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Yea….So, I’m just gonna lay this out there. Hi, my name is Clayton and I’m a Bitcoin addict! No, but in all seriousness, Our Trippy Tribe has been on a serious mission to get some answers about Bitcoin and cryptocurrency, we need to find out what all the rumblings are about.
Now If you’re late to the party (don’t worry we literally just walked in), you probably do not know what bitcoin is. Bitcoin is defined as a worldwide cryptocurrency and digital payment system. It’s basically a currency that operates electronically. Now when I initially heard of about Bitcoin I couldn’t help but think it was some virtual money for tech nerds or fantasy fiat in some gamer’s candy crush bank or something. After further investigation, we had a chance to see ‘Oh How Real’ Bitcoin actually was. There seems to be a major redistribution of wealth taking place, is it possible we are somehow missing the boat? A Pisces rising like myself, I can’t be missing any boats now, sooooooo I’m going to learn all I can about Bitcoin.
I’m not at all embarrassed to say that even after listening to multiple podcasts, browsing online literature, and watching youtube videos, it took this $3 book on Amazon Kindle book (this is an affiliate link) for me to really grasp what Bitcoin was, how it works and what it means for the future of our “money”. Did I mention this book was written by a seven (7), eleven(11), and thirteen (13) year old…talk about parents being ahead of the curve, HATS OFF to them!
Here are some of the answers I found to my common “newbie” questions about Bitcoin.
The most common question one might initially have is, exactly what is Bitcoin? As mentioned earlier, Bitcoin is a digital payment system. It is a decentralized, peer-to-peer payment network powered by its users with no central authority or middleman in the mix (i.e bank, government, etc). So basically a virtual currency powered by people directly.
Now once a little light is shed on what Bitcoin is, naturally, the next question becomes Why would anyone want or even need a Bitcoin in the first place? This is a great question and has been the cause of much controversy. Let’s maybe revisit this question after we present a little more of the backstory of how Bitcoin has arrived at this point, as I write this in October of 2017.
The first mention of Bitcoin takes us back to the now infamous “White Paper” published by Satoshi Nakamoto in 2009. This open source 9-page paper detailing the new peer-to-peer electronic cash system became the foundation on which all the components of Bitcoin were laid out. It was made open source, which is a technological way of saying any programmer, developer, or anyone for that matter, could freely see and analyze the Bitcoin protocol and the code behind it. So basically they could review the code, and if they saw fit they could make their own modifications to the code. This has resulted in the creation of many new cryptocurrencies commonly referred to as “Altcoins” (i.e. Etherium, Litecoin, Dashcoin, etc) which operate on blockchain technology.
Since we are referencing a currency, (something used and exchanged for something else of value), the concept of security becomes an issue. Many want to know If Bitcoin is decentralized (has no central location or authority) who owns the network and how exactly does it function.
Now when we eat out LaPharaoh insists on drawing a Bitcoin on the bill! We love it!
According to bitcoin.org “no one owns the network just like no one owns the technology behind emails”. Bitcoin is governed and validated by all the users of Bitcoin worldwide! Although changes can be made to the code, users must comply with pre-established rules of Bitcoin’s protocol that allows for a level of uniformity across Bitcoins global networks.
Ok, that was a mouthful…Confused yet? Don’t worry it took me some time to understand but I assure you it begins to make a lot more sense when given the proper amount of attention. The monetary incentive usually becomes the catalyst that locks people in, go figure!
So exactly how does Bitcoin work? Bitcoin operates through a mobile application or computer program where one creates a digital wallet (we chose blockchain and bread wallet available for Android and IOS), this wallet allows users to send and receive Bitcoins. On the back end, Bitcoin works by creating a public ledger (a digital record of transactions) called a blockchain. This blockchain consists of every transaction ever processed and is verified by the global network of Bitcoin users running the Bitcoin Protocol. This blockchain is made of digital signatures (think of the ‘pin’ one creates as a digital signature to e-file taxes), as well as other details associated with the transaction ( i.e the amount of exchange, the digital address of sender and receiver, and a public key). Anyone can verify and validate the bitcoin transactions! All they need is The Bitcore Client (which can be downloaded for FREE) and specialized hardware (antminer s9 seems to be the industry leader) which uses the machine’s computing power (electricity) to process the different transactions taking place all over the world. This process of using specialized equipment to verify the other user’s transactions across the global network is referred to as mining.
