{"id":7215,"date":"2024-03-03T22:47:50","date_gmt":"2024-03-03T20:47:50","guid":{"rendered":"https:\/\/godex.io\/blog\/?p=7215"},"modified":"2024-03-03T22:47:50","modified_gmt":"2024-03-03T20:47:50","slug":"bitcoin-for-dummies-what-is-bitcoin","status":"publish","type":"post","link":"https:\/\/godex.io\/blog\/bitcoin-for-dummies-what-is-bitcoin","title":{"rendered":"Bitcoin for Dummies &#8211; What Is Bitcoin?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_25_1 counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><label for=\"item\" aria-label=\"Table of Content\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/label><input type=\"checkbox\" id=\"item\"><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/godex.io\/blog\/bitcoin-for-dummies-what-is-bitcoin\/#what_is_cryptocurrency\" title=\"What is cryptocurrency?\">What is cryptocurrency?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/godex.io\/blog\/bitcoin-for-dummies-what-is-bitcoin\/#btc_primary_definition\" title=\"BTC primary definition\">BTC primary definition<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/godex.io\/blog\/bitcoin-for-dummies-what-is-bitcoin\/#how_does_bitcoin_operate\" title=\"How does Bitcoin operate?\">How does Bitcoin operate?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/godex.io\/blog\/bitcoin-for-dummies-what-is-bitcoin\/#how_to_use_bitcoin\" title=\"How to use Bitcoin?\">How to use Bitcoin?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/godex.io\/blog\/bitcoin-for-dummies-what-is-bitcoin\/#buying_and_selling_bitcoin_exchanges_and_marketplaces\" title=\"Buying and Selling Bitcoin: Exchanges and Marketplaces\">Buying and Selling Bitcoin: Exchanges and Marketplaces<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/godex.io\/blog\/bitcoin-for-dummies-what-is-bitcoin\/#is_bitcoin_worth_investing_in\" title=\"Is Bitcoin worth investing in?\">Is Bitcoin worth investing in?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/godex.io\/blog\/bitcoin-for-dummies-what-is-bitcoin\/#faq\" title=\"FAQ\">FAQ<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/godex.io\/blog\/bitcoin-for-dummies-what-is-bitcoin\/#how_do_i_get_bitcoin\" title=\"How do I get Bitcoin?\">How do I get Bitcoin?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/godex.io\/blog\/bitcoin-for-dummies-what-is-bitcoin\/#can_i_use_bitcoin_to_buy_things\" title=\"Can I use Bitcoin to buy things?\">Can I use Bitcoin to buy things?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/godex.io\/blog\/bitcoin-for-dummies-what-is-bitcoin\/#is_bitcoin_safe\" title=\"Is Bitcoin safe?\">Is Bitcoin safe?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">There\u2019s no one on Planet Earth who\u2019s never heard about Bitcoin. For newbies, this might be hard to figure out. To be honest, it is not difficult at all. In this piece, you\u2019ll enjoy the explanation of <\/span><span style=\"font-weight: 400;\">Bitcoin for Dummies<\/span><span style=\"font-weight: 400;\">. We\u2019ll be dwelling on <\/span><span style=\"font-weight: 400;\">what Bitcoin represents, where and how it is used, and whether you should consider investing in it. Take a look.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"what_is_cryptocurrency\"><\/span><span style=\"font-weight: 400;\">What is cryptocurrency?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Money in circulation today is predominantly recognized as government-issued notes and coins. However, in recent years, a new form of digital money has emerged, known as cryptocurrency.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cryptocurrency is a digital or virtual form of currency that relies on cryptographic techniques for its security. One of its key features is that it operates without a central governing body, ensuring transactions remain genuine and secure.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&#8217;s worth noting that cryptocurrencies aren&#8217;t simply generated at will. They&#8217;re &#8220;mined&#8221; through computational processes that can be energy-intensive, requiring significant electrical power.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are different types of cryptos. These are Utility, Transactional, Governance, Platform, Security Tokens. Bitcoin belongs to Transactional since they are intended for use as a medium of exchange.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the following chapters, there\u2019s <\/span><span style=\"font-weight: 400;\">Bitcoin explained for dummies<\/span><span style=\"font-weight: 400;\"> more deeply.