What is Bitcoin? How does it work? Why should I care?

Sep 23, 2021, 8:23 PM | Updated: Sep 24, 2021, 6:57 am
Bitcoin hits an all-time high of just under $20,000. Credit: Shutterstock via CNN

SALT LAKE CITY — On Sept. 7, El Salvador became the first country in the world to make the cryptocurrency Bitcoin legal tender. The country’s president, Nayib Bukele, said legalizing it would help the 70% of Salvadorans who don’t have access to “traditional financial services.”

Bukele also said it would be an effective way to transfer the billions of dollars in remittances that Salvadorans living outside the country send back to their homeland each year, the Associated Press reported.

What is Bitcoin?

1 Bitcoin = $ 44,575.90 US Dollars (as of 09/23/21)

Bitcoin is an electronic currency that people use the same way they spend fiat money, which is

Money personality

Photo by Joe Raedle/Newsmakers

inconvertible paper money made legal tender by a government decree. But you don’t carry it around in your pockets. It is electronic cash that lives in computers and on mobile devices.

No central bank, government or authority on Earth can control or regulate Bitcoin. With it, an individual can transfer funds with no restrictions and without involving any intermediary.

All the transactions are irreversible.

Banks have hours of operation, and are closed on holidays and Sundays, whereas Bitcoin is open 24/7, 365 days a year.

Because a person doesn’t need to provide any sensitive information when making a Bitcoin payment, there is zero risk for that person’s identity or financial information of being stolen or compromised.

Instead of gold, which is heavy, bulky and difficult to transport and store, major institutional investors use Bitcoin as a hedge against inflation, according to coinbase

Investopedia says it can be purchased with standard national money and placed into a bitcoin wallet that is accessed most commonly through a smartphone or computer.

What is a blockchain?

The blockchain contains a record of every time someone sent or received bitcoin, which anyone can view and verify, i.e. a financial ledger. The blockchain data are permanently recorded. 

A blockchain stores data in blocks that are chained together. As one block is filled with data it is chained to the previous block in chronological order.

The most common use of a blockchain is as a ledger for transactions. Bitcoin miners confirm every transaction manually. Since the introduction of this cryptocurrency in 2009, no hacker has managed to infiltrate it, according to Ftn News.

A blockchain allows the online transfer of value without the need for a bank or credit card company. A blockchain allows secure payments between strangers without verification from a bank. How does a cryptocurrency transaction work?



Today’s Top Stories

All News

A Utah lawmaker is considering proposing an amendment to the state's constitution if the trigger la...
Simone Seikaly

Utah Attorney General asks for permission to appeal trigger law injunction

The injunction bars enforcement of SB 174, Utah's abortion "trigger law" until a lawsuit in district court is resolved.
13 hours ago
By Evan Perez, Gabby Orr and Pamela Brown, CNN

Feds removed documents from Mar-a-Lago in June with grand jury subpoena

(CNN) — The FBI search at Mar-a-Lago this week came months after federal investigators served an earlier grand jury subpoena and took away sensitive national security documents from former President Donald Trump’s property during a June meeting, people familiar with the matter tell CNN. Investigators executed Monday’s search in part because they had developed evidence, […]
13 hours ago
The Canyons School District is pictured. Its starting the year with a teacher shortage...
Adam Small

Canyons School District starting the year with a teacher and staff shortage

Canyons School District will start of the school year with a teacher and staff shortage. The district has over 150 openings.
13 hours ago
A lightning strike is pictured....
Samantha Herrera

Two Tooele houses struck by lightning in yesterday’s storm

TOOELE, Utah — Two houses were struck by lightning Wednesday night during a thunderstorm. Officials said there were no injuries, but some damage. Deputy Fire Chief Jed Colovich from the Tooele City Fire Department said one house had damage to its electrical outlets. The other house had damage to its sprinkler timer. Colovich said the […]
13 hours ago
draper shooting...
Kira Hoffelmeyer

One man dead after shooting in Draper early Thursday morning

The suspect is still at large after a shooting in Draper, and one man is dead after being shot with a gun. Police are still investigating.
13 hours ago
Police tape is pictured. A hit and run in west valley killed a child last night...
Samantha Herrera

Child dies after hit and run in West Valley

An 11-year-old boy has died after a hit and run in West Valley Wednesday night. Police are continuing to investigate.
13 hours ago

Sponsored Articles

What is Bitcoin? How does it work? Why should I care?