C. to mine. Nowadays people build giant factories and stuff them with server farms. The same miners do transaction confirmations. For your digital money to officially go to someone else’s account you have to receive six confirmations from other miners so there’s absolutely no chance of fraud.
Miners are like little gnomes who quietly make their fortunes while looking after the whole system. Bitcoins are passed from person to person without any involvement from banks, brokers, a processing center or even Kim Jong Un himself or Vladimir Putin. It means transaction fees are low you can use your Bitcoins in any country and there’s nothing anybody can do about it and it’s all completely anonymous. No link between your cryptocurrency account or wallet and your name. To become a happy owner of Bitcoins you don’t really have to mine it just buy it in a cryptocurrency exchange or from someone request some to sell or even earn it by providing some sort of services.
Okay let’s be frank since Bitcoin took off the way it did, enthusiast launched do cryptocurrencies every day. Most of them are much more advanced and convenient than their progenitor. There was a concern that major players and investors may lose faith in Bitcoin. But now there’s so many brilliant mathematicians programmers and financial experts hard at work improving Bitcoins and all the other cryptocurrencies. It’s reasonable to believe that the next big breakthrough will most likely happen in conjunction with current technology.