Bitcoin Detailed Guide and Review

We hear a lot of people ask basic questions about Bitcoin and blockchain technology, so we’ve compiled a list of answers. Understanding cryptocurrencies is a steep learning curve. They introduce a wide range of terms and require the ability to separate truth from opinion.

Whether or not Bitcoin has intrinsic value will depend on people across the entire world. Although there are several major players, like mining pools in China that have a huge impact on Bitcoin, cryptocurrency is not owned or operated by any company, state or country. That’s why it’s messy and unfamiliar. It’s constantly generating a storm of conflicting news reports and editorials.

What is Bitcoin, and what’s so good about it?

Bitcoin is a type of cryptocurrency. It’s also an asset and a payment platform with a digital ledger that spans the world, combining global transactions onto a single system. It introduced blockchain technology. It allows people without bank accounts to make transactions.

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In countries with hyperinflation, Bitcoin has become a viable payment method. Bitcoin can also move fluidly across borders without intermediaries. Unlike fiat currency that needs to get converted from USD to euros to yen, Bitcoin is just Bitcoin. Someone in Kansas City can send Bitcoin to someone in Phuket, like someone in London can email someone in Buenos Aires. If paper money is a CD, Bitcoin is an MP3. Bitcoin is also good at moving huge lump sums for big expensive assets, which is why wealthy investors use it to buy homes, yachts and Lamborghinis.

What is blockchain?

Blockchain is a new technology with far-reaching applications that can annihilate banking services, if not banks altogether, and redesign transactions across a multitude of businesses and industries. It is a digital ledger that records transactions publicly or privately, and sequentially. It can facilitate peer-to-peer transactions, eliminating or reducing the need for middlemen. Through encryption and decentralization, blockchain creates trust. With Bitcoin’s blockchain, anyone can see all transactions.

How does blockchain work?

Blockchain and how it works defines how Bitcoin works. It is a digital ledger that stores every single transaction. If I sell a pair of shoes to you for $10, that transaction can be engraved on a digital ledger that is immutable. The ledger is not owned by a bank or any centralized database. It is decentralized, which means it is hosted by a network of computers across the world. Some of the computers belong to large groups and some of the computers belong to individuals. Transactions on a blockchain occur through and are recorded by addresses. Each sender and recipient requires an address.

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