Bitcoin Basics Explained Without the Fluff What It Is, How It Works, and Why It Matters
- Silivere Bakomeza
- Aug 7
- 5 min read
Bitcoin is not hype. It is a mission. This guide breaks down bitcoin basics in simple terms and shows why I respect Bitcoin but invest through Strategy instead.
Bitcoin Is Not an investment. It Is a Revolution
Bitcoin is more than internet money. It is a rebellion.
A rebellion against inflation.
Against money printers.
Against a system where your paycheck loses power before it even hits your account.
If you’re still asking what is Bitcoin, this is your starting line.
No hype.
No technical confusion.
No cult energy.
Just truth.
This is the guide I wish I had when I started:
Clear, simple, behavior-first.
What Is Bitcoin in Real-World Terms
Bitcoin is digital money that no bank, government, or company controls.
It’s not a stock. It’s not a coin you hold in your hand.
It’s a decentralized system built for one thing:
Freedom without permission.
Bitcoin lives on the internet.
It’s borderless, peer-to-peer, and uncensorable.
Created in 2009 by someone called Satoshi Nakamoto, it was designed to be everything the traditional financial system is not:
Transparent. Scarce. Independent.
Why Bitcoin Was Created
In 2008, the global financial system failed.
Wall Street was bailed out.
Main Street was abandoned.
The first block in Bitcoin’s history includes this hidden message:
“The Times 03 Jan 2009 Chancellor on brink of second bailout for banks.”
That wasn’t a timestamp.
It was a declaration.
Bitcoin didn’t just emerge from technology; it emerged from pain.
It was built as an exit door from a system designed to trap you.
How Bitcoin Works in Simple Language
This is where most people get stuck.
They hear “blockchain” or “mining” and they check out.
Don’t.
Here’s the breakdown that makes sense. No jargon.
Blockchain Is the Global Notebook
Every 10 minutes, Bitcoin updates its record of transactions on a public ledger called the blockchain.
It’s permanent. Immutable. Auditable by anyone.
This is how trust is built. Not by banks or politicians, but by math and transparency.
Miners Are the Security Guards
Bitcoin miners solve complex puzzles using energy and computing power.
When they solve it, they validate transactions and earn Bitcoin.
This system is called proof of work and it’s what keeps the network honest.
No shortcuts. No cheating.
Wallets Are Your Digital Vault
To own Bitcoin, you don’t need a bank.
You need a wallet, software or hardware that stores your private keys.
Your keys. Your coins.
Lose the key, you lose the Bitcoin.
But no one can seize it. No one can freeze it.
You are the bank.
How Many Bitcoins Exist
Bitcoin has a hard limit of 21 million coins.
That’s it. Ever.
Over 19 million are already in circulation.
The final Bitcoin will be mined around the year 2140.
No central bank can inflate it.
No president can print more of it.
This is what gives Bitcoin true scarcity.
It’s not digital gold. It’s superior to gold because it’s programmable, portable, and verifiable.
Is Bitcoin Safe
The Bitcoin network has never been hacked. Not once since 2009.
What does get hacked:
Centralized exchanges with weak security
Wallets with lost or exposed keys
People falling for hype, scams, or laziness
Bitcoin is undefeated.
But human behavior? That’s the real risk.
If you learn basic habits, you’ll be safer with Bitcoin than with your local bank.
Why Bitcoin Matters Right Now
If you’re living paycheck to paycheck, Bitcoin may seem irrelevant.
But that’s exactly why it matters.
Every dollar you save is being devalued.
Every institution you trust is using your money to gamble.
Banks are collapsing.
Inflation is permanent.
Your future is not secure unless you take control.
Bitcoin is not a get-rich-quick scheme.
It’s a get-free-slowly system built on discipline, not dopamine.
It works in New York and Kigali.
It respects no government.
It answers to no one.
That’s why it matters now more than ever.
Why I Respect Bitcoin but Stack Strategy
I don’t buy Bitcoin directly anymore.
Instead, I buy Strategy the company formerly known as MicroStrategy.
Why?
Because Strategy holds more than half a million Bitcoin on its balance sheet. More than any company or country on Earth.
Their conviction is not theoretical.
It’s financial, public, and permanent.
They’re not selling.
They’re not flipping.
They’re stacking.
So am I.
How I Invest in Bitcoin Without Owning Bitcoin
I invest $50 per day into Strategy.
Not once a month.
Not when I feel inspired.
Every single market day, automated on Robinhood.
Then I invest $100 (automated) every Monday to cover the weekend days.
I also manually invest fifty $50on holidays.
That’s 365 days a year.
Because Bitcoin trades 24/7 and so does my discipline.
What If You Still Want to Own Bitcoin Directly
Here are the platforms I trust most:
Coinbase – Beginner-friendly, easy to use
Crypto.com – Altcoins and stocks all in one place
Robinhood – Stocks and Bitcoin in one app
Webull – Great for active traders
Acorns – Automate crypto investing through roundups
Your first account is not about perfection. It is about proof. Choose one and build your streak.
The Habit That Built This Blog
BakoInvest exists because of a fifty-dollar habit.
Not a million-dollar trade. Not viral content. Not luck.
I started with $50. I kept showing up.
Then I wrote about it.
Then I proved it, weekly.
Wealth is not about being early.
It’s about being consistent after you start.
If you already scroll, write, cook, clean, build, post, teach, or talk every day, document it.
Turn it into an asset.
Turn it into ownership.
That’s what Bitcoin taught me.
Bitcoin Basics FAQ
What is Bitcoin in simple terms?
Digital money that no one can print or control.
Who created Bitcoin?
A person or group using the name Satoshi Nakamoto in 2009.
Can I buy a fraction of Bitcoin?
Yes. Bitcoin is divisible into 100 million units called satoshis.
Is Bitcoin safe?
The network is. Your behavior decides the rest.
Where do I start?
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Final Word
Bitcoin is not just a financial tool.
It’s a personal test.
A test of discipline.
A test of conviction.
A test of whether you want freedom or permission.
You don’t need to buy a whole coin.
You don’t need to understand everything.
You need a habit.
You need a reason.
You need one action repeated until it becomes identity.
→ Open your first account
→ Invest ten dollars
→ Send yourself a receipt that says: “I don’t follow hype. I build freedom.”
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