This is a video guide all about Bitcoin.
We break down bitcoin into simple concepts together, so by the end of the video, you will understand why bitcoin was created and the technology behind bitcoin.
If you Google search, “What is Bitcoin?,” you get answers like: “Bitcoin is the first decentralized open source, peer-to-peer network that is powered by its users with no central authority or middlemen using blockchain technology.”
Bitcoin may seem like a difficult concept to wrap your head around, yet it’s actually way simpler than most people think.
Using bitcoin, you can send and receive value directly to anyone around the world, anytime.
Satoshi Nakamoto created bitcoin and the bitcoin network using blockchain technology.
And blockchain is simply a method of record keeping using math and computer science, as opposed to accountants and bookkeepers.
The bitcoin blockchain is basically a live, running ledger of all the bitcoin transactions.
Each time a bitcoin transaction occurs, that data is transferred throughout the network of computers.
Bitcoin transactions are verified and broadcasted to the network via a process called mining and this process is completed by miners.
Miners are these people or pools of people that use computers with bitcoin software installed on them to maintain the bitcoin blockchain.
And mining rewards are a combination of newly minted bitcoins that were not previously circulating, and transaction fees of bitcoin that were already circulating.
There are existing bitcoins currently in circulation, and there are some bitcoin not circulating right now.
Currently, 18 million bitcoins are in circulation of the 21 million total supply.
To store and transfer bitcoin, you need to use bitcoin wallets.
The two general categories of bitcoin wallets are hot storage and cold storage.
Hot storage, or software wallets, are wallets that are on devices connected to the internet like a computer or smartphone or an exchange.
Cold storage are wallets on devices not connected to the internet, like dedicated cryptocurrency hardware wallet devices like Ledger, Trezor, or BC Vault.