10 Things to Know About Bitcoin
- Facts about Bitcoin
- What is it?
- How does it work?
- Where did it come from?
- Why does BTC have value?
The only reason why you feel overwhelmed by things like this is that people are making it too complicated. Do you know exactly how your computer or smartphone works? No. You have an idea, but you simply use it without worrying. There’s no stress. This fantastic thing about letting go of your anxiety and just learning a tiny bit about anything is that you jump into a world where you are open-minded, confident, rational and more than likely, you are smiling.
Let’s do the same thing with Bitcoin. Welcome to being comfortable with cryptocurrency. And now you can have your mind blown. Here it is:
Bitcoin Can Be Bought In Small Amounts
In fact, it can be bought in very small increments. Everyone thinks, “I can’t afford a whole Bitcoin.” The strange thing about that statement is that nobody said you had to buy a whole bitcoin, you just assumed it. Most people when they buy their first amount of cryptocurrency, spend as little as $50 or less in their local currency. You could buy even less, but this is an area many people start so they can kick the door down and take the first step into the world of cryptocurrencies.
So how does this work? How do you buy small parts of Bitcoin? Bitcoin is broken up into smaller parts called “Satoshis”. So the smallest part of a Bitcoin is represented as 0.00000001. To find the value of that, take your local currency, and multiply it by that decimal. So if Bitcoin is valued at $8000, then 0.00000001 Satoshi = $0.00008. In other words, with Bitcoin valued at $8000, the smallest increment is 1/125 of a penny. Don’t forget to convert from your desired currency. Don’t mix up CAD, USD or another currency value.
There, you made it. That one paragraph is the most complicated part that you need to know about Bitcoin, and it also applies to cryptocurrency. How are people reacting to learning these few details? They love it. People are feeling empowered to learn about crypto and blockchain technology. We are all learning how these industries are tying into physical assets, all for many financial and technological benefits.
I recently went to lunch with a friend of mine named Andrew to celebrate the start of his business which was five years ago. He was asking about Bitcoin, and we talked for a bit about these same details. By the end of lunch, we noticed a Bitcoin ATM in the restaurant. We set up a Bitcoin wallet on his phone, he put $20 in the ATM and bought his first fraction of a Bitcoin! It took just a few minutes. Andrew said to me “This is the best lunch I’ve ever had”, and he wasn’t talking about the food or my company. It was the feeling of empowerment, knowledge, and opportunity.
I’m sure that if all people knew this small amount of information, they would have the same positive feelings. The next question is: Where and how can you buy cryptocurrency in large amounts? There are so many places that you can do this. You can buy from friends, acquaintances, online exchanges, but you may want to buy from a local broker. They have many more answers that you may need or want to start your first purchase.
Beyond this first step of understanding, this is something that the world is beginning to embrace like any new technology before it. Think about how television, computers and cell phones changed the world. Then think about the fact that it took some time to adopt these things. With that in mind, it sure is the time of opportunity to learn about cryptocurrencies now and not in the future.
By Ross Macdonald Blockchain Business Magazine Inc. 2018