What is Bitcoin?

 What is Bitcoin?

Bitcoin made headlines soon after the global financial crisis and grabbed everyone’s attention.

Bitcoin was invented by a unanimous person named Santoshi Nakamoto in the year 2009.

Understanding Bitcoin is not that easy, you can not hold it in your hand like real cash. It is a digital currency .i.e., an electronic representation of money.

Bitcoin is a type of digital currency, also called cryptocurrency as it relies on cryptography to keep it secure. The Bitcoin was considered a simple digital cryptocurrency but the way it increased from a few cents to around 8000$ now. It is majorly due to the loss of trust in financial institutions and the way bitcoins democratizes them.

Understanding Bitcoin

Bitcoin is most of the time referred to as anonymous money. Its blockchain is transparent and can be inspected by anybody whenever they want to. It made people around the globe to feel financial freedom. 

Understanding Bitcoin needs an understanding of nodes. As Bitcoin is a set of nodes that run via coding and storing happen in its blockchain. Basically, the collection of blocks is called a blockchain. There is a set of transactions related to each block. No one can cheat in this system as everything is transparent since there is the same list of blocks running in the blockchain. These transactions occur live so anyone who is running bitcoin “node” or not is able to see them. Bitcoin is growing very quickly and has around 10k nodes currently. That means, no one can actually do any evil act in it. As to do so one needs to operate more than 50% of the working power that creates bitcoin.

All this gave bitcoin large spikes and also the economic crisis that happened in Cyprus. Understanding Bitcoin gave people believe in it and that they have constant access to it.

 

 

 

Dorothy Moore

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