I have seen and read a couple of posts about the introduction to bitcoin on the internet since my journey into crypto and despite some of these articles being friendly, one would have a hard time understanding some of the terms used being a newbie, so I decided to write about it keeping it simple and friendly without the use of complex terms.
Bitcoin is the first form of cryptocurrency invented in 2008 by a mysterious man named Satoshi Nakamoto whose identity is anonymous down to this day.
One bitcoin is currently worth $23,006.82 as of the time of writing this article. Below is a brief and concise explanation of what bitcoin is.
What is Bitcoin?
Bitcoin is the first form of digital currency and a growing category of money known as cryptocurrency. It is created and held electronically with no one controlling it. Bitcoins are not paper/fiat currency prints like euros, dollars, or pounds but people and or businesses known as miners mine them. It runs on several computers using software that solves problems mathematically from around the world.
Who Created Bitcoin?
Satoshi Nakamoto, a software developer at the time created bitcoin as an electronic payment system based on mathematical proof.
Why was Bitcoin Created?
Bitcoin started as a digital currency that is independent of any central authority. No one can control it. It is transferrable electronically and instantly with very low transaction fees.
What is Bitcoin Based on?
Compared to fiat currencies which are based on printing, bitcoin follows the usage of software programs that follow a mathematical formula to produce it. Bitcoin’s software program is open source. Meaning, it’s open and accessible to any programmer or software developer. Everyone can look into it if there is a need for any changes to make sure it runs properly.
How to Print Bitcoin?
A central bank physically prints fiat. It is unaccountable to the population and makes its own rules. Instead, we digitally mine Bitcoin using computing power in a distributed network. This involves the use of high-end PCs to mine. Therefore, it is not centralized or owned, or minted by just a person. This network also processes transactions made with the virtual currency, making bitcoin its own payment network.
Is Bitcoin Unlimited?
Bitcoin is limited in supply and can not be minted or be more than its initial supply. The bitcoin rules that make bitcoin work state that there can be only 21 million BTCs miners can create. One bitcoin is divisible into the smallest unit of bitcoin. It is SATOSHI, which follows the name of the founder. This means that 100 million Satoshis make up one BTC(i.e the satoshi to BTC ratio is 100,000,000: 1)
There are a whole lot more complex terms about BTC. But, if you are a beginner or just need to learn the basics and key points about Bitcoin, this will help you get started. Kindly leave a reply below and let me know what you think.
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