Learn and Understand Bitcoin and Cryptocurrencies
In-depth resources for understanding Bitcoin and cryptocurrency
We've put together a collection of great articles to help explain Bitcoin and other cryptocurrencies in a way that anyone can understand. Whether you're looking to learn about cryptocurrency before deciding which one to invest in, or you just want to brush up on your crypto slang, diving into the resources below will put you on the path to a better understanding of crypto so you can take the reigns on your financial future.
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Bitcoin is an invention that, for the first time in history, enabled a group of software users to create and manage a digital money supply outside the control of any government or bank.
A revolutionary idea when introduced in 2009, Bitcoin continues to have implications that are just beginning to be understood and explored by technologists and economists today.
Bitcoin Cash (BCH) is a cryptocurrency that intends to offer an alternative to the world’s oldest and most widely traded cryptocurrency, Bitcoin (XBT).
Launching in 2017, Bitcoin Cash was created by a group of Bitcoin users who disagreed with the roadmap proposed by the project’s principal developer group, Bitcoin Core, and who believed different technical decisions were needed to bring Bitcoin to a global audience.
Bitcoin Satoshi Vision (SV) is a cryptocurrency created in late 2018 by forking the Bitcoin Cash blockchain and adjusting the protocol with larger block sizes to reduce transaction fees.
The name comes from its supporters belief that cheaper fees aligns with Satoshi Nakamoto’s vision for Bitcoin.
Widely considered to be the first successful “alternative cryptocurrency,” Litecoin’s 2011 release would inspire a wave of developers to try to expand the user base for cryptocurrencies by altering Bitcoin’s code and using it to launch new kinds of networks.
So, while Litecoin was not the first cryptocurrency to copy Bitcoin’s code and modify its features, it is one of the more historically significant, establishing a robust market over time even as it has sometimes faced criticisms that it lacks a clear value proposition.
One of the most ambitious blockchain projects, Ethereum (ETH) seeks to use cryptocurrency to decentralize products and services in a wide range of use cases beyond money.
If Bitcoin seeks to serve as a digital gold, Ethereum has taken a different approach, generalizing so its users can create any number of custom assets and programs governing their operation.
Tether is a stable currency and converts cash into digital currency, to anchor or tether the value to the price of national currencies like the US dollar, the Euro, and the offshore Chinese yuan.
Launching in 2013, XRP aims to complement traditional payments, migrating transactions that occur today between databases controlled by financial institutions to a more open infrastructure.
One of the more ambitious cryptocurrencies to go live in the wake of bitcoin, XRP is notable for a design that sparked continuing discussion about how blockchains can be architected and the use cases they should attempt to address.
Bitcoin 101
Bitcoin is an invention that, for the first time in history, enabled a group of software users to create and manage a digital money supply outside the control of any government or bank. Read more here about Bitcoin.
A blockchain is a decentralized, distributed, and oftentimes public, digital ledger consisting of records called blocks that is used to record transactions across many computers so that any involved block cannot be altered retroactively, without the alteration of all subsequent blocks.
A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast to the network and usually begin to be confirmed within 10-20 minutes, through a process called mining.
Bitcoin mining is the process of making computer hardware do mathematical calculations for the Bitcoin network to confirm transactions and increase security. As a reward for their services, Bitcoin miners can collect transaction fees for the transactions they confirm, along with newly created bitcoins. Mining is a specialized and competitive market where the rewards are divided up according to how much calculation is done. Not all Bitcoin users do Bitcoin mining, and it is not an easy way to make money.
As of February 2020, Bitcoin was legal in the U.S., Japan, the U.K., Canada, and most other developed countries. In the emerging markets, the legal status of Bitcoin still varied dramatically. China heavily restricted Bitcoin without actually criminalizing the holding of bitcoins. India banned banks from dealing in bitcoins and left the overall legal status of cryptocurrencies unclear. In general, it is necessary to look at Bitcoin laws in specific countries.
Even where Bitcoin is legal, most of the laws that apply to other assets also apply to Bitcoin. Tax laws are the area where most people are likely to run into trouble. For tax purposes, bitcoins are usually treated as property rather than currency. Bitcoin is generally not considered legal tender.