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Every year more and more people are discovering the wonderful world of digital money, like bitcoin, and more specifically, Bitreserve’s bitmoney. Whether your friend or family member heard about it first on TV, the radio, on Facebook or from their office colleague, there inevitably will be some confusion! As you get ready to bring in the New Year with your friends and family, we’ve got answers to those tough questions from fellow party goers.

Okay, so what is ‘bitcoin’ anyway?

Bitcoins are an online currency that can be sent and received anywhere in the world, instantly (just like sending an email). Bitcoins have a limited supply, and only 21 million coins will eventually be created through a unique process called “mining”.

Mining? What’s that?

Bitcoins are created through a process called “mining”. Just like in a bank, someone needs to do the accounting, right? The miners process incoming/outgoing transactions and use their collective computing power to crunch the numbers and ensure that the transactions are valid on their ledgers. This is essentially the heartbeat that keeps the network alive and secure.

So, is it money?

The definition of money is: ‘a store of value, a unit of account, or means of exchange.’ People realize the value that bitcoin creates by encompassing all three of these attributes , and from there attach a price to how much their bitcoins are worth to them compared to other sellers in the market; therefore its value (price per bitcoin) changes often. So, in many instances it is like money as you can already use its value to purchase goods and services from a myriad of major retailers.

Why should this matter to me?

Bitcoin is doing for money what email did for communication. It exists without the need of a financial intermediary like a bank, and any individual with a computer or smartphone can be a part of this low-cost global financial network. Imagine a world with no wire transfer fees, atm surcharges, or foreign exchange fees when you travel to another country. Bitcoin allows for true financial freedom, and it’s making it easier for underdeveloped countries to enjoy the same financial services we take for granted everyday.

Ok, I need some bitcoin, how do I buy one?

First you’ll need to buy some bitcoin. I’d suggest buying from an exchange like Coinbase as they make it easier for newcomers, and they allow you to use your bank account to purchase bitcoin. Then, create a Bitreserve account and you can transfer your bitcoins from your Coinbase wallet to your Bitreserve wallet.

Why should I do that?

Bitreserve is not just a bitcoin wallet. They allow you to hold your bitcoin as bitcoin, or instantly convert your bitcoin to a stable, real-world currency or to other commodities like gold and, in the future, oil! Bitreserve gives you maximum flexibility with your value and investments. And with them you can convert your bitcoin to bitdollars and protect your investment from volatility.

What are bitdollars? Is it the same as bitcoin?

Bitreserve enables you to convert your bitcoin to other bitcurrencies like bitdollars, and bityen so that you can still hold your bitcoin as any of the five major real world currencies, and still make purchases where bitcoin is accepted and send it to friends and family instantly and for free. It also allows you to protect your investment if the price of bitcoin drops by converting your value to bitdollars, shielding you from volatility.

 

Share this info with friends and family or have them watch this quick video to learn more about how Bitreserve works. Happy New Year!