What is Bitcoin?
What is Bitcoin? Suppose you are in another world now or you live a few years after that year. All sales are made digital currency, are you confused? Do you know anything about the world without paper money?
No problem, I’ll help you, so bear with me a few minutes on this article.
The Rise of Bitcoin
Let’s go back in time and look at the history of money. A thousand years ago, people bartered goods to meet their needs. How ? For example, a farmer would give flour to a blacksmith in exchange for a tool. But later they realized that this was useless because the blacksmith’s tool could have cost much more than flour or vice versa.
In addition, it was also difficult to carry the equipment. So they chose the means that were accepted by all the inhabitants of that area as a qualified intermediary of exchange. Such as decorative accessories (such as oysters, etc.)
After that, gold and silver replaced those items. Because it was both scarce and more durable, which caused all governments to mint their own coins.
But the problem was carrying goods, and gold and silver also needed to be transported and moved, and this made it difficult.
So there were centers where merchants lent their coins and received receipts in return. Merchants could easily make their purchases using this receipt.
In 1971, then-US President Nixon repealed the law on the backing of banknotes backed by gold or other valuables.
With the advent of the Internet, all of these banknotes became a series of numbers on computer servers.
Thus, when we transfer money from our account to another one through ATMs, we only face playing the numbers, so that the figure is deducted from our account and added to another one without any physical transfer.
But our current money still has high inflation and a lot of problems.
In 2009, a person named Satoshi Nakamoto created a new form of money that had no backing.
This digital money was transferred quickly and with a low commission from one place to another without any intermediary. (His character has not been revealed yet).
What is Bitcoin?
It is the first cryptocurrency, which is called BTC for short.
Bitcoin is a digital currency that, unlike money or banknotes, or coins, has no physical form and operates on a peer-to-peer basis. This means that the transaction is between individuals, and this does not exist between a specific intermediary(central bank, manager, and owner) and allows users to exchange and share files by connecting to a computer via the Internet.
Bitcoin is distributed and stored on multi-user computers, not individuals or companies.
Bitcoin is traded completely anonymously. Anyone can open a Bitcoin account with just a computer and the Internet.
It is interesting to know that only about 10% of people in the world have heard the name “Bitcoin” and only less than 5% of people in the world know about that.
Bitcoin is a digital form of money. But unlike the Fiat money you use, there is no central bank to control it. Instead, the Bitcoin financial system is governed by thousands of computers distributed around the world.
Anyone can participate in the bitcoin ecosystem by downloading open-source software.
Why is bitcoin valuable?
It is decentralized, resilient, secure, and cross-border.
This feature can be useful for international remittances or remittances of individuals who do not wish to be identified.
Instead of using bitcoin for daily trading, many prefer to keep it for a long time (we call them Holder). Bitcoin has earned the title of digital gold due to the limited supply of its coins. Some investors also see bitcoin as a means of storing value. Bitcoin mining is rare and difficult, so it is often compared to precious metals such as gold and silver.
Bitcoin holders believe that bitcoin is the ideal means of storing wealth for a long time due to its properties such as global availability and high liquidity. They believe that the value of bitcoin increases over time.