What is Bitcoin?
Created by Satoshi Nakamoto in 2008 after the real estate market crash, Bitcoin is a cryptocurrency that is rapidly changing the way we conduct transactions across the globe. Satoshi, who may be an individual or a group, wanted to establish a system that wouldn’t fail us as the banking system had. Bitcoin is essentially a computer program, run by a trust of thousands of miners around the world. These miners run the program and agree to follow the rules of the blockchain. In return, they earn newly created Bitcoins for their contributions to the network.
The amount of newly created bitcoins decreases every few years, ensuring that bitcoin is a deflationary currency - to learn more about inflationary vs deflationary currencies and why they’re important to you click here.
The blockchain is the record that stores the location of all the coins - it records all the wallets (addresses) and records the movement of coins between addresses. Think of it as one giant ledger that can never be edited or overwritten by any one person. This ledger is shared with every single miner, and is constantly verified across the entire network.
Anyone can be a miner, verifying the legitimacy of the Bitcoin network and earning Bitcoin in return - all it takes is an ASIC Miner, learn more here.
This means that every coin is tracked from its creation to the present, and ensures that the integrity of the system is secure. Coins cannot be magically added, removed, or shuffled, and verification is done by all on a constant basis. Furthermore, addresses are entirely anonymous - this means that Bitcoin is both secure and anonymous. This gives the users piece of mind in a world where security and privacy are of paramount concern.
Because the Bitcoin network spans the entire globe, international transactions are incredibly quick.
You can move money across the globe, anonymously, faster and cheaper than a bank wire transfer. While it is not necessarily ideal for everyday transactions, Bitcoin is changing the way we move and store our money across the world. For example, Bitcoin is excellent for travellers or those remitting funds back home.
In essence, Bitcoin is a participatory collective - a co-op. Highly democratic, it’s strengths in security and privacy come from the fact that no one person controls it. We all do.
To learn more about the future of Bitcoin, how you can make money from it, and why its important to the future of banking click here.