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What Is Bitcoin? The Simplest Bitcoin Explanation

In a nutshell, Bitcoin (BTC) is a virtual currency — 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.

There's a little more to it than that, though. Being a form of Cryptocurrency, Bitcoin is completely decentralized, so it isn't regulated — at all. This means you aren't covered by the same protective measures your bank provides, such as fraud detection. 

The result? Should you happen to fall for a scam and 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: Best Bitcoin Wallet

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

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

Related: How To Mine Bitcoin Fast

One way you can do this is with a Coinmine. 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 it would be BTC), and it'll do the heavy lifting for you.

Want to learn more about Cryptocurrency? Check out our Beginner's Guide.