Bitcoin is becoming increasingly popular, but it can be challenging to understand for non-techies. In this article, I will explain bitcoin in a way everyone can understand.

Think of bitcoin as a type of digital money that no single government, company, or person controls. It's like cash for the internet. Just like you have a physical wallet to hold your paper money, you have a digital "wallet" to hold your bitcoin.

You can use bitcoin to buy things online, and some physical stores accept it, too. You can also exchange bitcoin for other currencies like US dollars or euros.

Bitcoin transactions are tracked on a public ledger, like a giant, shared accounting book that anyone can look at. This ledger is called the "blockchain."
Blockchain is a system of storing and transferring information in a distributed and decentralized way. Imagine a Google Doc that is shared and updated by everyone who has access to it, but no one person can control it. That's basically how blockchain works.

“Decentralized” means that there is no single point of control or authority. In a decentralized system, decisions are made, and tasks are carried out by a network of participants. This makes decentralized systems more resilient to failure and attack.

“Distributed” means that a system is spread out across multiple locations or devices. This can improve performance and scalability, as tasks can be divided up and processed by multiple nodes in the system.

There is no single central server that controls the network, and the bitcoin ledger is distributed across all of the nodes in the network.

Bitcoin is often compared to gold because it is a scarce asset. There will only be 21 million bitcoins created; today, more than 18.9 million have already been mined. This makes bitcoin a potential protection against inflation, as governments or central banks do not control its value.

However, bitcoin is also a very volatile asset, meaning it could experience significant price fluctuations over a short period of time, and its price has gone up and down wildly over the years. In 2017, the price of bitcoin skyrocketed from around $900 to over $20,000. However, it has since crashed back down to around $19,000.

People often talk about "mining" bitcoin, which can be confusing. Mining doesn't mean digging into the earth like you would for gold. Bitcoin is created through a process called mining. Miners are computers that compete to solve complex mathematical problems. The first miner to solve the problem gets a reward of newly created bitcoin.

Mining is important because it helps to secure the bitcoin network. Miners verify transactions and add them to the Blockchain, a public record of all bitcoin transactions.

Here is a simple analogy to help you understand how bitcoin mining works:

Imagine a group of people waiting in line to enter a building. Each person is given a puzzle to solve. The first person to solve the puzzle gets to go inside the building.

In this analogy, the people are the miners, and the building is the bitcoin network. The puzzles are the mathematical problems that the miners need to solve. The first miner to solve the problem gets a reward of newly created bitcoin.

Blockchain technology is the foundation for Bitcoin and other digital currencies, but its highly technical nature often confuses ordinary users. This lack of awareness about Blockchain allows cybercriminals to deceive individuals into giving away their money.
Here are some of the techniques cyber criminals use to scam people:

Pyramid schemes promise investors high returns with little or no risk. The scammers often use fake testimonials and promises of easy money to lure victims in. Once a certain number of victims have invested, the scammers take the money and disappear.

Fake investment schemes tempt victims and seemingly allow them to invest in a new cryptocurrency or ICO. The scammers often create fake websites and social media profiles to make their schemes look legitimate. Once investors have sent their money, the scammers disappear.

Fake mining operations assist investors in mining for cryptocurrency. The scammers often charge high fees for their services, but they never actually mine any cryptocurrency.

Phishing scams: These scammers send emails or text messages that appear to be from a legitimate cryptocurrency exchange or wallet provider. The emails or text messages will often contain a link that, when clicked, will take the victim to a fake website that looks like the real website. The scammers can steal their cryptocurrency once the victim enters their login information on the fake website.

Romance scams involve building a romantic relationship with someone online and convincing them to invest in cryptocurrency. The scammers often use fake profiles and identities to make themselves look more attractive. Once the victim has invested their money, the scammers disappear.

Whether bitcoin is a good investment is a matter of opinion. Some people believe that it has the potential to become a major currency, while others believe that it is too risky. Ultimately, the decision of whether or not to invest in bitcoin is up to each individual.