Mining is an integral part of upholding the integrity of Bitcoin. Miners are encouraged to verify the respective transactions with the incentive of receiving Bitcoins as a reward for doing so. When a blockchain is validated and the proof-of-work (the blockchain) has been verified, Bitcoins are then rewarded to the miner for its services (current Bitcoin reward is 12.5 BTC…valued at over $120k). Herein lies the key to Bitcoin’s breakthrough technology, and how this decentralized network of peer to peer electronic cash flow has taken the world by storm.
At Bitcoin’s inception, anyone could download the Bitcoin software and mine bitcoin from their personal computers. As more and more users took to Bitcoin, the proof-of-work gradually became more difficult to mine (aka verify the transaction), and the computing power needed drastically increased requiring a more specialized machine to get the job done.
Just to put a little perspective on the insane volatility of bitcoin; In 2010, at its peak, 1 BTC (Bitcoin) was worth the equivalent of a whopping .39 cent in USD (U.S.Dollars). Fast forward to today as I write this blog and 1 BTC is valued at over $5,900USD! Remember that Re-distribution of wealth I spoke about earlier…UM. YEA!
Here is a list of some general pros and cons I was able to compile about Bitcoin.
PROS
- Anyone can open up a wallet and earn money. Children especially can learn to manage money at an earlier age, letting them be creative, empowered, and entrepreneurial
- Bitcoin can be sent to anyone, anywhere, at any time from a tablet, smartphone, or computer.
- Security is much safer, anyone at anytime can verify a transaction, it’s a public network which deters corruption
- Inflation (There will only be 21 million Bitcoin mined EVER)
- Zero to very little fees with sending bitcoin except an optional fee to send money faster (roughly 6-10cent)*
- Safe for merchants to use since no personal info is attached to the transaction so its protects privacy
- Lower fees than PayPal, Credit Cards, Western Union, or MoneyGram.
CONS
- People need to continue to be educated on Bitcoin/cryptocurrency, consumers and businesses alike
- Limited amount of Bitcoins (14mil of the 21mil Bitcoin have been mined) and demand is increasing every day
- Limited amount of businesses directly take bitcoin (although new business are getting on board every day)
- Bitcoin’s price is fluctuating every day (very volatile but up trending since its inception…this could very easily be under the “Pros” list)
- Bitcoin is in beginning stages and still very very young (Bitcoin is literally 7 years old, talk about a 7-year itch…)
Bitcoin does not show any signs of slowing down and the technology behind it has already been adopted by many organizations and governments across the globe.
As parents, we are really excited! We will continue to investigate and gather information about Bitcoin so newbies like ourselves and others can position themselves and their families to take advantage of this modern day virtual gold rush.
I’ve heard in the past “Man, I wish I could’ve invested in Microsoft, or Apple, or Facebook way back when”. One thing is for sure, most of us could have at least learned more about them and been better prepared to take advantage of those platforms when they were just getting their engines revving. Well as it appears, it may be a good time to get familiar with Bitcoin and how you may be able to get involved now.
No matter how exciting all the Bitcoin craze is, one should do their due diligence and research as much as possible before making any financial decisions about Bitcoin or any other cryptocurrency. Nothing in this blog is to be considered financial advice, do your own research pleeeeeease!
BREAKING NEWS ALERT
Since the original writing of this blog Bitcoin has been making new waves.
Bitcoin Price climbed to an All-Time High!!! $6,415
BREAKING BREAKING NEWS ALERT
During the process of editing, this blog Bitcoin Price climbed to $7,355!!
BREAKING BREAKING BREAKING NEWS ALERT
Clearly, our editors can’t keep up with the Bitcoin prices which currently sits at 8,222!!!!
BREAKING BREAKING BREAKING BREAKING NEWS ALERT
The face you make when the final edit is in and ready to post and Bitcoin is $9,969 WHOA sorry to our readers if missed out on this 60% (and counting) swing in a month’s time :-0
Just to get an idea of how big this Bitcoin brand actually is, Bitcoin’s $168 billion market cap has surpassed the likes of Netflix (87bil), Goldman Sachs(92bil), UPS(93bil), Nike(92bil) oh yea and McDonald’s (106bil). I’ve been all over the world…I’ve seen those freakin’ golden arches everywhere. Bitcoin’s current market valuation is even higher than the annual GDP (gross domestic product) of Germany and Japan.
