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What Is Bitcoin and How Does It Work

pWhat Is Bitcoin and How Does It Work?p p What is bitcoin? In this article, were gonna talk about what is bitcoin, how it is created, where you store it, when it was created, and everything you need to know about bitcoin.

What Is Bitcoin and How Does It Work

Check this out. All right, first of all, when was bitcoin created? In 2008, someone, we dont know if its a man or a woman or who they are, even if its their real name, but Satoshi Nakamoto put a paper up on the internet that describe the idea of bitcoin and the blockchain where bitcoin, I guess you could say, resides. Bitcoin is a decentralized currency.

What does mean? Think about it this way. If I wanted to pay you some money, I would have to send that money through our bank. The bank is the middleman.

Well, a decentralized currency, there is no middleman, there is no government in between me and you. We are the currency. Bitcoin is a decentralized currency that runs on technology known as the blockchain. Once bitcoin is exchanged or transferred to somebody else, that transaction is verified by a miner and when the miners verify a certain amount of transactions, they will actually earn bitcoins. Bitcoin was the first decentralized digital cryptocurrency and one of the reasons for its success, it has low fees whenever you transfer it, it can be in any country, your account can never be frozen.

It is an exciting, exciting time. Bitcoin is a digital currency. It doesnt actually exist. You cant hold it in your hand.

Its only electronic. It is a digital currency. And unlike currencies produced by governments, also known as fiat currencies, there is a limited supply of bitcoin.

This means when your government wants to print more money, they can just go print it and printing more and more and more money, sometimes that will devalue the currency. One thing that has made the value of bitcoin skyrocket is there is a limited supply. There will only be 21 million bitcoins ever in existence. The last bitcoin will become available in the year 2140, so we got a while.

Now next, how are bitcoins created? Theyre created through a process called mining. Just like gold miners will go and they will mine in the mountains to get gold, bitcoin miners will mine on their computers to get Bitcoins and this is done by setting up your computer and having it solve complex math problems around the clock and whenever those problems get solved, you earn a bitcoin. Now in the early days, you could mine on your laptop and everything was fine but now it takes much more energy and larger computers, so its really not feasible, unless you have larger computers and access to very cheap electricity.

Now, if you dont wanna mine bitcoin, how can you get it? Well, you can just flat out purchase it, and thats what I do. Coinbase is a location online where you can purchase bitcoin.

Its where I go. Its what I have found to be the most trusted, secure, and safe place to get bitcoin. Down below in the description, I have a link set up where you can click that link and you can start purchasing bitcoin right away.

Click that link. Now next, once you purchased your bitcoin on Coinbase, where do you store it? You have a couple choices. You wanna typically take it off the exchange and put it in something thats more secure that you hold the security for.

You could put that in a digital wallet, which may be stored on your computer or even on a device that you plug into your computer.

What Is Bitcoin and How Does It Work

You can even store it in what is called a paper wallet and what this is, is where you literally, on a piece of paper, print out the details of your bitcoin with the password on that paper. Dont lose that paper. Now, what keeps bitcoins safe? Everyone has a public key and a private key.

Think about it this way. Think about it like a post box and you have a letter that you wanna put in the mail. You can put that letter in the mail. That is like a public key. Anybody can put letter in that mailbox.

Now, the private key would be owned by the postman. Only the person with that private key can get the mail out. So, everybody has a public key and that means anyone who has that public key can put bitcoin in that address, just like anyone can put mail in the mailbox, but only you have the private key to your bitcoin mailbox and only you can withdraw the funds. Never let anyone get that private key.

Recently, an internet marketer had a article going and in the background on his computer, he had his private key displayed. Somebody zoomed in, got that private key, and took over 15, 000 of bitcoin from him. Do not let people get your private key.

And here is an interesting fact about bitcoin. The first time bitcoin was ever used to purchase anything was May 22, 2010. In a bitcoin forum, Laszlo Hanyecz offered someone 10, 000 bitcoin to order him a pizza. Someone took him up on that offer and they ordered him two Papa Johns pizzas equivalent to about 25 in exchange for 10, 000 bitcoins.

Today, those 10, 000 bitcoins would be worth over 25 million. All right guys, so Im sure you wanna get some bitcoin. Even if you just wanna get a very small amount, go ahead and get started right now.

Click the Coinbase link below. This is the best place for you to get started. Click the link below.

Its the best link, and get started today. If you liked this article and if you learned something and you want me to do more articles on bitcoin and cryptocurrency, give me a Like. If we get 1, 000 Likes, I will do more articles on bitcoin, how to make money with it, how to trade it, but I gotta get 1, 000 Likes.

So if you learned something and you want me to do more, click the Like button now. And finally, subscribe to this channel. You dont wanna miss our articles. We got new articles coming out every week and you need to get the new ones.

Come on, click the Subscribe button. What are you waiting for?p

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