What is Bitcoin?
Bitcoin is a digital currency and a peer-to-peer payment network. Transactions are verified by a network of computers and stored on a global public ledger called the blockchain. The blockchain is the record-keeping technology behind the Bitcoin network.
Bitcoin is the internet of money.
Bitcoin is a genuine alternative to normal money.
Bitcoin is a form of money that no government or bank can control.
What actually is normal money?
Normal money (known as Fiat money) is paper or coins that have value as they are backed by a government's promise => legal tender => coins or paper must be accepted if offered as payment. Today, paper and coins have mostly been replaced by digital transactions.
Problems with normal (Fiat) money:
It is centralised (regulated and verified by banks and governments and stored on individual bank's computers).
It is subject to inflation (or 'deflation').
It is prone to corruption and mismanagement.
You don't have control over your money; your bank accounts, or the currency itself, they can be frozen by the government at any time.
Advantages of Bitcoin?
- Decentralised peer to peer payment system.
- Not contolled by governments or banks.
- Offers the individual more control over their money.
- Cheaper to use - no 'middle man' when transferring funds
- Digital and online.
- Globally accessible.
- Easily transferred and stored.
- Buy and sell in the currency of your choice.
- Tends to increase rather than decrease in value.
- Well establised and accepted as a real currency.
Is Bitcoin here to stay?