When we talk about Bitcoin, you might think you have to buy them in increments of one. For example, you could buy 1 Bitcoin, 2 Bitcoin, etc. However, you’ll be happy to know, Bitcoin can be broken down and divided into smaller units. This is an essential characteristic of Bitcoin and crucial for users.
Just think about it, at the time of writing this guide, 1 Bitcoin is worth around $15,000. If you could not divide the Bitcoin into smaller units, you would only be able to use Bitcoin as a means of exchange for goods and services with the value of $15,000, $30,000, etc.. Since the goal of Bitcoin is to become an everyday currency alternative, it is essential it can be broken down to cover all the different price ranges.
I’m not even going to go over the names of each of the units Bitcoin can be broken down into, as I don’t really think it is that important at this point. What is important is that no matter what monetary amount of Bitcoin you want to buy, sell or use as trade… there is a corresponding amount of Bitcoin. That means Bitcoin can be used as a means of exchange for any value good or service.
OK, I think this Bitcoin Overview has covered all the preliminary information you need to understand Bitcoin. Now it is time to go over some Bitcoin Fundamentals. In the next lecture we will go over how to store Bitcoin…