What is Bitcoin and what does it mean
Table of Contents
What is Bitcoin really and what does it mean to you
Bitcoin is not blockchain. It is a product of the blockchain network designed by Satoshi Nakomoto. In the genius that is the blockchain a solution was needed to keep it constantly maintained for safety. That’s where mining comes in. The solving of difficult math problems using Cryptographic Algorithms releases a new block in the blockchain thereby perpetuating its existence.
Solving these cryptographic math challenges needs a lot of computing power and time. As each new block is released the difficulty increase. How do we keep people motivated to look after the blockchain? We incentive them! This incentive became what is now known as bitcoin or BTC.
How Blocks are Solved
For every block that is solved approximately every 10 minutes, 12 bitcoins are released as a reward. Due to the complex levels of solving the maths in the blockchain massive PC power is needed. That is why we now have mining pools which are a mining collective of thousands of people combining there computing power to share in the Bitcoin rewards. Bitcoin mining is very important to the Bitcoin blockchain. This is changing and many more blockchain platforms are moving away from mining.
Simple Bitcoin Economics
If you look at basic economic theory you will come across a term coined >Quantitative Easing. This happens when a state or nation prints more money into the economy in order to add debt relief. The same applies to the blockchain. By releasing bitcoins this is the equivalent to crypto quantitative easing. This is used as a reward for maintaining the blockchains integrity.
In many circles Bitcoin or its blockchain is refered to as the Bitcoin Blockchain. This is accurate as Bitcoin uses its own blockchain technology. Subsequent to this there have advances in blockchain technology such as the Ethereum blockchain.
Bitcoin first traded on the dark web and was a cryptocurrency used by many programmers and hackers including criminals. This has given bitcoin some bad press but like any form of exchange there will always be the criminal elemant. Interestingly Bitcoin was first introduced t the world in 2008 at a trading value of …. As of writing this article Bitcion / BTC is now trading at $8700.
Bitcoin is seen as either a store of value or tradeable asset to use in the future for purchases. It is both. As far as investments are concerned Bitcoin is being heavily invested in and continues to show a strong resilience to market pressure. More and more Bitcoin Millionaires are being made almost daily. While they keep there secrets close their chests there are a few fundamentals that are recommended for any potential investor.
Investing in Bitcoin
When investing in Bitcoin or any other cryptocurrency such as Enthereum or Ripple we need to first determine what our risk appetite is and the length of period we want to experience returns. Also do you see bitcoin as a store of value or tradeable asset? There are plenty of scams and false prophets online. You need to exercise sound judgment and follow these recommended steps. Each step is a link to a separate article/review or piece of research.
- Self Educate
- Spend only what you can afford to loose
- Follow experts
There are 3 ways to invest in bitcoins and to start building a ‘blockfolio’. We have listed these 3 different methods with research and recommendations for each. Each method appeals to a different risk appetite and style. Additonally it is important to learn the language of the crypto world in order to stay afloat with news and opinion. Click these links for more information:
We hope that this simple breakdown of what Bitcoin really is has helped you gain more understanding. The above links help you to learn related topics and points of interest. Take you’re time and go through them. Be Crypto Smart. Do you research and follow industry experts and above all else… follow my blog!https://mycryptoeconomist.com/2018/02/23/what-is-bitcoin/https://i2.wp.com/mycryptoeconomist.com/wp-content/uploads/2018/02/Japan’s-Internet-Giant-GMO-Launching-Bitcoin-Mining-with-7nm-Chips.png?fit=1024%2C1024&ssl=1https://i2.wp.com/mycryptoeconomist.com/wp-content/uploads/2018/02/Japan’s-Internet-Giant-GMO-Launching-Bitcoin-Mining-with-7nm-Chips.png?resize=150%2C150&ssl=1Uncategorizedbitcoin,cryptocurrencyWhat is Bitcoin really and what does it mean to you Bitcoin is not blockchain. It is a product of the blockchain network designed by Satoshi Nakomoto. In the genius that is the blockchain a solution was needed to keep it constantly maintained for safety. That’s where mining comes in.... firstname.lastname@example.orgAdministratorICO Investigative Journalist. Obsessed with the truth.My CryptoEconomist