Bitcoin can be used to buy goods and services, just like dollars or pounds.
While bitcoin adoption is still early, more places are starting to accept it as payment.
Bitcoin Is A Better Money
Bitcoin is digital money.
Being digital money brings many advantages:
It's easy to access from your phone or from your computer.
Easily transfer bitcoin, from tiny to massive amounts, to anyone without any middlemen or permissions needed.
It's highly secure and you can protect your bitcoin with strong passwords.
Despite being digital, bitcoin cannot be copied or counterfeited.
Bitcoin Is Global
It's simple to transfer bitcoin to anyone across the globe.
Bitcoin transfers happen instantly around the world, making it perfect for international payments and remittances without the delays and fees of traditional banking systems.
Using a technology called the Lightning network, bitcoin transfers can be virtually instant and at little to no cost.
But What Is Money?
Although we use it everyday, you may never have asked yourself the question "What is Money?"
Money is simply a tool we use to exchange value.
Money does not have intrinsic value in itself, it's just coins, pieces of paper or digits on a computer system.
Money allows us to trade our time and skills for goods and services, rather than having to barter or directly exchange one good for another.
Traditional Origins
Money began as shells, beads, and precious metals. Chosen for scarcity and durability.
Central Banks
Modern currencies are controlled by central banks. They can print unlimited amounts. This type of money is called "Fiat" money.
Inflation Problem
When more money is created, each unit becomes less valuable.
Inflation causes your savings to shrink.
Bitcoin Solution
Bitcoin has a fixed supply of 21 million.
No central authority can create more.
With Bitcoin, there is no inflation.
Bitcoin is considered better money because it's finite, borderless, and not controlled by any government or bank.
Bitcoin Is Just Like Cash But Better!
Cash Is King
Bitcoin is just like physical cash, but in a digital form. There is a saying "Cash is King" - if you hold cash, it belongs to you.
Once you physically give the cash to someone else for goods or services, the cash now belongs to them.
It Belongs To The Holder
If you have bitcoin in your possession you own it, it belongs to you.
If you transfer your bitcoin to someone else, and then the ownership of bitcoin transfers to them.
Once they receive the Bitcoin, they become the owner of the Bitcoin to do with what they like.
They can spend it or save it.
Global Transfer
Bitcoin is a better form of cash as you don't need to be in the same place with someone to transfer it.
You would never send cash via the post, you always transfer cash in person, as physical cash is easily stolen or lost.
With Bitcoin, it's digital and secure, so you can send it safely to anyone on the globe, instantly and at virtually no cost.
No matter how large or small an amount.
But What Exactly Am I Buying?
The Question
A friend asked me once: "If Bitcoin is digital, what do I get if I buy Bitcoin? If I can't touch it, where does my money go, what am I buying?"
The Answer
The best way to look at this is you don't buy Bitcoin, you exchange other currencies for it.
The Comparison
We do this all the time with our existing Fiat currencies. For instance when you go on holiday, you might go to a Bank or bureau de change and exchange £100 for the equivalent of Dollars or Euros.
"Buying" Bitcoin is exactly the same, you're exchanging one type of money to another - Bitcoin.
The Process
Simply create an online account with a "Bitcoin Exchange" (such as Strike - see later) using your phone or computer, then exchange pounds or dollars for the equivalent value of Bitcoin.
You can then keep your Bitcoin online with the exchange or preferably transfer the Bitcoin to a Bitcoin wallet or other device for safe keeping.