Bitcoin is digital money without physical bills. As digital money, Bitcoin ensures that people can only transact via the Internet. Regardless of location, Peter in New York can send 1 Bitcoin to Alex in Cape Town without going through a bank. Therefore, this means there are no middlemen or third-party services, unlike everyday fiat money that has to go through a bank. In this simple Bitcoin explainer article, we are going to demonstrate Bitcoin in layman’s language and introduce RollerCoin – a next-gen mining simulator for gaming fans to mine free Bitcoins.
Bitcoin simple explanation take-home facts
- No middlemen like banks facilitate the circulation of Bitcoin
- The creator of Bitcoin is a mysterious unanimous figure called Satoshi Nakamoto
- There are only 21 million Bitcoins in existence
The image above shows that Bitcoin circulation happens without the need for a middleman on a decentralized system called the Bitcoin blockchain. A middleman could be a bank, mobile money service, or financial institution. As you can see, the Bitcoin money system is different from normal physical money or traditional finance.
Physical money needs to go through a central banking system, whereas Bitcoin’s money system is decentralized. What is decentralized?
What Is Decentralized in Bitcoin?
The Peter, Jack and Tom case study for Kids’ Bitcoin simple explanation.
Peter, Jack, and Tom are 3 friends who love buying Toys from a shop called the Giant. Each of the 3 cannot afford the toy they want single-handedly, and they have to share the costs. This happens whenever they visit the shop.
However, they usually pay the entire amount at the counter regardless of the cost of each one’s individual toy so that they count each one’s cost after shopping and save the change. In case any of them owes the three, they have to count manually and add to the claim.
A conflict arises whenever there is a miscalculation. So they decide one of them should write down and keep a record of all transactions to avoid future conflicts. After months of using these methods, where one of them tracks the record, more conflicts arise.
They begin suspecting that Peter, who keeps the record, has been messing with the calculations, thereby resulting in unexplained losses.
Therefore, the three introduce a new feature to their record. They suggest that Peter should record using a permanent marker instead of a pencil to ensure the record is permanent and cannot be changed. In addition, they decide that each person should have a permanent marker and a records diary.
Apart from Peter, Jack and Tom must also write down their spending every time they go shopping. They should record using a permanent marker. This means that each of them has a record of all transactions, and no one can alter that record because they use permanent markers.
Bitcoin’s decentralized nature is similar to Peter, Jack, and Tom’s recording system. Each person has access to the record and sees anything that is happening to that record. Additionally, the record cannot be altered unless 50 +1% of participants agree to execute a new contract.
Web3 Education: How Do People Make Money With Bitcoin?
There are many methods for making money with Bitcoin. Some of these methods are hard. Others, like mining free Bitcoins with Rollercoin, are easy. Playing Web 3.0 Bitcoin games, buying and selling non-fungible tokens, writing Bitcoin articles, completing simple online tasks via faucets, staking, holding, and crypto lending/borrowing are the easiest methods for making money with Bitcoin. Trading contracts, futures, and spots on Bitcoin exchanges are specialized ways of generating income through Bitcoin.
Join RollerCoin mining today if you want to make money with Bitcoin by completing simple tasks, mining crypto, and playing 8-bit arcade games.
How Do People Use Bitcoin and for What Purpose?
Bitcoin facilitates payment for products and services. Merchants, retailers, internet platforms, gaming sites, travel companies, and dealerships accept Bitcoin as a payment currency. Therefore, people buy Bitcoin to enable them to make low-cost payments, send money abroad to loved ones, and purchase blockchain products such as non-fungible tokens and tokenized assets.
However, a large section of Bitcoin fans use it as an investment asset, whereby they buy Bitcoin at a low price and sell it at a higher price. Sometimes the investor wants to buy Bitcoin at a low price and hold it for a given time as they speculate for the price to increase.
There are cases where people want to shop with Bitcoin. However, it happens that the retailer or shop does not accept Bitcoin as payment. In such cases, use a Bitcoin debit card. Bitcoin or crypto debit cards allow customers to load them with digital currencies. This helps them make online purchases or send money in-stores.
Where Does Bitcoin Come From?
Earlier on, we mentioned there are only 21 million Bitcoins in existence. Not all of them are already in circulation. The Bitcoin blockchain or system has to release each of them until all of them are in circulation. As of now, 19 million of 21 million BTC are already in circulation. New Bitcoins are released into circulation through a process called mining.
Mining involves solving complicated arithmetic equations to validate transactions. Successfully solving an equation qualifies the miner with a Bitcoin reward. However, the process of solving these equations is difficult, expensive, and requires specialized computing equipment.
How Can Someone Acquire Bitcoin?
The most popular methods of acquiring Bitcoin are mining or buying. Both of these methods are costly. As of now, 1 Bitcoin goes for $30431 per piece. Nevertheless, one does not have to buy a full Bitcoin. Most people buy a fraction of it, let’s say $100 worth of Bitcoins.
Want to Do Some Practice?
Google the price of Bitcoin and see the conversion from $100 to Bitcoin.
How Can Kids Acquire Free Bitcoin?
There are multiple methods of getting free Bitcoin. Crypto faucets are internet programs that offer people free crypto rewards for completing simple tasks. These tasks take minimal time to complete and could be solving captcha, watching adverts, typing, and so on. One can also play online games and mine free Bitcoin. RollerCoin is a trusted cryptocurrency game that features a cryptocurrency mining simulator for gamers to mine crypto virtually. However, unlike conventional mining, RollerCoin does not require expensive equipment, ASICs, or GPUs. All you need is your desktop or mobile phone, and you are good to go with the gaming metaverse for kids.
