BITCOIN (BTC)

What is Bitcoin?

Bitcoin is a digital form of cash but It is not controlled by any central bank or autorithy unlike the traditional payment and fiat currencies we use over the years. Instead, Bitcoin's financial system is run by thousands of distributed computers around the world. Anyone can contribute to the bitcoin ecosystem by downloading open source software.

What is Bitcoin used for?

People use bitcoin for a variety of reasons. Many are interested in Bitcoin because of its unrestricted nature. On the other hand, anyone with an internet connection can send and receive it in a short time. In fact, the main purpose of Bitcoin has been becoming a way to pay and transfer money, however, it has other uses, such as becoming a trading and investment asset.

How does Bitcoin work?

Bitcoin is based on a blockchain, which is a distributed digital ledger that everyone has transparent access to. It can be sent from user to user on the peer-to-peer network without a central bank or single administrator. In order to add new data, the Bitcoin blockchain uses a special mechanism called mining.

This process helps new blocks of transactions to be registered in the blockchain. Simply saying, participants add blocks to blockchain by mining. To do this, they must devote computing power to solving a complex cryptographic problem and receive a reward in return.

What makes Bitcoin valuable

Bitcoin is decentralized, anti-censorship, secure and borderless.

These features such as international remittances and payments have made it attractive for individuals who do not want to be identified. However, many do not spend their bitcoins, but instead keep them for a long time. These people are called holders. Bitcoin is called digital gold because of the limited supply of available coins.

The maximum and total amount of bitcoins that can ever exist is 21 million. By 2020, less than 90 percent of this supply has been created but the left takes more than a hundred years to be produced. This is due to periodic events known as halvings, which gradually reduce the mining reward.

Some investors see bitcoin as a store of value. Because it is scarce and difficult to produce, it is likened to precious metals such as gold or silver.

Holders believe that these features - combined with global availability and high liquidity - make it an ideal means of storing wealth for long periods of time. They believe that the value of bitcoin will increase over time and has been so ever.

Who invented Bitcoin?

No one knows who invented Bitcoin! The creator of Bitcoin has used the pseudonym Satoshi Nakamoto, but so far no one has any information about the true identity of this person or persons.

Satoshi can be an individual or a group of developers anywhere in the world. The name is originally Japanese, but Satoshi's fluency in English has led many to believe he is from an English-speaking country.

Satoshi released the Bitcoin White Paper as well as its software code. The mysterious creator disappeared in 2010 after launching Bitcoin.