What is Bitcoin?
A lot of people ask me to explain bitcoin. Or blockchain. Or both.
The most basic description, bitcoin is a currency much like any other currency (like cash, coins etc), except it’s only digital. So this provides a high level of transparency. If Bitcoin were more popular you would see retailers accepting bitcoin as payment.
But adoption is not very widespread. This is probably because it’s hard to explain. It also has a high value right now, so it’s difficult to do the conversion math in your head. (.0078 bitcoin is around $100).
It gained a lot of attention once it became highly valued (around $6k per coin). And it’s now worth around $17k per coin.
To generate new bitcoin a computer must run a computer transaction (process something). When bitcoin first came out it was much easier to generate since it wasn’t valued very highly. Generating new bitcoin now takes a long long time, with really powerful computers.
To keep the system safe, secure and trackable – digital currencies leverage a math concept called the blockchain. This is super-secure way of storing information keeps the integrity of bitcoin very high. Each transaction validates and is validated by many other transactions.
It’s a bit complex, so having some graphics and tools to walk it help. This site helped me get started understanding blockchain: