Bitcoin- what is it, and why should you care?

Bitcoin seems to be everywhere these days. Your friends and neighbors are talking about it, so you need to know why it matters. Bitcoin is being referred to as the future currency, and there's a good reason for that – but before we get into why this cryptocurrency matters, let's find out exactly what it is.

The Basics

If you're new to Bitcoin, don't worry—we'll make sure we start from ground zero. Bitcoin is a decentralized currency built upon blockchain technology. It was created in 2009 by an unknown person or group of people who used the pseudonym Satoshi Nakamoto. Since then, thousands of other cryptocurrencies have been created. While most are not widely adopted, they often serve as testaments to how quickly cryptocurrency has progressed over time.

The Technology Behind Bitcoin

Bitcoin is a digital currency created on a computer in its simplest form. With a bitcoin wallet installed on your computer or mobile device, you can send bitcoins to another person or buy something online by transferring some of your bitcoins to another user. A network of computers oversees all transactions made with bitcoins, tracking how many coins each user has and where these coins go.

How Can Bitcoin Change My Life?

Before Bitcoin came around, an online transaction required a third party like a bank or credit card company to validate transactions. Their users pretty much trusted these third parties to be secure. But because these services are centralized, they are not immune to hacking attacks and government surveillance. Bitcoin removes those trusted intermediaries from any transaction made over its network by using cryptographic algorithms in place of a middleman's trust. This makes all transactions on Bitcoin's blockchain decentralized, so there isn't one single point of failure for hackers to attack or corrupt. No one can alter your trade once it has been validated by Bitcoin miners (the people who maintain and update bitcoin's public ledger). This is how bitcoin can guarantee that your money will always be yours—and only yours—to spend as you please. It also means that no one can censor payments sent across its network.

What Are The Risks Of Using Bitcoin?

Here are some risks to keep in mind for anyone who owns Bitcoin: First, a quick primer on what exactly Bitcoin is. Cryptocurrencies such as Bitcoin have become too familiar in recent years, with governments struggling to figure out how they fit into financial regulation. In short, cryptocurrencies are digital currencies that aren't tied to any country or bank. They use cryptography for security and can be sent from user to user without an intermediary (such as a bank).

Buying Bitcoin

Getting your hands on Bitcoin is super easy these days, so there's no excuse not to have some. Coinbase allows users to buy with a credit card, and most other companies that offer cryptocurrency will enable you to use a debit card or wire transfer. The simplest way to check out is by signing up through Coinbase, but we encourage doing your research before purchasing any cryptocurrency. Again, many great websites can help walk you through how to start buying Bitcoin if you're interested in getting started immediately. Storing BitcoinBitcoin wallets come in many forms, making your cryptocurrency as safe and secure as possible. There are numerous ways of storing Bitcoin, including a digital wallet on your computer (called a software wallet), an online, web-based service (known as cloud storage), or even hardware wallets that store your crypto offline. Keeping crypto online or on their computer is sufficient for most users. Still, if you have more significant sums of crypto that need extra protection, it's best to consider other options. Investing In BitcoinBitcoin offers an exciting opportunity for investors looking to potentially profit from its growth in popularity, increased use as a payment method, or both. If you want to invest in bitcoin but don't know where to start, I'm here to help. Read on to learn about how bitcoin works, how to buy bitcoins, and how you can make money investing in cryptocurrency.

Where To Go Next To Learn More About Bitcoin

Read, watch and listen. There are hundreds of ways to learn about bitcoin; most importantly, hundreds of passionate people want to share their experience with a new technology that is (still) very young. As with any community where you're learning a new language, don't be afraid to ask questions. You can start by following these industry leaders on Twitter: @bitcoinmagazine @bitpay @coindesk @ForbesTech @huffingtonpost.

You can also review my prior post on Bitcoin by clicking on the following links.

Fifteen Minutes to Freedom

https://thatwhichworksnow.com/blog/fifteen-minutes-to-freedom

The Essential Case For Bitcoin

https://thatwhichworksnow.com/blog/the-essential-case-for-bitcoin

Down The Rabbit Hole With Robert Breedlove

https://thatwhichworksnow.com/blog/down-the-bitcoin-rabbit-hole-with-robert-breedlove