How a Supernova like Bitcoin can be known to less than 2% of the people in the world is kinda wild.
Either way, I hope you will follow Our Trippy Tribe as we continue to explore the world of Bitcoin.
Are you familiar with Bitcoin or any other cryptocurrency? Are you curious or maybe even a little concerned about what virtual currency means for the future? We would love to hear your thoughts and comments below.
Are you an entrepreneur who is looking to get together with other bitcoin/ cryptocurrency enthusiast? Email us @Clay@OurTrippyTribe.com and let’s organize a meet-up.
We Trip ⧫ We Tribe ⧫ We Vibe
Rhonda
November 29, 2017I’ve been hearing the buzz of Bitcoin and wondered what in the world is this thing. Just like you, I thought it was a nerdy gamer thing LOL I’ll have to check this out more. Thanks for breaking it down for me.
Ourtrippytribe
November 30, 2017No problem, glad we could help 🙂 There are some nice videos online that do a great job of simplifying Bitcoin for all of the less tech-savvy individuals out there…We try to learn what we can but it’s a whole new world out here. Happy hunting!
Susannah
November 29, 2017I’ve heard about the bitcoin a long time ago but I thought it wasn’t a thing anymore. I’ll have to look into it!
Ourtrippytribe
November 30, 2017It never really left but as of now with all the developments it’s definitely shaking the financial world up in ways that haven’t been seen before, should be interesting to see how it all turns out.
Catherine Short
November 30, 2017I remember first hearing about Bitcoin on a NPR podcast a few years ago — you never quite know what new thing will shake up a particular industry!
Ourtrippytribe
November 30, 2017Yes, everything is moving so fast! I can think back and remember cassette tapes, rotary phones, AOL dial-up, and having yo drive to blockbuster to rent a movie, haha, We always adjust and for some these changes there is long term investment opportunities.
Mila @ Hangry Woman
November 30, 2017I’ve heard of bitcoin, but I had no idea it had such a strong structure behind it. I wish I had been paying attention in 2010 lol! Great blog about it!
Ourtrippytribe
November 30, 2017Thanks, yes it’s very intriguing where everything is headed, there seems to be a conscious effort for society to move to a faster, safer, more paperless way of doing things…we shall see where it leads 🙂
Alexis
December 2, 2017I’ve literally been seeing this everywhere and talk about confused 🤦🏾♀️ I was thinking it was like PayPal or something. 😂 Was I wrong or what!
Ourtrippytribe
December 3, 2017Well, not a 100% wrong haha Paypal is also “internet” or digital money so to speak. I’ll raise you on the confused part….so my Bitcoin blunder of the century was I told my mom to get some Bitcoin over a year ago and she called etrade and purchase shares of some Bitcoin-affiliated stock so she never got any ACTUAL Bitcoin at that time, just shares of a company that was involved in Bitcoin… whooops! Talk about being wrong, eventually we did get her squared away though. By the way, the sheer fact that you have heard of Bitcoin means you are in rare company, maybe 1 of 20 people i ask in public has ever even heard of it.
Verla
January 4, 2018Thank you for blogging about this. I hear the business reports and try to understand, but I need a translator like you. Keep up the good work. I like the detail that you provide. Helpful.
Ourtrippytribe
January 6, 2018I too needed a translator at first, not ashamed in the least to say it came from some pretty savvy children haha, from the mouth of babes ay! Thanks, glad you enjoyed and found value from it.
Anitra
January 4, 2018I’ve been hearing more and more about Bitcoin, but was reluctant to learn more. After reading your post, I may have to look into it more! Thanks for sharing!
Ourtrippytribe
January 6, 2018Yes, its been a super hot topic and for good reason! Don’t cheat yourself, treat yourself and look into it you may be surprised at the doors it opens!
Tiffany
January 5, 2018Intersting. This article really helped a lot to clarify what the buzz is all about! Might have to look into it a bit more!
