What Is Bitcoin and How Does It Work?


– – What is bitcoin? In this video, we’re gonna talk about what
is bitcoin, how it is created, where you store it, when it was created, and everything you
need to know about bitcoin. Check this out. All right, first of all, when was bitcoin
created? In 2008, someone, we don’t know if it’s a
man or a woman or who they are, even if it’s their real name, but Satoshi Nakamoto put
a paper up on the internet that describe the idea of bitcoin and the blockchain where bitcoin,
I guess you could say, resides. Bitcoin is a decentralized currency. What does mean? Think about it this way. If I wanted to pay you some money, I would
have to send that money through our bank. The bank is the middleman. Well, a decentralized currency, there is no
middleman, there is no government in between me and you. We are the currency. Bitcoin is a decentralized currency that runs
on technology known as the blockchain. Once bitcoin is exchanged or transferred to
somebody else, that transaction is verified by a miner and when the miners verify a certain
amount of transactions, they will actually earn bitcoins. Bitcoin was the first decentralized digital
cryptocurrency and one of the reasons for its success, it has low fees whenever you
transfer it, it can be in any country, your account can never be frozen. It is an exciting, exciting time. Bitcoin is a digital currency. It doesn’t actually exist. You can’t hold it in your hand. It’s only electronic. It is a digital currency. And unlike currencies produced by governments,
also known as fiat currencies, there is a limited supply of bitcoin. This means when your government wants to print
more money, they can just go print it and printing more and more and more money, sometimes
that will devalue the currency. One thing that has made the value of bitcoin
skyrocket is there is a limited supply. There will only be 21 million bitcoins ever
in existence. The last bitcoin will become available in
the year 2140, so we got a while. Now next, how are bitcoins created? They’re created through a process called mining. Just like gold miners will go and they will
mine in the mountains to get gold, bitcoin miners will mine on their computers to get
Bitcoins and this is done by setting up your computer and having it solve complex math
problems around the clock and whenever those problems get solved, you earn a bitcoin. Now in the early days, you could mine on your
laptop and everything was fine but now it takes much more energy and larger computers,
so it’s really not feasible, unless you have larger computers and access to very cheap
electricity. Now, if you don’t wanna mine bitcoin, how
can you get it? Well, you can just flat out purchase it, and
that’s what I do. Coinbase is a location online where you can
purchase bitcoin. It’s where I go. It’s what I have found to be the most trusted,
secure, and safe place to get bitcoin. Down below in the description, I have a link
set up where you can click that link and you can start purchasing bitcoin right away. Click that link. Now next, once you purchased your bitcoin
on Coinbase, where do you store it? You have a couple choices. You wanna typically take it off the exchange
and put it in something that’s more secure that you hold the security for. You could put that in a digital wallet, which
may be stored on your computer or even on a device that you plug into your computer. You can even store it in what is called a
paper wallet and what this is, is where you literally, on a piece of paper, print out
the details of your bitcoin with the password on that paper. Don’t lose that paper. Now, what keeps bitcoins safe? Everyone has a public key and a private key. Think about it this way. Think about it like a post box and you have
a letter that you wanna put in the mail. You can put that letter in the mail. That is like a public key. Anybody can put letter in that mailbox. Now, the private key would be owned by the
postman. Only the person with that private key can
get the mail out. So, everybody has a public key and that means
anyone who has that public key can put bitcoin in that address, just like anyone can put
mail in the mailbox, but only you have the private key to your bitcoin mailbox and only
you can withdraw the funds. Never let anyone get that private key. Recently, an internet marketer had a video
going and in the background on his computer, he had his private key displayed. Somebody zoomed in, got that private key,
and took over $15,000 of bitcoin from him. Do not let people get your private key. And here is an interesting fact about bitcoin. The first time bitcoin was ever used to purchase
anything was May 22, 2010. In a bitcoin forum, Laszlo Hanyecz offered
someone 10,000 bitcoin to order him a pizza. Someone took him up on that offer and they
ordered him two Papa John’s pizzas equivalent to about $25 in exchange for 10,000 bitcoins. Today, those 10,000 bitcoins would be worth
over $25 million. All right guys, so I’m sure you wanna get
some bitcoin. Even if you just wanna get a very small amount,
go ahead and get started right now. Click the Coinbase link below. This is the best place for you to get started. Click the link below. It’s the best link, and get started today. If you liked this video and if you learned
something and you want me to do more videos on bitcoin and cryptocurrency, give me a Like. If we get 1,000 Likes, I will do more videos
on bitcoin, how to make money with it, how to trade it, but I gotta get 1,000 Likes. So if you learned something and you want me
to do more, click the Like button now. And finally, subscribe to this channel. You don’t wanna miss our videos. We got new videos coming out every week and
you need to get the new ones. Come on, click the Subscribe button. What are you waiting for?

