Bitcoin For Dummies
Bitcoin (BTC) is like a share in a joint stock company. That is what I said to a newbie, a beginner. Many people think Bitcoin is candy, and some think BTC is a video game like Mine Craft because you can mine Bitcoin like you can mine & stuff in Mine Craft, and some think BTC is fake money, but BTC is real in value.
The value of BTC is determined by supply & demand (economics).
That is capitalism & competition instead of monopolization.
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Long ago, we traded. We bartered. We had direct trading. For example, a person would trade their chicken for some wood. People did direct trading but then invented money. They started to use gold, rice, & other forms of money (currency exchange). Gold is an evolution from direct trading. The dollar was based on gold. So, in a way, the dollar is at the third level of trade evolution or innovation because the dollar was based off the value of gold which was based off the value of direct trading.
Bitcoin was kind of based off the value of dollar. In a way, Bitcoin is at the fourth level. But, Bitcoin is not dependent on the value of the dollar (USD). Sadly, the dollar did not stay on the gold standard either. Bitcoin is not actually based on the dollar, but we do compare the value of Bitcoin with the value of the dollar. We know that the dollar & other currencies have been regulated through Rothschild banks. Bitcoin is not currently regulated or centralized through middle men, through centralized banks, brokers, and so on, as far as I know.
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Bitcoin is a digital coin.
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Bitcoin is not a share but it can be compared to a share.
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Bitcoin is money based on the blockchain system:
https://en.wikipedia.org/wiki/Blockchain
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In other words, Bitcoin is based on a decentralized system.
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That reminds me of Tetris (game).
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Bitcoin is like a share in some kind of big computer program.
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But the program is distributed on many computers around the world.
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The program has to go through confirmations, verifications (consensus), with itself during money transactions.
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In other words, the Bitcoin program has to agree with itself on the network before it can complete transactions for money deposits, withdrawals, creation (mining), etc......
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Digital currency:
https://en.wikipedia.org/wiki/Digital_currency
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Bitcoin is a cryptocurrency:
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Cryptocurrency:
https://en.wikipedia.org/wiki/Cryptocurrency
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Cryptocurrency is based on Cryptography:
https://en.wikipedia.org/wiki/Cryptography
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Cryptography is like a computer code system like encryption:
https://en.wikipedia.org/wiki/Encryption
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Very useful info. Thanks for gathering for these type of info.
A Bitcoin Fork comes in August 2017. I'm not sure what that means.
Some info on bitcoin.org regarding the situation on August 2017. Search for more info. U better understand Fork then Soft Fork and Hard Fork. Then you will clearly understand the Segwit and what 's going on in August (1) 2017.
Thank you for posting this, I always wanted a simple bitcoin explanation