Ourtrippytribe
January 6, 2018Oh, the Buzz, haha its so wild, Bitcoin is up 11k since I originally wrote the post but this is JUST the beginning. Opportunities to learn about tech that will change the world…and this early in the game, it’s truly an honor.
Heidi
January 5, 2018I have heard so much about the bitcoin. Thank you for clearing up some confusion! 🙂
Ourtrippytribe
January 6, 2018Glad you were able to gain some more clarity, get used to hearing about Bitcoin, it’s here to stay 🙂
Diane
January 5, 2018Had no idea what they were so I’m glad I read your post. Thanks for the information and your kids are beautiful models for your ads. 🙂
Ourtrippytribe
January 6, 2018Thanks so much, they are such good sports! Glad you were able to find some value from our post. Bitcoin is the future of banking and the future of money, it’s exciting to be at the forefront of it all and share this valuable info with others.
Laura Belle
January 5, 2018This was very informative. I have heard of bitcoin but never looked into it at all so I knew nothing about it.
Ourtrippytribe
January 6, 2018There is a lot to learn for sure but it is/was sooooooo worth it! Thanks for your feedback 🙂
Deanna
January 5, 2018An incredibly innovative payment system. Thanks for the insight. It would be a shame not to get in on something early enough, and I had no idea there was a limit of 21M.
Ourtrippytribe
January 6, 2018Yes, we’ve seen nothing like this before it’s great! The 21M coin limit is one of the key factors that underly its value (along with the decentralization, the transparent distributed ledger, and proof of work aka “blockchain”). We are still in the early adopters’ phase on the S Curve too, I think I read less than 2% of people actually know what Bitcoin is! Glad you enjoyed the blog and thanks for the feedback 🙂
Amie
January 5, 2018I have friends who are thinking of using this. However, how much do you need to purchase then if one bitcoin is worth so many U.S. dollars? I have so many questions. Lol!
Ourtrippytribe
January 6, 2018This is a question many people have, and feel free to send your questions and comments this way Amie, that’s what I’m here for. The current price of Bitcoin is $16,900 but it is divisible to the 8th decimal place (0.00000000) so one can literally a portion of a Bitcoin. Most start with $100, some start with as little as $10. The price kinda scares people away because they don’t know you can get fractions of a Bitcoin. We have a “Buying Your First Bitcoins” vlog on our site as well that can help anyone interested get started on their Bitcoin journey
Melissa
January 5, 2018Interesting info. I have been hearing so much about bitcoin and have friends making a lot of money.
Ourtrippytribe
January 6, 2018Yes, it’s very exciting! The money is what grabs the attention but the tech behind it all is what captures the mind and the heart.
Maggie
January 6, 2018I’m still WOW at kids that young writing a book about crypto currency! 😲
Ourtrippytribe
January 6, 2018Maggie, its incredible isn’t it? Those young ladies are amazing! We too aspire to have a family book one day in the near future. Those young ladies have enlightened and inspired our family and I’m grateful to be able to share this information with others.
Karen
January 6, 2018Oh my goodness! I NEEDED this post. I have been asking everyone what the heck bitcoin is and nobody has been able to give me a clear answer. This has helped me so much – I might still think it’s crazy, but at least I understand it better!
Ourtrippytribe
January 6, 2018Glad you were able to get cleared up (on some level) as to what Bitcoin is. So much to learn but it is a very exciting time as we enter this new frontier…buckle up! 🙂
Dee
January 6, 2018My husband is obsessed with cryptocurrencies and has bitcoin and a few others. I have seen their values just climb and climb so I don’t bother him about it.
Ourtrippytribe
January 6, 2018That’s awesome, smart smart man, I love it when I hear others are in the crypto-nation and seeing some gains. You guys are part of the early adopters, it’s not too often people get a chance to get involved before wall street, good deal. Tell your husband Our Trippy Tribe is on #teamHODL haha 😉
Christy
January 6, 2018Thank you for writing such an insightful piece. My son (the avid gamer and double Pisces that he is) told me about BitCoin when it first came out. I only thought of ways it would be used on the dark web and other nefarious enterprises, so of course, completely ignored it. I used to read updates and tried to understand what “mining” was a couple of years ago, still didn’t peak my interest. And now, like Amazon, Google, Apple stock, etc…..it appears we’ve missed the rising tide.
