COMPLETE GUIDE TO BITCOIN
In this article, we will be discussing the Amazing New Cryptocurrency called BITCOIN, that is shaking up the financial industry. We will explain how this new form of currency was created, how it works, important definitions, and how you can use it and/or benefit from investing in it.
Further, we will try to explain this in as simple of terms as possible so you can at least understand the basics, and to be honest, even the most savvy investors don’t fully understand it, but they understand profits!
Think of Bitcoin like your credit card. Most don’t know the in and outs of how when you swipe your card at a store how it electronically connects to your bank and withdraws the correct amount and the software that is involved to achieve this.
But, in general, we accept this as a secure way of buying and selling goods and services. It is the same with Bitcoin. This new currency is just an updated, more secure way of doing what your credit card does.
WHAT IS CRYPTOCURRENCY?
Cryptocurrency is a relatively new form of a digital asset designed to be used as a form of exchange for goods and services.
Like in the olden times when one would trade goods for services. I.E. Trading a loaf of bread for fixing a roof. This currency is just an updated electronic form of this that is decentralized, with better safeguards in place for full transparency.
Moreover, ownership records of shares of coins or whole coins themselves are stored in a ledger. This is just a computerized database version of a ledger instead of written down in a book.
WHAT IS THE BLOCKCHAIN?
- New type of Database for Record Keeping
- Stores Data in Blocks that are Chained Together
- When new Data comes in it is stored in a new block, Once this block is filled it is attached to the Chain
- This public record of all Bitcoin transactions prevents theft and fraud
- Decentralizes control from One person or group to all users collectively
- No user can manipulate or tamper with a recorded transaction
- Will eventually be used in a number of industries, not just Cryptocurrency
For example, imagine “Blockchain” technology in the clothing industry. You buy a cotton shirt and scan the code on the label and a chronological timeline shows when/where the cotton was picked, who picked it, where the shirt was assembled, how long it was stored, when/where it was shipped, up until the time you bought it.
This technology will eventually dominate all industries in the years to come, be it tangible (house, car) or intangible products (patents, copyrights).
Blockchain can be confusing, as well as Bitcoin itself. However, the more you read and learn you will start to understand how this currency works. You do not need to be an expert in the field, but just understand the basics of it, if you are starting to use this for purchasing or investing.
Just think of a small business that uses a ledger or spreadsheet for buying and selling products. The Blockchain is just an electronic version of this, but on a much larger scale using thousands of computers in an open public format. So what this does is allow a public record of each transaction chronologically of each Bitcoin.
In other words, it is a decentralized and irreversible timeline for each transaction and coin. This limits theft, fraud, and the creation of new coins.
More importantly, it means a “transaction” or “product” can be traced from creation to conclusion. End to End!
WHAT IS BITCOIN?
Now, that we have a little understanding of what Cryptocurrency and the Blockchain is. Let us explain what actually a Bitcoin is.
In 2008, a person or group of people named Satoshi Nakamoto, created 21 million Bitcoins electronically in an open-source software format.
They capped this amount so the Supply and Demand would always be competitive.
As oppose to a Government simply printing more money when they want, which devalues a currency, increases National debt, and increases inflation.
Meaning, the value is less of a coin or dollar than what it was. Consequently, your buying power becomes less.
Bitcoin was created to remedy this, and this is why the creator capped the amount of coins at 21 million. To date about 4 million coins have been lost or not in circulation, and about 4 million have yet to be “mined” or discovered.
Moreover, this form of currency was created to provide a decentralized peer to peer network. By doing this, it is taking control back from the powerful centralized banking industry and it becomes universal all over the world.
In addition, this limits extraneous fees and charges that a bank typically enacts to make money off of you.
Bitcoin has been around since 2008, but it is really just coming to light to the mainstream in the past few years. Similarly, this parallels the emerging CBD industry.
Typically, when a new product hits the market, it takes time for it to receive any attention of the mainstream. This is true for both Bitcoin and CBD Oil.
People in the know invested in Bitcoin in 2010 when the Coins were approximately $300 per coin. Fast forward a decade later and now one Coin is worth around $38,000. Not bad!
Now, momentum in Bitcoin has hit the mainstream. Investors like Elon Musk, and Square (which runs our payment processing) have invested hundreds of millions of dollars in it. Which gives the currency validity and makes the average person more trusting of this cryptocurrency.
Similarly, CBD has been around since its discovery in 1940, but has taken a long journey to get to the mainstream. It has only been in the past few years that CBD has, for the most part, discarded it’s prejudicial label of being connected to Marijuana and it is some sort of drug that gets you high.
More importantly, as more and more people educate themselves, word of mouth, and new studies showing efficacy, they come to the conclusion that CBD is safe, is not some taboo mind-altering drug, and has no connection to Marijuana, besides being from the same plant family.
Financially, CBD was once a few million dollar a year industry and now has exploded, and is expected to hit 20 billion dollars in sales by 2024.
We hope this has been an informative article of the basics of Bitcoin and the technology behind it. Again, like how a credit card works, you don’t need to know every aspect of Bitcoin, and most people will never know technology completely.
However, if you have a general knowledge of the fundamentals of this new currency, then when it arrives at your favorite ecommerce site or financial institution then you will have some understanding of it.
Overall, the Psychology of Humans typically is that if something is new or not what we are familiar with, it tends to make us afraid. Fear of the unknown.
This fear is typically from different religions, races, and cultures than our own. In addition, this concept bleeds over to new industries as well, such as Cryptocurrency and CBD.
It is better to embrace the change and learn now, then eventually learning about these areas when everyone else in already in the know.
Remember, Life is about change, so to is the alternative health and financial industries. The hundreds of years of practically nonexistent change in these areas are coming to a end, so get on board!
Cash App for Investing/Trading Referral Code $mdorganics