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A Guide On How To Understand Bitcoin And Cryptocurrency?  
  
Even though Bitcoin is one of the most searched for phrases (based on Google), it is a really technical subject for a lot of people and may get overly technical for non geeks. However, there at the moment are hundreds of cryptocurrencies and more and more persons are starting to wish to get to know how they work possibly driven by a dis trust of bankers, which is a whole totally different discussion.  
  
It's difficult to get a lay man's clarification without having to make use of technical terms equivalent to "secret keys", "digital keys", "digital wallet" and "cryptocurrency" so I will do my best to keep things as straight forward as I probably can.  
  
The Idea of Fiat cash i.e. paper currency, was formulated to make it easier for folks to make an exchange for goods or services to exchange bartering, as this can be limited to an change between willing parties at best, whereas money means that you can provide your service or goods, then purchase no matter service or goods you require from one other or others.  
  
Therefore, I would argue that Bitcoin is the twenty first Century equal to bartering, in that it works as an trade for items or services directly between two willing parties. Bartering had to be based on each promise and trust, to provide and deliver the promised items or service.  
  
At present with Bitcoin or some other cryptocurrency every party would wish a novel file or distinctive key to exchange the agreed value between every other.  
  
By having a novel key or file it becomes simpler to keep a file on every transaction. However, this too comes with problems.  
  
Now, bartering is the simple change of skills or items as I've already stated, the modern equal, or bitcoin is susceptible to security breaches, i.e. theft or hacking of files, this is where a "cryptocurrency wallet" comes into the equation to safe your transactions.  
  
Basically you need a safe location on your cryptocurrency/bitcoin purchases and holdings. This is where the necessity for a hardware wallet comes from.  
  
So now that you've got written down/recorded which address holds which amount of Bitcoins after which up to date each time a transaction is made, the file is known as "The blockchain" - and it keeps a report of all transactions made with bitcoin.  
  
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