Bitcoin Cryptocurrency - A type of digital money

In the last post where i Introduced Cryptocurrency to you, i mentioned that we have several cryptocurrencies now available online. Here i will talk about a type of cryptocurrency which, as at today, is the most popular and widely accepted one too. Bitcoin!

What is Bitcoin?

 

As explained on luno.com

Many people believe Bitcoin to be very complicated, when in fact it’s a lot more simple and intuitive than what most people think.

Bitcoin is often explained by comparing it to something specific people already know, but this is often what creates a lot of confusion. Bitcoin is a new technology that is unlike anything we have seen before, so a better way to think of it is as a combination of a few different things we are already used to:

Firstly, because it allows you to move money so easily, Bitcoin functions as a payment system, similar to bank transfers or credit cards, only a bit better.

Secondly, Bitcoin is in some sense similar to gold - that is why many people even refer to it as ‘digital gold’ or ‘Gold 2.0’. Think of it as using gold for money, except it also very easy to move.

Thirdly, Bitcoin is like the internet in that no single person or entity controls it, so anyone can pretty much use it as they like. This gives it some very unique characteristics.

These three characteristics also reinforce one another, so they are all interwoven. Just imagine what would happen if you took a big pot and threw in a credit card, a piece of gold, and a hint of ‘internet’ - mix it all up - and pull out a brand new compound - Bitcoin!

How to start using Bitcoin?

Bitcoin is just like the traditional money we spend everyday (Naira, Dollar etc). When you have it, you can spend it on buying goods or paying for services. The difference between bitcoin and the traditional money is that bitcoin is a digital money which means it is spent online.

To own bitcoin, you can either earn it by accepting it as a reward for a service you paid (just like you get paid with every other money) or you can buy bitcoin from someone in possession of it (this is called peer-to-peer). In all, you need to open a bitcoin wallet where your bitcoin will be stored. The wallet is just like owning a purse where you keep your money. There are several website online where you can open a bitcoin wallet one of such site is Blockchain. All you need to do is visit the site and sign up to open a wallet. Open a wallet with blockchain now.

When you have successfully opened your wallet, you can start receiving bitcoin into your wallet by giving out your wallet address to anyone that wants to send bitcoin to you. You can find your wallet address when you login to your blockchain account.

In subsequent post, i will highlight various ways by which you can acquire bitcoin into your wallet so ensure you follow up 

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