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Bitcoin: the boss of the cryptocurrency world

There are thousands of cryptocurrencies in the world, but the first of them was Bitcoin (or BTC). All other cryptocurrencies are in a sense clones of BTC. They repeat the essence of this legendary cryptocurrency, just adding new ideas in some places. 

But how did this become possible?

And the thing is that the Bitcoin program code is open to anyone. Anyone in the world can see how it works and how it works and make something like it. 

On August 18, 2008, the domain name bitcoin.org was first registered. A few months later, cryptocurrency enthusiasts from one forum began receiving emails sent by one Satoshi Nakamoto. In the message, he claimed that he was finishing work on a digital payment system. Each email had a text attached that explained all the features of this new, breakthrough system. 

On January 3, 2009, this one Satoshi Nakamota launched a Bitcoin testing program. A week later, the first prototype of this open-source cryptocurrency appeared online. Two years later, Satoshi Nakamoto showed up one more time, but to say goodbye - his addresses and accounts have since become inactive and remain so to this day. 

The debate about who this certain Satoshi Nakamoto was is still going on. And what's more - they have only flared up with renewed vigor. There are an enormous number of theories. Experts in linguistics are studying his records, and numerologists and astrologists are making maps.

And supporters of the world conspiracy theory speculate.

But the most popular version is that Satoshi Nakamoto is deciphered as Sa+toshi+naka+moto, which is the root of the names of international corporations Samsung, Toshiba, Nakamichi, Motorola. As it is not hard to guess that none of these companies comment on such speculations.

What exactly is a cryptocurrency exactly?

Cryptocurrency is an electronic means of payment without physical form. It is used as ordinary money, including storage, transferring it to someone's account, or buying goods or paying for services. Unlike an electronic wallet, cryptocurrency is based on a complex cryptographic algorithm. The way these digital coins work is based on an open data transfer protocol. All actions, including issuing new money and processing transactions, are performed collectively by all members of the network.

Why use Bitcoin?

People use Bitcoin for a number of reasons. Many people value this cryptocurrency for its accessibility, because essentially anyone with access to the internet can use BTC. Another advantage of Bitcoin is that it can be used to exchange money with people no matter where they are, even if they are on the other side of the world. 

Why do people love Bitcoin so much?

Bitcoin is decentralized and very secure. This cryptocurrency also has unlimited potential, which has made it extremely attractive for international money transfers - especially if the user doesn't want to reveal their personal information, as is usually the case with a debit or credit card.

Some investors view Bitcoin as a savings account. The reason for that is very limited amount of BTC - you could not expect BTCs to crash overnight, so it was a worthwhile investment. Many people compare Bitcoin with precious metals such as gold or silver. Investors believe that these qualities, combined with global availability and high liquidity, make Bitcoin an ideal vehicle for storing wealth. 

How is Bitcoin different from other cryptocurrencies?

BTC has many differences from other altcoins. Besides the fact that it is their progenitor, it is also special in the following things:

  • Decentralization - no one controls or owns the Bitcoin network. BTC has no CEO, only voluntary participants who agree to all the rules of the protocol. Changes in this protocol are made only after users give their consent, and consensus is sometimes really hard to come by, that's why Bitcoin is distributed equally among very different groups of people: from miners to software developers. 
  • Blockchain - all transactions made with BTCs are registered in a public registry, which is actually called "Blockchain". This network relies on computers that run the protocol and facilitate the correct transactions. Blockchain does not allow for network downtime or information leaks. 
  • There is no concept of "permission" in the Bitcoin network - anyone can use this cryptocurrency network. There is no need to create any accounts. Any monetary transactions that comply with the rules of the protocol will be processed instantly.
  • High degree of anonymity - no information about a person is attached to their Bitcoin transactions. Wallets are formed from randomly generated letters and numbers, and no private information is needed to create them - no name, phone number or email, as would be the case when registering at some regular website. 
  • Appeal to the maximum freedom and democracy - nobody will be able to track what you buy with BTC.

FAQ

How many BTCs are there in total? 

A currency like Bitcoin would depreciate almost instantly if it wasn't capable of constant self-production. This is done with the help of users' computers, who download special programs and start mining. But the fact is that if there was too much currency, it would depreciate just as much. That's why a limit of 21 million unique coins was introduced. At the moment, 14 million coins have been mined, but due to the constant complication of the algorithm, experts predict the last Bitcoin will be mined by 2140. 

How does the cryptocurrency appear?

Cryptocurrency emerges through the efforts of users who use it, allocating computing power to process all transactions. Bitcoin does not have a transaction processing center, so users take care of all the tasks of providing computing processes. Roughly speaking, users spend the resource and processing power of their computers, thereby creating coins. No more than 3600 BTCs can appear in a day.

Who issues BTCs? 

Bitcoin issue is strictly limited and limited. It can be managed only by miners, i.e., people, who receive this currency and provide resources of their GPUs in exchange.

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Chief
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