WHAT IS BITCOIN
Many people believe Bitcoin to be very complicated, when in fact it’s a lot more simple and intuitive than what most people think. This series aims to help everyone get a grasp of the basics, and over time also present further learning opportunities for those that want to know more.
Bitcoin is often explained by comparing it to something specific people already know, but this is often what creates a lot of confusion. Bitcoin is a new technology that is unlike anything we have seen before, so a better way to think of it is as a combination of a few different things we are already used to:
Firstly, because it allows you to move money so easily, Bitcoin functions as a payment system, similar to bank transfers or credit cards, only a bit better.
Second, Bitcoin is in some sense similar to gold - that is why many people even refer to it as ‘digital gold’ or ‘Gold 2.0’. Think of it as using gold for money, except it also very easy to move.
Third, Bitcoin is like the internet in that no single person or entity controls it, so anyone can pretty much use it as they like. This gives it some very unique characteristics.
These three characteristics also reinforce one another, so they are all interwoven. But more on all of this in the next few sections. For now, just imagine what would happen if you took a big pot and threw in a credit card, a piece of gold, and a hint of ‘internet’ - mix it all up - and pull out a brand new compound - Bitcoin!
Bitcoin is a new way of moving and storing money.
Additional resources
Bitcoin.org FAQ
What is Bitcoin?
Beyond the Blockchain
The Essence of How Bitcoin Works
How Bitcoin Works Under the Hood
Bitcoin explained and made simple | Guardian Animations
Next
Where did Bitcoin come from?
Bitcoin
Ethereum
What is Bitcoin?
What is Bitcoin?
The basics of a financial revolution
Where did Bitcoin come from?
Where did Bitcoin come from?
The origins of a trustless system
Bitcoin as a payment system
Bitcoin as a payment system
Advantages for consumers and merchants
Bitcoin as digital gold
Bitcoin as digital gold
A new digital asset class to consider
Bitcoin as the internet
Bitcoin as the internet
Global, open to all for innovation and use
How do I get Bitcoin?
How do I get Bitcoin?
Learn about earning, trading, buying and mining
How is the price of Bitcoin calculated?
How is the price of Bitcoin calculated?
A primer on supply and demand
Is Bitcoin used by criminals?
Is Bitcoin used by criminals?
Reviewing some misconceptions
What is Bitcoin mining?
What is Bitcoin mining?
Maintaining the ledger
What are Bitcoin private keys?
What are Bitcoin private keys?
Accessing the system
How do I protect my private keys?
How do I protect my private keys?
Wallets, vaults and private keys
How do I keep my Bitcoin safe?
How do I keep my Bitcoin safe?
Recognising scams to reduce risks
What are the risks with Bitcoin?
What are the risks with Bitcoin?
With potential comes risk