19 JUN 2020

What is Bitcoin?

What is Bitcoin?

In this post about Bitcoin, we are going to simplify what is Bitcoin. I hope that once you have read through you will end with a better understanding of how this revolutionary digital currency is changing the world and will continue to do so.

The quest to simplify but not oversimplify the explanation of what Bitcoin is challenging due to the dynamic nature of the sector as it’s not just an online digital currency. When you talk Bitcoin it’s not as easy as being ‘just a coin’ as much as Bitcoin is a whole ecosystem with multiple use cases when you start introducing the blockchain. This is where is get a little more complicated so I will explain what the Blockchain is in another post.

However, I will try to make it easy on the brain.

Now, I am not going to indulge in new vocabulary that might be confusing but rather try and show you what Bitcoin is and what it isn’t. This will especially be useful for newbies who are trying to make sense of Bitcoin but have no idea what it is or where to even start looking to understand its complexity!

Let’s start by explaining what Bitcoin is NOT.

  • A get rich quick scheme or just an investment for developers that just sit around on the internet all day. Wait, don’t you do that too? Anyway, Bitcoin is not a get rich quick scheme and if a person/company tries to convince you otherwise, they are crazy and I’d stay away from them and the product on offer. Is a company offering you guaranteed returns of 1% a day for example? Cue the laughter. Be careful. You could end up getting kicked in the butt. I’ve been there in the early days from advice from a friend, it’s great whilst it lasts, but the ending is not fun. Be warned!

  • Digital money controlled by a society of elite shady criminals. This conspiracy theory is also quite famous and the fact of the matter is that it is entirely opposite to this notion. Bitcoin is the most transparent network in the world that’s relied upon by millions of investors from around the world. Each transaction is registered and can be tracked. Ok, so we may not know who owns the digital wallet but at least you cannot fiddle the books, giving crypto a good future standing for business transactions.

  • Is Bitcoin a scam? A Ponzi scheme, Multi-Level Marketing or Pyramid scheme? Bitcoin is not a scam as some people might have you believe. It is a system that helps validate and record transactions. Everything is super transparent and easy to track. The more you learn about it, the more you will come to this conclusion yourself. People that read and understand what bitcoin is tends to go all in. Also, they never keep quiet about it, ever… which I’m sure you have experienced with. your friend and colleagues.

  • Bitcoin is just another buzzword. Bitcoin is not your normal ordinary buzzword that will slowly fade over time. Bitcoin has been around since 2009 and it is a legitimate transactable network that has gained a good reputation worldwide. Learn it, live it, enjoy it, it’s not going anywhere!

What is Bitcoin?

  • Bitcoin is a fully decentralised crypto money record ledger. This means that the Bitcoin network works on the principle of decentralised verification and ownership of its native currency. Nobody can manipulate the record of the cryptocurrency and that helps keep it valuable and universally verifiable. Learn about What Is A Cryptocurrency here

  • A tool towards financial independence. Modern monetary systems are incredibly manipulative and rely on third party electronic records more than actual physical ownership. The perpetual inflation and other measures mean that nobody actually owns their money anymore. Bitcoin shatters this notion and allows users to have the keys to their own currency wallet directly, something that is not offered anywhere within the current banking ecosystem. It allows you to be the owner of your own currency in the most fundamental ways possible.

  • A trading asset. Just like stock and forex trading, Bitcoin can be traded with the US Dollar and other national currencies of the world. Traders can seek to buy low and sell high to make a profit. Some investors, however, choose to hold the currency AKA ‘Hodle’ for when BTC really takes up as there are talks about the possibility of reaching price points in the $100,000+. Will it? who knows, we will just have to wait and see. In the meantime keep learning about this incredible technology and the other cryptocurrencies on the market.

Well, I hope that you learnt something from this post and that you feel you have a better understanding of what Bitcoin is, and what Bitcoin is not.

Do you own some crypto? Have you thought about trading? Well, my view is that manual trading is dead, for crypto trading at least… Cryptocurrency markets run 24/7 so it’s very hard to manually trade without sleeping as markets are more than often volatile and unpredictable. Although with Yanda’s Artificial Intelligence trading you can now predict 5 minutes and 6 hours trading charts to help you trade better.

Author: Chris Wyatt