You’ve probably heard of Bitcoin by now, and you might even be wondering what it is or whether you should get some.
The answer to the first question can be found in this brief guide to understanding Bitcoin and the 3 questions that many people have about it.
You may not know exactly how Bitcoin works. Still, after reading this article, you’ll have all the information you need to decide what it can do for you and your business.
What Is Bitcoin?
In order to understand what exactly bitcoin is, we first have to understand a little about money. Money has three functions: it’s a medium of exchange, a unit of account, and a store of value.
In our modern global economy, money is anything you can use to buy something else-the U.S. dollar, for example.
We use dollars for nearly everything in our daily lives because we live in America. There are lots of things available that cost dollars.
Other countries have their own currencies, like China’s yuan or Mexico’s peso. But even though they aren’t used here, these currencies still hold value; you could go to China or Mexico and exchange your dollars for them (or vice versa).
That’s why they’re called foreign currencies. They’re foreign only in terms of geography but not in terms of function; they’re still currency.
The same goes for bitcoin: It’s not used here, but it’s still a currency. And while bitcoins may be foreign in terms of location, they’re very much at home on the Internet.
Bitcoins are a digital form of currency that exists entirely online and isn’t controlled by any one country or banking authority.
A single bitcoin is worth hundreds of dollars today, but it wasn’t always worth so much; bitcoins were originally worth less than $1 each when they were created in 2009.
Do you know there are many places to buy bitcoin such as Coinbase, Binance. So why waiting? Buy your first crypto today.
Is It Safe?
The biggest safety question on people’s minds is whether or not Bitcoins are safe. By now, you’ve probably heard about some unlucky early adopters who lost thousands of dollars when their Bitcoin exchange got hacked.
You can do a few things to keep your money safe from digital thieves. The most obvious thing is to use two-factor authentication (2FA) with every online service that offers it.
Using 2FA makes it harder for a hacker to get into your account and steal your money because they need more than just your password; they also need access to your phone or another device where you store that second code before breaking in.
2FA isn’t perfect, but it will make it much harder for anyone-including hackers-to break into your accounts.
If you have any Bitcoins sitting around in an exchange like Coinbase or LocalBitcoins, move them to a wallet under your control as soon as possible.
It may take a little bit longer to transfer coins between wallets, but at least you know no one else has access to them if something goes wrong with an exchange.
Why Do People Invest In Bitcoins?
Bitcoins have become an increasingly popular alternative to traditional fiat currencies like dollars and euros, partly because they’re decentralized: no single institution controls them.
While you may be concerned about how real they are, bitcoins-like dollars, pounds, or euros-have real value and can be used to buy tangible things.
However, a few things make bitcoin stand out among other types of money. For one thing, it’s not issued by any government or central bank; instead, bitcoins are created by people using free software on their computers.
And while many people think of mining as something only miners do (i.e., digging stuff up from underground), in reality, anyone with a computer can mine for bitcoins. But first, you need to get yourself some bitcoins.