Welcome!
The purpose of this website is to provide you with basic information about Bitcoin and other cryptocurrencies.
Here are three key questions that I will address in the article below.
1. What is Bitcoin?
2. What is a cryptocurrency?
3. How can I make money with cryptocurrency?
1. What is Bitcoin?
Here are three key questions that I will address in the article below.
1. What is Bitcoin?
2. What is a cryptocurrency?
3. How can I make money with cryptocurrency?
1. What is Bitcoin?
Bitcoin is a cryptocurrency that was introduced by Satoshi Nakamoto in 2008. The identity of Satoshi Nakamoto is unknown. There is a lot of speculation about who Nakamoto truly is. Is it generally accepted that Nakamoto is not a real person. Some believe “he” may be an actual group of computer science experts who live in the United States or other European countries. The domain name "bitcoin.org" was registered on August 18, 2008. Bitcoin.org was linked to a report describing a peer to peer cash system. In January of 2009, Nakamoto released a public computer software code.
The term "Bitcoin" is used to refer to a specific brand of digital currency. In addition, the term "Bitcoin" or "bitcoin" is used to refer to the monetary unit. In these articles I will use the capitalized term, "Bitcoin" when referring to the overall cryptocurrency. I will use the lower case term, "bitcoin" when referring to a unit of the currency.
Next, I will discuss the question about cryptocurrencies. Then, I will come back and discuss more about Bitcoin, specifically.
The term "Bitcoin" is used to refer to a specific brand of digital currency. In addition, the term "Bitcoin" or "bitcoin" is used to refer to the monetary unit. In these articles I will use the capitalized term, "Bitcoin" when referring to the overall cryptocurrency. I will use the lower case term, "bitcoin" when referring to a unit of the currency.
Next, I will discuss the question about cryptocurrencies. Then, I will come back and discuss more about Bitcoin, specifically.
2. What is a Cryptocurrency?
Simply put, cryptocurrency is digital money.
Let's back up an talk about the concept of money. Money is a medium of exchange. It is something that we consider that has value that is used to buy and sell things. In the United States we use the dollar as our money. When we want to purchase something we place a dollar value on the item. We use that amount of dollars to make the purchase. Another way we could exchange goods would be by bartering. Bartering involves exchanging goods for other goods. For example, if I had a car I wanted to sell to you and you had a computer system of the same value we would simply trade the items. The other way to exchange the items would be to use money as a medium of exchange. In that case, you would pay me $1,000 for the car. Then, I would pay you $1,000 for your computer system. Dollars (money) are used as a medium to make the transaction possible.
When you think of it, most of our monetary exchanges are digital. When you make a payment with a credit card no physical dollars change hands. Rather, it is a computerized transaction. In a similar way, cryptocurreny is digital money.
The term crytocurrency is made of the word "crypto" which refers to the digital codes that are used. Crypto suggests something that is hidden or secret. With cryptocurrencies certain codes (those that are yours privately) are hidden. They are hidden in the same way that you keep your passwords hidden. Of course, "currency" refers to the idea of money.
What makes the cryptocurrency system work?
Now, let's go back and discuss the concept of cryptocurrencey by using Bitcoin, specifically.
There are several ways Bitcoin and other cryptocurrencies differ from our money system that uses dollars.
First, bitcoins consist of digital code. This contrasts our dollars, which are physical consisting of bank notes and coins.
Second, Bitcoin is decentralized. There is no one person, government or entity that runs or oversees the system. In contrast, our monetary system in the United States is centralized and heavily regulated.
Third, there is no third party that is involved with transactions. In our monetary system, we have third parties such as banks and credit card companies that are involved in our transactions. With cryptocurrency there is no third party. The transactions are made peer to peer.
Let's back up an talk about the concept of money. Money is a medium of exchange. It is something that we consider that has value that is used to buy and sell things. In the United States we use the dollar as our money. When we want to purchase something we place a dollar value on the item. We use that amount of dollars to make the purchase. Another way we could exchange goods would be by bartering. Bartering involves exchanging goods for other goods. For example, if I had a car I wanted to sell to you and you had a computer system of the same value we would simply trade the items. The other way to exchange the items would be to use money as a medium of exchange. In that case, you would pay me $1,000 for the car. Then, I would pay you $1,000 for your computer system. Dollars (money) are used as a medium to make the transaction possible.
