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Bitcoin isnt the first decentralised money; golden is another example. No longer gold can be made, and the ledger of gold - that is, the physical gold itself - cannot be manipulated or counterfeited. Golds heavy physical nature make it an inefficient and unrealistic currency solution.
The digital nature of bitcoin, on the other hand, makes it a natural match for todays tech-driven, connected world.
Bitcoin is a consensus network that enables a new payment method and a completely digital money. It's the very first decentralised peer reviewed payment network powered by its users 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 is both decentralised and digital. It's more reliably scarce than gold, more transactionally efficient than modern digital banking, and enables greater financial privacy than money.
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Bitcoin could nevertheless fail for one reason or another, but when it doesnt, it has the potential to be very, very revolutionary.
All bitcoin transactions are listed on a public ledger known as the blockchain. All transactions are then assessed, verified, and confirmed by miners. Miners do this obligation 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 procured.
Cryptography is an additional security measure, which makes it impossible for anyone to spend bitcoin from another pocket. Cryptography can be used to encrypt a wallet, so it cannot be used with no password.
Bitcoin is not controlled by a central company, bank, or financial institution. Therefore, it cannot be inflated like the dollar. In reality, only 21 million bitcoin can be created.
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To ensure a steady rate of distribution, bitcoins production is modelled on stone mining. As more gold is mined, finding new gold grows more difficult. Similarly, as more bitcoin is minted, the process of production grows more difficult. The final bitcoin will probably be mined around the year 2140.
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Nobody. The bitcoin network has no owner, just 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 applications, any changes whatsoever to the base protocol are scrutinised from the most experienced core programmers and the whole bitcoin community. All bitcoin users are free to decide on which applications and version they use, and, for bitcoin to function properly, these versions have to be compatible.
Bitcoin is the primary application of a concept called cryptocurrency. Cryptocurrency was clarified 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 a trusted, central authority - to control its creation and monitor its own transactions. .
The first bitcoin specification and proof-of-concept were printed in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the job in late 2010 without revealing anything about himself, herself, or even themselves. The community has since grown exponentially, with thousands of programmers working on about his bitcoin worldwide.
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 software are published openly, meaning any developer around the globe can review the code and create their own modified version of the bitcoin computer software.
Satoshis influence was, consequently, dependant on their thoughts being embraced by others, meaning that they did not control bitcoin. As such, the identity of bitcoins inventor is probably as relevant now as the identity of the person who invented paper.
Bitcoin () is a cryptocurrency, a kind of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent out of user-to-user on the peer-to-peer 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 people using the name Satoshi Nakamoto9 and released as open-source applications in 2009.10 Bitcoins are created as a reward for a process known as mining.
Research produced by the University of Cambridge estimates that in 2017, there were 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin.12.
Bitcoin has been criticized for its use in illegal transactions, its high electricity consumption, price 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