Bitcoin is the world’s first widely-adopted cryptocurrency and has revolutionized the way we perceive and handle money. This digital form of cash operates by a network of computers distributed around the world, and your Bitcoin is controlled by you.
Written by Roundable
What is Bitcoin?
Bitcoin, often abbreviated as BTC, is a peer-to-peer (P2P) digital currency system. It was conceived in 2008 by an anonymous person or group known as Satoshi Nakamoto. Bitcoin transactions are recorded on a public ledger called a blockchain and are verified by a network of nodes located worldwide. This makes Bitcoin transparent and permissionless, making it a popular alternative to the traditional financial system.
How Does Bitcoin Work?
Bitcoin operates on a decentralized public blockchain, meaning a central authority doesn’t control it. Instead, transactions are verified by a network of computers, known as nodes. Anyone can join the network and help secure it. This decentralization is one of the key features that make Bitcoin unique. Bitcoin’s permissionless nature means that anyone with an internet connection can participate in the Bitcoin network without authorization or permission from a central authority. Bitcoin allows users to send and receive payments with anyone on the network, regardless of location or identity.
Unique Features of Bitcoin
Bitcoin has a limited supply of 21 million coins hard-coded into the protocol. This means there will never be more than 21 million bitcoins in circulation, which helps prevent inflation. All bitcoin transactions are recorded on a public ledger that is visible to all users. This means that anyone can see the transactions that have taken place, including the amount of bitcoin involved and the addresses of the sender and receiver. Bitcoin can be divided into smaller units called "satoshis", which are one hundred millionth of a bitcoin. This means that even if the price of a bitcoin becomes very high, people can still use and transact with very small amounts of the currency.
The Bitcoin Standard
Bitcoin, with its decentralized and transparent nature, has paved the way for a significant technological revolution. It offers a global digital currency without intermediary fees, making transactions faster and more efficient. Whether you’re looking at it as an investment vehicle, a store of value similar to gold, a way to transfer value around the world, or just a way to explore an emerging technology, Bitcoin continues to be a fascinating development in the financial world.
Learn More about Bitcoin
Has Bitcoin captured your attention? There is a wealth of information about Bitcoin on the internet which can be found using a simple Google search. "Do your own research" is a popular phrase in the cryptocurrency space to encourage empowerment of the individual. Have fun learning about Bitcoin, and check out our Learning Centre for more articles to help you on your journey.
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