For many South Africans, Bitcoin and cryptocurrencies are concepts that are yet to get the light of day. Many average citizens cringe when hearing about financial investing, trading and making money online. Because of a lack of access to the Internet and a lack of knowledge, cryptocurrencies have also been second guessed.
That’s why we have compiled resources for covering the basics behind cryptocurrencies. This will help someone who has little to no knowledge to get started.
What Is Bitcoin?
It is a form of digital money. Bitcoin is a digital currency that was created in 2008. It is meant to help people to send and receive money with no central authority controlling it (like banks and governments do).
Bitcoin is commonly abbreviated as “BTC.” and has a symbol like any other currency, which is (₿).
How much is one Bitcoin?
Much like the current financial markets, Bitcoin has value. Initially, Bitcoin was very cheap. So cheap that in 2010, the first known commercial transaction using bitcoin occurred when programmer Laszlo Hanyecz bought two Papa John’s pizzas for ₿10,000. Today (at the time this was published), the pizza would be worth R5 625 250 957! Wow!
It can be expressed in any currency, and in South Africa, the price of Bitcoin is R562 525,10 (at the time of writing).
Since the price rapidly changes, Mapepeza team have set up this ticker so everytime you refer to this artice, the current price will show. See below:
That’s a lot of money for a digital currency! So how do people earn it?
The simple answer is that they get Satoshis, named after the founder. This is a fraction or a piece of a bitcoin, much like one cent is a piece of a Rand. Ever since the Bitcoin network was created, it has relied on a system called ‘proof-of-work’, which ensures that transactions are recorded and verified on the blockchain.
Bitcoin is created, distributed, traded, and stored with the use of a decentralized ledger system, known as a blockchain. Bitcoins are not issued or backed by any banks or governments, nor are individual bitcoins valuable as a commodity, which makes it open to illicit trading in some cases.
Bitcoin is very popular (the #1 cryptocurrency) and has triggered the launch of hundreds of other cryptocurrencies, collectively referred to as altcoins.
Who is Satoshi Nakamoto?
Satoshi Nakamoto is the name used by the unknown creator of the protocol used in the bitcoin cryptocurrency. Satoshi Nakamoto is the name associated with the person or group of people who released the original bitcoin white paper in 2008.
What is Bitcoin Mining?
Bitcoins are created as a reward for a process known as mining. Bitcoin mining is the process by which bitcoins are released into circulation. The more you mine the more Satoshis you accumulate. Mining can be done using computers or done virtually using servers (other people’s computers).
How can I use my bitcoin for daily use?
Most people don’t know but you can convert your Satoshi into money using various wallets. There are apps like Luno, Binance and many others that make it easy for people to buy cryptocurrencies. These apps securely store your ‘coins’ in a wallet and you can trade, buy using your cryptocurrencies.
An ordinary person can also deposit money straight from you bank using either credit cards or debit cards, PayPal, etc.
How to earn Crypto Currency without using your own money?
There are apps that require you to complete an offer or surveys in order to get crypto currency. Apps like Cointiply, Roillercoin are some examples of these. All apps use internet data to function. You don’t even need to deposit any money or cryto, just sign up and start earning.
For more, please visit: https://bitcoin.org/ for more information about Bitcoin.