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How To Understand Bitcoin?
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Joined: 2022-03-02

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A Guide On How To Understand Bitcoin And Cryptocurrency?

 

 

 

 

Though Bitcoin is one of the most searched for terms (in keeping with Google), it is a very technical subject for a lot of people and may get overly technical for non geeks. Nevertheless, there at the moment are hundreds of cryptocurrencies and more and more individuals are starting to want to get to know how they work presumably driven by a dis trust of bankers, which is a complete totally different discussion.

 

 

 

 

It's troublesome to get a lay man's rationalization without having to make use of technical terms resembling "secret keys", "digital keys", "digital wallet" and "cryptocurrency" so I will do my finest to keep things as straight forward as I possibly can.

 

 

 

 

The Concept of Fiat money i.e. paper currency, was formulated to make it less complicated for individuals to make an change for items or companies to interchange bartering, as this can be limited to an alternate between two willing parties at best, whereas money allows you to provide your service or goods, then purchase no matter service or items you require from one other or others.

 

 

 

 

Due to this fact, I would argue that Bitcoin is the twenty first Century equivalent to bartering, in that it works as an change for items or companies directly between willing parties. Bartering had to be primarily based on every promise and trust, to provide and deliver the promised goods or service.

 

 

 

 

At present with Bitcoin or some other cryptocurrency every party would want a unique file or unique key to change the agreed worth between every other.

 

 

 

 

By having a novel key or file it turns into easier to keep a file on each transaction. Nonetheless, this too comes with problems.

 

 

 

 

Now, bartering is the easy exchange of skills or items as I've already stated, the modern equal, or bitcoin is vulnerable to security breaches, i.e. theft or hacking of files, this is the place a "cryptocurrency wallet" comes into the equation to secure your transactions.

 

 

 

 

Basically you need a secure location on your cryptocurrency/bitcoin purchases and holdings. This is where the necessity for a hardware wallet comes from.

 

 

 

 

So now that you've got written down/recorded which address holds which amount of Bitcoins after which updated each time a transaction is made, the file is known as "The blockchain" - and it keeps a record of all transactions made with bitcoin.

 

 

 

 

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