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Today 1 Bitcoin is worth US$ 7,411.00. Expert predicts that it will be worth over 1 million US$ in the next 5 to 10 years. Click here to learn how to make your first Bitcoin for free.
The following text was extracted from "Introduction to Bitcoin and cryptocurrency" https://hackernoon.com/an-introduction-to-bitcoin-and-cryptocurrency-618c139d1d06
We live in a digital era where the new generation prefers to trust the “abstract,” question traditional norms and find a better way forward through technology. Bitcoin brings a multifunctional financial utility to the world by creating an open financial system and allowing us to store and transact value in ways that we never thought imaginable before.
Part 1: Bitcoin
What is it?
Bitcoin is digital money that is not issued or controlled by anyone. It is used to securely store and transfer any amount of value anywhere in the world. It is used to buy goods and services, store wealth, or send value to anyone without the permission of a third party. Often regarded as “Digital Gold,” bitcoin that is stored properly cannot be hacked, stolen or seized by a government. Thus giving people full proprietorship much like having a Swiss bank account in their pocket. Unlike physical gold, Bitcoin is cheaper, faster and more efficient to store or send anywhere in the world. Bitcoin is divisible to the eighth decimal place and is completely digital, allowing the transfer of any monetary value. Opposed to government “Fiat” currencies, which can be manipulated and devalued, there is a finite supply of 21 million bitcoins making it a scarce and valuable asset. Bitcoin is the internet of money and will do for finance what the internet did for communication.
How Does it Work?
The Bitcoin network is a peer-to-peer network that runs on a decentralized distributed self-clearing ledger called the blockchain. Units of currency that run on the Bitcoin network are called bitcoins, which are used to store and transmit value among network participants. Unlike most currencies issued by central banks, which can be devalued and manipulated, bitcoins are issued according to a fixed set of rules to create sound money that can’t be manipulated by a central authority or malicious actor. Users can buy or sell goods and services, send money to people or organizations, or even extend credit in a fast, secure and borderless manner. The only prerequisite for access to these coins is an internet connection and a private key that forms a pair with public-facing keys to provide access to the coins stored on the Bitcoin network. Unauthorized access to someone’s private key is analogous to stealing gold from their vault.
“The Blockchain”
What literally is a blockchain? A blockchain is a tamper-proof, encrypted database secured by cryptography (the study of encryption) that acts as an accounting ledger keeping track of digital assets. Instead of being maintained by a single server like traditional databases, blockchains are decentralized and maintained by a distributed network of computers around the world. This database tracks every bitcoin in the network and each transaction since the very first bitcoin. You can think of Bitcoin as an accounting system. Through the blockchain, it is a way of recording transactions and value digitally in an open and distributed self-clearing ledger.
Decentralized: There is no central entity or one person with control.
Distributed: Instead of one central server owned and operated by a singular entity, Bitcoin’s ledger is distributed across the globe making it impossible to shut down as there is no central point of failure. There is no Bitcoin HQ address for someone to raid; there is no central server to hack.
Distributed: Instead of one central server owned and operated by a singular entity, Bitcoin’s ledger is distributed across the globe making it impossible to shut down as there is no central point of failure. There is no Bitcoin HQ address for someone to raid; there is no central server to hack.
U.S. Dollar vs. BitcoinIt’s important to understand that the USD is the best transactional currency in the world. If I were stuck in the middle of the rainforest in South America I would want U.S. dollars as it is the reserve currency of the world. The USD is accepted nearly anywhere, but it is a terrible store of value.
For a long time, gold has been considered the ultimate store of value. Now people are turning to cryptocurrencies as they are more secure, easier to store and transport, cheaper to use, and easier to subdivide than any asset known today. It is disrupting the international payments and transfers business by cutting out the exorbitant fees of banks/middlemen, the global remittance market (people working in one country and sending money back home to their families), as well as becoming the currency of the internet and fueling a new wave of global e-commerce.
The training tonight was awesome. we had 63 attendees. As usual the basics of the MLS(Massive Leverage System) was explained, Then we had about 15 minutes of training on the best LLCs and how to set them up. We also had a discussion on how to build sustainable long term wealth that our children, grand and great grand children can enjoy. A great job as usual Darry; thanks for sharing your wealth of knowledge. I am eagerly looking forward to tomorrow's meeting and the opportunity to continue to build my financial IQ.
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