Bitcoin Basics For The ’76 Percenters’ Who Don’t Have A Clue What It Is

answertokrugman22 Feb 2014 / Forbes – Bitcoin technology was unleashed on the World Wide Web about five years ago, but 2013 marked a time of unprecedented growth for the digital currency. As the price of a bitcoin increased over 6000 percent in 2013, more developers, entrepreneurs, and investors flocked to the virtual currency market than ever before. However, Bitcoin is not a household name or widely used service. The majority of Americans don’t even know what Bitcoin is. Additionally, its reputation for facilitating illicit activities, price volatility, and security questions are all issues the Bitcoin community must explain before it can go mainstream. But those invested in the technology, like the people I met at the North American Bitcoin Conference, believe this is a disruptive technology that is just taking off with no end in sight.

Bitcoin Is Nascent Technology In The US

Despite Bitcoin’s record growth, not very many people know how to utilize this new technology. As reported by the Wall Street Journal, a survey conducted by GfK found that 76 percent of US residents are not familiar with Bitcoin and 80 percent say they would rather own gold than bitcoin.

What is Bitcoin?

Put simply, Bitcoin is simultaneously a cryptographic protocol and a virtual currency which gives consumers a way to exchange money for free or a nominal fee. It’s a “digital crypto-currency.” As a transfer protocol, it inherently operates as a money transfer medium to send bitcoin from user to user without the need of a third party intermediary. Digital, meaning it only exists in a digital format and there are no tangible properties to this money, just like e-mails, which are digitals letters. Crypto meaning it’s secured by cryptography, making it improbable for hackers to spend bitcoin from someone else’s wallet. And it’s a type of currency, valued in units of bitcoin which is divisible, like the US dollar or euro into subunits (like pennies.) There are other digital crypto-currencies that operate on the Bitcoin protocol, including LiteCoin and Dogecoin….. Read more

Follow Twitter

Exchange Rate