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Bitcoin isnt the first decentralised money; gold is another case. 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 an entirely digital money. It's the first decentralised peer reviewed payment network powered by its customers with no central authority or middleman. From an individual perspective, bitcoin is money for the internet.
Bitcoin can also be seen as the most prominent triple-entry bookkeeping system in existence. Its the 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 money.
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Bitcoin could nevertheless fail for one reason or another, but if it doesnt, it's 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 checked, 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 security step, making it impossible for anyone to spend bitcoin from another pocket. Cryptography can be used to encrypt a pocket, therefore it cannot be used with no password.
Bitcoin is not controlled by a central company, bank, or financial institution. For that reason, it cannot be inflated like the dollar. In fact, 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 becomes more difficult. Similarly, as more bitcoin is minted, the practice 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, just like the technology behind email has no owner. Instead, bitcoin is controlled by all bitcoin users around the world.
While developers do work to improve the software, any changes at all 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 first 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 transactions. .
The very first bitcoin specification and proof-of-concept were printed in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi abandoned the job 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 raised unjustified concerns, many of which are linked to the misunderstanding of the open-source nature of bitcoin. The bitcoin protocol and software are published openly, meaning any programmer around the globe can review the code and make their own modified version of the bitcoin software.
Satoshis influence was, consequently, dependant on click for source their ideas being adopted by other people, meaning that 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 paper.
Bitcoin () is a cryptocurrency, a form of electronic money. It is a decentralized digital currency without a central bank or single administrator which 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 through 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 published as open-source software in 2009.10 Bitcoins are made as a reward for a process known as mining.
Bitcoin has been criticized because of its use in prohibited transactions, its high electricity consumption, cost volatility, thefts from exchanges, and also the chance that bitcoin is an economic bubble.13 Bitcoin has also been used as an investment, even though many regulatory agencies have issued investor alarms about bitcoin.14