When and How Bitcoin was created?
Bitcoin is a cryptocurrency that was created in 2008 by an unknown entity called ‘Satoshi Nakamoto’. Bitcoin journey began when Nakamoto posted a document on an online cryptography forum in November 2008 explaining,
- what Bitcoin is?
- How it would allow for unregulated digital trade?
This article describes that bitcoin as a peer-peer electronic cash system that would permit users to make changes without third party inventions, the document essentially explain the bitcoin had been created to able any two people in a world that sends money to each other digitally regardless that where they are, but how is this any different purchasing with a credit card would transferring money via online banking…
Well, the difference with bitcoin is that it’s a decentralized currency meaning that doesn’t have a central authority or server.
Bitcoin has a transparent ledger so anyone can view all the transactions and balances of all the bitcoins users, forever we cannot who owns the account or conduct transactions because, unlike authoritative financial governing bodies, Bitcoin does not require its users personal data.
We can see how much a bitcoin user has sent to another user and track each of their transaction but we cannot be able to find out who they belong to
What is a decentralized currency($) & how is it beneficial?
In the modern world of a financial transaction documented by governments and banks, two people what to make a transaction a third party like banks and governments supervises and manages the transactions and documents the change. Bitcoin on the other hand will move the power from the third party and places it among the bitcoin Community, unlike physical cash would debit in credit cards.
Bitcoin does not require a centralized authority or institution to function Centralized currency is regulated because financial authority records all transactions in one central ledger which is a collection of financial accounts, banks
manage their own ledger or balance the transactions for each of their customer’s account. This means the bank and government ledgers are non-transparent because their help within the institute’s internal databases unavailable for public viewing but the bitcoins ledger is not stored on a database or device.
But why is it so safe?
The ledgers are stored on every device that participates in the financial transaction so if someone tries to block the blockchain, they would have to hack into every device that has a copy of the ledger that is pretty much impossible.
Where bitcoin is stored and how do people associate value with it?
Well as evident from the term cryptocurrency, bitcoin is a fully digital form of currency with no physical notes or coins. It may look similar to debit and credit card but not exactly, if we have a debit or credit card we have a certain
amount of money is we can access which hold its value irrespective of time.
Bitcoin’s value is very volatile because unlike the money in the bank account can bitcoin can either lose or gain within a year.
In Conclusion, bitcoin is a complex and interrogate phenomenon to grasp but it’s still prevalent and will continue to impact the economy and have perceived money across the globe for years to come. It’s quite literally shaping the feature as we know it.