1. Physical Bitcoins are a bit of a novelty.
Bitcoin, often described as a cryptocurrency, a virtual currency or a digital currency – is a type of money that is completely virtual.
It’s like an online version of cash. You can use it to buy products and services, but not many shops accept Bitcoin yet and some countries have banned it.
The physical Bitcoins you see in photos are a novelty. They would be worthless without the private codes printed inside them.
2. How It works.
Each Bitcoin is basically a computer file which is stored in a ‘digital wallet’ app on a smartphone or computer.
People can send Bitcoins (or part of one) to your digital wallet, and you can send Bitcoins to other people.
Every single transaction is recorded in a public list called the Blockchain.
This makes it possible to trace the history of Bitcoins to stop people from spending coins they do not own, making copies or undo-ing transactions.
3. How Do People Get Bitcoins?
There are three main ways people get Bitcoins.
You can buy Bitcoins using ‘real’ money.
You can sell things and let people pay you with Bitcoins.
Or they can be created using a computer.
4. How are new Bitcoins created?
People build special computers to generate Bitcoin.
In order for the Bitcoin system to work, people can make their computer process transactions for everybody.
The computers are made to work out incredibly difficult sums. Occasionally they are rewarded with a Bitcoin for the owner to keep.
People set up powerful computers just to try and get Bitcoins. This is called mining.
But the sums are becoming more and more difficult to stop too many Bitcoins being generated.
If you started mining now it could be years before you got a single Bitcoin.
You could end up spending more money on electricity for your computer than the Bitcoin would be worth.
5. Why Bitcoins Are So Valuable.
Bitcoins are valuable simply because people believe they are.
There are lots of things other than money which we consider valuable like gold and diamonds. The Aztecs used cocoa beans as money!
Bitcoins are valuable because people are willing to exchange them for real goods and services, and even cash.
6. Why do people want Bitcoins?
Some people like the fact that Bitcoin is not controlled by the government or banks.
People can also spend their Bitcoins fairly anonymously. Although all transactions are recorded, nobody would know which ‘account number’ was yours unless you told them.
7. How Secure Is It?
Every transaction is recorded publicly so it’s very difficult to copy Bitcoins, make fake ones or spend ones you don’t own.
It is possible to lose your Bitcoin wallet or delete your Bitcoins and lose them forever. There have also been thefts from websites that let you store your Bitcoins remotely.
The value of Bitcoins has gone up and down over the years since it was created in 2009 and some people don’t think it’s safe to turn your ‘real’ money into Bitcoins.
The Miss Universe-Greatest Celebration of Women
-SOFIE ZERUTO The Miss Universe Organization is a global, inclusive of organizations that celebrates all cultures, backgrounds and religions. It creates and provide a safe space for women to share their stories and drive impact personally, professionally, and philanthropically. The women who participate in this…
All Africa Music Awards; Categories and Regions
-MUSIC IN AFRICA All Africa Music Awards (also referred to as AFRIMA) is an annual awards event. The awards event was established by the International Committee AFRIMA, in collaboration with the African Union (AU) to reward and celebrate musical works, talents and creativity around the African continent while promoting…
African Acts And The Grammy Award
-FUMILAYO KANMODI African music is now getting much-deserved recognition, and talented stars have been rewarded for their hard work. One award many covet has always been the Grammy Award, and we have had African acts that have received the award. In our little way of…
Nigeria’s Former Jonathan Tells African Leaders To Put Humanity First
Joke Falaju, Abuja Bags African Heritage awardFormer President Goodluck Jonathan has urged African leaders privilege to hold public offices to become servants of the people, and not turn themselves into the “bosses of the people”.Jonathan stated this while receiving the African Democracy and Peace Icon…
The Risk And Reward Of ChatGPT In Cybersecurity
Juan is an experienced CTO with a demonstrated history of working in the computer and network security industry. He is an information technology professional skilled in SAP and Oracle applications, computer forensics, vulnerabilities research, IPS/IDS and information security. Unless you’ve been on a retreat in…
Explained – History Of Money From Fiat To Crypto
What is money? Money as a concept has been a cornerstone of human civilization and economic development. To start with the latter, money is a method of storing value and worth, and it also functions as a medium of exchange that allows individuals to exchange…
Studies Show That Nigerian Crypto Foreign Investment Is At A Record Low
Foreign direct investment in Nigeria fell by 33% last year due to a severe shortage of dollars, which discouraged crypto companies from expanding into the country. The largest economy in Africa has a foreign investment problem despite exponential growth in crypto adoption. The National Bureau…
Growing The Bitcoin Development Ecosystem In Africa
– Abubakar Nur Khalil | Bitcoin Magazine Bitcoin development in Africa, with a proper regulatory environment, could equally accelerate the continent and the technology. In this piece, we’ll be analyzing the current state of the Bitcoin developer ecosystem in Africa, ways to improve it and…