What-Are-Bitcoins-Used-For-Bitcoin-Training-Camp

What Are Bitcoins Used For – It Will Make You Want To Change Your Bank!

 

What Are Bitcoins Used For? - The Short Version
  1. In 2007 and 2008, there was a global financial crisis.
  2. On 15th September 2008, The Lehman Brothers shut down
  3. The financial system is based on trust
  4. We CANNOT control our own money
  5. Bitcoin was created to prevent, fraud, greed, corruption and financial crash in our financial worlds and give control of our money to the individual.

The problem?

We no longer trust the financial institutions to control our money. Bitcoin allows us, to take control of our money. Below, we’ll explore these steps a bit further.

 

If you ask most people the question, what are bitcoins used for, they will probably tell you that you can use bitcoin in the same way you use fiat money, for investing, for buying and selling of products and for saving (also known as HODL).

It is true that you can do those things…

But it is not the real truth of what bitcoin is really all about.

The story of bitcoin starts in 2007 and is surrounded by a wave of corruption, theft and what could be known as the biggest institutional failure (or fraud) of all time!

This story, will make you look at your governments, banks and financial institutions in a completely different way and will make you want to change your banking system…

So what are bitcoins used for?

 

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What Are Bitcoins Used For – How It All Began!

What Are Bitcoins Used For

Source: Gdp_real_growth_rate_2007_CIA_Factbook.PNG: Sbw01f, Kami888, Fleaman5000, Kami888

 

In 2007 and 2008, there was a global financial crisis. This crisis came to be labelled by the IMF (International Monetary Fund) as the worst financial crisis since 1930.

In the image above, the countries in brown suffered negatively from the crisis!

It is amazing to look back on it all now, but the trigger to this amazing story of fraud and corruption started in 2007 with a concept known as ‘Subprime Lending’.

Subprime lending is when loans are given to people who are known to possibly have a problem paying the loans back.

These people are often struggling financially, but they are given loans anyway in the theory that the lender is actually giving people who would otherwise be excluded, access to loan facilities.

The lender is actually taking a huge risk as the borrower, may not be in a position to pay back.

This is exactly what happened in the housing market in the USA.

According to Economist.com over a period of about 8 years, the price of a house rose in The USA by about 124%.

Many homeowners, refinanced their homes at lower interest rates.

By September 2008, the price of a house had declined by about 20%.

In fact in 2007, The Housing Wire reported that Foreclosure Filings were Up 93% From July 2006.

As prices fell, the borrowers who were considered high risk in paying back, began defaulting and by September of 2009, 14.4% of all US mortgages were delinquent or in foreclosure.

In addition to this, weak and fraudulent underwriting practices took place with some companies giving loans to cases that did not meet underwriting standards. In fact, some institutions did this to about 54% of all loans.

A practice called Predatory Lending also took place. This is when financial institutions advertise falsely and lure borrowers into unsafe contracts.

In fact one bank employee said, “If you had a pulse, we gave you a loan!”

In the end, of course, it all collapsed.

Banks who were thought to be ‘too big to fall’, came crashing down, and on 15th September 2008, The Lehman Brothers, with $619 billion in debt, shut down and started the world-wide financial breakdown.

The greed of the financial institutions we trusted to handle our money, caused a worldwide financial crash that affected millions of people.

 

 

What Are Bitcoins Used For – Bitcoin To the Rescue!

What-Are-bitcoins-Used-For-SOS

 

So one of the fundamental problems of the financial system, is that it is based on TRUST!

We have to be able to trust our financial partners with our money.

But as history has shown many many times, the governments, financial houses and banks, CANNOT be trusted with our money and they use it in ways, we do not want or worse, for total greed and fraudulent practices.

And WE CANNOT CONTROL OUR OWN MONEY!

At that point in history, there was no way for us, to transfer money, pay for things and basically operate financially without a bank or financial house.

In other words, we were at the mercy of these financial institutions…

We had no control over our own money and we were in a financial prison.

And then in 2009 a small team of developers, known as Satoshi Nakamoto, released a white paper offering a solution to these problems.

The 1st sentence of that paper explains, exactly what bitcoin was created for:

 

“A purely peer-to-peer version of electronic cash would allow online
payments to be sent directly from one party to another without going through a
financial institution”

 

Bitcoin therefore, gives us, the ability to transfer cash, using electronic methods to anyone we want, without the need of any other financial permission.

