Let’s Have a Look at Bitcoin
There’s no better coin to kick-start our Crypto Connoisseur series than the infamous Bitcoin, the first of its kind. Let’s get familiar with the crypto coin that changed everything.
Explaining Bitcoin and other cryptocurrencies can be tricky, so let’s try doing it in a non-technical way, so even your mother, father, or grandparents can understand.
“What is this Bitcoin thing?”
We’ve heard that from friends, family, colleagues, and sometimes even strangers.
So often, when we explain what it is and why Bitcoin is necessary, they seem not to get it. Instead, their eyes glaze over, and they end up being sorry they even asked.
What if you need to explain Bitcoin or any cryptocurrency to somebody who is not a technical person? You need to keep it simple. Let’s take it from the top:
What are cryptocurrencies?
Cryptocurrencies are a form of money invented recently and introduced publicly for the first time on the internet in 2009.
What is going to change the world is the fact that the fundamental principles and structure of these new digital currencies give access to everyone to the open-world they create and connect through. Money can be transmitted peer to peer. People can securely hold on to their assets anywhere in the world and transact with anyone else, nearly instantaneously, securely, with meager fees.
Cryptocurrencies are a form of money that only exists in a digital format.
Making payments online with Bitcoin or other vetted cryptocurrencies is a lot safer. It’s faster and, in many cases, cheaper than the classical banking system. For most westerners, this is still more of a curiosity — it’s more of an exciting new technology than a legitimate currency, but that could change any day.
We live and operate in an antiquated financial system
Nowadays, it’s challenging to use financial systems that were designed almost 100 years ago because the way we use technology has changed.
Banks are starting to adopt modern technology, but unfortunately, it’s applied to the same old systems which don’t resonate with the younger generation. Here is where Bitcoin comes in.
An evergreen explanation of Bitcoin
Bitcoin is the first digital asset to change how we see and use money. Free of central control and not overseen by any government or bank, Bitcoin relies on peer-to-peer transactions, which are all recorded in a ledger that exists on multiple servers, called the Blockchain.
Blockchain technology can reduce the cost of engaging in online commerce, but your first experience with digital currencies will not be as simple as you imagine.
Remember back in the days when you tried to do some online shopping for the first time? Or maybe the first time you tried to connect to the internet and send an email? After using these technologies for a while, sending emails and online shopping is easy. The same will happen with cryptocurrencies.
Advantages of having digital currencies
Many people suffer from identity theft, charge-backs, stolen credit cards, and overcharging from vendors once they’ve given their credit card information to some random website on the internet.
These problems and bureaucratic issues are directly linked to the traditional financial payments system.
Some of the best advantages of having a new digital currency that lives on the internet and operates entirely in digital form are that it is much more suited to our modern digital lifestyle:
- The fees are lower for you and the merchant.
- It’s more secure.
- There’s less opportunity for charge-backs and fraud.
- Your risk for identity theft is much lower than using traditional financial services.
We’re in the process of changing the world
In many countries, people have minimal access to traditional financial institutions. Just be aware that this is happening. Eventually, the technologies that today are exclusive to more advanced nations will be effortless to use for everybody worldwide.
In the very near future, when we explain to our kids and grandchildren that we used to have paper as money, it could even sound funny — given that they are born and raised in a digital world now.
When we get to that future, just remember that Bitcoin was the first spark to light this fire.
Crypto Connoisseur is a new series that we have created in order to help you get more familiar with the coins available to trade on Your Friendly Crypto Exchange.
If you need help with the how-to, check out our Crypto Fundamentals series, which goes perfectly hand in hand with this one to bring you the best crypto education.
Join IXFI for a better experience trading your favorite cryptocurrencies in a safe, friendly and fun ecosystem.
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