When you think of it, most of our monetary exchanges are digital. When you make a payment with a credit card no physical dollars change hands. Rather, it is a computerized transaction. In a similar way, cryptocurreny is digital money.
The term crytocurrency is made of the word "crypto" which refers to the digital codes that are used. Crypto suggests something that is hidden or secret. With cryptocurrencies certain codes (those that are yours privately) are hidden. They are hidden in the same way that you keep your passwords hidden. Of course, "currency" refers to the idea of money.
What makes the cryptocurrency system work?
Now, let's go back and discuss the concept of cryptocurrencey by using Bitcoin, specifically.
There are several ways Bitcoin and other cryptocurrencies differ from our money system that uses dollars.
First, bitcoins consist of digital code. This contrasts our dollars, which are physical consisting of bank notes and coins.
Second, Bitcoin is decentralized. There is no one person, government or entity that runs or oversees the system. In contrast, our monetary system in the United States is centralized and heavily regulated.
Third, there is no third party that is involved with transactions. In our monetary system, we have third parties such as banks and credit card companies that are involved in our transactions. With cryptocurrency there is no third party. The transactions are made peer to peer.
Bitcoin is controlled by the consensus of the participants. As long as the participants perceive value in Bitcoin currency, the system works.
How does Bitcoin work?
First, bitcoins exist as digitized computer code. In the same way that your dollars are stored in a bank, bitcoins are stored in "wallets." There are three types of wallets, or places you can store your bitcoin information. First, you can store your "coins" on the hard drive of your computer. Second, you can write down your codes on paper. This does keep it off of the internet. Third, you can store your codes with companies that will keep your codes for you.
Why Digital Currency?
There are a number of reasons why digital currency is useful.
First, it addresses the banking needs of those who cannot get access to our dollar based system. It is estimated that 18% of people in the United States do not have access to banking services such as checking accounts and credit cards. Cryptocurrencies make it possible for these individuals to have a means to make transactions.
Second, it makes international transactions easier. Whenever I have traveled overseas, one of the challenges I have always faced is dealing with the monetary systems of various countries. Businesses conduct transactions across international borders. It is expensive and time consuming. Bitcoin is international. There is no need to do any converting from one system to another. Therefore, it simplifies international business activities.
How does Bitcoin work?
First, bitcoins exist as digitized computer code. In the same way that your dollars are stored in a bank, bitcoins are stored in "wallets." There are three types of wallets, or places you can store your bitcoin information. First, you can store your "coins" on the hard drive of your computer. Second, you can write down your codes on paper. This does keep it off of the internet. Third, you can store your codes with companies that will keep your codes for you.
Why Digital Currency?
There are a number of reasons why digital currency is useful.
First, it addresses the banking needs of those who cannot get access to our dollar based system. It is estimated that 18% of people in the United States do not have access to banking services such as checking accounts and credit cards. Cryptocurrencies make it possible for these individuals to have a means to make transactions.
Second, it makes international transactions easier. Whenever I have traveled overseas, one of the challenges I have always faced is dealing with the monetary systems of various countries. Businesses conduct transactions across international borders. It is expensive and time consuming. Bitcoin is international. There is no need to do any converting from one system to another. Therefore, it simplifies international business activities.
How can I make money with Bitcoin and other cryptocurrencies?
Bitcoin and other cryptocurrencies offer an opportunity for making money. The questions is, “How can I make money with Bitcoin?” There are several ways to make money with Bitcoin.
First, you can purchase Bitcoins and hold them for the future when their value increases.
Second, you can by and sell Bitcoins.
Third, you can purchase Bitcoin mining contracts.
Fourth, you can purchase new cryptocurrency offerings.
Let’s briefly discuss each of these options.
Option 1. Buy and Hold. It is anticipated that the price of bitcoins will increase over time. Bitcoins have had a history of increasing in value. This can be seen in the two following charts.
First, you can purchase Bitcoins and hold them for the future when their value increases.
Second, you can by and sell Bitcoins.
Third, you can purchase Bitcoin mining contracts.
Fourth, you can purchase new cryptocurrency offerings.
Let’s briefly discuss each of these options.
