What is Bitcoin ?

I would like to start this blog with an article about what Bitcoin is.
Readers might already be familiar with the basic principles of Bitcoin, but for the newbies I will be explaining the "What" in Bitcoin.

In later articles I will go into the "Why" and the "How" of Bitcoin. For anyone that is completely new to Bitcoin I will post the "official" What is Bitcoin video by the Bitcoin Foundation.

But  Bitcoin is much much more than just the Payment service described in the video. Let me explain:

Next to a very cheap, fast and honest payment system, Bitcoin is also a currency at itself, and right now Bitcoin can even be seen as a commodity. Why do I say right now ?

Right now, Bitcoin is mainly used by people to get money from A to B. A person needs to move say 100k USD, he will buy Bitcoins for 100K worth USD. This person will now travel to the other side of the globe, here he trades his Bitcoin back to local currency, free of transaction costs, taxes and other hassles that fiat currencies have. It is safe to state that Bitcoin can be seen as digital cash, cash as in anonymous money with no footprints that will trace back to the buyer/seller.

As Bitcoin reaches critical mass, people will not have to trade their Bitcoin back to local currency, for they can just spend their Bitcoin directly. At this point in time Bitcoin will shift from a commodity and a payment system into a real currency.

There are alot of other subjects of Bitcoin that I would like to address, but as this is just a What is Bitcoin article I will save this for future articles. The next articles I will try to explain some things about Bitcoin mining,different Bitcoin wallets, limited supply and the effect it has on inflation, future and target value's of Bitcoin and trading and investment oppertunities.

Links:
Bitcoin Foundation Website


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