What is Bitcoin? - It isn't just money.

Bitcoin is the first global, decentralized currency that allows you to send money from one person to another without involving a third party broker, such as a bank. You only need your computer to make transactions because Bitcoin is fundamentally software.As a decentralized currency, Bitcoin isn’t controlled by anyone. It’s open so that anyone can benefit from it.You might think that the lack of control could mean chaos, but that’s not true at all. That’s because Blockchain, the technology behind Bitcoin is one of the most accurate and secure systems ever created.

1. A system of digital money.

2. A distributed ledger (a secured list of transactions).

3. A means of reaching consensus(agreement).

4. Decentralised and allows anyone to participate.

5. Incredibly secure due to the way the operations on the network are carried out.

Why is Bitcoin Better Than Regular Money?

Unlike regular forms of "fiat" money there is no central authority in control of bitcoin.

This means that there is no central government or bank that can block transactions or freeze your money on a whim.

It is also cheaper to make transactions compared to other means of transferring money.

One of the biggest advantages is that the total supply of bitcoins that will ever be mined is fixed at 21 million. This is baked into the system and there will never be any more than this.

This makes it quite different to fiat money where governments have a tendency to print money as and when they feel like it - something which creates inflation and devalues the money you already hold.

The end result is a currency that is better protected against inflation.

What Gives Bitcoin Value?

This is a question I often hear and there are a number of different ways of answering this.

The most basic answer is that Bitcoin has value because people believe it has value.

This may seem like a strange concept but if you think about it, this is exactly what gives "fiat" money like US dollars or Euros value.

There is no longer anything backing them (like gold), they simply have value because people believe in them and the system backing them.Similarly people believe in Bitcoin and the Bitcoin network (with it's ability to securely transmit value) and hence they have value

Conclusion

I hope you have found this guide useful.

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