Lesson 1, Topic 1
In Progress

Bitcoin For Beginners | A Practical Guide For Getting Started

digitalscotland September 8, 2021
Lesson Progress
0% Complete

In today’s video of DataDash, they will talk about Bitcoin and it’s price and performance.

Before summarizing the video, let’s talk about what is Cryptocurrency and Bitcoin and what does it do?

What is Cryptocurrency?

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.

A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

What is Bitcoin?

Bitcoin is a digital currency that was created in January 2009. It follows the ideas set out in a whitepaper by the mysterious and pseudonymous Satoshi Nakamoto.

The identity of the person or persons who created the technology is still a mystery. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and, unlike government-issued currencies, it is operated by a decentralized authority.

Bitcoin is a type of cryptocurrency. There are no physical bitcoins, only balances kept on a public ledger that everyone has transparent access to.

How does it work?

Each Bitcoin is basically a computer file which is stored in a ‘digital wallet’ app on a smartphone or computer. People can send Bitcoins (or part of one) to your digital wallet, and you can send Bitcoins to other people. Every single transaction is recorded in a public list called the blockchain. It enables a new payment system and a completely digital money.

It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet.

Video Summary

In this video we will talk about Bitcoin and the price and performance of it. Cryptocurrency is the name given to any digital currency which allows people to skip middle man i.e. bank or money exchange facility it does that by a very complicated system called blockchain that’s unique to a few cryptocurrencies and is said to make them safer. Bitcoin is simply the first and also the best-known version of cryptocurrencies.

Bitcoin is called the ‘digital gold’ in todays world. Bitcoin is an emerging asset because it moves up to multiple valuations. To become successful in this field a proper expectation and analysis of price and cycle are important. Bitcoin in the past from bottom to top has had much more significant percentage returns or multiples on its price even against its previous all-time highs.

The market cycle of cryptocurrency is just like the bull markets. A lot of people reference gold and bitcoin has earned the nickname digital gold. Bitcoin has limited monetary policies.

Ethereum was one of the most parabolic assets back in 2017. It emerged as really the second
leader in the cryptocurrency space for the fact that it allows a person to do so much on it. Anyone can build replacements for traditional banks on the Ethereum network.

Here anyone can earn interest and anyone can borrow capital. A person is able to in this case make swaps or trade assets in a decentralized format peer-to-peer in this case through smart contracts. Here a person doesn’t have to trust an exchange or bank or brokerage to own his/her capital or their assets and what’s really great here is that again putting all those fundamentals aside here. Cryptocurrencies as an asset class have gone through some pretty volatile cycles and they usually move in tangent with one another.

Currently, the total valuation of cryptocurrency markets is a little bit under 400 billion dollars around 390 billion.

This valuation fluctuates over time. To analyze total market capitalism is very important before investing in Bitcoin. Dramatic rallies and dramatic corrections are common in cryptocurrencies as an asset class.

Video Timeline

0:00 Intro
1:00 What is Cryptocurrency?
3:33 What makes Bitcoin a great asset?
6:25 Expanding Cycles of Bitcoin
10:30 Bitcoin’s Cap in Perspective
13:00 Ethereum
17:14 Cryptocurrency as an asset class
21:00 Outro