Can somebody explain what bitcoin is? I’ve gone into Google but am still confused.
If somebody can explain it to me like I’m 6 years old I would appreciate it. I obviously just don’t grasp what it is, or how if you have bitcoin you will be able to spend it.
Ok, well bitcoin is just a currency, but a private one, not one with any government backing. So essentially, it’s kind of like when private banks used to issue their own banknotes that could be used as currency.
The difference is in the medium of exchange. Instead of trading little pieces of paper to represent the currency, people trade little bits of digital data to represent the currency. The data is encrypted and records of the transactions are designed to be as secure as possible. So, you can’t just copy a bitcoin and pass it off, because there are associated records (called a blockchain) that keep track of everywhere that particular bitcoin has been traded. A bitcoin without a valid blockchain is worthless, and so basically, a bitcoin can’t just appear out of thin air.
Bitcoin is ultimately worthless vapor. It is the most fiat of fiat currencies, produced out of waste. It is the wet dream of anarchists and Occupy Wall Street who want to “stick it to the eeeeeevil bankers.” It will ultimately be banned.
On the flip side, it has some deluded cheerleaders who will tell you it is a “real currency” and “the future.” So, I guess that’s something.
Bitcoin is more worthless than Enron stock, however, and - like those Enron stock bag holders - you don’t want to get caught holding this particular bag. At least Enron stock had some office furniture and equipment attached to it that could be liquidated when it came crashing down. Bitcoin is nothing.