Earn interest on bitcoin
What is Bitcoin from A to Z in simple terms. Theory and practice
In this article, we're going to give you as short and simple an introduction to everything about cryptocurrencies as possible. You can print this text and show it to your grandmother, who asks "Grandson, why do they keep talking about Beethoven? He died a long time ago! What other money?". We have a treasure trove of knowledge on our website - The Cryptocurrency Bible, it contains all the information you need to understand what cryptocurrency is, how to invest, how to mine and so on. All materials are written in simple language, but not everyone wants to delve so deeply into the issue.
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This text is unique because we have "dug through" a lot of information and give it to you in plain language. Stephen Hawking, who wrote a book on the complex aspects of the universe and the structure of the universe A Brief History of Time Without Mathematical Formulas, has previously succeeded in doing so. They say that a certain scientist wrote a book on physics for the Smolny Institute for Noble Maidens without any formulas. Let us also try to repeat their success, not in physics, but in modern finance, or even more correctly, in the finance of the future.
The cryptocurrency bible of blockchain
The Cryptocurrency Bible
Throughout the narrative, we will link to articles in the Cryptocurrency Bible that we've discussed above, should you want to delve into any aspect of cryptocurrency and understand it in detail. There are some simplifications in the text that you can "pick on" - we don't mind at all. All comments are welcome on the Two Bitcoins Telegram Chat.
Content
1Bitcoin - the first and foremost cryptocurrency
2What is cryptocurrency, who runs it? Can I touch Bitcoin?
2.1Bitcoin - electronic money
2.2How many Bitcoins and roubles are there
2.3Who manages currencies?
3How does Bitcoin work? How is the transfer of regular money and Bitcoins arranged. What is mining and why is it needed?
3.1Transferring rubles
3.2Transfer of Bitcoins
3.3What is blockchain?
3.4What is mining
4Use of Bitcoin and other Cryptocurrencies
4.1 Where and how can cryptocurrencies be used?
5Holding Bitcoin
6Paying, buying, selling, exchanging Bitcoin and other cryptocurrencies
6.1 Is Cryptocurrency Legal in Russia?
7Mining
7.1Mining Equipment
7.2How hard is it to start mining?
8 Putting Knowledge into Practice
8.1You decide to become a Crypto-currency Investor
8.2You decide to become a cryptocurrency miner
Bitcoin - the first and main cryptocurrency
There are thousands of cryptocurrencies. The first cryptocurrency to emerge is Bitcoin, in English Bitcoin, short for BTC. In this article, for simplicity, we will mainly talk about Bitcoin.
All other cryptocurrencies are clones of Bitcoin. They have been fully or partially copied, somewhere new ideas have been added. This is possible because Bitcoin's programming code is open to anyone - it's no secret. Anyone in the world can see how it is set up and works.
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Search for lost bitcoins
The Bitcoin code is on GitHub in the bitcoin repository.
Don't understand anything about programming? Don't worry, the authors of this article don't understand either, but that doesn't stop you and me from using cryptocurrencies.
By the way, here is the first caveat. You and I have to take on faith what the programmers who invented Bitcoin did. Should we be afraid of that? You shouldn't. You don't know thoroughly how your car is set up one by one, or how the computer in it works, right? It's the same here. Programmers all over the world are eager to find any flaw in the Bitcoin network, so, believe me, if there was a bug, they would have found it long ago. We just trust the professionals who built our machine and tested it, it is the same with Bitcoin: millions of programmers all over the world read and study Bitcoin code every day.
What is cryptocurrency, who runs it? Is it possible to touch Bitcoin?
Bitcoin - electronic money
Judging by the name "cryptocurrency", you know very well that we are talking about money. Only this money is "crypto", which means it is encrypted in some way. What and how it is encrypted is of no interest to us at the moment. Let's consider that cryptocurrency is electronic money.
What do you mean by electronic money? Look, normal currency is printed (bank notes) and electronic (bank account). When you transfer money from your account to a friend's account, when you pay a utility bill through an internet bank, when you pay with a bank card in a shop - in all these cases you don't see money. It is somewhere virtually on some computer server. You can't see it and you can't touch it with your hands.
bitcoin
Bitcoin has been around for more than twelve years.
You can go and withdraw 5 thousand rubles at an ATM from your bank card and put it under your pillow. In that case, your electronic virtual money will become real. You can touch it, admire it, hang it on your wall. In the case of Bitcoin, you can't do that. You can't go to a cash desk, cash out Bitcoin and put it under your pillow as some kind of BTC coin.