What is bitcoin?
Bitcoin, or BTC for short, is a cryptocurrency. In fact, it’s the original cryptocurrency.
A cryptocurrency is just a digital currency that uses cryptography as the underlying tech to keep it safe and secure.
Since Bitcoin’s inception in 2008, thousands of other cryptocurrencies have been created, but bitcoin (BTC) remains the largest by market cap.
But we can already shop online with regular money, so why do we need bitcoin?
Bitcoin cuts out the middleman. With regular money (FIAT), we put our trust in a bank or a card provider who takes a cut each time we make a payment. We also place our trust in these institutions to keep our information secure.
Bitcoin, and the underlying technology called blockchain, provides a way to show that you have paid for something without the need for the involvement of a third party institution like a bank.
The result is a simpler, quicker, cheaper way to transact.
Can I make money by investing in Bitcoin?
Yes, of course. But, you can also lose money. The price of BTC is very volatile. In 2010, you could by a bitcoin for less than a penny. In 2022, a single bitcoin will set you back tens of thousands of dollars.
So, over the course of its existence, BTC has been a fantastic investment. Every investment comes with risk, however, so please seek financial advice before investing and only invest money that you can afford to lose.
How can I use BTC?
Many people simply buy bitcoin in anticipation of the price going up. They see it as an investment or a way to make a quick buck. As it has become more widely adopted, however, more and more businesses are accepting crypto as a form of payment.
How do I get some BTC?
Some people work and get paid in BTC. Some people mine bitcoin (although, that’s a bit too technical for most). The easiest way to get your hands on some BTC, though, is simply to pay for it using your credit or debit card on on exchange like Coinmama.
Coinmama was founded in 2013 for exactly this purpose. Making it easy to buy bitcoin. Making crypto less cryptic.