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Q: What is Bitcoin (BTC)?
A: Bitcoin is a peer-to-peer electronic cash system.
1) Peer-to-peer means that there is no intermediary in the transaction. You can send value from one person to another without relying on any third party who needs to approve your transaction.
E.G. when you swipe your debit card, the bank confirms the transaction; with Bitcoin, you are the bank.
2)3) Bitcoin utilizes Decentralized Ledger Technology (blockchain). Blockchain is a ledger that timestamps transactions forming a record that cannot be changed without redoing the proof-of-work. Miners use their CPU power to process transactions on the network confirming the record/ledger. Miners are in mining pools which are groups combining their CPU power to run the network where they are rewarded in bitcoin. Anyone can freely join or leave a mining pool. As long as 51% of the CPU power is not attacking the bitcoin network it will continue to produce a reputable record/ledger. Every 10 minutes a block is found and processed by miners (think of a block as an individual link in chainlink), the mining group that solves that block distributes the reward amongst their miners. Depending on your electricity costs, it currently costs about $6k in electricity to mine 1 bitcoin. More electricity is currently going into Bitcoin than many small countries and it may soon overtake all other uses of electricity in the world.
4.)5)Q: Who created Bitcoin?
A:
A:Exchange RiskBitcoin attributes:
Scarcity - 21M total supply
DivisibilityDurability - Distributed Ledger Technology is stored on millions of computers and cannot be shut down
Fungable - 1BTC = 1BTC, it cannot be counterfeited (even gold can be plated)
Portable - You can send it anywhere on Earth very easily and quickly Permissionless - It is peer-to-peer, no one can interfere in your transaction
Intrinsically valuable - it cost thousands of dollars worth of electricity to create
At about $9k right now, the total market cap is less than what the Fed printed in USD over the last few months....
With that in mind, know that Bitcoin is by design intended to be very expensive.
A: Bitcoin is a peer-to-peer electronic cash system.
1) Peer-to-peer means that there is no intermediary in the transaction. You can send value from one person to another without relying on any third party who needs to approve your transaction.
E.G. when you swipe your debit card, the bank confirms the transaction; with Bitcoin, you are the bank.
2)3) Bitcoin utilizes Decentralized Ledger Technology (blockchain). Blockchain is a ledger that timestamps transactions forming a record that cannot be changed without redoing the proof-of-work. Miners use their CPU power to process transactions on the network confirming the record/ledger. Miners are in mining pools which are groups combining their CPU power to run the network where they are rewarded in bitcoin. Anyone can freely join or leave a mining pool. As long as 51% of the CPU power is not attacking the bitcoin network it will continue to produce a reputable record/ledger. Every 10 minutes a block is found and processed by miners (think of a block as an individual link in chainlink), the mining group that solves that block distributes the reward amongst their miners. Depending on your electricity costs, it currently costs about $6k in electricity to mine 1 bitcoin. More electricity is currently going into Bitcoin than many small countries and it may soon overtake all other uses of electricity in the world.
4.)5)Q: Who created Bitcoin?
A:
A:Exchange RiskBitcoin attributes:
Scarcity - 21M total supply
DivisibilityDurability - Distributed Ledger Technology is stored on millions of computers and cannot be shut down
Fungable - 1BTC = 1BTC, it cannot be counterfeited (even gold can be plated)
Portable - You can send it anywhere on Earth very easily and quickly Permissionless - It is peer-to-peer, no one can interfere in your transaction
Intrinsically valuable - it cost thousands of dollars worth of electricity to create
At about $9k right now, the total market cap is less than what the Fed printed in USD over the last few months....
With that in mind, know that Bitcoin is by design intended to be very expensive.
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