100 thoughts on “What Is Bitcoin and How Does It Work?”

  1. So if there is a finite amount if Bitcoin, and it is calculated to be available at a specific date, and the only way to make a Bitcoin is to solve a mathematical problem, does that mean all remaining mathematical problems are solved by that date? That doesn't seem to make sense. Someone help me follow the path of logic on this please.

  2. https://www.coinbase.com/join/5a3364ddde5e3701c2476352 u can use this link to sign up for a coinbase bitcoin account and the time you transfer 100$ you and me will both get 10$ of bitcoin please accept my request friends

  3. A Bitcoin is a serial number associated with certain part of a blockchain, which, in turn, is simply a digital ledger of transactions. Pretty much the same as a page number on an old fashioned paper ledger. There will be 21 million blocks (pages) and 21 million serial numbers in this particular blockchain. After that, the program with seize to exist as it will not be able to record any more transactions. It is a clever computer game to sell digital serial numbers for money, but is is not indefinite, and it is not currency. There is a reason why the creator wants to remain anonymous – once people realize how they are being fooled, what do you think they would want to do with this guy?

  4. I won $13,000 Bitcoin and what do I do? Can I exchange it for real money?

  5. So Bitcoin was basically just a bullshit made up coin worth nothing back then in 2008 it had nothing to back it up no true value then some how now its worth thousands of dollars how did it get it's value

  6. From what I understand Bitcoin had no value it was worth nothing till one Guy sold a pizza in exchange for bitcoins lol that's how it gots it's value and now it's worth thousands of dollars how did the government let this shit happen that's why the guy or girl that created it no one know how the fuck it is bc they sold you a internet coin that at the time had no value no way to back its worth my god I can't believe this became a real thing it's like me making a make believe coin I'm going to call it kikicoin and I will sell it to you for a dollar for 10,000 kikicoins then it's your job to find a dumbass that will pay you two dollars for 10,000 kikicoins it wasn't real it was just an idea to see how much would people pay it wasn't a company it's wasn't a product it was just a make believe coin lol I can't believe this became real the guy that started this at the beginning had all the real money and sold y'all made up bitcoins numbers which he made millions of fake bitcoins numbers that was just an idea of money to sell

  7. hello am so so happy when i received 6000 bitcoins in my wallet so glad because i just started with just 1500 bitcoin thanks bitcoins fiends you can looking up to this man call agent young hes really trustfully man he can help you get a lot of bitcoins

  8. This is a better explanation than I have seen . not 100% on it but got the idea . thanks but its said it can't be held in your hand like money but wt about when you store it and print it on paper with the password like you said can that be a form of currency can you trade that 4 something else of value

  9. Let say how is Satoshi Nakamoto
    Way Satoshi Nakamoto see face promotion bitcoin
    See olny face of jews promotion bitcoin
    Satoshi Nakamoto fake use by Zionist..

    Bitcoin use to change dollar to bitcoin
    Same like gold replace use petrol dollar.
    Isreal try down american economy
    Now play use replace dollar to bitcoin

  10. No middleman? What? Do you hold the coin in your hand? No! Do you control the internet? No! Do you actually have your capital insured? No! ………

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  13. I EONT UNDERSTAND HOW IT EVEN HAS A VALUE ITS NOT REAL IT DOESNT EXIST ITS JUST A DIGITAL CONCEPT HOW IS IT WORTH ANYTHING PLEASE EXPLAIN UHGUHREUI

  14. This is just called blackmail scam. Bitcoin is information that holds information about people. They sell the information to government and blackmail other people.

