What Is Bitcoin?

 

I have been watching and studying Bitcoin since April 2017. At first, I just couldn't understand the whole process or even how a Bitcoin is even created.

 

However, over the last few months and after spending hours watching videos and taking a few courses, I am now earning additional income from Bitcoin and other cryptocurrencies.

 

 

So back to the question, What is Bitcoin?

 

Bitcoin is the future of money.

 

Wikipedias answer is this: 

 

Bitcoin is a cryptocurrency and worldwide payment system.

 

It is the first decentralized digital currency, as the system works without a central bank or single administrator.

 

The network is peer-to-peer and transactions take place between users directly through the use of cryptography, without an intermediary.

 

These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain.

 

Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.

 

Bitcoins are created as a reward for a process known as mining.

 

They can be exchanged for other currencies, products, and services.

 

How Bitcoin Works…

 

After searching and watching many videos this is the best one to explain what Bitcoin is.

 

Once I understood what Bitcoin was and how it can be used my next question was, how are Bitcoins created?

 

Again I have found a great video which explains this in 2 minutes.

 

What is Bitcoin Mining?

 

Mining is the backbone that allows Bitcoin to function.

 

New Bitcoins are created as a reward for miners who secure & verify payments in the blockchain.

 

Here is another great video which explains this better than I could.

 

What are the benefits to using Bitcoin over a normal currency like £/$?

 

Bitcoin has numerous features that set it apart from any normal government-backed currencies. Below are just 5 reasons why more and more people are now using Bitcoin.

 

1. It's decentralized.

 

The bitcoin network isn’t controlled by anyone and that includes governments and banks.

 

Every computer/machine that mines bitcoin and then processes transactions makes up part of the network, and the machines all work together.

 

This means in theory, one central authority can’t control the value, supply or even decide to remove your bitcoins from you which banks have been doing for years.

 

2. It's very easy to set up and get an online wallet.

 

Banks make you jump through all kinds of hoops to even open an account.

 

With Bitcoin you can set up a bitcoin wallet in seconds, no questions asked.

 

In fact, Coinbase is currently in the top 100 apps in the App store.

 

3. It's completely 100% transparent.

 

Bitcoin stores details of every single transaction that has ever happened in the network.

 

It is stored in a huge version of a general ledger, called the blockchain.

 

4. Transaction fees are tiny compared to traditional banks.

 

Your bank may charge you a £10 fee for international transfers. Bitcoin doesn’t.

 

5. It’s extremely fast.

 

You can send money anywhere in the world and it will arrive a few minutes later.

 

And that is just 5 reasons why people are using Bitcoin and the value is continuing to rise week after week.

 

However:

 

You may be wondering why is Bitcoin in a blog all about earning money online and working from home?

 

Well, the answer is very simple.

 

I have been quietly earning a nice additional side income from bitcoin and also some of the other different cryptocurrencies on the market.

 

I wanted to test some different ways to earn from this huge craze before sharing with you the reader.

 

Before writing or recommending anything I always try it myself and test the waters.

 

It could of all been a huge waste of time.

 

It wasn't.

 

Over the next few weeks, I will share the current 3 ways I am earning a passive income with Bitcoin and cryptocurrencies.

 

And that concludes this article – What Is Bitcoin?

 

Thanks for reading and as always if you have any questions please leave a comment below and I will get right back to you.

 

Update 4/01/2021 – Check out how to earn Bitcoin for free. In this article, I share several ways you can get yourself some Bitcoin.

Take Care & Keep Smiling

 

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