What is Bitcoin? Who wants to know what Bitcoin is?
What is Bitcoin? What does Bitcoin mean?
What is the meaning of Bitcoin?
Bitcoin is often called virtual currency, blockchain currency, future property of the Fourth Revolution, etc., but it's hard to even get a sense of who it is for the first time. Now on, I'll explain what Bitcoin is and why transactions are being made at high prices.
- Elementary school level explanation
Problems appear every hour on the Internet. If you solve this problem, you will get a product, which is Bitcoin. If you hear Bitcoin for the first time, you can understand it like this. The problem here has been created by Bitcoin developers, and if they solve the problem, they give Bitcoin as a product. It's not so difficult, is it? Of course, if you go into detail, there is something wrong with this explanation!
- High School Student-level Description
We are buying and selling things on the Internet. Amazon or Alibaba is a typical example. You can buy and sell things on the Internet, and the transaction records are currently being made by each bank and individual. But we can make you write this transaction record and receive a product called Bitcoin in return. In this sentence, writing a record is a "solving the problem"(I said at the elementary school level) Which means that the Bitcoin thing falls off in rewards for making and helping the transaction record.
- General-level description
People can use a product called Bitcoin in return for sending and receiving goods on the Internet. You know, in the old days, like as you used shells as currency, now you can use Bitcoin as currency. But the fact that we exchanged this Bitcoin automatically spreads all over the world. Because these transaction records are distributed all over the world, you can't lie about the exchange of goods, you can't steal them, you can't copy them.
If a person named A gave B one bitcoin, A had one bitcoin less, and B had one bitcoin more. This is going to spread all over the world!!
Instead of receiving this transaction record and checking it, we can receive Bitcoin. The parts that we described above as "solving the problem" and "writing the transaction book" are the tasks that confirm this transaction record. In other words, Bitcoin is a reward for checking someone else's Bitcoin transaction records.
- More detailed description
It's okay for ordinary people to understand up to here. It's enough to know the concept. If you want to know more, I'll explain in detail.
If Bitcoin comes and goes among people, this record is automatically encrypted and appears on the Internet. If you unlock the record of this encryption, Bitcoin comes out. A password that can be decrypted is called a hash value. But the hash value is completely random without any rules, so you should type it randomly with a time. To do that, it is better for a fast computer to try as many things as possible. Since it's random anyway, the more you type, the more likely you are to unlock it. You need a good graphics card in this process. At one time, the price of graphics cards skyrocketed because of this reason. And by adding this hash value (password), unlocking the password is described as mining. In other words, solving Bitcoin's transaction record is described as Bitcoin mining, and the product that comes out of it is Bitcoin.
If there's anything you don't understand, and if you find something wrong with my explanation, please let me know.
Tomorrow, I will explain in detail why Bitcoin can be used as a currency and why it is expensive. Thankyou!!