LEARN ABOUT BITCOIN AND OTHER CRYPTO ASSETS
Learn why Bitcoin is the world’s first global, decentralised digital currency.
Most currencies are issued by a bank or central authority, but with Bitcoin there is no central authority. Instead, Bitcoin is peer to peer and decentralised. That means you or anyone else on the planet can use Bitcoin and no one can stop you. That’s a powerful idea, and one of the reasons people are excited about Bitcoin’s potential as the world’s first global, decentralised digital currency.
What is Bitcoin?
Hi Everyone, today we’re going to talk about Bitcoin.
The easiest way to understand Bitcoin is simply as “digital money for a digital world.”
Bitcoin doesn’t exist in physical form, instead, it lives on a global network of computers that work together to track the ownership of each bitcoin.
You can send or receive bitcoins via digital wallets. Every transaction is broadcast to the entire network.
After a transaction is verified it is recorded in a public ledger called the blockchain.
The blockchain contains a record of every bitcoin transaction ever made and is stored on every computer on the network which is distributed across the entire planet.
The integrity and chronological order of the blockchain is enforced with cryptography.
Bitcoin miners are specialised computers that use some clever computer science called “proof of work” to verify and record transactions to the blockchain.
As a reward for their work miners are paid in bitcoin. This is how new bitcoins are released into the system.
The Bitcoin protocol says that only 21 million bitcoins will ever exist. That means Bitcoins are scarce, valuable and can be thought of as digital gold or Gold 2.0
Most currencies are issued by a bank or central authority but with Bitcoin there is no central authority. Instead, Bitcoin is peer to peer and decentralised, or in other words, the bitcoin blockchain exists on thousands of computers all over the planet.
This means you or anyone else on earth can use Bitcoin and no one can stop you.
That’s a powerful idea, and one of the reasons people all over the world are excited about Bitcoin’s potential as the world’s first global, digital, decentralised currency.
Here are the properties that make Bitcoin unique as a new form of money:
Bitcoin is Scarce: Only 21 million bitcoins will ever exist.
Bitcoin is Immutable: The Bitcoin blockchain cannot be changed or tampered with. It is a single point of truth that everyone can trust.
Bitcoin is Digital. Bitcoins take up no physical space, any amount can be stored or sent anywhere on earth, almost instantly at low cost.
Bitcoin is Divisible. Bitcoin is divisible to 8 decimal places. A single unit is called a Satoshi. 100,000,000 Satoshi = 1 BTC
Bitcoin is Secure. Bitcoin can be stored on paper, in a hardware wallet, or even memorised in your brain. That makes them difficult to steal if you keep them secure!
Now you know all about Bitcoin.
In our next video we’re going to look at other cryptocurrencies.