This is amazing…

Have you ever:

– Wanted money but the bank was closed;

– Tried to transfer internationally and told to wait 3 to 5 days and charged a fortune;

– Had to fill out stupid forms to avoid money laundering claims;

– Been asked endless questions about your personal life when opening bank accounts;

– Had to show proof of income to get an account;

– Been denied an account or credit card for some reason;

 

Bitcoin removes all of these problems.

The paper goes on to explain:

 

“Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust based model.

Completely non-reversible transactions are not really possible, since financial institutions cannot avoid mediating disputes. The cost of mediation increases transaction costs, limiting the minimum practical transaction size and cutting off the possibility for small casual transactions, and there is a broader cost in the loss of ability to make non-reversible payments for non-reversible services.

With the possibility of reversal, the need for trust spreads.

Merchants must be wary of their customers, hassling them for more information than they would otherwise need.

A certain percentage of fraud is accepted as unavoidable. These costs and payment uncertainties can be avoided in person by using physical currency, but no mechanism exists to make payments over a communications channel without a trusted party.

What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third-party. Transactions that are computationally impractical to reverse would protect sellers from fraud, and routine escrow mechanisms could easily be implemented to protect buyers. In this paper, we propose a solution to the double-spending problem using a peer-to-peer distributed timestamp server to generate computational proof of the chronological order of transactions. The system is secure as long as honest nodes collectively control more CPU power than any cooperating group of attacker nodes.”

 

Now that may sound confusing to you, but what it basically means is that bitcoin does not need TRUST to operate.

It is a trust-less system that uses cryptographic proof to transact.

This removes the ability for users to fraudulently or greedily exploit other users.

And if you remember, the financial collapse of 2007-08 was caused by “The greed of the financial institutions, we trusted to handle our money, causing a worldwide financial crash that affected millions of people.”

 

Recommended Reading

So What Are Bitcoins Used For?

The real reason, we want to use bitcoin is to prevent, fraud, greed, corruption and financial crash in our financial worlds and give control of our money to the individual.

And in my opinion, giving YOU control over YOUR money is a good thing!

Agreed?

 

What Are Bitcoins Used For – Conclusion

Should-I-Invest-In-Bitcoin

Bitcoin was originally intended to offer us a peer-to-peer online system that removed the need for 3rd party approval or hindrance.

It allowed us to take control of our money.

As a result, as you can imagine, as users became to understand the real use for bitcoin, demand increased.

Consequently, as a result of the demand, trading of bitcoin started.

The ability to make money, simply by buying and selling of the coin became possible.

As a further result, demand grew and therefore, value increased!

Bitcoin rose to a staggering $USD20,000 a coin by the end of 2017.

But, do you think that banks, financial institutions and governments want to lose control of money?

Do you think they want us to have control over money?

Absolutely NO!

With that in mind, do you understand the constant pumping of negative media, you see everywhere about the dangers of using bitcoin?

They are trying to scare us into not using bitcoin, so that they can keep control of money and use it fraudulently as they have been doing so for years.

Is bitcoin perfect?

No, but it removes many of the problems that come from banking systems and different coins are cropping up to remove the other problems that bitcoin cannot remove.

Bitcoin and crypto are here to stay…

The price is kinda irrelevant. If it goes up in value or if it goes down in value…

The price is actually NOT the key issue.

The key issue is that it gives us control of our money…

And for me that is worth investing in!

By now, you probably want to change your banking system to bitcoin…

 

 

And if you agree that it is time for you to

take control of your money then

Click To Get Started

 

 

Want To Know 5 Powerful Ways You Can Turn Your Computer Into A Cryptocurrency Trading Machine That Will Make You Profit From The Cryptocurrency Revolution TODAY!

HELL YEAH !

About The Author: Tim Bennett, The #1 Authority in Bitcoin Training – I help entrepreneurs profit with bitcoin. I think bitcoin is the most important tool that has ever been created in my life.

I have been on a 13-year quest to find a tool to give us freedom of control over money. Bitcoin is it!

 

 

 

 

 

 

 

 

 

 

 

 

Disclaimer:
I am not a financial advisor. all content on this website is provided for informational purposes only. The information does not constitute investment advice, financial advice or any sort of advice at all. NONE of this website’s content is advice of any kind and you should not treat is as such.

We do not recommend that you invest. We do not advise you to buy, sell, trade or hold (HODL) cryptocurrency, altcoins, bitcoins, tokens or any form of cryptocurrency.

We are making no offers to sell, buy, trade or hold any investment or cryptocurrency product. Nothing on this website should be taken as an offer.
Conduct your own due diligence and consult with financial advisors, business advisors and any other kind of professional that you deem fit, before making any investment decisions.

