There’s a good chance that you have heard of Bitcoin, the latest craze in technology and finance. Bitcoin is a type of digital currency and it is the most popular when it comes to cryptocurrency because it was also the first. There are other types of digital currency (cryptocurrency) such as Bitcoin Cash, Ethereum, and Litecoin, but Bitcoin is the most popular and the most valuable in terms of price and market capitalization.
Satoshi Nakamoto first outlined and created Bitcoin in 2008 and 2009 after the US housing market crashed. The crash led to a lot of hardship and distrust for the government, the financial sector, and the economy in general. The timing was perfect for the launch of Bitcoin because it came as a savior from these problems and a way to avoid interacting with a financial system that many consider being slanted away from the everyday consumer.
Bitcoin was created by pseudonym Satoshi Nakamoto. The true identity of this anonymous person or group is a mystery still today. Satoshi Nakamoto set out ideas in a document called a whitepaper, which was released before the release of Bitcoin, these ideas are the foundational principles that guide Bitcoin still today.
The Promises of Bitcoin
Part of the allure of Bitcoin is the cost of transactions. Unlike traditional money transactions that are done for various fees that could be considered exorbitant, transactions with Bitcoin usually cost very little because of its blockchain technology.
Another promise of Bitcoin is the fact that no central authority operates or regulates it. Bitcoin is not like government currencies or fiat money that is backed up by particular governments. The operation of Bitcoin is done by a decentralized authority, the people that use it.
Bitcoin is not a physical coin, Bitcoin aims to be pseudonymous, trustless, decentralized, and immutable. In addition, anyone with a computer and internet connection can join the Bitcoin network. it is essentially a balance that is maintained on a digital ledger that is accessible to anyone with the right passkey (Private Key).