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Welcome to Bitcoin Basics Lesson 9: Bitcoin Exchanges In Lesson 8, we explored the world of mining and the process of adding and confirming transaction records to the blockchain. This process is also how new bitcoins are created. You learned that mining is a resource-intensive process and how nowadays it is mostly done by specialized mining computers in large data centers. In Lesson 9 you will learn: More about bitcoin exchanges and the importance of finding one that suits your needs The initial ID verification can take a few days, but after that you can usually buy or sell bitcoin instantly A few tricks to help you determine how serious and secure an exchange is by checking for basic things like SSL encryption, two-factor authentication About Exchanges Most bitcoins are bought and sold through online services called exchanges. Knowing how to buy bitcoin is an essential first step in getting started with the digital currency. However, knowing which bitcoin exchange to choose i...

Welcome to Bitcoin Basics Lesson 8: Bitcoin Mining.  In Lesson 7, you learned that there are over 100,000 merchants out there who accept bitcoin as payment and how to find them. You learned how to sign up for a bitcoin debit card to use bitcoin as payment in just about any store that accepts regular credit cards. You also learned about best practices and how to avoid fraud when spending your bitcoin. Today, you will learn that mining is the process of adding and confirming transaction records to the blockchain. This process is also how new bitcoins are created. You will learn that mining is a resource-intensive process. Aditionally, nowadays mostly done by specialized mining computers in large data centers.   Transactions on the Blockchain Today’s lesson is all about the blockchain, mining, and how new Bitcoins are generated. Remember the previous lesson where you learned how the blockchain is the public ledger that records bitcoin transactions? Here’s a quick recap: The b...

Welcome to the Bitcoin Basics Lesson 7: How to Spend Bitcoin! In Lesson 6, you learned that bitcoin can be sold and purchased just like other currencies through exchanges. You also learned that you can exchange bitcoin with people directly, just like with cash. In Lesson 7 you will learn: Many merchants accept bitcoin as payment How to find places that accept bitcoin payments How to use bitcoin debit cards as payment in any store that accepts credit or debit Where to Spend Bitcoin Spending bitcoin is very similar to spending traditional money. However, since bitcoin is not yet universally accepted, you just need to select stores that accept it. Luckily, there are a bunch of them! Recent figures show that the number of retailers accepting bitcoin has now surpassed the 100,000 mark. As more countries continue to recognize bitcoin as a legitimate form of payment, these figures will continue to rise. The best way to find bitcoin-friendly merchants is by browsing online marketplac...

Welcome to the Bitcoin Basics Lesson 6: How to Buy Bitcoin! In Lesson 5, you learned that bitcoin transactions are not encrypted and can be viewed by anyone using a blockchain browser. You also learned transactions need to be verified by miners on the blockchain network, who are then rewarded with bitcoins for verifying and timestamping the transactions. In Lesson 6 you will learn: Bitcoin is sold and purchased much like other currencies through exchanges using a credit card, bank wire, Paypal, etc. You can also exchange bitcoins for goods and services with people directly, just like you would with cash. Buying Bitcoin and How Exchanges Work Bitcoin can be bought and sold from various sources, online and offline, like any other currency. You can purchase BTC online directly with a credit card, or use an exchange or brokerage service that will enable you to buy bitcoin via a bank transfer. Some applications also offer buying and selling bitcoin with PayPal and other online paym...

Welcome to Bitcoin Basics Lesson 5: Transactions and the Blockchain In Lesson 4, you learned that there’s a wide range of wallet solutions available to you as a consumer. You also learned that bitcoin wallets do not actually store bitcoins, but rather they store the private and public keys used to handle your bitcoins. In Lesson 5, you will learn: A bitcoin transaction is a transfer of value via the Bitcoin network Bitcoin transaction records are not encrypted Transactions can be viewed by anyone using a ‘blockchain explorer’ Transactions must be verified by miners on the blockchain network Miners are rewarded with bitcoins for doing verification work Bitcoin Transactions on the Blockchain The blockchain is a public ledger where every bitcoin transaction is recorded. The ledger is maintained by a network of communicating computers running bitcoin software. It operates without any central authority. Transactions are sent to this network using wallet applications. Minin...

Welcome to Lesson 4. Today is all about how to safely store your Bitcoin (BTC) in a bitcoin wallet. Yesterday, you learned that bitcoin has its value set by the laws of supply and demand and that prices are easily influenced because of Bitcoin’s relatively small, steadily growing distribution. You also learned that Bitcoin's total supply cap of 21 million affects the price. In today’s lecture, you’ll learn that there’s a wide range of choices when it comes to bitcoin wallets. You will learn that bitcoin wallets do not actually “store” or “hold” bitcoins. Rather, wallets store your private keys needed to handle the bitcoins you own which are stored on the blockchain ledger. Wallets As mentioned above, you’ll need to get yourself a bitcoin wallet to store the private keys necessary to access your bitcoins. Wallets are often described as a place to hold or store bitcoins, but your bitcoins are actually stored on (and are inseparable from) the blockchain transaction ledger....

Welcome to Bitcoin Basics Lesson 3: Bitcoin Exchange Rates In Lesson 2, you learned that bitcoin is pseudonymous rather than anonymous and that you can make use of a wallet to protect and access your money. You also learned that bitcoins are stored in a public ledger called the blockchain, and that you can buy bitcoins on exchanges, with a credit card, or by using ATMs. We explored how bitcoin isn’t printed like regular money; it’s discovered, or ’mined’, by a network of computers worldwide. In Lesson 3 you will learn: Bitcoin has a value set by the laws of supply and demand Because of its current adoption phase and limited distribution, exchange rates are often influenced by news Bitcoin has a fixed supply that is limited to 21 million units total Bitcoin's Value How is the value of bitcoin determined? Well, all currencies and commodities have an exchange value, agreed upon by the seller and buyer. Bitcoin is a currency because it is a limited medium which people have agr...

Welcome to Bitcoin Basics Lesson 2: Essentials of Bitcoin   In Lesson 1, you learned that Bitcoin is a decentralized cryptocurrency invented in 2009 by Satoshi Nakamoto and that it can be freely transferred between people all over the world, without the control or the limitations imposed by conventional payments through banks or government authorities. In Lesson 2 you will learn: Bitcoin isn’t 100% anonymous Bitcoin wallets are used to protect and access your money Bitcoins are stored in a public ledger called ‘the blockchain’ Bitcoin isn’t printed like regular money, it’s discovered, or ’mined’, by a network of computers worldwide Authority and Anonymity As mentioned in Lesson 1, Bitcoin is not controlled by any third party. It's the first decentralized peer-to-peer payment network and it’s solely powered by its users. Bitcoin awards you freedom from government control, but at the same time it’s your own responsibility to safeguard your money. There’s no formal entity to...

In Lesson 1 you will learn:  Cryptocurrencies are decentralized digital currencies secured with cryptography Bitcoin is the top cryptocurrency due to its first-mover advantage Bitcoin was created by Satoshi Nakamoto Bitcoin is only in its infancy period with huge growth potential Why cryptocurrencies? Cryptocurrency is a new type of digital money used to exchange agreed-upon values. It is just like regular currency, except it uses cryptography to secure transactions and control the creation of its native currency. In centralized financial systems—such as the U.S. Federal Reserve system—government and banks control the supply of currency. They essentially "print" units of this currency, which is called fiat. When centralized entities operate in this fashion often times the "fiat" system can be inflationary. By contrast, a lot of cryptocurrencies like bitcoin have a capped supply, although some digital assets do not. This means currencies like bitcoi...