By investing, joining any programs or services or taking any action on any information on this website, you accept full responsibility and waive Timothy Bennett or any of his business associates free from responsibility, claim, lien, or harm of any kind.

Accuracy of Information
Much of what we share is experiential. It is our experience. We cannot guarantee your experience. We have taken every step to ensure that the information given is correct. We will not be held responsible for any missing or wrong information. You understand that you are using any and all information available here AT YOUR OWN RISK.


Price Risk
We discuss bitcoin and cryptocurrencies on this website. They are highly speculative and volatile. Prices can and do change incredibly fast and it is common to see massive high and low swings. Massive losses can be incurred. You use this website accepting all losses as your responsibility. NEVER invest any more than you can afford to lose. Minimize your losses. DO NOT invest all your money in bitcoin or cryptocurrencies. Do not borrow money to invest. Do not sell valuable items to invest. Do not use pension funds, school funds or any other fund to invest. Only invest money which you can afford to lose.

It is possible, that bitcoin and cryptocurrency is not for you. Consult a fully qualified professional financial advisor before investing.

 

“What Are Bitcoins Used For? It Will Make You Want To Change Your Bank!” was written by Tim Bennett exclusively for www.Bitcointrainingcamp.com ©2018

  1. I am only very new to this very complex world of crypto so bear with me while I throw my comments into the ring.
    I recently got caught on the wrong side of a government sting whereby they proceeded to devalue most of my money then just flat out take the rest (thats a story for another day). Now I strongly see the need for a deregulated financial system that cannot be artificially inflated or deflated by any one centralised entity.
    From what has happened to me I have now come to the conclusion that fiat money is a lot more like shared money, it can be taken away from you at any moment without much opportunity to protect yourself.
    The little bit of money I have squirrelled away into bitcoin is at least secure. I know that the biggest risk of losing that money is not some government or some central banking taking it away but the risk of me losing codes and not being able to access the my part of the blockchain.
    simple enough problem to solve though.
    Do you have recommendations on soft wallets vs hard wallets?
    cheers.

    • Hello Remy,

      First thank you for leaving a comment on the site. I really appreciate you taking the time to do so.

      Secondly, I am really sorry to hear your story. It seems governments no longer work by the rule “by the people… for the people!” and it seems like they are simply out to get us.

      Quite honestly, this is why bitcoin was created.

      To take the power away from the governments and give us the people control over our own money.

      I believe it is a good thing that you are looking at crypto as a solution. I also believe that as more and more people experience the same as you did they will also look at crypto as a solution.

      This will increase vale and of course price follows, so I would expect a steady climb over the coming months.

      With regards to wallets, I almost store no bitcoin on any online platform other than bitcoin that i am using for transnational purposes.

      Although there are security systems in place, one cannot be to careful. In my opinion wallets are no different from banks. Banks sometimes close down and you lose. I see wallets as no different.

      However, that being said, just because a wallet has an issue, does not or should not reflect on the coin, in the same way as bank closure do not make the dollar a bad thing.

      So I use external wallets. My wallet is an Ledger Nano S and it works in a very similar way to a USB. All my bitcoin is stored on is very securely and I only connect it online when I need to transfer.

      You can find out more info and buy a Nano here.

      If you need any further help with this, or if you would like to grow your bitcoin, feel free to contact me here anytime.

      Thanks again for dropping by and look forward to hearing your success stories in bitcoin.

      Tim Bennett

      Turn Your Computer Into A Crypto Trading Machine

  2. BITCOIN has shook the investment department for the past few years. It is an awesome idea that this modern world has created. The main thing is that two consumers can transfer money and do all their financial stuff without a bank. This article gives you more precise information about bitcoin. For people who wants to know about this I recommend reading this. I will share this article with my friends so they can know what a bitcoin is. Thank you for the article.

    • Hey Sujandar,

      Thank you for visiting another of my posts!

      I really appreciate you being part of the team here!

      Thank you again for another awesome comment and you absolutely get the point of bitcoin.

      It was created to do what you said, shake up the financial world and stop the banks, financial institutions and governments from holding all the control over money.

      We should be allowed to control our money!

      And bitcoin does, as you stated, allow us control to send our money to whom we want, when we want, without the need for 3rd party interference.

      I appreciate you sharing this with your friends.

      The more people that really understand what bitcoin is, the better it will be for everyone!

      This is a movement for FREEDOM!

      No one should oppose freedom and if they do (the governments and financial institutions try to stop bitcoin), you have to ask why are they trying to stop freedom!

      I appreciate your comment so much!

