Bitcoin for Beginners

Alecia let me come on live on her facebook and introduce Bitcoin for Beginners.

Here’s some information to help Beginners understand Bitcoin.

What Is Bitcoin?

From Wikipedia – “Bitcoin is a cryptocurrency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. The currency began use in 2009 when its implementation was released as open-source software.”

Basically, bitcoin is a computer program (open-source software) that is run by the people who use it.

There are people who solve complex math problems that basically tell you where all the bitcoin went and where it is (like balancing your checkbook).

Those people who solve those math problems are called miners, because after their work is done, they get bitcoin (like digital gold).

There are 21 Million bitcoin that can be mined, and in the first 10 years, 18.5 million were mined.

When miners solve the problems, and balance the bitcoin ledger, they get free bitcoin in return.

However, that will end as the program only will give out free bitcoin for a limited amount of time (100 years).

In addition, every 4 years less bitcoin can be mined, until there is no more bitcoin left to mine.

After that point, there is conjecture on what will happen.

There is the option of attaching a fee to each transaction (like a credit card or paypal) and this makes your transaction appear faster.

I have been told that the reason for this is that miners will solve blocks that have greater fees attached so they can make that money first.

So one theory is that the transaction fees will keep the miners going and compensate them to solve the math problem and balance the bitcoin ledger.

Why is Bitcoin So Popular?

Bitcoin is the first self contained currency system that is not controlled by any one person, leader or country.

In addition, it is digital, so you don’t have a physical currency. If you’re memory was superb you could memorize the long address of your wallet, and keep the location of all of your bitcoin in your head.

Or put it on a piece of paper in a safe, where only the safe user has access.

Or you could keep it in a digital wallet like I do on blockchain.

You can see the appeal to a computer geek.

All transactions are public knowledge and traceable to the long alpha numeric address of your wallet.

From Investopedia – “You can see, for example, that 15N3yGu3UFHeyUNdzQ5sS3aRFRzu5Ae7EZ sent 0.01718427 bitcoin to 1JHG2qjdk5Khiq7X5xQrr1wfigepJEK3t on August 14, 2017, between 11:10 and 11:20 a.m. The long strings of numbers and letters are addresses, and if you were in law enforcement or just very well-informed, you could probably figure out who controlled them. It is a misconception that Bitcoin’s network is totally anonymous although taking certain precautions can make it very hard to link individuals to transactions.”

How do I get Bitcoin?

Well, anyone with bitcoin can send it to you.

Open a wallet at Blockchain.com and then give your friend your address, and have them send you some.

If you have none, you could try using the Fold app, buy a gift card for yourself or a friend and it will give you 20,000 satoshis (100 million satoshis equals 1 bitcoin) when you open your Fold account, and then give you cashback in bitcoin when you buy a gift card.

I sent one of my mastermind members some bitcoin as an experiment back in 2017.

Back in September I moved bitcoin from my Fold Wallet to my Blockchain wallet without a fee to see how long it would take (took about 3 weeks).

You can also go on Robinhood or an exchange like coinbase and exchange dollars for bitcoin.