What is Bitcoin or rather, what problem does Bitcoin actually solve?

Cash can be exchanged very easily between two parties. This was not possible with electronic money. Someone could copy electronic money in any way they like, for example a picture – imagine a photo of a bank note.

For electronic payments a trusted third party like a bank is needed to hold the accounts and verify the transaction.

Bitcoin has solved exactly this problem. It no longer needs a financial institution to make a payment between two parties. Bitcoins can also be stored without a bank or the like.

Bitcoin therefore is a network for making payments between only two parties completely independently.

This is achieved by entering the transactions in a public register that can not be changed afterwards. This technology is called blockchain.

In addition, Bitcoin is a store of value that you have completely under your own control, like cash but electronically.

More and more people are realising that we are dealing with an invention that could turn the world upside down, just like the internet.

Want to learn how Bitcoin works in a technical yet simply described way?

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