If You Do Not Know What Bitcoin is, Read This Please

If You Do Not Know What Bitcoin is, Read This Please

If You Do Not Know What Bitcoin is, Read This Please


If you are 1 of those people who do not know what Bitcoin and other cryptocurrencies are read this, as there is a keen international interest in this nascent digital asset.

Interest in digital currency has expanded over the past several years with industry participants telling people across the board to get interested too.

Now in this escalation there is certainly a type of person associated with cryptocurrencies, savvy nerds.

And now there is research from the London Block Exchange saying that interest in crypto investments is growing among millennial women, with 20% female millennials considering it jumping in.

But, it is prudent not betting on an investment without knowing what it is, below is a primer, have a look:

The Big Q’s: What is crypto currency, what is blockchain, what is Bitcoin?

The Big A: Cryptocurrency as on chap sees it is “everything you don’t understand about money combined with everything you don’t understand about computers.”

Plus, understanding how to get and use money that does and exchange hands in the usual way when the average person has no idea what it is.

Cryptocurrency is a form of currency exchanged on a digital, peer-to-peer system, and it is transferred without traditional middlemen aka banks, the government, and other lenders.

An example

When doing a transaction online and using a credit card it goes through a centralized server or a central provider. But when using cryptocurrency, there is no central provider; there is no one server or one authority over it.

It is you, your money, and if you are buying something the seller, no Mr. In-Beweens.

When it comes to cryptocurrency, and Bitcoin is what most people see as cryptocurrency. As Bitcoin is the most popular form of cryptocurrency aka, the standard, Ethereum is 2nd, and Ripple is 3rd.

The next Big Q: How do it get Bitcoin?

The next Big A: Some people “mine” it, a highly technical option that requires specialized computers with a lots of power, and downloading software to obtain a coin.

To get that coin, miners must solve a series of computational puzzles on a public network; the blockchain.

Bitcoin mining is not cheap, and not just because it requires a lot of computing power and there are others competing to solve the puzzle, but it’s a lottery system so the rewards are randomly distributed.

Sound intensive, it is intensive.

Hang on, there are other ways: you can buy it , you can trade it by joining a exchanges, and you can buy in bits, and then transfer it to a digital wallet.

Once in your digital wallet you can spend it or trade it for other coins. But 1st you must have a Bitcoin or an Ethereum in order to obtain most other coins. And you do not have to be rich to buy digital currencies either.

Now then: How to make money from cryptocurrency and/or get fiat (paper) money back?

Buyers are given a digital address aka a wallet or bank account, and a private Key, aka password that enables them, and no one else, to access their crypto funds.

Remember that this money is an investment or a bet, the involves risk and speculation.

The value of Bitcoin changes constantly and Bitcoin values tanked in February, again in April, and dipped in May.

So if you bought 1 Bitcoin while the price was high at $19,783 in December 2017, then sold it Wednesday at market price of  you lost a lot of money $6,666

If you want to get hard cash back, you can get it but you have to set up the infrastructure 1st: You can go through the exchanges, and get it deposited into your account, there are also Visa-backed cards and Mastercard-backed cards that you can sign up for to exchange your Bitcoin for regular USD.
And there is now BitPay, it is a card that can receive Bitcoin deposits that can later be changed into spendable cash or withdrawn for cash from an ATM.

Note: Bitcoin does nor function like a traditional investment, there is no broker or brokerage house in between you and your money

Currently, Bitcoin is trading at 6,668.30+357.87, or +5.67%, as of 7:27p BST, the market is open.

So, if you do decide to invest in cryptocurrencies, know what you are doing, and make sure your overall financial picture is solid.
Stay tuned…

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