Bitcoin explained in 3:30 minutes…

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What is Bitcoin

A decentralized electronic currency

Decentralized – Bitcoins are not controlled by any bank or governmenet. There is an objective “System” which no one can tamper with. an algorithm that sets the rules on how and when Bitcoins are generated.

Electronic – Bitcoins aren’t physical, you transfer them between one another only through the internet using a network of computers and encrypted protocols.

Currency – Bitcoins have an exchange rate just like any other currecny. The rate is determained by the market. When more people use Bitcoin to buy stuff the Bitcoin rises.

Why do you need Bitcoin

Just like in the old days where people used to trade merchandise. Bitcoin is supposed to be an international coin, which no one can manipulate and it’s value is determined by people and not governments.

Who created Bitcoin and who uses it

There are currently many Bitcoin exchanges where you can buy and sell Bitcoins and also some online and offline shops that accept BItcoin.

When was Bitcoin created

Bitcoin was created in 2008 by Satoshi Nakamoto (an alias) and no one knows who he actually is. On April 2013 Bitcoin came to public awareness as its exchange rate soared to $250 (and plumeted to $70 shortly after).

How are Bitcoins created

By “mining” which is the process of letting a computer solve complex mathematical probelms. Once the problem is solved, the owner of that computer gets rewarded in Bitcoins. It is also called mining becuase there are a limited amout of Bitcoins that can ever be created.

Where can you get / store Bitcoins

In order to receive Bitcoins you need a digital wallet which is basically a software that stores your Bitcoins on your computer. You can buy Bitcoins at online exchanges or have someone transfer them to you.

How Bitcoin Works Under the Hood

 

Bitcoin wallets for beginners

Find the best exchange to buy Bitcoins


Ofir Beigel

Owner at 99 Coins ltd.
Blogger and owner of 99Bitcoins. I've been dealing with Bitcoin since the beginning of 2013 and it taught me a lesson in finance that I couldn't get anywhere else on the planet. I'm not a techie, I don't understand "Hashes" and "Protocols", I designed this website with people like myself in mind. My expertise is online marketing and I've dedicated a large portion of 99Bitcoins to Bitcoin marketing.

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