GrowTheHeckUp Articles on Bitcoin:
Bitcoin and Cryptocurrency on GrowTheHeckUp: http://growtheheckup.com/bitcoin
Why You Might Want to up Your Cryptocurrency Game | GrowTheHeckUp
The Cryptocurrency Market Compared to the Stock Trading System | GrowTheHeckUp
Floyd “Cryptocurrency” Mayweather Invests in Blockchain Technology | GrowTheHeckUp
Wu-Tang’s Ghostface Killah Launches Cryptocurrency Firm | GrowTheHeckUp
It’s difficult ot see the value in bitcoin if you dont understand why the money we have in the rest of the world isn’t that good as money. -Adam B. Levine, Host of “Let’s Talk Bitcoin”
“Central authorities and money are traditionally used as levers of power to inflate currency causing it to lose power, which is essentially a form of confiscation or hidden taxation when your savings account depletes in its purchasing power because a central government is printing money to finance its own activities.” -Andreas Antonopoulos, bitcoin entrepreneur, who’s on the advisory boards of several bitcoin startups and serves as the Chief Security Officer of Blockchain.
What is Bitcoin?
Bitcoin is a crypto currency. It’s basically internet money. A system of money that exists on the internet and was created on the internet. It allows you to send and receive value the same way you send and receive email. any where in the world, instantaneously, w/o an intermediary. A set of protocols that allow you to exchange value with other people.
Many people are excited about Bitcoin and other crypto currencies for a number of reasons. One reason is that since the year began, through Oct. 16, the value of crypto currencies, as measured by market cap, is up 876%! It’s taken the stock market more than two decades to generate the type of returns that digital currencies have given their investors in a matter of months. Out of all the cyptos, Bitcoin is the world’s most popular digital currency and its up by nearly 500% as of the time of this writing.
While most analysts and investors expect the extreme gains to continue, some are wary of the currency’s history of extreme volatility.
Unlike traditional currencies such as the US dollar that are sponsored by a nation’s central bank, Bitcoin is completely decentralized and because of its anonymity, it’s easier to move it between countries than conventional, regulated currencies. Bitcoin is not owned by any corporation, bank or government, just like the web or email isn’t owned by anyone.
The same things that make Bitcoin attractive are the same things that makes it popular for making payments on the dark web, where it helps make transactions possible for all kinds of illicit products and services – including illegal drugs, weaponry, human trafficking and more.
Since its inception in 2008, Bitcoin has grown into a technology, a currency, an investment vehicle, and a community of users.
What is the blockchain?
The blockchain is a distributed, public ledger that contains the history of every bitcoin transaction. Anyone can download a copy of the blockchain, and it can be inspected it to trace the path of bitcoins from one bitcoin transaction to another. It should be noted that while there is a record of every bitcoin transaction ever made, these transactions are not inherently linked to real life identities. For this reason, Bitcoin is considered pseudonymous.
What is a Block?
A Block refers to a set of Bitcoin transactions from a certain time period. Blocks are “stacked” on top of each other in such a way that one block depends on the previous. In this manner, a chain of blocks is created, and thus we come to the term “blockchain”.
How do I buy/sell Bitcoin?
The first thing you need is a Bitcoin wallet. There are quite a few Bitcoin wallets on the market, but a few of us here at GrowTheHeckUp have already begun buying and investing in Bitcoin, and the wallet we use is called Coinbase. To join Coinbase and get started buying and selling bitcoin, click on our affiliate link and dive in: https://www.coinbase.com/join/58741c847d98e5006dac3413
Here is a look into buzz words in the cryptocurrency space.
CRYPTOCURRENCY: A digital currency that relies on cryptography to validate and secure transactions. There are different types of cryptocurrencies. Bitcoin and ethereum are among the best known.
BITCOIN: A digital, or crypto, currency that enables payment in a decentralized peer-to-peer (P2P) network not governed by any central authority or middleman.
BLOCKCHAIN: Software that first emerged as the system underpinning bitcoin. Also known as distributed ledger technology (DLT), it is a shared record of information that is maintained and updated by a network of computers rather than a central authority. It is protected and secured by advanced cryptography.
DISTRIBUTED LEDGER TECHNOLOGY: A term often used interchangeably with “blockchain,” although technically blockchain describes the public ledger powering bitcoin.
MINING: The process through which transactions are verified and added to the blockchain and new bitcoins are created.
