This Technogranny Just Made Her First Bitcoin Transaction

Photo by pina messina on Unsplash

Good Morning, fellow Steemians! Be forewarned, this is not my usual post. I mean food (specifically plant-based food), living and family life are kind of my thing. But, ....wait for it...last night, I entered into a world that I know absolutely nothing about....the world of BitCoin and cryptocurrency. And, as my favorite Steemit friend and mentor, @fknmayhem is fond of calling me, this #technogranny made her very first Bitcoin transaction. Never mind how much I sold or how much I made, let me just say that I can see why this Bitcoin/Cryptocurrency stuff keeps making headlines.

I write and post on Steemit because, well, I enjoy it and I think that I've got valuable information to share. And, I must admit, that I had my doubts that there was any money to be made on this medium. And, though I see that, if done correctly, you can make money on Steemit, my original and continuing motivation for joining Steemit remain the same. But, I've got to thank @fknmahyem for very patiently walking me through my very first transaction.

To be honest, I didn't even know what Bitcoin was....to me, Bitcon was a very big mystery! And, I certainly don't profess to be some big expert. In fact, I'm still learning and muddling along. But, I thought it might be fun to share with you what I'm learning . So, this is a little tutorial for my fellow #technogrannies and cryptocurrency neophytes out there.

Bitcoin – The Basics

To say that Bitcoin is in the news is an understatement. In fact, I watched a news segment about Bitcoin just last night. A quick Google search this morning revealed about 25,500,000 results!

Yes, Bitcoin is in the news, usually with some startling information about some guy tossing out his old computer for recycling with his only bitcoin wallet on the hard drive. His old wallet has the only access to hundreds of thousands of dollars’ worth of bitcoin. And it’s gone. Okay, even I know that's just stupid. Only one place where you can access your Bitcoin wallet? Not a smart idea.

Or you read the predictions about the bitcoin that was worth 39 cents in 2010 and $500 in 2016 skyrocketing to $100,000 by the end of 2018. To put things in perspective, this is the current trading information found on Bittrex(as of 11:00 AM EST on 12/18/2017):

But its not all rainbows and roses. Online stories about the unregulated aspect of digital currency open up scenarios of a criminal element using this form of money transfer as a way to pay for illegal transactions across international borders. This is not really anything new, some people will do anything to find a way bend or break the rules. Not surprisingly, there have been some spectacular drug trafficking crimes that were uncovered where bitcoin was used to pay for drugs.

Photo by Brock DuPont on Unsplash

Hopefully, folks who engage in these shenanigans will STOP IT before they screw it up for everyone else!

It might seem like a currency like bitcoin that is not regulated as a bank transaction might be is a great way to carry on a lot of sneaky secret illegal deals. Actually, this is not the case. The reality is that every bitcoin transaction is a matter of public record. When you buy or sell bitcoin, there is a transaction recorded in the bitcoin blockchain. So, if someone or some entity knows where and how to look, there is a trail and record of every bitcoin transaction.

Now, your identity is not part of that particular record...that part is anonymous. The actual transaction itself is anonymous but it is not private. What do I mean? Well, there is a public ledger – the blockchain – that is open to the entire world. It's an open book for anyone who wants to explore. You can go through every transaction from day one to the last few minutes.

If everyday people can follow the bitcoin trail or the blockchain, you can be sure that governmental agencies are keeping an eye on things. The FBI has made it clear that they have the technology to follow the bitcoin trail. So do other law enforcement entities. Bitcoin is not the secret that some criminals or shady individuals might think it is.

When what most people see about bitcoin are stories covering the unusual or startling stories, there is a tendency to feel that bitcoin is something that regular people cannot or do not want to use. That is simply not the case. You don't have to buy a whole bitcoin. You can purchase partial amounts. Realistically, this is what most people do.

Another thing, in spite of the bitcoin images displayed in stories about it (including at the top of this post), such as a pile of gold coins, you cannot hold a bitcoin in your hand. It’s digital or cryptocurrency. When you go to the grocery store and use a debit card, no actual money changes hands. For my fellow #technogrannies, that’s digital.

There is a difference between that kind of digital and bitcoin digital. With your debit card, the money is in your bank account because you deposited a check or cash or your employer deposited your paycheck. The bank acts as a third party, sitting between you and where your money comes from. If your employer paid you in bitcoin, the deposit would come directly from the employer to your bitcoin wallet.

There are no bank charges and there is no danger of hyperinflation. The market cannot be flooded with bitcoins so your stash will suddenly become worthless. That's not to say that the value of your Bitcoin stash won't fluctuate. It most certainly can and will. According to an article in the New York Post, "having then climbed to $16,666 on Bitstamp at around 9 p.m. ET on Thursday, it tumbled to $13,482 by around 7 a.m. ET – a slide of more than 19 percent. As of 8:20 a.m. ET it had recovered to around $14,400, still down 13 percent on the day." ( See, https://nypost.com/2017/12/08/bitcoin-finally-starts-to-take-a-tumble/) Like any other currency, with Bitcoin, the value can go up and the value can go down.

Until more people start using bitcoin, most of us have to go through an exchange to buy bitcoin. Here is something else that throws people off. You need to remember that the price may vary, depending on where you buy it. Some exchanges may increase their price so they can make a tiny profit on each sale. Coinbase is one example of an exchange where you can buy Bitcoin.

What throws people off is that they think they have to buy a bitcoin and that is a lot of money to lay out if you are new to the idea of digital currency and afraid of losing your money. You do not have to buy a full bitcoin. I certainly didn't buy a full Bitcoin when I completed my transaction. Yet, I was still able to make a bit of profit when I completed my transaction.

Anyway, that's all this #technogranny has to share with you today. I'm still learning and whatever I find that's interesting and new (at least new to me) , I promise to share it with my fellow Steemian #technogrannies and cryptocurrency neophytes.

Photo by Cory Bouthillette on Unsplash

Stick with me and let's learn about this new world together. I'll be back tomorrow to share with you a bit of Bitcoin vocabulary. See you then!

Hi, I'm Benita G. You may also know me as, or call me, @AtMemesTable.

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