What Is Bitcoin and How Does It Work?

What Is Bitcoin and How Does It Work?



What is Bitcoin?
Bitcoin is a decentralized cryptocurrency.

It originated in 2008 from a paper written by Satoshi Nakamoto. This may be a real person or not but it is seen at the origins of Bitcoin.

Bitcoin runs on a technology known as the blockchain.
There will only ever be 21 million Bitcoins and this is what makes them valuable and scarce.

Bitcoin are created by a process known as mining. Since there are no banks transactions are verified by miners and when miners verify a certain number of transactions they can actually earn Bitcoin.

There are many more cryptocurrencies now but Bitcoin is seen as the first. Other popular ones are Litecoin, Ethereum, Ripple, Dash and many others.

Bitcoin are stored in locations known as wallets. These Bitcoin wallets can be online, on a hardware device, on a piece of paper or even memorized in your brain.

Bitcoin wallets look like a string of numbers and letters.

Cryptocurrency and blockchain technology can change the way we do everything in the future.

27 Comments

  1. how much does a bitcoin cost ?

  2. This was great thanks ?

  3. 25.000.000$ pizza

    That better be a good pizza

  4. Walking into a store and paying with Bitcoin via Eftpos card is so satisfying!
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  5. Abdullah Alawam

    God damn it pizza for 25 million $$ !!.

  6. I like your video.. But how do I mine for bitcoin?

  7. Little bit of a weird question but where did you get your t-shirt from?

  8. Thanks you video on understanding what bitcoins are all about however you don't mention 2 points that I need to understand
    1. Who puts up these mathematical problems for you to solve? Is it companies? If so what type of companies and why do they do it?
    2. Who pays you the bitcoins? I guess this is connected to whoever puts up the maths problems?

  9. Assogba aka BeCool Crypto

    Excellent explanation. Can I steal your video to show to some people are ?

  10. I dont understand..so i can buy 3 bitcoins at 3000 a piece but the currency has no steady value? It fluctuates rite? So theres no stability in my investment..it can be worth 2000 a piece the next day..i love the way it works just dont understand..i guess its like investing in stocks

  11. Buy and Sell Bitcoin Instantly ,More Secure .
    Get $10 bitcoin from this link : http://bit.ly/2yRXMtc

  12. Sami Al-khalili

    I hope you get one thousand likes

  13. Muhammad Hanis Abdul Hamid

    Thanks, u make it easy to understand…

  14. Learning to love the mark o the beast.

  15. More videos please for a 2 papa Johns Pizza 😀

  16. Best "what is" bitcoin video, so helpful for new people I need to explain Bitcoin to, thanks!

  17. What If? Bitcoin is funding the Industrial complex, black budget code named satoshi nakomoto!!!
    REPLY

  18. Is it safe to trust bitcoin?

  19. Do you work on comission big boy?

  20. I read Zero Hedge every day. Bix Weir's YouTube channel "RoadToRoota" explains Bitcoin, Blockchain, and the reasons behind it in depth. Ron, your the best! Your selection in videos are eclectic. They edify the viewers experience. It's obvious your videos are empirical.

  21. Mark sharp-wilkinson

    Starts out with an incorrect explanation of the the banking system but his annoying AF voice finishes me off.

  22. Buys not Supported in my Country (Pakistan), alternate please…

  23. Anh Duy Đặng

    https://www.eobot.com/new.aspx?referid=703127 Try this mind , it is one of the trustworthy mines. It pays you directly when you use "withdraw" I have been paid . So I believe you will love this ! Be successful , guys !

  24. can i ask you some questions?

  25. If one Bitcoin is worth approximately $5000 how can anyone purchase $100 worth of Bitcoins?

  26. Looks like Ronny has been shopping in the black market ?

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