Everytime I try to find something about bitcoin, the explanations black out because it does not make sense.

Does anyone actually know how bitcoin works?

How did bitcoin have any value to begin with? How did it accumulate value?

Your input is appreciated!

If you go too deep, even the paper money issued by US government has no value. It's just a paper. However, value comes as a result of labor put. Once we put labor and produce something, it has got value. Value is merely a mental thought. When you value something, it becomes valuable, when you doesn't value something it looses it's value. Ancient yogis in Nepal and India didn't give value to entire universe, so they were able to liberate themselves.

About Bitcoin, I call it Bitcoin bubble. Nobody knows what's going on until it crashes like housing market crashed.

Well the paper money was issued in leau of gold in the beginning but latet on the gold standard was dissolved.

How did bitcoin possess any value to begin with? There is unclear explanation that bitcoin is mined by using computers. How does running some app or program generate bitcoin that has value?

@shahi baba, it's history It started in 2009 after the stock market crash. Japanese/American computer scientist Satoshi Nakamoto came up with the idea of peer to peer money transfer. Soon the idea started action and thus a startup was formed in New York City.

The idea is that the value of the money is backed by the Central Bank that provides monetary value to it. Thus for any transaction we make we pay certain amount as commission. The idea that bitcoin came up with is to eliminate the middle man so the cost of commission is eliminated. You can transfer money from one country to another for free as well as do transactions for free.

The idea of bitcoin is that using blockchain or encryption, the transaction of people are in distributed system not centralized. That means your history of transaction is save distributed online where it is available to public ledger but your identify is hidden. Thus it can be safe from hackers.

Well the value that it gained is because people started believing on it as the money of future and started investing on it. The question is still debatable if it will be the digital money of future or it's bubble will burst is yet to be unfolded. Hope it helps to give you some background.

https://www.reddit.com/r/explainlikeimfive/comments/12knie/eli5_bitcoins/

Sparrow

http://www.cc.com/video-clips/buwgm4/the-daily-show-with-trevor-noah-the-rise-of-bitcoin-and-other-stupid-meme-currencies?fb_ref=share_web

sdhungel thanks for the explanation. That makes sense. I am thinking of investing some money into it. Wish me luck .Kancho that video is funny but it's very true

@sparrow if i am not mistaken you are DK.

Bitcoin is a cryptocurrency which doesn’t require any third party to control over its transactions as any national banks work nowadays.

It is completely virtual but can be exchanged with real national currencies. It was started as a universal money and has been carrying out its work as a global currency worldwide.

Being a digital form of money, Bitcoin is viewed as the future of currencies. Bitcoin is not only the digital currency but it’s becoming popular due to anonymity which doesn’t take users private information but only takes their wallet ID.

Bitcoin has its own wallet to keep Bitcoin which is a complete online wallet and it tracks its data with blockchains. Read the full article>> [ How to Buy Bitcoin – Why Should buy And Why You Shouldn’t https://www.organicposts.com/buy-bitcoin/ ]

Buy doge coin its the future and anyone can afford now . bitcoin it too expensive and you cantmake money on it unless you spend big money 💰