Do You Know What Bitcoin Is?

Posted on by The INO.com Team

In a recent Bloomberg phone poll, 46% of Americans had no idea what Bitcoin was, while 42% knew that it was a virtual currency. Even funnier was the fact that 6% thought it was a new iPhone App and another 6% thought it was an Xbox game. I found that poll amazing, as I was sure that more people knew what Bitcoin was.

Exactly what is Bitcoin and how does it work?

Bitcoin is the world's first decentralized digital currency. Originally outlined in a paper by Satoshi Nakamoto in 2008, the Bitcoin network was developed and the first Bitcoins were released in 2009. This experimental cryptocurrency process claims to conduct quick, freeze-proof, irreversible chain of digitally-signed transactions in any country, without using a financial institution as an intermediary.

Bitcoins are predictable and limited in supply, unlike that of centralized currency. The total amount of Bitcoins in circulation is set to top out in 2140 at 20 million coins.

This open source, peer-to-peer payment network and digital currency uses public-key cryptography for security. Users send payments by broadcasting digitally signed messages from their "wallets" that transfer ownership of Bitcoins to another user. Then a decentralized network of specialized computers called "Miners" verify and time stamp all transactions using a proof-of-work system. The operators are then rewarded with transaction fees and newly minted Bitcoins.

Do you own any bitcoins?

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Bitcoin was first noticed due to its use in illegal activities. In 2013, the FBI shut down the Silk Road online black market and seized $28.5 million worth of Bitcoin from the alleged mastermind. More recently, they have gained traction in the investing community and can be used to buy everything from pizza to a Tesla car. Even with its volatile exchange rate, do you think Bitcoin will be able to overtake current forms of currency and change the way people use money online?

Every Success,
Jeremy Lutz
INO.com & MarketClub.com

15 thoughts on “Do You Know What Bitcoin Is?”

  1. DON'T KNOW, DON'T CARE. I would rather buy TULIPS at he bottom and wait for the next TULIP MANIA and make a $million!!!

  2. Classical Indian wisdom said two interesting advice, First is that "Wealth must be kept in a wallet - and Knowledge must be kept in a mind" unless and otherwise both are none of use. (here, wallet means real or physical only,no question of vertuality concept) and second one tells that "cheaters never remain unpaid where greedy s are there"

    I doubt sustainability of bitcoin, probabilities are there that entire so called system will collapse over night.

  4. We have a bitcoin ATM downtown and I have been purchasing some each month, averaging the same dollar value each time so over the long term these current price fluctuations won't matter as much. The goal is to leave my great-great grandchild a few bitcoins come 2140, if bitcoins/we/computers still exist.

  5. Not really sure what it is. Who ever writes a Bitcoin Book for Dummies will make a fortune.
    The dollar has been so devalued it probably is not worth the paper it is printed on. That is real special paper or should I say composite.

  6. It's shortcomings are evidenced in the volatility you see(if you are watchin it) within, I think, the essential metrics that were outlined in Cartesian beliefs for a viable currency which says it must be:
    1. Generally Acceptable
    2. Portable
    3. Divisible
    4. Limited in Supply
    5. Homogeneous or Uniform in its denomination(s)
    6. Durable
    From a limited standpoint, I guess it has some of the attributes, but not all, for sure. It's missing #1,3,&6 in my opinion. It's only portable in that it is transferrable over the internet, I guess, but that's a stretch.
    Sometimes, I think it's important to remember how money gets its value...alone it is worthless. People, who create demand, which creates a market, which creates valuation -is how we come about to value a currency. Of course, that's the simple version without benefit or detriment of other currency markets trading against said currency.

  7. Beware of this currency. Reminds me on the Holland tulip speculation. There is a better means to accomplish feat.

  8. Backed by the full faith and credit of servers and players in--
    Silicon valley, or Nigeria or--
    Don't know if it's "real" or a chain letter playing out.

    1. Ah yes, Nigeria is well known for it's fraudulent schemes. And, I am sure there are many,
      many others out there on the world wide web with the same idea.

  10. I'm not the sharpest knife in the drawer, but (heretofore) I've not considered myself dim, either.. but I cannot yet grasp what in heck is Bitcoin. is there a book for dummies on it?

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