Bitcoin for Beginners: How to Explain Bitcoin to Your GrandmaAug 23, 2022
Bitcoin and other cryptocurrencies have been on the lips of everyone, including teens, cooks, and grandmas. But despite the popularity of bitcoin, several people still do not know the basics of these digital assets.
Fortunately, we have written this article to provide well-detailed information on the relevant jargon in simple terms. So, if your grandma has been asking you what bitcoins are, this is the right article for her.
What Is Bitcoin?
Bitcoin is a cryptocurrency created by Satoshi Nakamoto, the first to be introduced. Now, you must be wondering what in the world is cryptocurrency. Well, cryptocurrencies aren't complicated at all.
A cryptocurrency is an electronic payment system that enables any user to transfer and receive digital money from other users around the world. It has emerged as an excellent alternative to paper money.
A New Type of Money?
Yes, grandma. Bitcoin is unlike any money that you have ever seen. The main difference between bitcoin and other currencies is that it doesn't need middlemen such as banks, governments, and companies like PayPal.
Thanks to the absence of these middlemen, bitcoin transactions are fast, cheap, and free of the problems that are often associated with the old financial system. With Bitcoin, you no longer have to pay a fee to fat executives in their gigantic buildings.
Also, a bitcoin transaction has no restrictions. You can receive and transfer any amount you desire without fuss and access your funds from anywhere.
What Is a Bitcoin Wallet?
A bitcoin or cryptocurrency wallet is a software or device for storing cryptocurrency. It can be physical or virtual.
Instead of holding cash like your regular wallets, bitcoin wallets hold the keys used for approving bitcoin transactions and proving ownership. You can also use digital wallets to encrypt your public or private key.
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How Can I Buy Bitcoin?
You can purchase Bitcoin or any other cryptocurrency from cryptocurrency exchanges. A crypto exchange is a platform that connects buyers and sellers.
Cryptocurrency exchanges are either decentralized or centralized. These exchanges also have varying fees and reputations.
So, do proper research before choosing a crypto exchange.
What About Scammers?
If you want to invest in cryptocurrency without buying coins, you can buy an exchange-traded fund (ETF) or a crypto mutual fund. You can also invest in a crypto company.
Now, grandma, we know you must have heard some bad things about bitcoin. Examples of such include the usage of Bitcoin for scams and other illegal activities.
In its early days, some people took advantage of the anonymity of bitcoin to carry out illegal transactions in places such as Silk Road. Fortunately, the FBI eventually shut down Silk Road in 2013, and its creator is currently locked away in prison.
Additionally, bitcoin hasn't been free of scams. This isn't different from the Nigerian Prince you heard of some years back. To put it simply, some people will go to any length to illegally get money from innocent users.
No one should blame Bitcoin for these events. We all know that scams and other illegal activities existed before the introduction of bitcoin.
So, you should ignore anyone who threatens to release lewd images of you online if you don't send them bitcoin worth thousands of dollars.
How Does Bitcoin Work?
Another thing that makes Bitcoin special is that it isn't printed like paper money. Bitcoin is a digital asset. They are created through a process known as mining.
Bitcoin miners mine on a platform called the Blockchain. Now, Blockchain technology makes things more interesting. Thanks to it, you don't have to store your virtual money on your computer or smartphone.
Instead, your bitcoins are stored in a virtual ledger, and the digital wallet on your device is only proof of ownership because it contains the details of your bitcoins.
Mining? Just Like Gold?
Hmm, not in any way grandma. The blockchain keeps a record of all the bitcoins in circulation. As a result, the Bitcoin network doesn't need banks to verify ownership. This system utilizes the power of the people and the internet.
Bitcoin miners are at the center of it all. They operate in a way that's similar to accountants by recording and processing transactions that occur.
However, the cool thing about this system is that miners receive bitcoins as payment whenever they mine a new block. They get newly created bitcoins, and this way, bitcoin grows.
Additionally, the creation of bitcoin is finite as miners compete to create the next block. They create new bitcoins every ten minutes, while the total number of bitcoins they can generate is 21 million.
All bitcoins will be created by 2140. After that, the system will halt bitcoin production, and people will only be able to buy, sell, trade, and exchange them.
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Do Counterfeit Bitcoins Exist?
Bitcoin has had revolutionary achievements over the years, one being the end of double-spending. Double spending became a problem after the advent of digital money in the 90s.
In simple terms, double spending is when a person spends a digital currency more than once. Hackers have been trying to do this with bitcoin for years without success.
The distributed ledger technology makes all transactions and relevant accounts (excluding personal details) available to the public. Therefore, no one can spend the same money more than once on the bitcoin network.
So, What Are the Benefits of Bitcoin?
There are several ways by which Bitcoin can be beneficial to you, grandma. First, it is decentralized. So, it isn't controlled by any financial institution or government. You no longer have to deal with the issues associated with banks.
It is also universal. With a smartphone and internet connection, you can send and receive bitcoin from anywhere in the world. There's no counterfeiting either. So, you will not need credit card security and the like.
Additionally, you don't have to worry about inflation thanks to the limited supply and the fact that Bitcoin's price isn't controlled by the government. This is particularly essential as the government printed lots of money recently.
Finally, blockchain technology will allow you to perform your transactions with the utmost security, anonymity, and accuracy. Hence, it is no surprise that more companies now accept bitcoin payments.
Cryptocurrency PowerPoint Template
Now that you know all the essential details about Bitcoin, you can proceed to deliver a presentation on cryptocurrency. We have designed the most visually-pleasing cryptocurrency presentation templates to make things even smoother.
Frequently Asked Questions
What is Bitcoin?
Bitcoin is a virtual currency that can be bought, sold, and exchanged without intermediaries such as banks.
How much money do you need to get started in Bitcoin?
You get started in Bitcoin with as little as $5. However, you should go through training and choose a good investment strategy beforehand due to the volatility of the coin.
Where can I get a Bitcoin presentation template?
You can get professionally-designed Bitcoin PowerPoint templates from Simple Slides.
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