The What and Why of Bitcoin for Non-Nerds

Bitcoin isn’t just for techies

What is Bitcoin

Bitcoin is unstoppable electronic money with a limited supply. That is the simplest way to describe it. Once you break the definition down you will really begin to see its power.

Bitcoin is Money

Money can be used to store your wealth, buy/sell things, and keep track of profits. Today Bitcoin is primarily used to store wealth for the future and to a lesser degree to buy things. You can read more on why Bitcoin is money here.

Bitcoin is Electronic Money (Cash)

Cash can only be spent once. If you give it to someone you no longer own it. And unlike money in the bank, you don’t need anyone’s involvement (such as the bank) to spend it.

Bitcoin was the first currency to do all of that 100% electronically. Fundamentally, Bitcoin is just a special electronic message that you can send or receive like a text message or email. What makes a Bitcoin “message” special is that you can split it up into smaller units but can only send each piece once.

Bitcoin is Unstoppable

The Bitcoin network is designed to have no controlling authority. No one can stop a payment or take funds away. Once you have Bitcoin, it is yours forever unless you voluntarily give it up. Only gold and cash have similar levels of absolute ownership.

Bitcoin as Limited Supply

There are only 21 million Bitcoin, each which can be divided into 100 million units. There will never be anymore. The supply of every other money grows through inflation which makes the money you own be worth less over time.

Bitcoin is Unique

These combined make Bitcoin unique among currencies (including other crypto-currencies). Only the “Gold Standard” could be comparable. I hope this sheds light on what makes Bitcoin special. (This, of course, that doesn’t mean Bitcoin will be more valuable in the future .) Good luck!