A Guide On How To Understand Bitcoin And Cryptocurrency?

Though Bitcoin is without doubt one of the most searched for terms (in keeping with Google), it is a really technical subject for a lot of people and might get overly technical for non geeks. Nonetheless, there are now hundreds of cryptocurrencies and more and more individuals are starting to need to get to know how they work possibly pushed by a dis trust of bankers, which is an entire totally different discussion.

It's troublesome to get a lay man's explanation without having to make use of technical terms similar to "secret keys", "digital keys", "digital wallet" and "cryptocurrency" so I will do my finest to keep things as straight forward as I possibly can.

The Concept of Fiat cash i.e. paper currency, was formulated to make it simpler for people to make an change for goods or services to replace bartering, as this can be limited to an exchange between willing parties at best, whereas cash lets you provide your service or items, then buy whatever service or goods you require from one other or others.

Subsequently, I might argue that Bitcoin is the 21st Century equivalent to bartering, in that it works as an trade for goods or companies directly between two willing parties. Bartering had to be based on every promise and trust, to provide and deliver the promised items or service.

At this time with Bitcoin or another cryptocurrency each party would need a singular file or unique key to alternate the agreed value between every other.

By having a unique key or file it becomes simpler to keep a file on each transaction. Nonetheless, this too comes with problems.

Now, bartering is the easy alternate of skills or items as I've already stated, the trendy equal, or bitcoin is inclined to security breaches, i.e. theft or hacking of files, this is where a "cryptocurrency wallet" comes into the equation to safe your transactions.

Basically you want a safe location to your cryptocurrency/bitcoin purchases and holdings. This is where the need for a hardware wallet comes from.

So now that you have written down/recorded which address holds which quantity of Bitcoins after which up to date every time a transaction is made, the file is known as "The blockchain" - and it keeps a document of all transactions made with bitcoin.

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