Bitcoin has been in existence for the last decade now and it has revolutionized the monetary system. Around 86% of central banks are building their cryptocurrency against Bitcoin. Although, it sounds complex but is rather a simple concept.
The History of Bitcoin
Even after a decade after being invented, the genius behind the idea of Bitcoin is rather a mystery. The term first appeared in a white paper published online in 2008 by either a single person or a group by the name of Satoshi Nakamoto. The concept was established as a unique solution to the problem of forming trust between two online entities.
What is Bitcoin?
Bitcoin is a form of digital money that enables peer-to-peer transactions over the internet safely and securely.
● It is a decentralized process as any two people located anywhere in the world can transfer bitcoin without the interference of any government, bank, or institution.
● The Bitcoin transaction is tracked using a Blockchain that keeps a check on every transaction made just like the banks keep a record of the money going in and out.
● A bitcoin transaction is not controlled by any country, company, or third party. This blockchain is spread across networks.
● Bitcoin will never exceed 21 million in number. Because it is a form of digital money, it can not be inflated or modified in any way.
● It’s not a compulsion to buy the whole Bitcoin. A person can buy even a fraction of it according to their need.
However, there are thousands of cryptocurrencies that have been launched but Bitcoinremains the largest in volume and capitalization.
You can use Bitcoin in varied ways
● It can be used as an investment tool.
● Its value is similar to that of gold.
● It’s the easiest way to rotate values around the globe
● It can be used as a way to explore new technology
Three Important Features of Bitcoin
1. Bitcoin ensures that online transfers are done without the inclusion of any bank or payment processor. This increases the potential for money to be transferred around the globe with ease.
2. It is ethical to use, trade, or hold Bitcoin. It can also be utilized in making payments of all kinds.
3. Bitcoin is used as a medium of exchange and functions as money. However, there is no physical form of it as it is only digitally present.
4. Bitcoin can be controlled using a specialized private key and blockchain ledger. A private key is a set of random numbers and letters used to unlock a virtual vault. Every private key is recorded in a virtual ledger called a blockchain.