  15. Funny how no one knows who created or came up with it. They are reworded it so it sounds pleasant to other. And mining please you are hacking into people information. That's why they have a code. Which contains information. The information is valuable to someone who can use it against others.

  16. Bitcoin is a virtual commodity and not a currency created through the NSA by unknown developers to us. All transactions are routed through the central authority of bitcoin, the NSA. There is absolutely no anonymity with bitcoin, all users information and identities are know to the NSA and stored at the NSA data facility in Utah. NSAs Back up and recovery is thought to be located in Iceland where there is an abundance of hydro power and geothermal energy . Bitcoin is decentralized from its centralized control in Utah to nodes around the world. Corporate Branches from the nodes are currently being developed i.e. Lighting Network.  To purchase bitcoin with dollars you can go to a third party; they are called exchanges and some charge fees. Currently bitcoin can process 7 transactions per second world wide. The NSA has total oversight and control over your bitcoin bank account. There is no limited supply of bitcoin; it is divisible infinitely with the simple change of code as authorized by the NSA. When you buy bitcoin you make a private key in your mind and you give that private key to the NSA to have access to your bitcoin which is stored ultimately on a node of the mainframe. As more information can be confirmed, the definition will be added to. Got your bitcoin?

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  19. i just invested a $1 into bitcoin. i am new to investing so i am trying see how it works before sowing alot od money. hoping it goes well

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  21. This still doesn't explain in detail what is a bitcoin and how much is one worth in actual currency? Plus I'm just getting into Bitcoin and I wanted to know how many points your need to get a whole bitcoin? 0.000010 👈🏾 does this mean I have 10 bitcoins?

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  23. In simple terms, Bitcoin is a digital representation of money. It has value because we give it value. Just like we do (our government does rather) with the dollar today, considering our dollars are no longer backed by the Gold Standard. The scarcity obviously affects the value, as does the demand for bitcoin. The demand is essentially created by people being convinced it's worth using/buying. The blockchain is simply a public ledger of transactions made. The reason Bitcoin is a "big deal" is because it is decentralized and completely digital.

  24. It took me 4 minutes to register and buy crypto on Kriptomat. I didn’t find a faster exchange exchange yet, and they offer a lot of different cryptos.

  25. Ok so awesome video and well explained . So my question is can you ever ever ever cash those 25 million dollars ? Would a bank accept it ?

  26. In just about 12 months, btc has made a drop of over 80% from a peak of $19,800 to less than $4,000 and I wonder how silly those that kept talking of $100,000 and more look now. Seriously, how much more evidence do we need that cryptocurrencies are purely speculative bubbles that are best treated as such and milked at the moment? The only space for investing is in real companies doing actual business with real currency valuation. My forecast for the long term value of bitcoin is 0$, 0€, 0£, 0¥. Don’t get me wrong, I'm not a crypto hater infact, I'm above average financially but I still have a strategy which I implement with which I make a minimum of $30,000 monthly for a couple of months already. Even though I get assistance from Mr Connor Montgomery with trade strategies and signals, I still trade on my own so I don’t have to grant anyone access to my trade account (funds). What I do is seek his opinion on the markets as he is a very seasoned analyst and trader and then I use his signals which are very simple to use in placing trades and in the process, I learnt a lot from him. You can contact him ([email protected] com) if you need his assistance too. A word of caution, never mix emotion with coins if you want to succeed and you have to be brutal as well i.e sell, buy, and trade when you have to following the rules and always seek help if you are not already a master trader and are not making good and consistent profit on your own already.