      Tim

      PS If you ever need any questions answering or need more help with bitcoin you can contact me at timbennettlive@gmail.com anytime!

  3. I am curious as to how bitcoin stays in limited supply and not get affected by inflation. In other words, how does the bitcoin supply not get manipulated like the traditional dollar? I know that traditional gold can’t manipulated as there is only so much on earth. How does it work with bitcoin when I hear of things like bitcoin mining?

    • Hi Jessie,

      What a great question and thank you so much for asking it.

      I appreciate you being here!

      Bitcoin is actually very similar to gold.

      There is only a limited supply of bitcoin. in fact there can only ever be 21 million bitcoin. The way it was created and programmed, it is not possible to create more.

      Bitcoin is released over a specific time, so the flow rate cannot be changed. Right now the bitcoin miners (who simply verify transactions) are rewarded with bitcoin. Right now bitcoin is released at 12.5 bitcoin per block. A block is released every 10 minutes.

      Miners are rewarded for their work and it is not a high enough amount to create an over supply (demand has to be higher than supply), but not so low as to make it unworthy of their time.

      Every 4 years the amount of bitcoin released is halved. So in 2020 the amount of bitcoin will reduce to 6.25 btc. The last halving was in 2016 when it went down from 25btc to 12.5btc.

      This controlled flow makes the whole system self-sustaining. 

      The halving of bitcoin reduces the supply, but demand is increasing and this should increase the price value of bitcoin.

      It is estimated that all bitcoin will be mined by 2140.

      So we have a way to go yet!

      First and foremost, it’s a means of controlling the amount of new bitcoin that hits the markets each day. It’s intended as a way to prevent hyperinflation from ever occurring.

      Sadly, the dollar does not have (or any fiat currency) this control. Governments print money whenever they want. Basically rendering it useless and creating massive inflation.

      I hope this helps answering your question!

      If you have anymore, I would be happy to answer them. feel free to contact me any time at timbennettlive@gmail.com

      I look forward to lots more conversations with you.

      Tim

  4. Bitcoins is a term you hear thrown around all the time on the Internet and even in the news, but I never really was all that sure what it was or if it was something I should even care about.  Boy does it look like I was wrong.  Your site has really opened my eyes to the bitcoin revolution that is taking place.  It would have really been something to have been one of the lucky ones that was onto this at the beginning, but I guess every business has those ones that are there at the start and reap the benefits.  The rest of us have to figure out where we fit in.  This was a great introduction, and I can see that I have made a mistake ignoring cryptocurrency.

    • Hello Brandon,

      Thank you for your comment. It’s great to hear from you.

      Oh I totally agree with you, I wish I could get in my time machine and go back to 2009 and get some bitcoin!

      How different life would be now!

      But everything comes to us when we are ready!

      Last year I was ready…

      Today you are ready!

      It’s a great place to be. I truly believe that bitcoin and crypto is just in it’s infancy, so we have not been left behind.

      I also believe that right now bitcoin could be at a price we may never see again after 2018. Once institutional money pours in (and it’s getting ready to) prices will rise like we never have seen.

      I am happy to help you with the introductions. If you would like more help, then I would love to be able to guide you as best I can.

      Feel free to contact me at timbennettlive@gmail.com anytime.

      I will be more than happy to answer any of your questions.

      Thanks again!

      Tim

  5. Thank you for this wonderful and much needed piece of information. Today we can see a lot of people investing in cryptocurrencies and so am I wanting to. Many people don’t know the facts that you mentioned here and I totally agree that this might be one very effective methods to reduce corruption, fraud etc. As I told you that from a long time I wanted to go deep into the cryptocurrencies but my parents were very paranoid about it (due to their old mentality I think). Thank you for this informative article, I think now they can understand the importance and benefits of these once I make them read this.

    By going through your website, I totally get that you have pretty much expertise in this field. If I need some help or suggestions can I contact you and how?

    • Firstly Hari, thank you for your awesome comment.

      I really appreciate you taking the time to not only read the post, but leave your thoughts.

      You inspire me to do more!

      I would absolutely love to help you get started should you wish to do so. We can do it in safe environments so you don’t panic your parents to much.

      Also you can start with small amounts and grow it very effectively and we have many techniques to help you do this without fear.

      To contact me the best way is either here at Facebook: https://www.facebook.com/TimJohnBennett

      Or email at: timbennettlive@gmail.com

  6. Great article Tim. Actually, you have collected my thoughts into the one perfect tutorial. I always trusted in Bitcoin despite of the negativism and rumors around the net. Maybe I have lost a bit when purchased Antminer back in last December, and I am not digging anymore due to high electricity rates and difficulty, but I still have almost a BTC in my wallet. I am absolutely sure that the best is just around the corner.

