What is Bitcoin?
» Click to show Spoiler – click again to hide…« Many people believe Bitcoin to be very complicated, when in fact it’s a lot more simple and intuitive than what most people think.This series aims to help everyone get a grasp of the basics, and over time also present further learning opportunities for those that want to know more.
Bitcoin is often explained by comparing it to something specific people already know, but this is often what creates a lot of confusion.Bitcoin is a new technology that is unlike anything we have seen before, so a better way to think of it is as a combination of a few different things we are already used to:
Firstly, because it allows you to move money so easily, Bitcoin functions as a payment system, similar to bank transfers or credit cards, only a bit better.
Second, Bitcoin is in some sense similar to gold – that is why many people even refer to it as ‘digital gold’ or ‘Gold 2.0’.Think of it as using gold for money, except it also very easy to move.
Third, Bitcoin is like the internet in that no single person or entity controls it, so anyone can pretty much use it as they like.
This gives it some very unique characteristics.
These three characteristics also reinforce one another, so they are all interwoven.But more on all of this in the next few sections.For now, just imagine what would happen if you took a big pot and threw in a credit card, a piece of gold, and a hint of ‘internet’ – mix it all up – and pull out a brand new compound – Bitcoin!
How to get Bitcoin?
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« There are a number of ways you can get Bitcoin:
Just like traditional money, you can earn it by providing goods or services, and asking for people to pay you in Bitcoin rather than in traditional money.This is often a cheaper and easier alternative to other payment methods and one of the easiest ways to get your hands on some Bitcoin.
Another way is how most people get their Bitcoin: buy it from a credible Bitcoin broker or exchange provider, like Luno.This is similar to how you would buy foreign currency at your bank or shares online.This is often the easiest way to get Bitcoin because you are virtually guaranteed that someone will be willing to sell their Bitcoin to you on such a platform.
You can also get Bitcoin by mining for it, but this has become very difficult to do for the average person.Most mining is now done by huge companies with very expensive and highly specialised equipment, which a typical person or computer cannot compete with.So unless you have a lot of expertise and a huge amount of money to spend on this, rather just buy or earn the Bitcoin.
What is Ethereum?
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« In many ways, Ethereum is similar to Bitcoin.It’s a public, peer-to-peer network or blockchain with its own cryptocurrency called Ether.Ethereum was created by Vitalik Buterin in 2014 and the purpose of Ethereum is to be a platform on which smart contracts can be built and run.
Put very simply, Ethereum is intended to be a world computer.
Where Bitcoin stores a list of balances and transactions on its blockchain, the Ethereum blockchain is designed to store different types of data.This data can be accessed and used by computer programs running on the Ethereum blockchain.These programs are called decentralized apps, or dapps.
Developers around the world can build and run decentralized applications on the Ethereum blockchain.The purpose of these is to improve the industries of finance, personal information storage, governance and more by using the transparent nature of a blockchain.
Some of my own trades:
https://fintechnews.my/21843/blockchain/lun…al-in-malaysia/
https://www.soyacincau.com/2019/11/26/luno-…first-launched/
https://www.soyacincau.com/2019/10/22/luno-…ies-commission/.
