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What Is Cryptocurrency?
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Bitcoin has been one of the most talked about investments over the past couple of years. It’s made a lot of people rich, but guess what it’s also made quite a few people poor. The reason being is because they’re uneducated about the investment that they’ve made.
And that’s the whole point of this video, I want to give a beginners guide to bitcoin so that you’re actually educated before you choose to make the investment. Or not choose to…
We’re going to go over the 4 key questions related to bitcoin in this video.
1. What Is Bitcoin & What Makes It So Powerful?
2. Is Bitcoin Going To Be The Future Adopted Cryptocurrency?
3. How Do We Go About Investing In Bitcoin?
4. Is Bitcoin Actually A Smart Investment To Make? Can I earn a lot of money here, or am just going to lose it? What’s the story?...
So Bitcoin is the biggest form of cryptocurrency. It’s the most well known and it’s the one that’s been the most adopted.
Now to understand cryptocurrency you first need to understand what money is. Money, is just an agreed upon store of value accepted by everyone as a form of payment.
Money in itself doesn’t actually have any value. Back in the day you could have exchanged money for gold. However today money is not backed by anything. The only thing that makes money valuable is the fact that we’ve all agreed and accepted it as a form of payment.
Now, the problem with money is that first it’s centralized. It’s controlled by the government & the central bank. This means with the dollar or any other currency your entirely at the whim of their choices.
If they choose to constantly print money (which is what they’re doing) and devalue it, you don’t really have a say. Your hard earned money in the bank get’s eaten away by inflation and worth less.
Another problem is if you choose to send money overseas you get hit with exchange fees, and exchange rates. If you choose to make transactions again you’re often hit with more fees. The great thing about a cryptocurrency like bitcoin is it solves all of these problems…
First is it’s not centralized. It’s decentralized. You don’t just have to rely on one central banks ledger of keeping track of everyone’s money, which none of us can see, Bitcoin every computer that participates in the system keeps a copy of the ledger. So it’s basically impossible to take down the system because you’ll have to take down thousands of computers who keep a copy of the ledger.
So it’s safer, everyone can see it (transparent), not one central authority has control over it, and arguably the most important is it’s protected against inflation. With bitcoin there’s only 21 million total coins in the system so you can’t print more and devalue it.
So you look at all of the problems that is associated with currency (fiat money) and cryptocurrency solves all of it. But that brings us on to this question…
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