What’s all the fuss about Bitcoin?
We are into issue 3 of Crypto Clear and hopefully the learning curve hasn’t been too steep. This week, the plan is to ease you into Bitcoin, the so-called king of crypto.
Crypto Clear is that first step to finding out more about the exciting worlds of crypto and blockchain, aimed at beginners and the crypto curious. Each newsletter has a main topic of the day, then a WTF jargon buster and finally a bit of news. It’s light-hearted and hopefully useful, but I’ll let you be the judge of that.
Breaking down Bitcoin
For myself and Crypto Baby, Bitcoin was what sparked our interest in crypto. We heard about this new type of “digital money” and how it was meant to be the future of finance. It’s rocketed in price many times, and I got FOMO every time. In the last 12 months, it has gone up nearly 95% (basically doubled) from $59,000 per Bitcoin to its current price of $115,000.
It’s pointless getting into the ins and out of buying it right now, there’s plenty of time for that. Wallets, on-ramps and the technical stuff can wait. First here are 4 questions Crypto Baby thought a novice would want to know about Bitcoin – with answers too, of course.
Where did Bitcoin come from?
Not outer space. It was created on the blockchain in 2009 by the mysterious Satoshi Nakamoto as a digital alternative to money that operates outside the control of banks or governments. We will revisit Bitcoin as there’s plenty to discuss – did you know there are only 21 million of them?
Do I have to buy a whole coin?
Nope. One Bitcoin today costs more than a luxury car. But the magic is that it’s divisible - you can buy a fraction as small as 0.00000001 Bitcoin (called a Satoshi). So you can literally buy Bitcoin for a few dirhams if you want. People often shorten Bitcoin to BTC.
Can I keep Bitcoin in my normal wallet or bank account?
Nope again. Bitcoin is digital - you need a crypto wallet, which is basically an app or device that stores your access codes. Some people leave it on a crypto exchange (easy but less secure), others use a hardware wallet (a physical device). We will get into this topic soon.
Can Bitcoin be hacked and disappear overnight?
The Bitcoin network itself is nearly impossible to hack - it’s run by thousands of computers worldwide. What can get hacked are exchanges or wallets if you don’t secure them properly. Think of it like the internet: the system is strong, but your password can still get stolen if you’re careless.
Snappy quote from an expert
“I really like Bitcoin. I own Bitcoins. It’s also a good investment vehicle if you have an appetite for risk. But it won’t be a currency until volatility slows down.”
David Marcus, CEO of Paypal
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WTF? This week’s jargon buster is: Fiat currency
The term is used constantly by crypto bros to describe government-issued money (USD, EUR, AED, etc.). For me, Fiat has always been a car maker. I owned one myself back in the day.
But fiat currency is practically part of the jargon of crypto exchanges and the oh-so-smart community. Outside economics or crypto, most people don’t say fiat currency — they just say “money,” “cash,” or “dollars/dirhams/etc.”
So while it’s a well-used term in crypto and digital finance circles, it’s not something the average person or Crypto Baby drops into daily conversation.
Crypto News
UAE joins fight to clean up crypto
The UAE just took part in the International Cryptocurrency Security Action Week in Singapore. Like other developed economies, the UAE is interested in real protection: tightening security, joining international standards and working to reduce risk. Working together, they all have a common goal to clean up crypto of bad actors, scams and money laundering.
Why it matters to you:
· Your chance of getting burned by scams or shady providers drops if platforms follow better rules.
· You’ll have more peace of mind using regulated exchanges and wallets.
· It’s more likely that banks, businesses, and even governments here will accept or integrate crypto in safer ways.
So, being part of this security conference signals the UAE isn’t just chasing opportunities - it’s trying to make crypto safer, for everyone
OK, that's it from me and Crypto Baby for this week. Follow Crypto Clear so you never miss an update. Thanks for reading, all you mighty crypto curious and beginners out there.
BTW: The purpose of this newsletter is to share updates and insights on crypto. It does not constitute financial advice.