Ourtrippytribe
January 6, 2018Glad you enjoyed it Christy and I gotta rep real quick #TeamPiscesRising (I’m an Aquarius 12th house sun Pisces rising so I understand that double Pisces vibe) haha love it! Wow, Wow, Wow, is all I can say. It’s not solely about the money, but it’s gotta be hard not to think about that opportunity for that early entry into Bitcoin. Unfortunately, “bad” people will find a way to do bad things regardless and considering the US DOllar is connected to the more crimes, terrorism, human trafficking than any other currency it’s hard to understand how it’s lasted this long (soapbox rant over). I wouldn’t say you missed out, we are still in the early adopter’s phase, so there is still plenty of time to get as informed as possible and get with the program (Wall Street is less than a month in), tides still rising…all aboard!
Kesha
January 6, 2018I don’t know much about Bitcon but the more I hear about it, it sounds like one world currency in the making. I still think gold and silver is the way the go. I don’t think there is anything that could replace it, even Bitcon. This article provide so much information about it. Thank for sharing.
Ourtrippytribe
January 7, 2018No problem Kesha, glad we could shed some light on Bitcoin. We have had a one world currency for a loooooooong time now, I always find it interesting when people say that. Nonetheless, Our Trippy Tribe likes precious/alchemical metals as well. I prefer to ingest mine (colloidal silver, monotomic gold) but we do have some tradional gold and silver in safe keeping also, but honestly there are some interesting things to take in consideration when it comes to gold and silver (as a store of value) in this day and age. Gold and silver markets have been highly controlled/manipulated from go, gold and silver are subject to theft/confiscation (i.e The 1933 Gold Standard), and gold and silver can be very difficult to transport in the event of any emergency. These are all things to think about, to each their own though, one thing that can’t be ignored is the monumental redistribution of wealth that is taking place in the cryptocurrency space as a whole…It’s something of the likes that we have never seen before, not quite like this! Thanks for your feeback 🙂
Melina
January 7, 2018Great information! I have heard of Bitcoins but never understood them!
Ourtrippytribe
January 7, 2018Thank you, I hope we were able to clear some things up for ya about Bitcoin.
Monica
January 7, 2018I hear mixed things on bitcoin. I know cryptocurrency is going to just get bigger. However I worry about the volatility of Bitcoin mixed with the hype. Like someone once told me, if your mom knows about it you’re too late. Many are waiting for the bubble to pop. We shall have to wait and see.
Ourtrippytribe
January 7, 2018Monica, I’ve heard those same things. The more informed one is the more grounds they have to make informed financial decisions. As far as bubbles I feel that Bitcoin is actually a “bubble burster”, If we are speaking of bubbles that conversation (in my honest opinion) must begin with the U.S dollar, Real Estate Market, Student Loans, Stock Market etc, but not many share the same attitude toward those things as they do toward Bitcoin. We don’t know what will be the ultimate destination for Bitcoin but it has first mover advantage and cannot be undone. AOL had its run and is no longer a big mover in the space of internet but look at the companies we have today due to its innovation (i.e google, youtube, facebook, Amazon, eBay etc,.) Bitcoin due to its extreme value may serve as a digital gold or asset class moreso than a actual day to day currency, but with some financial projections of $1 million per Bitcoin it most certainly isn’t too late! Thanks for checking out our post.
shanna
January 9, 2018This whole digital currency concept still just boggles my mind! And I consider myself pretty hip. haha. Thanks for the information.
Ourtrippytribe
January 10, 2018To be honest, it boggles my mind too, but then again so would the concept of an iPhone when I was in grade school haha. Thanks for visiting our page, glad you liked the info 🙂
Jeronimo
July 3, 2019Clayton! Hanna! Was great to meet you and enjoy my bitcoin tour in BA. I’ve learn a lot from you and I love your traveling family lifestyle! See you at the moon!
Ourtrippytribe
July 6, 2019It was great meeting you as well Jeronimo. I really enjoyed your Bitcoin Tour in BA, it was enlightening to see how btc is taking action all across the planet! Travel is one of our most prized family passions and we are honored to have been guests to such gracious hosts in Buenos Aires. See you at the moon brother 😀