Bitcoin Explained And Simplified & Why Investing May Not Benefit You

bitcoin explained

What Is Bitcoin?

Simply put, Bitcoin (BC) is the name of a company that created a form of “money” of the same name called Bitcoin; digital money. It is not a physical form of money, the photo above is just an art piece formed to visualize this digital money. It’s “Cash for the internet” ran by computers around the world.

The company is a decentralized network. Much like Wikipedia, Bitcoin is an open forum ran by the people for the people. Anyone can edit Wikipedia, and anyone can edit Bitcoin making Bitcoin a BETA program, which basically means: an unfinished idea in its developing stages where kinks, deletions, spam, viruses, and a complete shut down due to lack of interest can stop this network at any given moment.

Who Founded Bitcoin?

Satoshi Nakamoto, an unknown person who published a form in a crypto mailing list in 2009 with its “proof” of conceptualization, is the founder of Bitcoin. Allegedly in 2010 Nakamoto stopped working on Bitcoin, and is instead now ran by computers, and people around the world (mining).

Why Is Bitcoin Popular?

Bitcoin is not popular, however it’s receiving major news coverage as of recent due to it’s worth rising from  $733 in December 2016 to over $9000 in 2017. What that means is, more companies are investing in BC and it’s interest is rising, however many are skeptical, and they should be.

Often times memes and the force of people trying to trade BC by telling you how stupid you are if you dont join them by clicking their link, and how it will change your life, is making BC seem more important and dyer than it is.

How Does Bitcoin Work?

The easiest way to explain this is by understanding the worth of one Bitcoin (digital money) converted to actual US dollars. For example, 1 Bitcoin is equal to ~9,857 dollars (the current value of BC Nov 27th 2017). So if you own one BC you technically own almost 10,000 dollars.

Bodycam Shows Police Frame Black Man

BC works by interest signing up with an exchange where you can buy and sell BC like Coinbase. There you can purchase BC with your actual money from your bank account,  sell or simply continue to purchase and use Bitcoin to purchase items. You can also purchase BC in person with other BC users.

Who’s getting the money you send to purchase Bitcoins? Who knows? The fees to withdraw money, sell, and transactions once you exchange, who’s profiting? Not you. And with websites like Coinbase adding incentives; if you get your friends to sign up purchasing $100 worth of Bitcoin’s then you both get $10 worth of Bitcoin’s free, more are trying to get rich quick.

A 5 US dollar purchase of Bitcoins only gives you 0.000507 Bitcoins. Yes, youre no where near owning 1.00 (one) BC, unless you have 9,857 US dollars to purchase one. Thus making no profits whatsoever.

The name of the game with this exstrange (instead of exchange, ha) is finding ways to NOT spend your own actual, real money, but receive Bitcoin’s through other means, that way it’s all profit without upfront money. Many are losing money upfront in the HOPES of profit, but the ones who are truly benefiting are the ones getting Bitcoins without upfront money like: playing various app games that dish out BC’s like casino games, becoming a miner, or a thief…(which is illegal so that’s out).

What Are Miners?

Miners, the gatekeepers and watchers of BC, are paid in BC’s without upfront money, but they have to govern the BC network in order to get an extremely small amount of Bitcoins to finally equal to 1 BC ($9,000+ USD).

Should I Invest/Use In Bitcoin?

BC is a developing risky new form of technology with no safety for those who use it. For instance, if you lose BC’s due to a computer virus, or some form of mistake, your “money” will be lost forever.

Much like any stock investment, if you invest, do not expect to make money quickly, or at all, especially with BC due to it’s development stages and slow growth, its current spikes are good, but may prove to be lacking. Many top billionaires and investors strike against it calling it a fad, digital money is not real, etc.

Investing in Bitcoin may not benefit you because its an unsecured, new, ungoverned form of currency, and after living your life through the US dollar, vs the digital dollar, you will be better off working your 9 to 5 or starting your own business and using the standard way of monies. Its extremely difficult to understand, and you have to invest time in educating yourself to use it, in order to truly understand and possibly profit.

Why Are People Investing In Bitcoin?

Unfortunately many are because they believe they will get rich quick. Many are sucked into the fad and the hype, and have no idea why, they just want to try. Unfortunately many are losing hundreds, some even thousands of dollars giving their money to unknown sources while they make actual profit from actual US dollars, and you sit back hoping the currency of the Bitcoin changes from 9,000 dollars to over 1 million.

Ledisi New Music Video 60s Style

People are investing now because they believe one day owning 1 Bitcoin will value at millions of dollars. For instance, many believe their $100 investment in 2017 which equals to only 0.010099 Bitcoins will grow in value if the company grows. Many years later if the company value grows from 1 Bitcoin = $9,857 USD to 1 Bitcoin = $1,000,000 USD those who invested $100 for only 0.010099 Bitcoin’s will now have an increase depending on years and other factors of over %40,000.

Unfortunately there’s no way of knowing when, if the government will continue to allow this, and if the criminals who use it for drug and other transactions, due to no regulations or checks and balances, will continue to profit from it. And even though many retailers including some Subways, Overstock, and many more are opening up their business for customers to purchase items through BC it’s simply an unsafe, unsure way of losing/using money. With that being said, if you’ve built enough wealth to invest $100, I say, invest, and FORGET ABOUT IT, do not watch it, worry about it, and in 10-15 years you may profit…or not.

How To Sign Up To Use Bitcoin:

© 2017 Tahir Register
TheBLACKMedia On Twitter

No Gossip, No Rumors, No Negativity!