Can someone explain bitcoin to me in layman's or children's terms?
I keep hearing about it, but can't grasp what the heck it is.
- JohnLv 54 months ago
Forget that it is supposed to be money, that begs the question what is money?
Bitcoin is a means of exchanging information in a safe manner, that can only be read by someone being given the code to read that information.
Information can be used as a currency?
People have then speculated on the price hence its sudden rises and falls.
- OiyLv 56 months ago
It is a coin on the internet without any control by any central bank around the world. So it is a real concept of the free money market. It is said to be invented by Satoshi. But what's the heck.
- ElizabethLv 76 months ago
I give you ten dollars for a book. You take the ten dollars as payment. I am down 10 dollars ... you are up 10 dollars.
Now imagine I wanted to do that digitally. I give you 10 Lizcoins from my digital account and get an online book, and you receive 10 Lizcoins into your digital account.
But the problem is, because it is digital, I just copied 10 Lizcoins I'd used before to buy other books. Haha!! Fools!! I'm reusing the same Lizcoins over and over!
But what if we had a record of all the Lizcoins in digital circulation? Every time I used or transferred a Lizcoin, that record gets updated and attached digitally to the Lizcoin. You could check the record to see if I've used the Lizcoin before.
But what about other people? Rather than just you getting that record, everyone using Lizcoins gets the record. Now I can't use it more than once because they all have a record it was used before.
Let's suppose some people decide to check the records to make sure everything tallies up. If you check it all out and make sure the Lizcoins aren't being abused ... we'll give you new Lizcoins for your effort.
That's basically how it works.
- ZirpLv 76 months ago
It's almost the same as regular money, except there are no bills or coins, and it's completely based on faith instead of just 99.9 %.
Another difference is that there's a maximum amount of bitcoin, so no way for banks or anybody else to create trillions of them