I’m going to start a new series of articles and videos of me explaining what I’m learning about Bitcoin. It can be uber confusing but is the wave of the future. I know I don’t want to get left behind, do you?
What Is Bitcoin Even?
According to Wikipedia:
Ok… but what the hell is a cryptocurrency, right?
From what I have learned it is a new form of money that is not physical. That means you can’t actually hold it in your hand like dollars. Everything is done online, which isn’t a huge surprise to me. I mean when is the last time you had or used actually money anyways. Most of my transactions are using a debit or credit card coming from my bank account that I can check on my phone app or online. It’s not like I can go down to my bank and have them open up a vault for me to see my measly account balance in person. I check it online and imagine what it looks like.
Bitcoin is just a digital form of currency. It is also encrypted though. Considering how smart people are with hacking and technology there was something put in place to make sure that when I buy something with Bitcoin and the transaction goes through, it is verified that my Bitcoin I used is not the same Bitcoin I may have used to buy something else. It’s almost like having it’s own serial number to verify that it is the only version of itself. That is was makes it work considering it is a digital currency.
So what have we learned? Bitcoin is a digital encrypted currency all online. A cryptocurrency!
Now the thing that took me by surprise when I first started learning about Bitcoin is that it is not the only one of it’s kind. There are thousands of cryptocurrencies out there. Each of them is their own digital “coin” and worth it’s own price. Other coins on the market may only be worth .01 cents or even less and some are even worth hundreds of dollars (depending on your currency of course). What makes Bitcoin worth so much though is it’s popularity.
Is it a bunch of hype? Of course it is, but as more people get involved it’s rising worth will rise and fall just like the stock market. DING DING!! Now we are starting to get somewhere. Bitcoin and other cryptocurrencies’ worth are like the stock market! They go up and down and their worth is dependent on the market.
Now I’m Confused!
Is your head spinning yet? I know it’s a lot to explain and I’m probably not doing the best job of it so far but I’m laying down a roadmap the same way it was laid out in my head to get me to the understanding I have today. Once you start making these simple connections as to what Bitcoin and other cryptocurrencies are like and why they are worth so much then it will be much easier to understand why this is the wave of the future.
I won’t go too much more into the ins and outs because it is just too much info for one post. So for today I want to leave you with two massive things you can learn to get you on your way to understanding Bitcoin.
- Bitcoin is a digital currency that can indeed be translated into actually money in your bank account.
- Bitcoin and other cryptocurrencies’ worth is solely based on a market system similar to the stock market.
Finally… According to CoinMarketCap.com as of today (Dec 16 2017)…
1 Bitcoin = $19,353.20 US dollars!!
Getting to the root of understanding how all of this works you have to understand Blockchain!! Check out my next article where I delve deeper to get a much better foundation of how Bitcoin actually works!