What is Bitcoin?

Bitcoin is the original form of cryptocurrency that runs on the blockchain. It was created by Satoshi Nakamoto in 2009. Nakamoto is likely not a human being, but a name give to a collection of people who developed it. Nakamoto can not be verified as an actually human by anyone. Bitcoin is different from other currencies because it’s decentralized, incorruptible, indestructible, and bold. Decentralized means that it’s not owned by on entity, but power is distributed throughout it’s users. It also does not have any borders, meaning it can be sent anywhere in the world at anytime. Lastly, it’s transparent money, meaning all the transactions are recorded on the blockchain, which makes it nearly impossible too corrupt.

How is Bitcoin Different From Fiat?

Bitcoin is known as sound money. Sound money has 5 traits:

Divisible- Can be divided into smaller parts without affecting its fundamental characteristics.

Durable- Can’t be destroyed and retains value over time.

Recognizable- Can be quickly identified and verified as authentic.

Portable- Easy to transport and store to facilitate long distance trade.

Scarce- Sound money should be rare and not easy to either obtain or produce. The bitcoin supply is limited to 21 million, and can not go over that.

How is Bitcoin Different From Other Crypto Currencies?

Bitcoin is the original crypto currency. The above traits can’t be said for most crypto currencies. Bitcoin is a crypto property, which means it’s beyond the control of any government or cooperation.

How to Get Started With Bitcoin

When it comes to individuals, the easiest route is to use a third party entity that allows you to sell and buy bitcoin. It also handles the exchange between fiat and crypto. I recommend Swan Bitcoin because it only uses bitcoin instead of the other currencies and also has a lot of great information on there. One thing to not that third party crypto entities still have access to your crypto. If you won’t more security on your crypto, you should set up a cold wallet.

Storing Your Bitcoin

When you store bitcoin, your actually storing your private key, which is the only way to access your bitcoin. Know one can access it unless they have this key, so it’s best to keep it private. Some people also create an encrypted seed phrase, which is a 12-24 regular words that are easy to memorize. I would also recommend a cold wallet instead of a hot wallet, which is a way to keep your private key in a safe at home.