The Breakdown: Bitcoin

November 29, 2017 Ana Vuki

"Bitcoin can change the way we function as a society."

If your reaction is the same as Mark Wahlberg's above, then you've come to the right place.

Or at least I hope you can leave this article with a better understanding of Bitcoin. πŸ™πŸΎ

WHY YOU SHOULD CARE

Bitcoin is confusing for a lot of people, even for those who have invested in Bitcoin. 

It's pretty valuable and as of 9:39 AM on 11/29/2017, Bitcoin is currently valued $9,955 USD. 

This means you can buy 7,162 McDoubles* with one Bitcoin. πŸ”πŸ”πŸ”πŸ”πŸ”πŸ”πŸ”

*McDonald's doesn't accept Bitcoin.

WHAT IS IT

 It's a digital currency that is decentralized. This means that there is no issuing authority like a bank, government, or person backing the currency. Instead the transactions work off of a peer-to-peer based computer network and recorded onto a ledger called the blockchain. 

BLOCKCHAIN: The digital ledger that bitcoin transactions are verified and publicly recorded on. 

More on the blockchain:

A blockchain is a decentralized, distributed ledger, combining a number of peer computers. These computers need to respond jointly to the same consensus process in order to release or record information. The ledger is trusted, public and shared. It can be inspected by everyone, but is controlled by no single user. As such, the blockchain becomes a branch of truth, preventing double spending while keeping track of transactions. (Realdolmen)

HOW IT WORKS

Anyone can obtain Bitcoin. You just need phone or computer and an email address to open a digital wallet. Once you open your wallet, you can begin receiving and exchanging Bitcoin. There aren't any major fees or chargebacks which makes this the cheapest method of currency exchange.

WHERE DID IT COME FROM

Bitcoin was created in 2009 by an anonymous group or person that went by the name of Satoshi Nakamoto. There more than 19,000,000 bitcoin wallets currently open and over 300,000 transactions occurring each day. 

HOW DO I GET BITCOIN?

You get bitcoin by mining for it. Bitcoins are mined when computers on the network solve a set of puzzles, so technically "miners" are using electricity and computing power to mine more bitcoins. You can purchase bitcoin from another user, mine for it yourself online, or you can visit a bitcoin ATM and exchange cash into bitcoin.

IS BITCOIN LEGAL?

Yes, because governments can't forbid the transfer of data. Bitcoin is legally recognized by some governments including the United States.

DON'T CRIMINALS USE THIS TO CONDUCT ILLICIT ACTIVITY?

Yes, because it's difficult to follow money when you can use fake names or multiple wallets to disguise shady transactions. But you know, karma happens. βš–

WHAT CAN I BUY WITH BITCOIN?

You can buy almost anything. A lot of businesses are now accepting bitcoin. On Guam we have AutoSpot, Brewed Awakenings, and Patisserie Parisco. 

AutoSpot's bitcoin ad. 


STAY TUNED TO OUR SOCIALS TO LEARN MORE ABOUT CRYPTOCURRENCY! 

 

About the Author

Ana Vuki

Will work for BitCoin.

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