Bitcoin 101: What, How, and Why?

What is Bitcoin if you’ve been left Scratching your head as a new Cryptocurrency phenomenon has boomed Around you don’t worry you’re far from Alone today we’ll be going over what Bitcoin is how it works and why on earth It matters let’s start with the basics The term cryptocurrency refers to a Digital currency that is encrypted so That it can be securely passed between Two individuals each unit of Cryptocurrency has a unique code given To it as it’s created and while it just Looks like a long string of numbers it’s The name of each fraction of virtual Coin and there’s always going to be a Finite number of units of cryptocurrency Available every person who wants a Particular cryptocurrency is also given A unique encrypted code themselves this Is called that wallet and it acts as Their address in the cryptocurrency World it’s essentially a location where Things can be sent to and sent from of Course all of is this digital rather Than physical and if you want to buy Some crypto then someone else has to be Willing to sell it as a result the value Of any given cryptocurrency changes Continuously based on the perceived Value of those invested in it and that’s How it functions like a stock so why the Hell is there any perceived value to This thing anyway well Bitcoin was

Created by an individual or group nobody Is actually sure going by the moniker Satoshi Nakamoto and it was first Released in 2009 it came in to answer The question How can we take control of money off of The banks basically for Bitcoin there’s No centralized bank instead the Information about transactions are Simultaneously stored on thousands of Networked computers and therefore Controlled by the community using Something called blockchain there’s Value to it because buying Bitcoin is in A sense buying control off of the banks And putting it into the hands of the People No exploitive interest so nasty credit Ratings or records held and potentially Manipulated by giant corporations so Blockchain is just like a ledger where The history of old transactions are kept We know each fraction of Bitcoin has its Own unique name each individual in the Bitcoin wealth has its own unique wallet Address and when one person buys Bitcoin From another that transaction is Recorded in blockchain it effectively Reads the Bitcoin with this name was in The wallet with this address but it is Now in the wallet with this other Address and anyone can have access to Blockchain it can be on your neighbor’s Computer it can be on your computer the

Entire history of Every transaction that has ever happened Everywhere Bitcoin basically exists in a Network of peer-to-peer connected Computers owned and run by the community Itself if you connect a computer to this Network which is as simple as Downloading some software from the Bitcoin website and letting it run You will then be referred to as a node The combined computer power of these Nodes not only power the transactions That are current a cryptocurrency but They also store the blockchain which yes Is very secure you can’t just change the Blockchain so it looks like every Transaction leads to your own wallet Whenever someone puts up their Bitcoin For sale and another person buys it that Transaction it must be confirmed and to Do this the network examines the Blockchain sitting on random nodes in The network to ensure the purity of that Transaction if it determines that it’s All okay is in the coins unique name is Not being used in another transaction at The same time then the trade goes Through as a results if you want to Alter the blockchain for your own reward You have to alter it in the same way at The same time on more than 50% of nodes In the network ain’t gonna happen so why Would you even become a node How did Bitcoin convince the community

To do its heavy lifting basically if you Act as a node each time your Hardware Helps to confirm a transaction you earn A tiny bit of Bitcoin this is called Mining and mine is then take the Bitcoin And can sell it into the market so those Are the basics the last question to Answer if you want to buy Bitcoin how do You do it you go online and find Populist sites call the exchanges that Let you take your real money and Exchange them for a cryptocurrency I Personally use coinbase You sign up go through the verification Process and then you’ve given your Wallet code then you use your bank Account or credit card to put in real Money into your wallet and use that to Buy Bitcoin hey maybe that night someone Tweets about how much Bitcoin they just Bought and it goes viral demand goes up And with it the price you can then sell The Bitcoin you bought for more than you Bought it for profiting and going on Your merry way with that real money back In your hands Simple if you want to see more videos Like this one please let us know so now Be sure to check out our video on Whether triple-a games actually need Micro transactions are they there to Cover development costs or publishers Just trying to make more money I’m a Lotta and I’ll see you guys next time