Option 1. Buy and Hold. It is anticipated that the price of bitcoins will increase over time. Bitcoins have had a history of increasing in value. This can be seen in the two following charts.
The chart below shows the value of one bitcoin since 2010. So far, the value of one bitcoin peaked in December 2017 at about $17,500. (So, one bitcoin = $17,500).
The chart below shows the values of one bitcoin over the 12 month period from 2014 - 2017. (source: By Bitcoin Charts - https://bitcoincharts.com/charts/bitstampUSD#rg1460zigWeeklyztgTzm1g10zm2g10zl, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=27802663)
The challenge with Option 1 is that simply buying and holding may or may not bring in substantial income over the long haul. The same principle is true with the stock market. Stocks, for the most part will increase in value over time. However, the big money is not made by simply buying and holding.
Option 2. Buying and Selling. The big money with Bitcoin is made by the average person by buying and selling bitcoins. The value of bitcoins both increase and decrease overtime. One gains profits in the bitcoin market in a similar way that people profit in the other financial markets. For example, how does one profit in the stock market? One profits by buying and selling stocks. In a similar way, one can gain great profits by buying and selling bitcoins. The key to profiting is knowing when to buy and when to sell.
Option 2. Buying and Selling. The big money with Bitcoin is made by the average person by buying and selling bitcoins. The value of bitcoins both increase and decrease overtime. One gains profits in the bitcoin market in a similar way that people profit in the other financial markets. For example, how does one profit in the stock market? One profits by buying and selling stocks. In a similar way, one can gain great profits by buying and selling bitcoins. The key to profiting is knowing when to buy and when to sell.
Option 3. Bitcoin Mining
A third way to profit is through a process called bitcoin mining. The term "mining' is used figuratively. In a way, it is like mining for gold. This process is best left to the specialists. However, as an average person you can enter into a mining agreement with a miner and profit from his/her "discoveries" of new bitcoins.
As I mentioned in the first part of this article, new bitcoins are being released every 10 minutes. Eventually, the supply of bitcoins will run out. A total of 21 million bitcoins will be released. It is estimated that the release of new bitcoins will last until the year 2140. Through mining, a person can earn bitcoins.
Putting it simply, bitcoin mining involves adding transaction records to Bitcoin's public ledger of past transactions or blockchain. This ledger of past transactions is called the block chain because it consists of a chain or sequence of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. The block chain is used to distinguish legitimate Bitcoin transactions from attempt to re-spend coins that have already been spent in other transactions. It is the public blockchain that gives Bitcoin its security.
As I mentioned in the first part of this article, new bitcoins are being released every 10 minutes. Eventually, the supply of bitcoins will run out. A total of 21 million bitcoins will be released. It is estimated that the release of new bitcoins will last until the year 2140. Through mining, a person can earn bitcoins.
Putting it simply, bitcoin mining involves adding transaction records to Bitcoin's public ledger of past transactions or blockchain. This ledger of past transactions is called the block chain because it consists of a chain or sequence of blocks. The block chain serves to confirm transactions to the rest of the network as having taken place. The block chain is used to distinguish legitimate Bitcoin transactions from attempt to re-spend coins that have already been spent in other transactions. It is the public blockchain that gives Bitcoin its security.
Option 4. Purchasing New Cryptocurrency Offerings
Bitcoin is only one "brand" of cryptocurrency. According to Coin Market for Crypto Location, as of April 10, 2018 there are 1,592 cryptocurrencies. Bitcoin is the largest. The next largest are Etherium and Ripple. Anyone can create a cryptocurrency. In our country, only the federal government can print new money. Since there is no one governmental authority that controls cryptocurrencies, new ones are being created all of the time. Money is made with this option by buying new cryptocurrencies and profiting when the value increases.
How can I get involved in a Bitcoin and cryptocurrency business?
I am benefiting financially from the cryptocurrency opportunities with the help of a company called 3TNetwork. The purpose of this business is to help you generate profits in the cryptocurrency space. It provides information for buying and selling cryptocurrencies. It provides mining contracts. And it gives advice regarding new cryptocurrency offerings. I highly recommend it.
Take a look. If you have questions call me at 734-644-4873.
Take a look. If you have questions call me at 734-644-4873.