    • Hello Andrejs,

      Thank you for your inspiring comment. I appreciate it.

      I believe it is good you are still holding on to your btc.

      I truly believe that we are only at the beginning and over the next few months the sleeping giant will wake and bitcoin will leapfrog ahead.

      Institutional money is coming and when it comes it will be amazing!

      Whatever you do, don’t let go of that btc until it at least doubles!

      Thanks again…

      Tim

  7. I recently watched the a very good movie regarding the US housing crisis and the lending situations, very interesting. So you say the Bitcoins are mined and given out at a limited rate, can anybody do this? or do you need to be spending more and setting yourself up with equipment to do this? I never realized the Bitcoin was limited to a certain number, and I thought the comparison to gold makes a good way of understanding it. Do you think the stability will increase over time or will the value drop once more is mined over time?

    • Hi Vaughn,

      Thank you so much for your awesome post!

      It is possible for bitcoin to be mined by individuals, however you need specialized hardware and the running costs are also high.

      In fact right now (Oct 2018) the price of bitcoin makes it unprofitable to mine. Miners who are mining now are in the process for the long haul and are thinking ahead.

      Everyone is pretty sure the price value of bitcoin will go up.

      Personally I will not mine bitcoin. I think there are easier methods to get bitcoin and increase it.

      To answer your final question, bitcoin will eventually stabilize. it might be sometime for this to happen though.

      I believe that as more bitcoin is mined, the price will go up as access to new bitcoin become harder. The rules of supply and demand would normally drive price up.

      We expect no less with bitcoin.

      If you would like and help along the way, I would be very happy to help you. you can reach me at timbennettlive@gmail.com anytime and I will be happy to jump on Skype to have a quick bitcoin chat!

      Look forward to hearing from you.

      Tim

  8. Nice historical write-up. Indeed, the banks will not give up easily their control of money. That’s why they’ve tried to kill Bitcoin multiple times, but they haven’t succeeded. Now, more and more governments are catching up and they know they can’t stop it, so they will try to regulate it.

    I’m curieus what’s next for Bitcoin and the many other cryptos out there. I’m sure we haven’t seen the last of it!

    • Hi Laura,

      Thank you for leaving your comment.

      I appreciate you as part of the team so much.

      Sadly the banks, seem to want total control. It’s a monopoly for them. He who controls the money controls everything!

      Bitcoin and crypto give us the ability to control our money…

      So you can easily see why they tried to stop it.

      Now they realize they cannot stop it, they want to regulate it. It seems crazy that the people who broke the financial system want to break another one!

      Bitcoin and cyrpto could be the 1st global currency. It has the ability to do so and is inflation protected by its controlled supply.

      Institutions are about to pour in. Dec 12 could be a big day for 2018 as Bakkt launches.

      This is a platform that would greatly lower the barrier of entry for those who are confused about the crypto technologies. Companies such as Starbucks and Microsoft are part of Bakkt.

      I think exciting days are ahead for us and we will see lots of changes in the coming weeks and months.

      Now is the time to get in. Before it all happens.

      Thanks again for joining me here and if you have more questions feel free to contact me at timbennettlive@gmail.com

      I am happy to help you.

      Tim

       

  9. Hi Tim, thanks for the introduction of Bitcoin. I’ve been investing in Bitcoin since last year, bought at highest price and not sure whether I should go into Bitcoin again. I heard there is a safer way to invest in Bitcoin like earning dividen. Is there really such a method. Of what about mining? I am still skeptical about cryptocurrency and hope you can provide me more information here. 

    • Hello Florence and thank you so much for your comment.

      I appreciate your valuable time and your questions.

      It sounds like you bought bitcoin in November or December of 2017. It is good you have not sold it yet. Had you done so, then you would have lost your investment.

      Bitcoin price value is expected to rise for many reasons.

      Institutional money is coming into bitcoin, global acceptance is happening, understanding of bitcoin is happening, demand is increasing, supply is going down, difficulty is up…

      All of these reasons and more should push the price up substantially in the next few months.

      So hang in there!

      Right now, bitcoin mining is not attractive. Mining is not very profitable right now and will stay like this until the price goes back up. I would stay away from mining right now. It is expensive to setup and returns low.

      I do have a couple of programs that might interest you.

      I am having great success with them and if you would like more information about these feel free to contact me at timbennettlive@gmail.com

      I would be very happy to answer any questions you have.

      Thank you so much!

      Tim

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