BITCOIN

A Peer-to-Peer Electronic Cash System - The Hopinionist
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What is Bitcoin?

Bitcoin was created by Satoshi Nakamoto, a pseudonymous person or team who outlined the technology in a 2008 white paper.
It’s an appealingly simple concept: bitcoin is digital money that allows for secure peer-to-peer transactions on the internet.
bitcoin is decentralized: any two people, anywhere in the world, can send bitcoin to each other without the involvement of a bank, government, or other institution.
Every transaction involving Bitcoin is tracked on the blockchain, which is similar to a bank’s ledger, or log of customers’ funds going in and out of the bank. In simple terms, it’s a record of every transaction ever made using bitcoin.
Unlike a bank’s ledger, the Bitcoin blockchain is distributed across the entire network. No company, country, or third party is in control of it; and anyone can become part of that network. No one can claim to have more than they have, and they cannot double spend, all details are visible on the blockchain publicly.

 

Where does Bitcoin derive its value from?

Essentially the same way a traditional currency does – because it’s proven itself to be a viable and convenient way to store value, which means it can easily be traded for goods, services, or other assets. It’s scarce, secure, portable (compared to, say, gold), and easily divisible, allowing transactions of all sizes.

There will only ever be 21 million bitcoin. This is digital money that cannot be inflated or manipulated in any way.

It isn’t necessary to buy an entire bitcoin: you can buy just a fraction of one if that’s all you want or need.

Arguably, it can be :
– bitcoin is an investment vehicle,
– bitcoin is a store of value,
– bitcoin a unit of account,
– bitcoin is a way to transfer value around the world,
– bitcoin can be used as currency to purchase other assets in the world of crypto,

 

Satoshi Nakomoto – Bitcoin Creator

Satoshi Nakamoto is the name used by the presumed pseudonymous person or persons who developed bitcoin, authored the bitcoin white paper, and created and deployed bitcoin’s original reference implementation. As part of the implementation, Nakamoto also devised the first blockchain database. Nakamoto was active in the development of bitcoin up until December 2010.
Nakamoto stated that work on the writing of the code for bitcoin began in 2007. On 18 August 2008, he or a colleague registered the domain name bitcoin.org, and created a web site at that address. On 31 October, Nakamoto published a white paper on the cryptography mailing list at metzdowd.com describing a digital cryptocurrency, titled “Bitcoin: A Peer-to-Peer Electronic Cash System”.
He was the first “Miner”.
Wallets associated with Satoshi Nakamoto owns between 750,000 and 1,100,000 bitcoin.

 

Bitcoin VS Fiat

By now, we know what Bitcoin is, but what is FIAT?

Fiat money is a government-issued currency that lacks intrinsic value and is not backed by a commodity such as gold or silver. Fiat money gives central banks greater control over the economy because they can control how much money is printed. Most modern paper currencies, such as the U.S. dollar, are fiat currencies.

  • Decentralized

    Bitcoin is produced and distributed through a process called mining and is not controlled by a centralized authority

  • Virtual Bills

  • Not as widely accepted

  • Value is less stable

  • Store of value

  • Derives value from acceptance

  • Transactions secured by network computers

  • Transactions are Irreversible

    A Bitcoin transaction (spent UTXO) cannot be reversed, cancelled or charged back.

  • Centralized

    Fiat money is issued and controlled by central banks and governments

  • Physical Bills

  • Widely accepted

  • Value is more stable

  • Store of value

  • Derives value from acceptance

  • Transactions secured by Governments and Central Banks

  • Transactions are Reversible

    Fiat transactions can be reversed, cancelled, or charged back.

Have you become more interested in Bitcoin? Click here to know where you can buy your first bitcoins from.