What is Bitcoin
Everyone has heard of it, but what really is Bitcoin?
Bitcoin is the first ever cryptocurrency created by Satoshi Nakamoto in 2008. It is a peer to peer network system that allows for digital coins to be sent over the internet with a decentralized distributed ledger, providing verification for transactions. These digital coins are transferred directly from person to person via the net without going through a bank or centralized clearinghouse. This means that the fees are much lower, you can use them universally, your account cannot be frozen by the government or hackers, and there are no prerequisites or arbitrary limits. The transactions are connected to a user’s Bitcoin address, which is stored on its general ledger, called the blockchain.
Check out this video from the official site, Bitcoin.org.
https://www.youtube.com/watch?time_continue=12&v=Gc2en3nHxA4
The key feature of the Blockchain technology is the open, distributed ledger. Similar to a google doc, the database isn’t stored in any single location, meaning the records it holds is truly public and easily verifiable. There is no centralized version of the information, making it much harder for any hacker to make changes to the data. The transactions on the blockchain are verified by the consensus of every member, offering security and trust without the third-party overseer because the trust is in the network and the technology.
Bitcoin uses the proof of work concept through the process of mining. This new form of digital data mining is completed by a computer's computational power being used to solve complicated decryption calculations in exchange for transaction fees and newly minted coins. This is until all coins are minted, as Bitcoin has a limited amount of supply at about 21 million with over 17 million already in the market.
Just as in any other free market, the price of bitcoin is determined on what someone else is willing to pay for it. In 2009, one of the first evaluations of bitcoin was around .008 cents, when someone purchased 2 pizzas from Papa Johns for 10,000 bitcoin. Less than ten years later, those same coins were now worth MILLIONS!! Yes, In 2017 we saw highs of the Bitcoin price near $20,000 USD. That piece of digital currency is worth whatever the market decides through supply and demand.
One thing to keep in mind when thinking about Bitcoin is that there is a lot that goes into it and you may not understand everything at first. I always like to mention how early we still really are to this technology. The future of a decentralized world and the use of digital assets is approaching, and it is coming fast! In summary, Bitcoin is the first digital payment platform that hosts a digital ledger system on which people can mine, store and trade the coin. The digital currency is earned through a computer computation and tied to no central authority, providing fast and secure transactions!
As always please upvote and leave a comment on what you think about Bitcoin and the future of the coin or something that you find interesting about Bitcoin!
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