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Bitcoin isnt the first decentralised money; golden is another example. No more gold can be made, and the ledger of gold - that is, the physical gold itself - cannot be manipulated or counterfeited. Golds hefty physical nature make it an inefficient and unrealistic currency solution.
Bitcoin is a consensus network that enables a new payment method and a completely digital money. It's the first decentralised peer reviewed payment network powered by its own customers with no central authority or middleman. From a user perspective, bitcoin is money for the internet.
Bitcoin can also be seen as the very prominent triple-entry bookkeeping system in existence. Its the very first currency that's both decentralised and electronic. It's more reliably scarce than gold, more transactionally efficient than modern electronic banking, and enables larger financial privacy than cash.
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Bitcoin could still fail for one reason or another, but if it doesnt, it's got the potential to be very, very revolutionary.
All of bitcoin transactions are recorded on a public ledger known as the blockchain. All transactions are then assessed, verified, and confirmed by miners. Miners do this duty on incredibly powerful computers in exchange for newly minted bitcoin. With tens of thousands of miners contributing to the community, transactions run smoothly, and the network is secured.
Cryptography is an additional safety step, which makes it impossible for anyone to spend bitcoin from another pocket. Cryptography can be used to encrypt a pocket, therefore it cannot be used without a password.
Bitcoin is not controlled by a central company, bank, or financial institution. Therefore, it cannot be inflated just like the dollar. In reality, only 21 million bitcoin can ever be created.
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To ensure a steady speed of distribution, bitcoins production is modelled on gold mining. As more gold is mined, finding new gold grows more difficult. Likewise, as more bitcoin is minted, the process of production becomes more difficult. The final bitcoin is going to be mined around the year 2140.
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Nobody. The bitcoin network has no owner, exactly like the technology behind email has no owner. Instead, bitcoin is controlled by all bitcoin users around the globe.
While programmers do work to improve the software, any changes at all to the base protocol are scrutinised by the many experienced core developers and the whole bitcoin community. All bitcoin users are free to choose which applications and version they use, and, for bitcoin to function properly, these versions have to be compatible.
Bitcoin is your primary application of a concept called cryptocurrency. Cryptocurrency was described in 1998 by Wei Dai on the cypherpunks mailing list, which indicated the concept of a new form of money that used cryptography - rather than the usual reliable, central authority - to control its creation and monitor its transactions. .
The very first click bitcoin specification and proof-of-concept were published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project in late 2010 without revealing anything about himself, herself, or themselves. The community has since grown exponentially, with thousands of developers working on bitcoin global.
Satoshis anonymity has increased unjustified concerns, many of which are linked to the misunderstanding of this open-source nature of bitcoin. The bitcoin protocol and applications are published openly, meaning any developer around the world can review the code and make their own modified version of their bitcoin software.
Satoshis influence was, consequently, dependant on their thoughts being embraced by others, meaning they did not control bitcoin. As such, the identity of bitcoins inventor is most likely as relevant today as the identity of the person who invented newspaper.
Bitcoin () is a cryptocurrency, a form of electronic money. It's a decentralized digital currency with no central bank or single administrator that can be sent from user-to-user on the peer reviewed bitcoin network with no need for intermediaries.7
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Transactions are verified by network nodes via cryptography and listed in a public dispersed ledger called a blockchain. Bitcoin was invented by an unknown person or group of individuals using the name Satoshi Nakamoto9 and released as open-source software in 2009.10 Bitcoins are made as a reward for a useful reference process known as mining.
Bitcoin has been criticized for its use in illegal transactions, its own high electricity consumption, cost volatility, thefts from exchanges, and the possibility that bitcoin is an economic bubble.13 Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.14