I am a novice trying to understand why and how Bitcoin works?

[SagarikaM]

I am a complete novice and trying to understand Bitcoin's functionality. I really don't understand how and why there is such a price appreciation since 2009 till now?  I often hear where everyone talks about its security but then the details of the people are already with exchanges and exchanges are getting hacked at times and people are losing their digital currency so then how it is safe and anonymous. In many posts and discussion threads, I have read where some say Government will stop the digital currency and some say Government will adopt it. What are the possible exact reasons for the same?
What is the store of value of Bitcoin apart from the medium of exchange?
Sorry if questions are bit silly:)

[DeathAngel]

You’re more likely to get proper responses if you post this in the Beginners & Help subsection -

https://bitcointalk.org/index.php?board=39.0

All you’ll get here is clueless noobs spamming to meet their signature campaign requirements.

[Marshall14]

Bitcoin can be regarded as an asset/curency/store of value in diverse ways than one
Firstly it is currency in the sense that it could be used to make purchases(not in every area yet) both online and in some merchant stores..

It can also be an asset/store of value because the bitcoin can be purchased and held till its value rises, its value isn't stable,so it's a measure of investment

It's price/value rises/falls based on the supply/demand for the currency

[yaphetSGG]

Bitcoin was the initially popular cryptocoin. No one understands specifically who made it - most cryptocurrencies are made for optimum anonymity - but bitcoins initial made an appearance in 2009 from a creator supposedly called Satoshi Nakamoto. He provides since still left and disappeared behind a Bitcoin fortune.
Bitcoins are virtual cash designed to end up being self-contained for their worth completely, with zero want for banking institutions to move and shop the cash. You own bitcoins once, they act like physical money cash: They have worth and trade simply as if they had been nuggets of silver in your pocket. You can use your bitcoins to buy services and goods online, or you can tuck them and hope that their value increases through the years away.
Bitcoins are traded from a single personal pocket to another. A budget is definitely a little personal data source that you shop on your pc get on your smartphone, on your tablet or somewhere in the cloud (sizzling hot storage space).
Bitcoins are forgery-resilient. It is normally therefore computationally rigorous to develop a bitcoin, it isn't really economically worthy of it for counterfeiters to adjust the program.

[Gagah119]

Many websites write articles about the benefits of bitcoin for the public, if you know the purpose of creating bitcoin it is certainly not to exchange bitcoin for fiat or other altcoins in exchange because exchange is vulnerable to attack, if we consider bitcoin not an investment it is very little possibility our assets are lost in exchange.

[troiano9]

You should watch some Andreas videos

[pri3oner]

Overall, bitcoin (the whole blockchain itself) has made a mini-revolution when it has showed its potential as the technology and liquidity as cash.

[serjent05]

I am a complete novice and trying to understand Bitcoin's functionality. I really don't understand how and why there is such a price appreciation since 2009 till now?  I often hear where everyone talks about its security but then the details of the people are already with exchanges and exchanges are getting hacked at times and people are losing their digital currency so then how it is safe and anonymous. In many posts and discussion threads, I have read where some say Government will stop the digital currency and some say Government will adopt it. What are the possible exact reasons for the same?
What is the store of value of Bitcoin apart from the medium of exchange?
Sorry if questions are bit silly:)

I also was a newbie and i didnt learn crypto so quick. What I did was read topics related to my interests, talk with people who have the same interests as mine, hang out in this forum and Mr. Google got all the answers. Dont be limited, explore the crypto world, the internet world, educate yourself and be analytic. Dont be spoon-fed brat.

[Harlod Benjamin]

You can learn more through articles as well as websites. There are so many of these, you can understand how it works as well as the benefits it brings

[Marcel666]

Many factors has contributed to the increase in value of bitcoin over the years.
One of which is the increase in mining difficulty and power consumption, this serves as a support to prevent the price falling, as no one would sell lower than cost of production.
It's also decentralized, so market forces sway the value easily. And it was quickly identified for it's utility as a payment option which was neutral, cheap, fast, decentralized and open source.

[NoeSanchez]

Bitcoin is like share market, the main difference is that bitcoin is decentered and anonymous and no physical existence. There are several sites which instructed how to use bitcoin.

[PipeMaddox]

Bitcoin can be regarded as an asset/currency/store of value in diverse ways than one. Bitcoins are virtual cash designed to end up being self-contained for their worth completely,with zero want for banking institutions to move and shop the cash.

