Bitcoin is the world’s first decentralized digital cryptographic currency. The Bitcoin network was launched in 2009, and it operates through the mining process that produces BTC coins. Transactions in the BTC network are peer-to-peer, which means direct transfer of funds from one user to another, without the participation of third parties and regulatory authorities in the form of banks, the state, etc. Bitcoin cryptocurrency operates on Blockchain technology, which fundamentally distinguishes it from all previously created electronic currencies and payment systems. Bitcoin Blockchain (BTC) is not tied to any physical assets or “official” fiat currencies, and the price of a BTC digital coin is regulated exclusively by market demand and supply, i.e. there the value that people themselves invest in it, similar to gold, for example. You can learn more about BTC at newsblockchain.io.
Bitcoin has another big resemblance to gold – limited stock and total quantity. In the case of Bitcoin, its quantity is strictly limited to 21,000,000, with 18,140,000 BTCs produced by 2020, i.e. more than 83%. And this figure does not take into account all the lost wallets with BTC tokens lying on them, and this has happened frequently before, because users were negligent to properly store the crypt currency on the bitcoin wallets, because the value of coins at that time was not significant. Bitcoin is thus a worldwide payment system without emission and inflation, through which you can conduct transactions with this currency. Its main difference from traditional payment systems is that Bitcoin network has no manager and processing center – all transactions take place exclusively in peer to peer network of equal clients without intermediaries.
About Bitcoin, in simple words
In simple words, a bitcoin is one large file register (for analogy, you can imagine Excel) where information about all payments and receipts is recorded, and this file cannot be faked or changed, and the value of the cryptographic currency is increasing all the time due to its limited number and lack of additional issue. The VTS is the very first cryptocurrency to be released in 2009. It was the first time that Satoshi Nakamoto worked on the Bitcoin peer-to-peer network was available two years before the digital currency was introduced. Although Nakamoto was able to draw the attention of thousands of programmers to his project, no one believed in its success at the time.
The first bitcoin transaction was made by American Hanech Laszlo, who offered 10,000 VTC to someone who would bring two Italian pizzas into his home. It’s hard to imagine what emotions Laszlo experienced at the moment when the BTC course began to grow rapidly. To date, there are hundreds of millions of transactions using the crypt currency. Therefore, to the question “what is Bitcoin” let’s answer in simple words – money that has its own exchange rate against another currency, but has no physical form.
Distinctive features of BTC as crypto currencies
- No control. Complete lack of control of the system by someone. Millions of computers that get the bitcoins into this system. No one has the power to dictate their terms to the owners of the crypto currencies.
- Just use it. It takes about 5 minutes to create a BTC wallet that is ready for immediate use. You won’t be asked anything, you won’t have to pay a penny.
- Anonymity and transparency. Bitcoin wallet is absolutely anonymous and at the same time completely transparent.
- Irresponsible transactions. Once the bitcoins are sent to the recipient, it is impossible to return them if the recipient does not want to do it himself.
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