What is Bitcoin?
In very simple words, Bitcoin is a currency. However, it is different than ordinary currencies in a very fundamental way; Bitcoin is not owned or printed by any government or central bank. The production of Bitcoins is carried out by a computer formula outlined by a developer known as Satoshi Nakomoto
Who Created Bitcoin?
This question has no answer as of now. In October 2008, Satoshi Nakamoto published a paper that laid out the fundamentals and basic principles of Bitcoin. The paper was titled Bitcoin: A Peer-to-Peer Electronic Cash System and can be read here. However, the real identity of Satoshi Nakamoto is unknown so far.
Even though an Australian computer scientist claimed to be Satoshi Nakamoto in May 2016, his evidences quickly proved to be false. On the other hand, a journalist asserted that she contacted the Bitcoin founder Nakamoto who is 65 years old Japanese-American living in Los Angeles. The alleged candidate was a physicist who works as an engineer at military industry with the full name of Dorian Satoshi Nakamoto. However, he denied to be the so called Satoshi Nakamoto who is creator of Bitcoin.
What is the Blockchain?
The blockchain is a database network where all Bitcoin users can concurrently monitor and record every transaction. Imagine that there is a spreadsheet which is duplicated across thousands of computers and this spreadsheet is developed to be updated regularly. In a very basic meaning, this is called blockchain technology. The information isn’t kept on a single device but across thousands of computers which makes it accessible to anyone and easily reconcilable.
How can I Get Bitcoin?
Since Bitcoin receives more and more attention every day as both a payment method and investment instrument, many individuals and institutions get more interested in acquiring one. There are two major ways to get Bitcoins. The first one is to buy a Bitcoin by registering at a bitcoin exchange. I have listed the best bitcoin exchanges based on my personal experience and obversations after buying & selling Bitcoins at more than twenty exchanges.
The second way to get Bitcoin is through mining. Bitcoins are not like printed money. Central banks dont issue Bitcoins. Instead, Bitcoins are created through a method called mining. Bitcoin mining is a process of validating transactions and registering them -on the blockchain network through solving a series of specific computer formulas.
Why would I Use Bitcoin?
It is fast and cheap to send and receive Bitcoin. You simply enter recipient’s wallet address and amount then click send. The bitcoins are going to land in the recipient’s address within few seconds. You won’t have to wait for few to several days like for international wire transfers and you won’t have to pay high fees charged by the merchants or banks.
It is decentralized. Bitcoin’s peer-to-peer technology allows millions of computers to participate in transaction and monitoring process. This makes Bitcoin reliable. All of the participating computers have to fail for Bitcoin to fail. No central government or authority has control over the bitcoins so they can’t take it from you.
It is an investment instrument. The value of a Bitcoin has gone up from around $900 to $17000 in between January 2017 and January 2018. It is not risk-free. Actually it is a very volatile and risky investment tool but with the potential of significant gain for smart traders.
It is private. When you go to bank to open an account, you are requested to submit personal and sensitive information. On the other hand, a Bitcoin wallet is created with just one simple click. You don’t have to give your personal information or submit any type of document to have a digital Bitcoin wallet.