In this post, I am going to explain what is a Bitcoin ( technically and non-technically), why it is something that is come into it’s own and what you can do with Bitcoin as a way to increase your finances.
Explaining what Bitcoin is, is not for the faint of heart. Meaning you have to put some thought into what Bitcoin (BTC) is to grasp and to then get the understanding of what that means to your finances.
So put your thinking caps on and have an open mind!
And by the way, it will be WELL worth you while to go through this ENTIRE post even if you have to come back to it !! Especially the videos!
Here is the technical meaning of Bitcoin…….
Bitcoin uses peer-to-peer technology (people, computers and programs) to operate with no central authority like banks or governments managing transactions and the issuing of bitcoins is carried out collectively by the network (people, computers and mining). This means that it is decentralized.
Bitcoin uses the blockchain which is open-source; its design is public, nobody owns or controls the blockchain or Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin (BTC) allows exciting uses that could not be covered by any previous payment system or currencies.
When a bank operates,they create the records of transactions, deposits, transfers, withdrawals, etc… Banks and governments keep that behind closed doors. It is not open to the public. With Bitcoin, it is different it uses what is called the blockchain! The blockchain is public or open-source and not hidden by banks or governments. This also makes transactions easier and cheaper than the traditional transactions and costs.
Banks and governments
“Decentralized cryptocurrencies, such as bitcoin, provide an outlet for personal wealth that is beyond restriction and confiscation.” More on personal wealth later in this post.
Here is a very good video explanation of the technical meaning of Bitcoin and cryptocurrencies……
Before we get even deeper, watch the video below to get a deeper understanding of what the value of money really is!
In the video he describes the difference between a dollar and a piece of paper. He says that “money” is imaginary. It has value because WE ALL AGREE that it has value.
He is ABSOLUTELY right!
So why is money, money? Why is that dollar bill in your pocket worth something? Why is it worth a dollar?
The answer is not only because we all agree that it is a dollar. It is worth a dollar because WE ALL have CONFIDENCE that we can buy things we need and sometimes don’t need. We have CONFIDENCE that we can settle debts with them.
CONFIDENCE is the answer!
Bitcoin was created in 2008. It is the oldest of the cryptocurrencies. I remember when I first saw something on Bitcoin. That was about 2010. I was skeptical about this “phony money” but 8 years later y skepticism was out of ignorance. I did not UNDERSTAND what it was! Many large companies are accepting them as a legitimate source of funds. Bitcoin has come into it’s own!
What we know as money today is a Federal Reserve Note, backed by the PROMISE of the Federal Reserve. The “Full Faith And Credit” of the US. Below you will see US Currency over the past few decades.
Below you see Silver Certificate and a Gold Certificate and a Federal Reserve Note. you can see the difference in the currencies. The Silver and Gold Certificates were backed by Silver and Gold respectably. Now they are not!
On June 5, 1933, FDR took USD off the Gold standard. You can read about it here.
On August 15, 1971, when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus completely abandoning the gold standard. You can read more about that here.
Any of the pictures you can click on to get a closer look……
Bitcoin (BTC) is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems. This process is called Bitcoin MINING. Those doing the mining are rewarded in Bitcoins by solving the mathematical problems.
Now here is the NON-technical explanation
Believe it or not but “back in the day” feathers, peppercorns, animal pelts or hides and even common stones used to be currency. Used for buying, selling and paying off debts. But as “we” evolved and technology advanced……so did our currency.
Here is a link to show you some the craziest currencies in the world!
Speaking of crazy currencies, did you know that in 1637, tulip bulbs were considered currency in Holland? Believe it or not! Here is a link to the proof.
And here is where a friend of mine heard this story first, the movie Wallstreet: Money Never Sleeps….
Getting back to how technology changed currency; a great example is the evolution of the printing press. When the ability to print on paper, then so too did our currency become printed on paper!
( Refer back to the first video on page! )
When I talk about a non-technical explanation, I am going to speak in terms of an analogy. Bitcoins are like Gold or Silver. Bitcoins have been called Gold 2.0!
Both of these metals have a widely held value. The value of them raise and fall at different rates due to market situations. So you can hold them till they reach the value you planned. They can be exchanged over into any currency through an exchange dealer.
Once you have done that then you can exchanged currency buy and sell a product, service, pay a debt or just live and take that much needed vacation!
Most of us understand that scenarios described above, well it is the same for Bitcoins!
Now, let’s face it we live in a technological era, where gold or silver is physical, Bitcoins are not! It is digital currency which makes it MUCH easier to hold, store or transport. This helps when it comes time to exchange because you do not have to carry pounds of gold or silver items.
Bitcoins can be held, stored and exchanged through what are called wallets. Many of these wallets offer what are called vaults. This is where you can hold and store Bitcoins just like you would paper money, gold or silver or anything of value.
Speaking of value, I was introduced to Bitcoins in April 2016. At that time Bitcoins had a value of about $440. In May 2015, I participated in an income opportunity program based on Bitcoins. It worked, but maybe too well! I will explain a bit later.
Colleagues were telling me to be careful with those programs, lots of scams and they do not last long. Well long story short, I did hear what they were saying and I played it cautiously. I came out fairly well!
I invested $300 over the course of about 3 and a half months and came out on the other end with over $1600 when it closed down! Not a bad return….. I made my initial investment back and then some!
Now let’s hear from some business and financial leaders from around the world. Check out the video below……
It shows the potential growth and importance of Bitcoin, NOW and more importantly into the future!
Believe it or not, they have really come into their own as a recognized currency.
What Can You Do With Bitcoin And How
To Get Them?
You can buy and sell them through a bitcoin wallet. This is where you can exchange them for traditional currency. In the case of the US, you can exchange them for US Dollars. Once you do that, you can buy items or pay debts.
You can hold them in a digital vault while they appreciate in value. Sell ( or cashing out) them on the way up, and buy when they come down….and start selling ( or cashing out) as they appreciate.
I suggest Coinbase as a digital wallet that has a digital vault as well. It is a well known, popularly and highly secure bitcoin wallet where you can see and follow the value of bitcoins on a daily basis. You can connect your banks accounts, debit and credit cards so that you can buy and sell bitcoin fairly instantly. When you cash out or sell them, you can have the money direct deposited into your bank account, credit or debit card.
This is where they can fit into a financial portfolio for your current situation or as part of your retirement portfolio to make money as you hold them and they appreciate.
To get Bitcoins you can buy them directly through your E-wallet or you can participate in programs based on Bitcoins, to gather more bitcoins.
Now there are many programs out there that are based on Bitcoins, but many of them are scams or are not well thought out. I have seen many of them and passed them up over the last year.
From my experience and research over the last year, there are some programs that eliminate those disadvantages so that one can truly build their OWN stash of bitcoin for income and passive growth.
One such program is HERE that gives you residual income AS WELL as Passive growth!
What I DO know is Bitcoin IS the new Gold Rush and worth looking into RIGHT NOW! While it is relatively inexpensive to buy and get involved.
You are the bank…a positive to bitcoin. Check out the video below……..
Once again take a look at the program HERE so you can GET bitcoins and MAKE MONEY!
Take a look around the blog and if you have any questions, just fill in the box to the right and contact me. It is best that you email me first, then try and call because I am very busy, but I will answer your questions.