How To Use Bitcoin Explained

Welcome to This site has been created as a resource to help normal people – like you and I – understand the Bitcoin phenomenon and to get started if that is your aim.

My name is Steve and I found the idea of Bitcoin, also known as BTC, to be very confusing. This actually troubled me because I work in an area of internet marketing called SEO. It is quite technical and I have a good grasp of computer and internet related topics, but still, the language of Bitcoin was very foreign to me. If it was incomprehensible to me, I guessed that there must be a lot of other people that are confused too.

I have a background in personal finance and investment management, so the concept of, and economics underpinning, a new currency was interesting to me on an intellectual level. Because of this, I had been reading articles in the news about Bitcoins for about one year before I decided to buy. I had some familiarity, but nothing concrete. Then one day in mid 2013 I decided to buy. If I was actually going to buy a coin, I needed to understand the mechanics.

It was that moment that was the genesis of this website. In that first week I spent around 60 hours reading about how to buy BTC and secure my wallet. I must have visited 100 websites and blogs that week and by the end, I still had not bought anything. I was still confused and still did not know how to use Bitcoin. As I was reading and researching, I kept thinking that there must be easier ways to get started. If there were, I couldn’t find them. Why was there no beginners guide?

The reality is that in early 2014 – as I write this – the Bitcoin community is mostly comprised of developers and very early adopters. The general public really has no notion of alt coins and crypto currencies. They are a completely different language. This means that most of the websites in the alt coin ecosystem are built and written by developers and hardware specialists. To them, their content and descriptions make sense, but not to everyone else – even reasonably techie people like me struggle.

The thing is, this is a very important topic. Leading venture capitalist Marc Andreesson has famously said that “software is eating the world”1. What he meant by that is that every business model is being impacted by software. Even small companies now need databases, spreadsheets, inventory management and on and on. In tech-speak, this is disruptive2. Well, Bitcoin has the very real possibility of being disruptive to central banks and currencies. If it has a real impact in years to come, everyone on the planet will need to know the basics of how Bitcoins and crypto currencies work.

There are many true believers that are convinced that Bitcoins will change the way the Federal Reserve and US dollar work. I’m not convinced of that myself, but I can see an important role for the currency in both the internet and real economies. We’ll see…!

For an overview of the early history of the currency and technology, a film has been made – you can watch the trailer here:

With all that said, I am writing the content on this site to be what I had hoped to find in mid 2013 when I was trying to learn. You will find lots of written content – hopefully it will be understandable to the average lay person – links out to useful resources and services and some videos attached too. Luckily, while I have a good understanding of the subject now, I am not a developer, but a trained writer, so this site should be much more accessible.

BitcoinTherefore, this site explains:

– the history of Bitcoin (information here)
– what is a Bitcoin? a Litecoin? (information here) Alt coins? Crypto currencies? (information here)
– how the price is set and whether there is any value in the currency (information here) (and here)
– how to buy and sell Bitcoins (information here) or trade in alt coins on an exchange
– mining – what is a hash? What is a blockchain? What is a pool? (information here)
– your wallet – how to secure your coins
– the chequered history (information here) and where to get updated news (information here)
– how to use the coins to buy real products and services from merchants

The overall goal is that if you give this site an hour or so to read, watch and follow links, your 100 hour learning curve will be cut dramatically.

Whether you choose to invest, trade, spend or completely ignore Bitcoins, I hope this site is helpful to you.