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"btc_primary_definition\"><\/span><span style=\"font-weight: 400;\">BTC primary definition<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">I<\/span><span style=\"font-weight: 400;\">n 2009, an entity named Satoshi Nakamoto introduced Bitcoin through a concise 9-page whitepaper. The intriguing aspect is that the true identity of Satoshi remains a mystery\u2014whether it&#8217;s an individual, a consortium, or an entity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At its core, Bitcoin was designed to enable one individual to send money directly to another, bypassing traditional intermediaries like banks. This method is termed a peer-to-peer transaction.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Such transactions are notably efficient, and there&#8217;s a cap on Bitcoin: only 21 million will ever be produced. Currently, about 18.5 million are in circulation, with the remainder being progressively mined. The price that people are willing to pay for Bitcoin determines its value, just like with stocks. For instance, today&#8217;s Bitcoin price in AUD stands at $22,500, but this can vary daily.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"how_does_bitcoin_operate\"><\/span><span style=\"font-weight: 400;\">How does Bitcoin operate?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">How does Bitcoin work for dummies<\/span><span style=\"font-weight: 400;\">? Bitcoin thrives on a decentralized model. Its major advantage? It isn&#8217;t tied to a specifi<\/span><span style=\"font-weight: 400;\">c country&#8217;s economy. Transactions are immediate, free of any unnecessary fees, and not subject to bank hours. This universality propels a truly global economy.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After using Bitcoin, the transaction is etched into a blockchain, a transparent digital ledger. Subsequently, Bitcoin &#8220;miners&#8221; authenticate every blockchain transaction, ensuring security and transparency, making Bitcoin distinct from other currencies. If you did not catch Bitcoin mining explained for dummies here, address <\/span><a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/www.investopedia.com\/tech\/how-does-bitcoin-mining-work\/\"><span style=\"font-weight: 400;\">Investopedia <\/span><\/a><span style=\"font-weight: 400;\">for a process in detail.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"how_to_use_bitcoin\"><\/span><span style=\"font-weight: 400;\">How to use Bitcoin?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">After explaining <\/span><span style=\"font-weight: 400;\">what is Bitcoin for dummies<\/span><span style=\"font-weight: 400;\">, let\u2019s figure out how to use it. Due to forward-thinking businesses and an enthusiastic customer base, Bitcoin is becoming more widely accepted as a legitimate payment method.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While major corporations are adopting Bitcoin, nearly 2,300 U.S. small businesses were already on board by December 2020, as per Fundera. A survey by Piplsay in February revealed that a significant 57% of over 30,000 U.S. adults hope for a wider acceptance of cryptocurrencies by brands.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since most entities don&#8217;t directly facilitate Bitcoin payments, it&#8217;s crucial for users to have a &#8220;Bitcoin wallet&#8221;. These wallets, ranging from mobile apps and desktop software to USB-based hardware, enable transactions via alphanumeric and QR codes, ensuring both security and convenience.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"buying_and_selling_bitcoin_exchanges_and_marketplaces\"><\/span><span style=\"font-weight: 400;\">Buying and Selling Bitcoin: Exchanges and Marketplaces<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Navigating the world of Bitcoin trading requires not just <\/span><span style=\"font-weight: 400;\">Bitcoin definition for dummies<\/span><span style=\"font-weight: 400;\"> but an understanding of the platforms and processes. Different exchanges have varied interfaces; some provide straightforward &#8220;purchase&#8221; and &#8220;release&#8221; buttons, allowing users to <\/span><a target=\"_blank\" rel=\u201dnofollow,noopener\u201d href=\"https:\/\/godex.io\/\"><span style=\"font-weight: 400;\">specify their trading amounts<\/span><\/a><span style=\"font-weight: 400;\">. Others, however, mirror traditional securities markets in their complexity. Generally, there are three core order types on most platforms:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Current Rate Order: Enables users to acquire Bitcoin at the ongoing rate, ensuring a prompt transaction, usually within moments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Price Guard Order: Sets a predefined price for transaction purposes. This can be instrumental in capitalizing on market highs or avoiding lows, albeit with possibly longer wait times.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Preferred Rate Order: Directs exchanges to finalize a deal when the market hits a desired rate. Beneficial for those eyeing a specific price point, even if it may take longer.