Bitcoin and Crypto for Beginners

By Norm Bond

Most people have heard of bitcoin but few know how it works. With cryptocurrency being called the future of money it is wise to learn more now about digital money. The price of bitcoin is volatile. The blockchain technology it uses is being adopted in almost every industry. For everyday people, it is not too late to learn how to participate in the bitcoin movement. Maybe you want to be an investor, a trader, or find a way to acquire bitcoins for yourself, family, or friends.

 

This Ebook covers all of these areas in an easy to understand language. It is packed with practical information. There is also a valuable resource chapter that will save you hours of time by providing links to the most important bitcoin and cryptocurrency-related sources. The biggest years for bitcoin are ahead of us. Start today to increase your awareness and get in where you're comfortable with Bitcoin and Crypto for Beginners. 

• Language: English
• Publisher: Norm Bond
• Release date: Sep 18, 2020
• ISBN: 9781393984177

Book preview

Chapter 1: Introduction - Let’s Begin  

Cryptocurrency is often referred to as the future of money. If you’re new to this you probably wonder what does that mean? You may have noticed the decline in the use of cash. Many people don’t carry it or just a bare minimum. In our digital age we can pay electronically. We use cards whether they are credit, debit, gift, or store cards. We use mobile devices and we shop online for curbside pickup. Times have changed and continue to evolve.

Here in Asia where I’m based it is common to tap your phone at checkout counters. Cryptocurrency builds further on this evolution, and the king of cryptocurrency is bitcoin.

It has never been more popular than now. Demand increases as more people understand the benefits and opportunities it presents. We’re going to cover this and more in this Ebook. I’m glad you decided to give it a read.

What is a cryptocurrency? Broadly defined, cryptocurrency is virtual or digital money which takes the form of tokens or coins.

Since cryptocurrency is digital money there is no physical coin or bill — it’s all online. You can transfer cryptocurrency to someone online without a go-between, like a bank or credit card company. The so called, third-party is eliminated. This is huge.

If crypto makes you think cryptic, secret, clandestine or hidden you’re in the right mindset. The root of this concept is codes and code-breaking. Cryptography allows for the complex creation and processing of digital currencies and their transactions across decentralized systems.

Currency brings to mind cash, moolah, money, bling-bling. Smash it together and we have crypto-currency. The actual technical definition is not much deeper than that.  Cryptography meaning the act of writing and solving codes, and currency meaning a medium of exchange.

Cryptocurrency then is a medium of exchange dependent on a series of codes.

On October 31, 2008, a design paper was shared to a cryptography mailing list by someone using the name Satoshi Nakamoto. The publication titled Bitcoin: A Peer-to-Peer Electronic Cash System sparked the imagination and gained wide support, debate and discussion within the group. Bitcoin was out of the box. (See the Resources Chapter for a link to the original white paper)

Sounds real James Bond right? Stick with me here. People in cryptography circles are basically code-breakers. Throughout history, military and society messages have needed to be passed in secret. Spies and codes bring intrigue, mystery and play a vital role in development.

When Satoshi dropped this bomb of a report introducing Bitcoin, both a new coding protocol and a digital currency, it grabbed the attention of the programmers like a stack of hot pizzas.

The members seized on it, challenged it, expanded it and worked collectively to establish a foothold. Their early work brings us to where we are now. Today we have a digital currency that trades in excess of $10,000 USD per coin.

In addition, the Bitcoin protocol or blockchain technology, is being tested or implemented across almost every industry on the planet. Let that sink in for a minute. 

This story is more intriguing because in 2008 Satoshi and crew were practically giving away bitcoins. Consider the first commercial bitcoin transaction. On May 22, 2010 a coder bought two pizzas for 10,000 bitcoins. Laszlo Hanyecz was recently interviewed and said he had no regrets.

Bitcoin is not the only cryptocurrency, there are thousands. According to CoinMarketCap, a popular source to track crypto growth and prices, the total number of cryptocurrencies is 6,955 with a total market cap of $324.716 billion (as of September 9, 2020).

Bitcoin trades as BTC