Bitcoin Basics
Bitcoin is better money and a better monetary system. Still have questions? Check out our answers to the most common ones below. 👇
Common Questions
You're not alone. Here are the answers everyone is looking for.
Is Bitcoin a Scam?
Decidedly not. Here's why.
Is Bitcoin just an investment for rich people?
No. Here's why.
How does Bitcoin beat inflation?
Tired of watching inflation erode your hard-earned money? Here's how Bitcoin is a hedge against inflation.
Am I too late to invest in Bitcoin?
Bitcoin is still early in its adoption phase. That means, the sooner you buy Bitcoin, the more return you'll see. Here's why.
How do I get Bitcoin?
Great Question! Learn how to hold power, not paper, for yourself.
So how do you get Bitcoin? If you're just starting out, you'll want to use a trusted exchange like River Financial.
River Financial. Just open an account and start buying bitcoin. It's that simple. River offers unlimited zero-fee purchases if you set up recurring buys. For non-recurring buys you'll pay a 1% fee on any purchase up to $1m. See their fee chart here.
River does not charge a fee for Bitcoin withdrawals.
(Note: joelbomgar.com is for educational purposes only and is not compensated by any linked or recommended products or services)
Bitcoin vs. Other Money
Bitcoin’s decentralization is necessary, as it ensures that nobody controls the network. Without an organization to control and/or direct the network, Bitcoin can be used as electronic cash (two people can exchange it online without a need for a third party).
However, this decentralization forces Bitcoin to develop outside of our current monetary systems, which all are controlled in some way by a government entity, and therefore are fully centralized in the hands of one organization.
Because Bitcoin is fully separate from all other modern day monetary systems, Bitcoin must have its own, fully separate, rate of issuance of newly created bitcoin tokens. This rate is defined in the code and does not change, specifying that there will only be 21 million bitcoin created.
So, while all other currencies in the world can inflate at any rate the government chooses, bitcoin’s supply is capped and nobody can change it. This means that Bitcoin is incredibly scarce, and therefore can be used as a hedge against inflation. This is perhaps one of the most important benefits that Bitcoin provides. People can once again save their money without the fear of it losing its purchasing power.
Superior Money
Here are some other ways Bitcoin is superior to other types of money/units of exchange.
Track Record
Because Bitcoin has only been around since 2008, it has a limited track record. However, when in doubt, zoom out. Bitcoin has only ever gained in value over the years.
Durable
Bitcoin is durable because it retains its value over time. It cannot be inflated.
Divisible
Each bitcoin can be divided into 100 million units called satoshis, making it incredibly divisible.
Fungible
Bitcoin can be easily exchanged globally making it very fungible.
Portable
Because Bitcoin is digital, it can be used anywhere in the world via the Bitcoin software.
Verifiable
Bitcoin uses signatures (private keys) and proof-of-work to verify each transaction, ensuring the integrity of the system.
Scarce
Bitcoin is hard-coded to produce ONLY 21 million bitcoin. That means it is the scarecest money on Earth.
Beyond Bitcoin Basics
Read these recommended posts to build a strong foundation for understanding Bitcoin.
What is Bitcoin?
If you're brand new to Bitcoin, this is the content you need to digest first. We recommend you start here.
Read Post →How does Bitcoin benefit me?
This is a supporting piece of content, perfect for reading next.
Read Post →How to acquire Bitcoin
This is a supporting piece of content, perfect for reading next.
Read Post →Recommended Resources
Once you've digested our primary recommended materials, go deeper, starting with the posts below.
Is Bitcoin for the Average Person?
Don’t ever think Bitcoin is out of your reach! In this video Joel explains why Bitcoin is an asset that anybody can own.
Inflation vs. Bitcoin
Why do we have inflation and how does bitcoin solve it? In this video Joel discusses the ever-pressing problem of inflation and why bitcoin is the solution.
How to Interact with Bitcoin
As Bitcoin is fully digital, you can only interact with it through a computer application. While there are many different […]
How to Acquire Bitcoin
Simply go to River Financial and start buying Bitcoin. River offers unlimited zero-fee purchases if you set up recurring buys. […]
How Does Bitcoin Benefit Me?
Inflation Hedge Bitcoin is a decentralized monetary network. The decentralization is a necessity, as it ensures that nobody controls the […]
What is Bitcoin?
Bitcoin is digital money AND a digital money exchange system. It was created in 2008 by an anonymous developer to […]
Intro to Bitcoin
If you are completely new to Bitcoin and starting from scratch, here is a multi-part series of Facebook posts I made on the topic.
Intermediate Bitcoin Content
Ready to dive into more advanced topics?
Move on to the Intermediate learning path and explore the first recommended reading piece on the Intermediate path.
Go to Intermediate Path →
Follow Joel Bomgar
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And reach out via the contact form with your Bitcoin questions!
