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What is Bitcoin?
Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros they’re produced by people and is being increasingly used by businesses all around the world. Bitcoin is the first example of a growing currency of digital money known as crypto-currency (Bitcoin) parallel to the monetary system.
You can't stop Bitcoin, It's here to stay 🙂
Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally. However, Bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. No single institution controls the Bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money.
No one. This currency isn’t physically printed in the shadows by a central bank, unaccountable to the population, and making its own rules. Those banks can simply produce more money to cover the national debt, thus devaluing their currency. Instead, Bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are ‘mined’, using computing power in a distributed network. This network also processes transactions made with the virtual currency, effectively making Bitcoin its own payment network.
A software developer called Satoshi Nakamoto proposed Bitcoin, which was an electronic payment system based on mathematical proof. Who published the invention on 31 October 2008 to a cryptography mailing list in a research paper called "Bitcoin: A Peer-to-Peer Electronic Cash System". It was implemented as open source code and released in January 2009. The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees.
Conventional currency has been based on gold or silver. Theoretically, you knew that if you handed over a dollar at the bank, you could get some gold back (although this didn’t actually work in practice). But Bitcoin isn’t based on gold; it’s based on mathematics. Around the world, people are using software programs that follow a mathematical formula to produce Bitcoins. The mathematical formula is freely available, so that anyone can check it. The software is also open source, meaning that anyone can look at it to make sure that it does what it is supposed to.
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Bitcoin Strategy Club is a membership service. By becoming a member, you gain access to innovative functionality and benefit from enormous savings in cost and time on our secure, compliant and transparent platform. Membership is free and available worldwide.