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Bitcoin works like money. And it is that in essence, that is what it is: a new type of digital money. A digital money that allows payments to be made safely, cheaply, quickly and freely all over the planet. It is increasingly accepted and more people want buying bitcoins.

To put ourselves in situation:

  • Bitcoin is at the same time a protocol, a payment network and a currency.
  • It was originally proposed as a concept in 2008, but was launched in January 2009 by Satoshi Nakamoto.
  • At the end of 2019 there are at least 45 million active Bitcoin wallets. Of these, about 34% (about 15 million) are active users.
  • The number of merchants now accepting Bitcoin has increased exponentially. In the United States, about 36% of small businesses accept Bitcoin, and 56% use it in some way for their benefit.
  • Currently, every month, more than a million new users come to Bitcoin.
  • The Bitcoin network is the most secure network in the world and by the end of 2019 it was already processing more than 400.000 transactions daily.

A revolutionary money

And it is that its design is so revolutionary that, in just a few years, it is turning the financial system we all know upside down, completely displacing banks, credit cards, SEPA, SWIFT and even figures such as central banks. .

It is free, it is open, but above all it is decentralized and takes care of your privacy. It is not controlled by any bank, government or company. It depends on a network made up of people's computers. A decentralized network and managed by its users. Or put another way: There is no central bank that happily issues money.

Bitcoin is not anonymous, still, but it allows great privacy in times of Big Data and constant leaks of people's private information. In the same way that e-mail was an incredible advance when it comes to communicating, Bitcoin represents a giant step in terms of payment systems. The analogy that best illustrates the nature and potential of Bitcoin is that "Bitcoin is to money what the Internet is to information". Bitcoin democratizes money, makes it from people, takes it away from power.

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How is the price of Bitcoin determined

Bitcoin price is determined by supply and demand (see How the Bitcoin price is determined). Furthermore, bitcoins work through programs called wallets (see How Bitcoins Are Stored).

What makes Bitcoin special is not that it is a digital currency. The euro, dollar, or other currencies are also largely digital, and it's digital money that has been around for decades. Almost all the money that exists is digital. Nor does it make it special that you have low transaction costs, or that you make quick transactions.

These and other characteristics, eventually, will also end up being offered by banks. The main difference, what really makes Bitcoin magical, is that it is a P2P network: no one issues the money. Separate politics and money. And this, by understanding how money and central banks work, makes you understand how Bitcoin sets humanity free.

Understanding some basic concepts

Your bitcoins are not files, there is no specific thing that refers to a bitcoin. The approach to how bitcoin works is different. Bitcoin is the unit of account of the balances that manages the blockchain. What each user has is a key (a password) that manages an address (or account number) in the blockchain (the core of Bitcoin, your distributed ledger).

Bitcoin - refers to the transaction network; can be used for applications of all kinds; bitcoins are sent in transactions; all transactions are pseudonymously stored in a ledger called blockchain.

Bitcoin - (BTC) unit of account of the Bitcoin network; there will never be more than 21 million and they will be created during the next 100 years; each bitcoin is divisible into 100 million units; its price fluctuates by supply and demand.

Blockchain - public and distributed ledger where all bitcoin transactions (and their balances) are permanently stored. Thanks to "mining", blockchain is known as the most secure and truthful database that exists.

Mining - process by which transactions on the Bitcoin network are verified; For this, advanced cryptography techniques and specialized hardware ("miners") are used: a fixed amount of bitcoins are created ("mined") during the process (See What is mining bitcoins).

A radical change to benefit everyone

As you will begin to understand, Bitcoin is also a cultural change. Bitcoin is the clear example of how, in a coordinated way, humanity can solve problems on a global scale without depending on third parties.

Bitcoin removes barriers. As in other cases, building walls is useless, neither in Melilla, nor in Mexico… You have to build bridges. Also in money. Bitcoin is not hiding money or avoiding paying taxes that improve society. Bitcoin breaks boundaries, builds bridges, brings people together. All the same on this planet.

But to understand What is it Bitcoin in detail and determining why it is the best money there is, it is not enough to stop here. There is much more that you should know and we have separated it into different chapters so that, in an entertaining way, you can become an expert.

Throughout Bit2Me Academy you will see in detail everything mentioned above and you will discover the Bitcoin advantages.

Follow your training to understand the most important revolution since the invention of the Internet and what is happening right now.

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