Before investing in bitcoin it is important to understand it. This guide lays out the basics: what Bitcoin is and the different ways it can be used. With this in mind, we have made a jargon-free summary and compiled a list of how to understand the technology, buy, sell, trade and use bitcoin wisely.
1a – What is a blockchain? The blockchain is the technology that makes cryptocurrency possible. This is the first thing anyone needs to know in order to understand what Bitcoin is. In layman’s terms, a blockchain is a publicly accessible accounting book (ledger) that records all transactions made with a single currency. Blockchain technology can...
2a – What is Bitcoin? Bitcoin is the first ever cryptocurrency, supported by the first ever blockchain. It was created in 2008 by person(s) unknown named Satoshi Nakamoto, shortly after they published an academic journal article entitled ‘Bitcoin: A Peer-to-Peer Electronic Cash System’. This article not only put forward the idea of cryptocu...
3a – How are bitcoins transferred? Imagine sending someone (e.g. your friend Sarah) an email that reads ‘1 bitcoin’. You would: Log into your email account Enter Sarah’s email address Type ‘1 bitcoin’ into the body of the email Hit send Sarah would receive a message reading ‘1 bitcoin’ A bitcoin transfer works...
4a – How do I buy bitcoin? If you are looking to buy bitcoin using the money in your bank account, the best and easiest option is to use a brokerage. A bitcoin brokerage is essentially an online bureau de change for bitcoin. Brokerage platforms sell bitcoin at a fixed price, depending on the time and date of the transaction. Just like when exchanging p...
5a – What is bitcoin used for? It’s now a decade since bitcoin was created, and you can now use it for almost anything for which you’d usually use ‘regular’ currency. To give examples, many Australians today pay their household bills using bitcoin, you can gamble with bitcoin in many online casinos and betting sites, buy furnitu...
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