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">While advanced platforms might offer extended order choices, novices are recommended to master these basic types first. Although there are peer-to-peer (P2P) options available, for a combination of trust and security, mainstream exchanges are generally preferred, reserving P2P for transactions with known counterparts.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"is_bitcoin_worth_investing_in\"><\/span><span style=\"font-weight: 400;\">Is Bitcoin worth investing in?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s up to you to decide. Bitcoin is a highly volatile asset type. It&#8217;s prudent for prospective investors to confine a minor segment of a broad portfolio to speculative ventures like Bitcoin.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You need to factor in the advantages and disadvantages of Bitcoin.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Bitcoin for dummies explained: <\/span><span style=\"font-weight: 400;\">Advantages vs Disadvantages<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Efficient Transactions<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Enhanced Privacy<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Decentralization<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Growth Potential<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Global Reach<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Vice versa<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Price Volatility<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Security Concerns<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lack of Insurance<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Regulatory Ambiguity<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Limited Acceptance<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"faq\"><\/span><span style=\"font-weight: 400;\">FAQ<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"how_do_i_get_bitcoin\"><\/span><span style=\"font-weight: 400;\">How do I get Bitcoin?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The primary methods to acquire Bitcoin involve using digital wallet applications and centralised cryptocurrency exchanges (CEXs) that accept traditional currencies.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"can_i_use_bitcoin_to_buy_things\"><\/span><span style=\"font-weight: 400;\">Can I use Bitcoin to buy things?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Numerous enterprises currently accept Bitcoin (BTC) for transactions, both offline and online. Although BTC might have steeper fees compared to other cryptocurrencies, it&#8217;s preferred for sizable transactions due to its robust security measures.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"is_bitcoin_safe\"><\/span><span style=\"font-weight: 400;\">Is Bitcoin safe?<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Understanding Bitcoin for dummies is enough to figure out if you should jump into the game or not. <\/span><span style=\"font-weight: 400;\">Bitcoin is volatile; it is neither regulated nor insured, implying that if the exchange collapses, your investment might vanish entirely.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Table of Contents What is cryptocurrency?BTC primary definitionHow does Bitcoin operate?How to use Bitcoin?Buying and Selling Bitcoin: Exchanges and MarketplacesIs Bitcoin worth investing in?FAQHow do I get Bitcoin?Can I use Bitcoin to buy things?Is Bitcoin safe? There\u2019s no one on Planet Earth who\u2019s never heard about Bitcoin. For newbies, this might be hard to figure [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7217,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[132,135,134],"tags":[108,109,505],"yst_prominent_words":[],"class_list":["post-7215","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-currencies","category-hot-topics","category-popular-posts","tag-bitcoin","tag-btc","tag-cryptocurrency"],"lang":"en","translations":{"en":7215},"pll_sync_post":[],"_links":{"self":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/7215","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/comments?post=7215"}],"version-history":[{"count":1,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/7215\/revisions"}],"predecessor-version":[{"id":7216,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/posts\/7215\/revisions\/7216"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/media\/7217"}],"wp:attachment":[{"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/media?parent=7215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/categories?post=7215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/tags?post=7215"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/godex.io\/blog\/wp-json\/wp\/v2\/yst_prominent_words?post=7215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}