Bitcoin: Fact, Fiction and Future. Comprehensive Introduction to Bitcoin. Mining, Buying Bitcoin, Bitcoin for Business and beyond

Introduction

Thank you for downloading this book about bitcoin, the father of digital currencies. 

Much myth and misinformation exist around bitcoin, and indeed all cryptocurrencies.  From the misplaced and ill-informed assumptions that everybody using them is either a terrorist or master criminal, existing in some dark underworld of lawlessness and moral weakness, to a belief that they are just the flash in the pan plaything of techy geeks. 

It will discuss with you the advantages of bitcoin: safety, privacy, security.  But will also not pull back from highlighting the uncertainty of the new which surrounds digital currency.

From reading the book, you will discover how to buy, store and trade with bitcoin.  The best ways to use the currency as an investment, the risks and potential rewards of doing so.  You will learn about mining, including ways to take part.

And most of all, you will gain a perspective about the financial innovation which will help you to see it in the context of physical currencies such as the dollar, Euro, and pound.  To gain an insight into ways in which digital currencies are changing the way we trade, and how major institutions are getting in on the act.

After reading this book, you will have a strong understanding of bitcoin and know where to go to further your knowledge.

It might only have been around since 2008, but bitcoin has already changed many people’s lives.  Further, it seems inevitable that we will all become more exposed to it over the coming few years.  Those in the know will be able to make use of bitcoin for their purposes, taking advantage of its speed of transaction and opportunities for trade without an intermediary.

The use of bitcoin by major banks is almost upon us; bitcoin ATMs are already to be found in many cities; traders such as Amazon and Microsoft have embraced it.  It IS going to become a part of our lives, and we owe it to ourselves to be ready for this.

Take the opportunity now to learn about bitcoin in this easy to read the guide.  In the end, you will not only know about the currency but hopefully, you will be inspired to get in on the act yourself.

The time to invest in your bitcoin supply might just be around the corner.

Chapter 1: What Is Bitcoin?

Bitcoin. What is it? Where did it come from? How do you use it? Is it just fake Internet money created by drug dealers? That is precisely what we will be answering in this book. 

Over the past few years, Bitcoin has grown from something known only to a select few tech nerds into a revolutionary currency that has rapidly changed the way that we think about the concept of money. You no doubt see Bitcoin payments accepted in all kinds of places now, but, if you can believe it, it used to be a fairly complicated procedure for finding places that let you pay in Bitcoin. To be honest, we could have filled this page with every single place accepting Bitcoin at the start.

We’ll cover everything you need to know to get started with Bitcoin, so let’s start with where it came from.

Ready to dive in? Let’s go!

The Beginning

Think back just a few years. In 2008 the financial crisis was in full swing, and people all around the world were feeling the effects of America’s economic disaster. This was one of those times in history where the problems of fiat currency showed their strength, and at times complete economic collapse seemed likely. All of those people who were supposed to make sure nothing like this ever happens? They kind of, well, they screwed up. That's putting it lightly. 

CENTRALIZED ANSWERS

The most prominent of the people in the know decided that they had an answer that only a centralized bank could offer. To combat the rapidly collapsing financial markets, governments across the world decided on what is called quantitative easing, in which they printed more money and pumped cash into their economies so that their citizens would have the funds needed to avoid another Great Depression. Did it work? You probably already know the answer. 

These kinds of rapid changes lead to currency wars and governments were soon competing to be the one with the lowest prices that would keep them competitive. When banks then ran into trouble due to the low currency value and slashed interest rates, the governments were forced to bail them out with taxpayer money. As you can guess, this only devalued the existing money supply even further. Where do you think that