Learning Bitcoin For Newbies In Fifteen Minutes

These are the basics you should relay to newbies if they want to learn about Bitcoin. It happens when a friend, relative, or acquaintance approaches you at a social event, and asks you if you are interested in Bitcoin. You realize that you only have a short time to give them a brief overview and spark their curiosity. How can you give them a clear and concise overview of such a complicated, multifaceted topic? These are some suggestions to help you get through the next time you find yourselves in this situation. Two ways to take your currency if it is centralized are available. You can either take it out of your bank account directly (as happened in Greece, where people lost 20% of their money to a government haircut in 2015-16), or you can cut your access to your assets, as America and the U.K. did to Russian corporations and individuals during the current crisis in relations with Ukraine. Second, inflation can be used to destroy your purchasing power, as all fiat currencies are centrally controlled. The government simply prints more money, which means that any money you have in your account will lose value. Bitcoin is a new type of digital money that will not be issued or controlled ever again by any government or corporation. It is a brand new type of money that is unlike any other. It is a 21st-century hedge against inflation and central banks printing money. It is a digital asset that is provably rare and backed by real world energy. These coins are now worth 20,000x more than the U.S. dollars and have parity with the U.S. Dollar ten years ago. It is both rare and completely decentralized, making it deflationary. You can keep it in an area that is not connected to the internet. The second meaning of bitcoin is bitcoin the asset, currently worth 20,000 times more then the USD, and bitcoin the network, which is growing faster than Facebook, Amazon, or the internet. Bitcoin, the asset, travels along digital railways (a shared distributed ledger that keeps a record all Bitcoin transactions) that are decentralized onto tens or thousands of computers and devices. This digital asset, which is 21st-century savings technology, uses military-grade encryption. It allows you to store wealth and value on a smartphone or other hardware device called a “wallet”. It allows people who purchase it to store the fruits of their labor (or their life force) and wealth using technology that is almost impossible for thieves to steal directly or indirectly (through inflation). Once you learn the language and concepts of bitcoin, you will see that anyone who holds government currency (which is everyone) is watching their wealth melt in the sun as the fiat price inflates and then hyperinflated when compared to bitcoin. Anyone who is concerned about the future of their wealth (and that should include all of us, particularly those who have children or intend to leave an inheritance), needs to get up and smell the coffee. Fiat currencies are losing value quickly, and while Bitcoin is still volatile, all signs point to it holding its value over the long-term. The Bitcoin Network has not been hacked in 13 years. The Bitcoin network is rock solid. How Bitcoin Works in a NutshellBitcoin is based on a blockchain. A blockchain is composed of blocks, as its name implies. Each time a block is confirmed, it is added to the blockchain. Bitcoin blocks are confirmed using computers called miners. Each time a miner solves a math problem that confirms a block, it receives a reward in Bitcoin. This process is written into the original Bitcoin code. This process takes a lot energy and is what keeps the Bitcoin blockchain secure. Bitcoin mining is an energy-intensive process that creates new bitcoins and keeps track of all transactions on the network since its inception. Bitcoin miners convert real world energy (stranded or renewable) into monetary energy that will last your grandchildren. The network will become more secure and unhackable if it uses more energy from bitcoin miners. The protocol has a fixed supply schedule, which issues 6.25 bitcoins into the network approximately every 10 minutes. In 2024, the supply issuance rate will drop to 3.125 coins per 10 minutes. Every time a Bitcoin transaction occurs, it is recorded into the next block. Bitcoin is becoming more popular. According to estimates, Bitcoin usage grew at a rate of just under 165 per hour in the first half 2021. This is a lot, and a lot growing. Microstrategy (a Fortune 500 company that makes intelligence software), has named Bitcoin as a primary treasury reserves asset. This is the first and only time in history that Bitcoin has been so. Here’s their CEO Michael Saylor’s reaction to the matter: “We converted our balance sheet, which was a depreciating asset, to an appreciating asset. We now have two businesses. One is an enterprise software company and the other is a digital property business. So why did we do it? Defensively, we don’t want the company to lose money or be destroyed. Wealth is destroyed. Stage two is opportunistic. We could buy high-quality property. Digital property is more valuable than analog property. Stage three is strategic. It’s a smart idea to purchase cyber Manhattan before everyone else does. My arbitrage is 95% if bitcoin appreciates at 100% per annum and I can borrow fiat at just 5%. Why would I not do it?” There is a lot of negativity about bitcoin in the press. If we look back at history, we see that it is rare for a king without fighting to be removed from his throne. Since its inception by the Medici, the fiat banking system is king. It is not going to die quietly. The fiat system has been able dictate the terms, and its employees have made huge profits from it. Bitcoin, the upstart King Arthur, who has, despite all odds, pulled the sword out of the stone, was the only exception. What about the central banks and governments? They don’t. It is a major reason central bankers spread lies about bitcoin. What lies are these? It doesn’t have any backing. It is a waste of energy. It’s volatile. It is controlled by billionaires. It has no practical use. It is primarily used by terrorists and criminals. It’s a Ponzi scheme. Rubbish. Bitcoin can upset the status quo, which is why it’s so hated by those who hold the microphone. You Can Buy a Fraction of a Bitcoin. We all know that not everyone has 20,000 dollars to spare to buy a whole Bitcoin. One Bitcoin can be divided into 100 million Satoshis, which means you can invest 10 dollars in Bitcoin to start investing. “Bitcoin has been our peaceful weapon against central bank-driven time theft.” — Ross Stevens. — Sylvain LaurelThis guest post is by Holly Young and Mark Maraia. Opinions expressed by the authors are their own and do NOT necessarily reflect those of BTC Inc. or Bitcoin Magazine.

 

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