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What Is Bitcoin? The Simplest Bitcoin Explanation

Bitcoin (BTC) is a virtual currency — commonly known as Cryptocurrency — that can be used for everything from reimbursing a friend for your share of last night's Chinese takeout to putting down a deposit on a fancy new apartment or sports car.

Of course, there's a little more to it than that. Bitcoin is completely decentralized. This means it isn't regulated by a central authority, so you aren't covered by the same preventative measures your bank provides, like fraud detection. 

The result? Should you happen to fall for a scam, send Bitcoin to the wrong address or a savvy hacker manages to break into your Bitcoin Wallet and drain your account, the funds are gone for good. Your bank won't refund you, nor will the Blockchain itself.

Related: Can You Reverse A Bitcoin Transaction? 

Because it's digital (there's no such thing as physical Bitcoin), there's also no way to send and spend Bitcoin without a smartphone, tablet, computer, or what's known as a Coinbase Visa Debit Card — or another Bitcoin Debit Card — to initiate the transaction.

How To Get Bitcoin For Free

As you would a traditional fiat currency, you can buy Bitcoin by converting USD to BTC. That's not your only option, though. You can also mine it. This isn't as complicated as it sounds. Far from it, in fact. It's as simple as running some software in the background. 

Related: How To Mine Bitcoin

One way you can do this is with a Coinmine One. It's a Plug-and-Play Bitcoin Miner. All you need to do is take it out the box, connect it to the Internet, tell it which Cryptocurrency to mine (in this case, Bitcoin), and it'll do the heavy lifting for you.