MINERS: Term used to describe the devices or the people that own the devices that validate bitcoin transactions. They get rewarded for the computing power consumed during mining with the bitcoins created in the process.
PUBLIC LEDGER: A distributed ledger that is open to everyone on the internet. Bitcoin’s blockchain is a public ledger.
PERMISSIONED LEDGER: A distributed ledger that requires permission in order to be accessed. The ledger is maintained only by a limited number of parties. This is the kind of blockchain technology that large corporations, such as banks, are more likely to use because of data privacy needs.
DOUBLE SPEND: A successful bitcoin transaction that is sent to two different recipients simultaneously. It’s essentially as if the same dollar bill could be spent twice. Bitcoin’s blockchain is the system that should prevent this from happening.
ALTCOIN: An alternative cryptocurrency to Bitcoin.
ETHEREUM: A type of blockchain network. The bitcoin and Ethereum blockchains differ primarily in purpose and capability. While the bitcoin blockchain is used to track ownership of the digital currency bitcoin, the Ethereum blockchain can be used to build decentralized applications. The virtual currency associated with Ethereum is called Ether.
HARD FORK: When a blockchain splits into two ledgers creating a new digital currency.
BITCOIN CASH: An alt-coin clone of bitcoin that was created in August 2017 when a group of Chinese miners initiated a fork of bitcoin’s blockchain.
GENESIS BLOCK: The first block in a new blockchain.
HASH RATE: The speed of a bitcoin transaction.
SMART CONTRACTS: Software that runs on blockchain technology and can automatically enforce the terms of an agreement. A “smart bond,” for example, would automatically make interest payments to investors.
ICO: Initial Coin Offering, or a token sale. This is the process or event in which funds are raised for a new cryptocurrency venture and contributors receive tokens in return.
DISTRIBUTED APPLICATION: Software that runs on multiple computers on a given network at the same time.
ORACLES: A data feed, usually a third party service, that provides information for use in smart contracts.
NODES: Connection points for the transmission of data.
DIGITAL WALLET: Software that allows users to make electronic payments, purchases and store their cryptocurrencies online.
PRIVATE KEYS: A form of cryptography that allows users to access their cryptocurrency and is an essential part of its security.
HARDWARE SECURITY MODULES: Or HSM. It is a device that secures data such as digital private keys in a very secure fashion.
Glossary Sources: Investopedia, Blockgeeks, Blockchaintechonologies.com
Key properties of bitcoin:
- Limited Supply – There will only ever be 21,000,000 bitcoins created and they are issued in a predictable fashion, you can view the inflation schedule here. Once they are all issued Bitcoin will be truly deflationary as coins are only lost over time.
- Open source – Bitcoin code is fully auditable. You can read the source code yourself here.
- Accountable – The public ledger is transparent, all transactions are seen by everyone.
- Decentralized – Bitcoin is globally distributed across thousands of nodes with no single point of failure and as such can’t be shut down similar to how Bittorrent works.
- Censorship resistant – No one can prevent you from interacting with the bitcoin network and no one can censor, alter or block transactions that they disagree with, see Operation Chokepoint.
- Push system – There are no chargebacks in bitcoin because only the person who owns the address where the bitcoins reside has the authority to move them.
- Low fee – Transactions cost a few cents, most wallets calculate this automatically but you can view current fees here.
- Borderless – No country can stop it from going in/out, even in areas currently unserved by traditional banking as the ledger is globally distributed.
- Trustless – Bitcoin solved the Byzantine’s Generals Problem which means nobody needs to trust anybody for it to work.
- Pseudonymous – No need to expose personal information when purchasing with cash or transacting.
- Secure – Encrypted cryptographically and can’t be confiscated with proper key management such as hardware wallets.
- Nearly instant – From a few seconds to a few minutes depending on need for confirmations.
- Peer-to-peer – No intermediaries with a cut, no need for trusted third parties.
- Portable – Bitcoins are digital so they are easier to move than cash or gold. They can even be transported by simply remembering a string of words for wallet recovery.
- Scalable – Each bitcoin is divisible down to 8 decimals allowing it to grow in value while still accommodating micro-transactions.
- Designed Money – Bitcoin was created to fit all the fundamental properties of money better than gold or fiat
Read the whitepaper that started it all, written by Satoshi Nakamoto.
Stay tuned to this page, as we continue to add updates and resources!