  27. I started following the Bitcoin revolution in August 2017 after learning about it in seminar I attended that was invited by my friend and so last year I decided to go into it by buying 6BTC when Bitcoin was at $14,460 with the hope that it will amount to $50,000 per BTC according to prediction of 2018. I kept it in my wallet hoping for it to rise high so that I can gain massively from my investment but it turned out to be that reverse was the case and my investment keep declining and so I was a bit worried and was trying all means to recover my investment by trading in different market and I lost close to 1BTC. I decided I won't trade again and have to go into deep intensive research and I found a beginners trading post which talks about strategies on how to trade and make profit and I was like how is it possible? But I decided to give it a try and contacted the person in charge Mr. Dominic Connorr who now explained to me the different ways to make profit in this bearish market. So I invested 2 BTC of my coin in November 2018, and it quickly rose to 6 BTC towards the end of December 2018, and I was convinced that I have finally found the best way to make good profit from Bitcoin. If you're still confused about the steps to take this year I urge you to contact [email protected] for all your cryptocurrency questions, strategy and beginners coaching and how he can equally help you get started to financial freedom.

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  30. Buying bitcoins is pretty easy but what to do with it then is usually the part laden with so much questions and options. The popular one being buying and holding for long term profit. This strategy in itself may not be a bad idea but possibilities for sure and even more profit exists through trading as noted by a few of the best traders and content providers on youtube and other forums. I have made substantial profit in the bear market when everybody complained and i am poised to make even more now its quite certain the bulls are about to take charge and the beauty of trading is that, even if there is a correction and the value of the bitcoin reverses and declines, i would still profit off it. Though i am not even close to the best of traders, i do this by being smart and utilizing the trade assistance of a very successful trader who provides strategies and signals for new and old traders. I have been using Mrs. Helena system for quite a time now and have never been disappointed as my profit is on the steady. I suggest her to anyone ([email protected] or WhatsApp/call: +447427424057) who may need some guide to make better and consistent profit from cryptocurrency . Meeting Mrs. Helena is an eye opener to the real business of crypto and i wish more people would be exposed to trading for profit instead of waiting for blindly based on inaccurate predictions

  31. somebody used this in philippines but the government force close coz they think it is scam and we did a pray rally it’s very sustainable 10M people 30%.

  32. Now that the bitcoin is at its current level , it is advisable that all we have to do is invest what we are holding and make more profit , so we don’t feel the loss in the fall of price when it happens again. I met with james, an honest crypto expert who is versed in Cryptocurrency mining, investment and private key hacks! I worked with him and behold his strategy are genuinely beyond imagination, if you have lost so much during the shortfall or you want to increase your portfolio like me , Y’all can reach out to him through his email
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  33. 1) What are these "math problems" that bitcoin miners solve? What is so important about these math problems?
    2) Why do people get paid for "verifying" other people's bitcoin transactions?
    3) How do you "cash in" bitcoin?
    4) Money is supposedly backed by gold and maybe other materials. It is also regulated by people's services; in other words, I do something for a fellow member of society, like selling him a tomato or teaching him chinese, then that member or somebody he deals with, such as my employer, pays me. As for bitcoin, how has this currency grown into something? What kind of services or products were performed or made as trade for this make-believe currency? Explain how this thing gained any traction. I can't imagine "bitcoin mining" as being the thing that jump-started bitcoin.
    5)Why is there "only" 21 million bitcoin in existence? How can a make-believe currency be incapable of multiplying if it's as intangible as the internet? How can it be incapable of multiplying if so much of it is still not 'mined'???

    This speaker is very charismatic, but his explanation is so full of holes, I feel like I just watched a flat-earther invite me to join him in bungee-jumping off the edge of the world when there's no edge.

  34. Investing in bitcoin is the fastest way to attain great wealth when you invest with a legit paying platform that guarantees profits both daily and weekly. It would be adviceable to start small especially if you are a beginner and you are scared of the risk involved. For those that have been trading with legitimate platforms, it’s better you invest with 50% to 75% of your profit because bitcoin will be a diamond price this December till the end of the year. Don’t miss this mind blowing opportunity. Contact Mr. Jacob Henderson for more info Email: [email protected]

  35. I have been scam so many time I saw a post of Sarah talking about Philip I message and Invest with him and he help me to generate 8BTC into my wallet address text him on WhatsApp +1 (239) 579‑6274 he really changed my life Don’t give up on bitcoin he’s the best I have met on here

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