Bitcoin explained Beginners version

Posted on December 8 2020 – By Yada Wallets Team
Last updated on December 10 2021

Introduction

This blog post is meant to explain Bitcoin to you in a very basic and simple way. We won’t go over all the technical details and mambo jumbo of the crypto world but only the very basic principles that Bitcoin exists for.

History

On the 3rd of January 2009, the Bitcoin Network was launched/Created by an anonymous person or group called “Satoshi Nakamoto”. This Satoshi Nakamoto supposedly has a holding of around 1 million Bitcoin. But disappeared from the online Bitcoin community at the early stage of the Bitcoin network leaving the Network to the other people that wanted to be involved in securing the Bitcoin network.

Where does Bitcoin get its value from?

As seen all over the internet, the value of Bitcoins changes a lot. Especially in the last years since the start, it has been going up a lot. But where does it get its value from? Well, the Bitcoin Network gets its value mainly from 2 things, the number of transactions that occur on the Network and the scarcity of Bitcoins in Existence (like how gold keeps its value). As our current forms of money inflate over time and become worthless. the price of Bitcoin stays the same making it worth more and more Euros/Dollars. Because of this, some people prefer to have Bitcoin instead of Dollar or Euros, which in turn causes them to make more transactions on the Bitcoin network, making its value go up over time.

Why Bitcoin?

There are many different reasons for people to make use of Bitcoin. The most common ones are.
An inflation hedge (as stated above Dollar/Euro’s inflate and Bitcoin doesn’t).

Being able to spend money across the world much faster than with the traditional banking system.

As a digital bank for people that do not have access or are not allowed to have a bank account (1.7 Billion people worldwide).

Starting with Bitcoin

Now you understand why there is Bitcoin, it’s time to start using it. To do that you will need a Bitcoin Wallet. Which functions as a physical wallet but then on your phone or computer that can store your Bitcoin. To find a proper wallet for you we would recommend you check out Yada Wallets. Here you can filter for specific wallets and read user reviews.

If you have done so you can exchange some Dollars/Euros or services for some Bitcoin. There are many platforms that help you buy and sell Bitcoin on the internet. But if you know someone who uses/has Bitcoin you could always ask them to help you or trade with you.

If you have any Questions regarding Blockchain or Bitcoin? Feel free to ask them on our Facebook or Telegram group. We are happy to help whenever we can!