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What is Bitcoin?

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Bitcoin is a decentralized digital currency (free of control of any one organization, country, or entity), first released in 2009 as open source software by an unknown person or group named Satoshi Nakamoto. Many have compared bitcoin to gold because it is a store of value (gold 2.0), but it was designed as a digital currency because it can be spent and sent like cash, and is fungible (divisible) down to the satoshi (up to eight decimal places).

Bitcoin runs on a peer-to-peer network (like BitTorrent) of independent miners that run complex calculations (cryptography) in order to verify transactions and record them on the blockchain, which is a public distributed ledger. Blockchain technology is what makes bitcoin so unique and why I think it’s one of the biggest inventions since the Internet. This technology is what banks should be afraid of because it essentially cuts out the middleman. As an incentive for the miners to run calculations on the network, they are rewarded in bitcoin. There will only be a total of 21 million bitcoin ever created.

Bitcoin can be stored in various places including online wallets, hardware wallets, exchanges, digital wallets (on your computer or smartphone), and even paper wallets which is literally a piece of paper with your bitcoin address (public key) and private key printed on it.

Bitcoin has inspired other altcoins (alternative coins) that are also using blockchain tech such as Ethereum and Terra Luna. There are currently over 4000 altcoins and counting. Bitcoin remains the most well-known and largest by market cap to this day. I am a firm believer in Bitcoin and its ability to absolutely revolutionize the financial industry.

Join me on my crypto journey as I learn how to build my future with cryptocurrency!

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9 thoughts on “What is Bitcoin?”

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