 |
| what is Bitcoin? |
>Let's learn about Bitcoin, the most recognizable open source cryptocurrency in the world. Bitcoin was the first widely adopted cryptocurrency and the world's largest cryptocurrency by marketcap. Unlike cash or gold, Bitcoin has no physical form. It is used, held, and distributed electronically. It is not controlled by any country, government, or organization. Instead, it is maintained by a peer-to-peer network of computer systems distributed throughout the world. Bitcoin first emerged as a link posted on a cryptography mailing list in October 2008.
The link was to a paper by still-unknown author Satoshi Nakamoto. The title of the paper is 'Bitcoin: A Peer-to-Peer Electronic Cash System”.
In January 2009, the Bitcoin open source code was released and Bitcoin was born. The chief purpose of Bitcoin is to allow people to store and transfer value in a censorship-resistant environment. While in the early days, Bitcoin had been known for its use in illicit activities, these days there are thousands of legitimate uses for Bitcoin.
You can even exchange Bitcoin for gift cards using services such as BitRefill. The maximum supply is approximately 21 million coins. Unlike fiat currency, new Bitcoins cannot be created on demand. Instead, Bitcoin follows a set coin creation schedule that shuts down near the year 2140. Every four years, the number of new Bitcoins entering the system is cut in half. To keep the network secure, Bitcoin operates on a consensus mechanism known as Proof-of-Work.
This means that powerful computers are solving difficult cryptographic puzzles in a race to win a reward of new Bitcoins and transaction fees. This process is called mining. Bitcoin pioneered adoption in cryptography applications which allowed a popular decentralized currency to exist online. It's really quite remarkable.
Follow us and subscribe to charleecom to be notified all the time. Learn more things about online investing and businesses. See you next time!