What is "bitcoin"?

Hi,

I'd like to know what is "bitcoin" and how it works.. Please can someone explain me what it is?
I searched on internet but I didn't find an answer...

I've tried to look at it, but I didn't understand nothing..

Please can someone tell me what it is? The only thing I understand is that bitcoin is a sort of digital currency... But how can it be used?

I don't think very many people know. To the best of my knowledge it isn't very useful for any legal purposes.

Thank you, I'll take a look.

My main question is: is it legal?

Bitcoin is the worlds only currency not produced by a country but by anyone, it has lots of advantages over other currencies.

Its the only electronic currency that does not collect information of what and where you bought something (spy) on you.

Its the only currency online, that can not be chargedbacked. Once sent, it can never be returned. This makes it work like real cash.

Its the only electronic currency that you can own.

In order to understand Bitcoin you should also understand our current broken FIAT system.

When you have money in the bank, you have borrowed it to the bank for this you get an interest rate. The bank in turn is in reality speculating or giving out your money in loans. Since they do not have the money the show you when you login to your bank account the bank can crash if you and a few other % try to take out your money at the same time, thats just like a big Ponzi and its called fraktional reserve banking. When a bank crash, you get to pay the bank with your money (tax money) so they can give you your money.

Each time someone take a loan at a bank, the bank creates new money. This money that did not exsist before, they want you to pay it back with an interest!

Since private banks have been running this "scam" and creating "money" out of nothing for hundred years. This means that today, all "money" is to be payed back to a bank, its just borrowed from a bank.

Every single coin you have, someone have borrwed from a private bank. This is true in all countries all over the world.

The banks is a private system.

Bitcoin is different. Bitcoin is not a private system.

You can´t give out a Bitcoin that you did not allready have.
Bitcoin thus works like people think money should work.

With FIAT privatebank money, it can be endlessly printed. But for something to have value it must be of limited amounts.
Bitcoin is the worlds only currency that everyone knows exactly how much there will be. In that sence its much more real money than bankmoney.


The bitcoin system is programmed so that Bitcoins are awarded to those who contribute to the safty and to calculate transaction for Bitcoin network with their computer resources and anyone can contribute at any time.

This makes Bitcoin the worlds first democratic currency.
Compared to FIAT currency that only private banks can print or only a single country.

Since no new money is produced by loans. And since no new money is forever printed to help a certain country. Countries print money, so their money will go down in value to increase the export and also to get more tourists to visit the country.

Since all countries endlessly print new FIAT money to compete with eachother and since banks allways create new money when people/companies etc take loans. FIAT money allways go down in value. And you can notice it by the fact that the buyingpower of a currency is constantly less and less. Things like candy and food allways get more expensive. More money is needed to buy the same item.

Since Bitcoin does not need to be printed to cater for a countrys export.
It is the only currency in the world that can rise in value.

There will "only" be 21 million coins. Each coin can be divided into 100 000 000 pieces so a few coins could be enough to cover for the earth.

However the last will be made in 120 years so noone can own all the Bitcoins and if they did, they would not be worth much.

Since there is a limited edition. If in 10 years it gets the same value as Facebook stocks. Each coin will be worth around $5000 and if Bitcoin is used by 1% of the trades on the parallel market each coin could become worth $50 000. Thats a big if though.

However it is still somewhat of an experiment so dont put a fortune into Bitcoins. Not more than you can afford to lose.

But owning atleast a couple of coins could prove to be a good idea.

This fact that it can keep its value and go up, also makes it a longterm thing not a pump and dump. It really is a currency.

ECB the European Centralbank did a big report on Bitcoin in which they concluded that Bitcoin is not a Ponzi. In a Ponzi noone nows anything.

The worlds biggest publishing/blogging platform.

Wordpress wrote this about Bitcoin.
Pay Another Way: Bitcoin — Blog — WordPress.com

Everything with Bitcoin is open. In fact its the worlds most open currency system ever invented in the history of human.

No hidden printing by centralbanks, no hidden agendas. It just is.

Noone can change this. In order to change the system you would have to change the code and than get everyeone to agree to use this new code.

But since Bitcoin is opensource all changes are discussed in the open on forums than code is written than that code is looked at and tested by several coders some even anonymous. All this in the open. So its impossible to sneak any bad code into the bitcoin client software.

If you have a Bitcoin only you control it. Noone else can move it or borrow it.
This means that Bitcoin and cryptocurrencies are the worlds only digital currency that you can own 100%! Now think about the value of being the only electronic currency you really own.

Since Bitcoin is not owned by a private company, but by the users. There is allmost no transaction fee at all compared to creditcards, banking system etc.

If Bitcoin becomes big, it will increase 100-1000 times in value over the coming 10-20 years than after 20-30 years stabalize. Before doing so it will be a bumpy ride, but as it gets bigger and bigger it will be more and more difficult to crash its value.

If someone says its a pyramid scheme, they simply have not done their research or dont understand the system, or they might work at a competing payment system.

All currencies goes up and down in value (well they all go down in value constantly, but they do so at different speeds.)

An example. If you get $100 worth of Bitcoins, now you buy $100 worth of goods.

You have not lost a dime. The only one who lost out was the bank/creditcard/paypal system that could not take a cut to make profit for their owners.

The world also needs a neutral currency for trade, that does not belong to a single country, can not be controlled by anyone. A currency that everyone knows how many there are, and how many there will be.

thank you man :) Really helpful!