What Is Bitcoin?

The Future Lies In Crypto Currencies!

What Is Bitcoin?

Have you been wondering and confused about Bitcoin?

I know you yearn to know what it is but you are confused with the so many long and complicated terminologies that surround the world of Bitcoin.

To many Cameroonians and Africans, the Bitcoin concept is yet to take place in peer group discussions. Many Cameroonians and Africans are still afraid of this currency that is already making the world go round.
The second term, bitcoin, is the currency itself. It is like the coins and bank notes that we use on daily basis.

OK! Let’s make it simple. Sit and relax as we take a dive into the world of this crypto currency!

Bitcoin is a digital currency. As simple as that. That is a little bit confusing not just to you, but to all newbies in the world of crypto currencies. When I was introduced to Bitcoin, I was as confused as you are.

A currency, we all understand what it is. It could be XAF FRS CFA, Dollar, Naira, Yen, Rand…. But what about the digital part of it?

This is where the confusion sets in.

Away from the technical aspect and language, I want to explain what Bitcoin is in the layman’s language.

First of all, Bitcoin was brought to public attention in 2009 by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto. The transaction is done from peer to peer with transactions done without an intermediary. These transactions are verified in the blockchain which is a public distributed ledger. Bitcoin is the first decentralized digital currency. In other words, there is no central bank that controls and dictates how you spent your money. Quite interesting isn’t it!

You will constantly come acrros Bitcoin with capital 'B' and bitcoin with the lower case letter 'b'. The first refers to the entire system. It is synonymous to the Franc CFA Zone, an entire system operating under one currency, the Franc CFA. 

CFA Coins

Is this some kind of new currency or money as the layman calls it? Yes it is. But it is money with a difference. It is not physical, it is not tangible. It is virtual, it is electronic, used only in the digital world.

Ah, that digital guy has managed to sneak in again. Let’s deal with him. 

Digital simply means which is processed through an electronic system, using the computer. It is not physical, not tangible. This means that you don’t carry bitcoins in your pocket as you will do with CFA bank notes. You do not go to the market and buy goods by giving bitcoins in exchange of the goods.

So how on earth do we use Bitcoins?  

With bitcoins you purchase goods and pay for services electronically. You can transfer money to friends and relatives using bitcoins. To have access to that money and use it in your day-to-day activities, you will need to convert the bitcoins into yout local currency. Simply put, if you want your bitcoins in CFA, you will need the services of an exchanger who collects your bitcoins and gives you CFA. (How To Buy And Sell Bitcoins In Cameroon and Beyond?)

When you purchase with bitcoins, that transaction is registered digitally (on a computer) on the Blockchain. The Blockchain tracks every piece of information of every bitcoin transaction. It works like a register. It records past and present transactions, the date and time of the transaction, the number of bitcoins owned by each user. Bitcoins are stored in a wallet (How To Open And Manage A Bitcoin Wallet)

There are people in charge of constantly verifying the blocchain and making sure that all information is correct. They update the the time of each transaction. These people are called “miners”. Their task is to confirm transactions and ensure their safety. These miners don’t work for free. They are paid by the people behind the transaction. This is called the mining fee. Compared to our local money transfer transactions, this fee represents the charges you pay for sending money through a local money transfer agency.

That is Bitcoin in a very simplified language.

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