Deep Dive 1 - Bitcoin
Once a week I will find a coin with a real purpose, do some research on it, and write up a Lean letter for you to view. I will not be schilling coins without a purpose. Only real coins that I see fit into this innovative, ever-changing space.
I figured- “deep dive 1, why not do the king”. Let’s dive in.
What is Bitcoin?
Bitcoin is a decentralized currency that was created in 2008. This coin was created around the financial crisis of 2008 by a group of developers, or one person, with the pseudonym Satoshi Nakamoto.
Bitcoin is a peer to peer currency which is ran by connected computers in a network all around the globe. These computers make it possible to secure the Bitcoin Network. The beautiful thing about this network- it is completely decentralized, secure, and transparent. Each computer is running a copy of the blockchain on their computer. That way if one computer goes down, another computer has a copy and can keep the network running.
Check out the Bitcoin Whitepaper here.
How can you obtain Bitcoin?
You can easily purchase Bitcoin off of any major exchange. The best, most popular, way is to use Coinbase for purchasing. I will include a referral link at the bottom.
So how are bitcoins in circulation to buy from exchanges? Bitcoin is a proof-of-work coin. This means that miners must solve complex math problems to update the blockchain. When they solve the complex math problem the quickest, they are rewarded newly minted coins. How quickly you can solve the math problem depends on the miner’s computational power. As of this writing, most miners are video gaming graphics cards. You can mine Bitcoin with just about any decently new computer.
What is Bitcoin’s role?
As of this writing, Bitcoin is essentially a store of value asset. People buy or mine Bitcoin and hold it in a wallet. Bitcoin has a fixed supply, meaning there is a finite number of coins that will ever be minted. It is expected that the last Bitcoin will be mined around year 2140. With this fixed supply, and high demand, the price appreciates. The push for Bitcoin to be a global currency is a talking point every day. I would not be shocked to see it one day, but as of now it’s a store of value asset. With inflation supposedly 7%, and Bitcoin up over 100% for the year, it’s hard to argue against the store of value in the long term.
Let me know what coin you would like me to research next week on Twitter at @LeanGeekInvests
Latest Bitcoin News:
Bitcoin is ‘the big winner’ of the congressional crypto hearing: Microstrategy CEO. Read More
The cryptocurrency industry’s major power players encountered skeptical yet noticeably polite questioning from Congress on Wednesday, where both sides laid bare their disagreements about how the emerging industry should be overseen by the federal government. Lawmakers and crypto executives (again, politely) articulated their differences about what sort of rules are needed to protect investors and facilitate growth. Read More
Coinbase - Know someone curious about crypto? You’ll both receive $10 in Bitcoin when they buy or sell $100 or more on Coinbase!
DeFi Cultivator - This set of videos will go through a few core concepts along with demos of swaps, liquidity pools, farms, and more.
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Nothing in this email is intended to be financial advice. Always do your own research.