What is Bitcoin? Simple & Easy Explanation

Hello and Welcome to the Cryptowala Channel This is Srivatsa, your Cryptowala This being our first video, we are going to talk about one of the most asked questions on google which is, What is Bitcoin? This is Bitcoin! No, I’m just kidding Bitcoin is a payment network and a digital currency or a cryptocurrency How does it work? Bitcoin works exactly like a digital form of cash

It’s quite simple For example : When you pay someone with a 200 rupee note it just means that till you hold this 200 rupee note, the value of the 200 rupees is owned by you And when you transfer this to someone else, when you pay someone else with this the value of that 200 rupees is owned by them Bitcoin works exactly the same way Till the time you transfer bitcoin to someone you hold the value of bitcoin And when it is transferred to them they hold the value of bitcoin This is what I meant by Bitcoin works exactly like cash! Now the value of this currency is determined by the governement, when it comes to a national currency But when it comes to Bitcoin the value of bitcoin is purely dependent on the demand and supply of the bitcoin market How this whole thing works? When it comes to national currencies, any sort of transaction that we do, is authorised by a central body and this central body is called a Bank When it comes to Bitcoin the entire system is decentralised which means that its a huge group of computers all over the world, which run the bitcoin software which verify or authorise any transaction that happens with bitcoin That way there is no scope for manipulation or change or any kind of fraud which is brilliant isn’t it? Now, once these transactions are verified they are stored on a ledger, and this ledger is called the Blockchain Once it is stored on the blockchain it remains there for life, which means, we can always go and check and see every possible bitcoin transaction that has happened from the day it started till today Are there any more advantages to bitcoin? Oh yes! Sending and receiving bitcoin is as easy as sending and receiving email It is freely transferable all over the world and the charges for that are very very low Gold is precious because it is rare and that is the case with Bitcoin too There are going to be only 21million bitcoins ever created So as the supply of bitcoin goes lower and lower the demand for it keeps increasing more and more because of which the value of bitcoin keeps increasing more and more and that makes it a brilliant investment actually Tech giants like Bill Gates, Eric Schmidt and John Mcafee have said that Bitcoin is an amazing invention In fact they have said that this is the most amazing invention ever since the Internet Billionaires like Richard Branson and many many big VC companies are investing heavily into Bitcoin and bitcoin based products So that was a simple explanation about bitcoin and I know you have many more questions We are going to be doing a series of videos, explaining everything you need to know about bitcoin in the simplest way possible Thankyou for watching this video and subscribe to our channel to get to learn a lot more about crypto currencies and its related technologies Thankyou

Please follow and like us:

Related Posts

About The Author

Enjoy this blog? Please spread the word :)