Bitcoin Cryptocurrency for Beginners
Bitcoin – More ways to learn about this fascinating world so what is cryptocurrency. What is Bitcoin? Bitcoin is the largest most popular cryptocurrency out there on the market. It is also the transfer of value using digital currency the transfer of value is the key here so you have to believe that this thing this Bitcoin this US dollar this Canadian dollar has value, it is also the very first decentralized cryptocurrency out there. Lots of words we don’t understand okay.
Now decentralized meaning it takes the traditional model of central banking in the US Federal Reserve is responsible for printing money. Now Bitcoin was created by Satoshi Nakamoto Which is a pseudo name for someone who we don’t know who this person is which makes it even more elusive and weird and creepy in crypto.
But I don’t even know who invented the dollar. I could google that and find out but whatever, the point is this guy or girl created this system as a response to the financial crisis in 2007 and 2008.
But if I was the owner of the Federal Reserve, I personally would print money for myself, my friends and my family, I’m just saying let’s be real! So there are pros and cons with having our centralized, an extreme example of the power that’s miss used in Zimbabwe. The reserve was printing lots and lots of dollar bills son and their currency lost its value. The medium of exchange was valueless you couldn’t use the money to buy groceries, they printed a trillion-dollar Banknote that had zero value, so currently, Zimbabwe uses the USD. I believe the use of South African Rand. They use everything but their own dollar they don’t have a currency because that’s how the value just completely dropped.
Now supply and demand is a thing in the economy when you keep on printing money and there’s no end, how can you store value in that exchange?
With cryptocurrency, there is a fixed supply there is a market cap on how many coins can circulate in the market and that is 21 million. That’s the most in theory that can ever be generated in the system.
Beyond it being a fixed market cap system that in theory creates value. There’s only 21 million collect all 21 special edition coins it relies on Blockchain technology. Now blockchain technology is what has blown the minds of everyone in the space.
With blockchain, it is recording transactions and verifying and ensuring that that in fact happened. That you got this money from this person and this money went there, and with blockchain, it can’t be duplicated, it can’t be counterfeit, it can’t be double-spent. Everything is accounted for and verified and that takes a lot of time to process. So the act of verifying these transactions is time-consuming with Bitcoin.
So they are now considering Bitcoin, instead of a currency that they hope to use in the system day to day, It’s now considered a commodity like gold.
Bitcoin is the popular cryptocurrency, but there are other cryptocurrencies out there and they are referred to as altcoins (Alternative coins) besides the Bitcoin. Now there is a Ethereum. There is Litecoin. There is Ripple. There is OMG. There is Monero. There’s Neo. There are a ton of coins out there and your job is to research the tech behind it, and you could read the White Papers which is basically a document that the creator has listed what the purpose of the technology is and does, but nobody really reads that. Well, the beginners I doubt will, but you know what you should actually just read it just for some giggles.
Right now we’re in the very early stages of cryptocurrency, It isn’t widely adopted yet. The idea is Cryptocurrency will be the new currency and we’re gonna shift from what we use today, USD, Canadian, Euro, Pound, Pesos. We’re gonna shift from that system to the cryptosystem.
This system is referred to as fiat. Not the car, fiat the money, and we’re going to shift to the cryptocurrency system. Now the only place I’ve seen accept cryptocurrency actually there are a few there’s a Lamborghini store that accepts Bitcoin, Monero is another currency out there and on the news Mariah Carey, Jay-Z, and a few other Musicians were saying that they would be accepting Monero, so I went to their site to try to purchase.
But I’m trying to wrap my head around ok, so if all these currencies are out there which one is gonna be the one that wins and that’s the biggest question, We don’t know. The system that we use today is very long for me to send money home to Toronto. Not only does it take a couple of days for the wire transfer to clear?
Because there are banks between. There’s the US Bank. There’s the Canadian bank, and then there are the actual banks, so there’s like four banks in the whole process.
The idea is cryptocurrency eliminates all of those banks, and I can send money to my family right away without the fees and without the delay. That isn’t the case right now because in order to convert your current currency, your fiat currency into cryptocurrency you need to use an exchange now this exchange to me defeats the whole point of Decentralized networks because now it is centralized.
Coinbase which is a very popular app I use coin base is an exchange place where I can convert my US funds into Litecoin, Bitcoin, Ethereum, Bitcoin Cash, they’re gonna be adding more but that process took me a week to convert my U.S. Funds to crypto funds. Coinbase is the easiest place to exchange your fiat for crypto.
However, there are other exchanges out there and also depending on the country you might have another exchange that’s more popular. I don’t know those ones.
Most exchanges that have affordable cryptocurrency under $100. I’m talking a dollar, five, ten dollars, they only accept Bitcoin or Ethereum, not your typical cash/fiat currency.
So you have to do two steps:
The first step you have to exchange your fiat currency at the exchange for Bitcoin or Ethereum.
The second step you have to exchange that Bitcoin or Ethereum that you just acquired for the more affordable currency that you really want to get, but now you have to back up your information onto a cryptocurrency wallet.
Now a wallet is not like a traditional hard wallet, although they do sell hardware wallets that you can store your information on it, it’s software that stores your private keys.
It sounds crazy! I know, but you need your own personal wallet to store your information because of this exchange goes bankrupt and closes you still have your Blockchain, your private keys, your information on this wallet.
And they will break it down for you better than I have. So I’ve taken a small amount of money that I’m okay with losing and I’ve already Tripled that. It can become very addictive, so I do say put in what you’re willing to lose and no more than 10%.
But it in Investing in the whole game of cryptocurrency. It’s blown my mind and opened my wealth of knowledge into a space I was never really paying too much attention to money, what is it besides getting paid by the hour or paying bills like how to build wealth and I don’t come from a family that has stocks invested to pay for my college intuition or whatever the case is, buy me a new car, I have to buy my stuff with the money that I earn.
I’d like to hope that cryptocurrency right now, It’s kind of like stocks. It’s investing in something that may or may not materialize, the difference is stocks are Regulated. Stocks are regulated, but I do this because you could still lose it. But it’s way more secure because it’s been around that much longer. With cryptocurrency this hasn’t been around that long and even more unsettling is it is not regulated so it is going to a casino and playing your hand at the table. But it’s fun and that’s exciting and if I can learn and grow.
I’m just way more aware of money and now when I’m in stores and then when I’m talking to like my boyfriend or my friends we talk in Satoshi’s and in coins like that is like 0.0067 of a Bitcoin.
But be a part of the conversation and the way to do that is to Invest you can even put in $10 $50. You can put in 50, you can put in $10 into a Bitcoin.
I’m trying to invest in something to believe and like I wanted to grow over the course of a few years, so ideally you know in five to ten years, I can have my money that grew. I want my money to work for me. Okay, and I don’t want to I want to hustle, but I’m gonna hustle smarter. And I feel like cryptocurrency is an opportunity to do that.
I’m just saying.
Those are my 2 satoshis. Take it or leave it.