[Ridwan Fauzi]

Bitcoin prices are determined by supply and demand, a long enough period of time has been made bitcoin increasingly known by everyone. They consider bitcoin as a digital currency that is used as a place of investment because prices are volatile, you can see the history of the annual bitcoin price movements.

Meanwhile, the government will always determine that bitcoin can be known by everyone or even shunned by some people who are exposed to incitement from the government to know the use of bitcoin. Regulation is important until now, for those who have received bitcoin well then they have been aware of the importance of digital currency this year, but for governments that still ban bitcoin, they are still comfortable with the payment system using fiat money carried out by each of its people.

[cathalary153]

bicoin is a kind of digital money. Its quantity is limited, you have to own it by buying it or using the bitcoin digging system to get bitcoin however the system is quite complicated. And this is a form of money that is not material, can not be held. You can buy it as a store image and then sell it and get a profit from the difference between the purchase price and the selling price.

[squatter]

I am a complete novice and trying to understand Bitcoin's functionality. I really don't understand how and why there is such a price appreciation since 2009 till now?

Bitcoin has a very small monetary supply; only 21 million BTC will ever be created. Because the supply is limited, increased demand -- from adoption, speculation about future adoption, etc. -- drives the price up.

I often hear where everyone talks about its security but then the details of the people are already with exchanges and exchanges are getting hacked at times and people are losing their digital currency so then how it is safe and anonymous.

There are different kinds of security. Bitcoin is "secured" by an incredible amount of computing power, to the point that most people consider its ledger immutable and its payments irreversible.

Exchanges are trusted third parties that hold custody of bitcoins on behalf of customers. When exchanges get hacked, that's a matter of their own faulty security practices. It has nothing to do with Bitcoin's security.

In many posts and discussion threads, I have read where some say Government will stop the digital currency and some say Government will adopt it. What are the possible exact reasons for the same?

Some small governments have banned cryptocurrencies. Most are trying to regulate them, and some (like Japan and Malta) are embracing them. I think that over time, most governments will realize the need to embrace cryptocurrencies for the sake of their country's economic growth and fiscal wellbeing.

What is the store of value of Bitcoin apart from the medium of exchange?

Fiat currencies -- dollars, euros, etc. -- can be freely devalued by governments and central banks. This can't happen with Bitcoin because its supply is enforced by decentralized software protocol. Because of its predictable supply and scarcity, Bitcoin is better than most other currencies or commodities at being "money."

[Rey Mysterio]

If you're new to the crypto economy it is obvious you'd have questions regarding things like the growth Bitcoin had experienced since 2009, how it happened, how does it work, why there are countries that are for and against it and so on. Thing to understand is the growth of the crypto economy is still very much in its early stages and yet it has grown a lot in a very short time showing off it's potential to investors in terms of it being something along the lines of asset and currency. If you're keen on learning about the economy there are detailed information about it and everything crypto on the internet you can find with a little searching.

[Mickie James]

Bitcoin is one of the first if not the first cryptocurrency to rise. It has been considered as an asset by many people. It is true that some people believe too much in it and say that the government will adopt something decentralised as the Bitcoin, which is unlikely to ever happen. You can search up the details on Google. The articles there will be helpful for you.

[Izabelle Casey]

Bitcoin and blockchain combined is the future of digital world which may one day lead to a cashless society. Bitcoin offers a lot of potential and it has already relovlutionized the economy. Bitcoin itself is safe; can't blame bitcoin for people's negliegence.

[erikoy]

Well, you will going to have a lots of things you need to learn in this forum. Just select the best thing that could do for you to learn here. You can decide where to start. Check also pinned post on every section and read them carefully for better understanding here in the forum. Follow always the rules and guidelines of the forum for it will regret you one day if you will get ban here. This forum has wonderful things and that include on how you will going to earn after you learn.

The most important thing is to respect every users here in the forum even if they are not and even if they could not. Just get along with others and posts constructively. There are technical sections also for your technical needs and if you're looking for something then use the search bar of this forum. And if still had some questions then you can start a thread here. Not only that, you can also share your knowledge about cryptocurrency or some discovery.

[Cointrace]

Feel free to have a look at my site for more information, put together over the year to help educate others. Links and info on exchanges plus much more. I'm having a hard time raising awareness for the site due to restrictions for crypto on commercial advertising platforms and so people are not benefiting from the information i'm sharing at the same time very little traffic which means no revenue. If you could help me spread the word, would be great.


www.Cryptonix.co.uk - Free guide and Introduction to blockchain and crypto for beginners

Any questions welcome to get in touch via social media pages.

Hope that helps