What is Bitcoin & What Does it Offer?
by The Blockchain Diary on 2018-10-12
As I discuss in my previous article What is Cryptocurrency?, Bitcoin is a decentralized (without the need of any intermediary or a third party or a bank) cryptocurrency or digital currency on the Bitcoin Peer-to-Peer Blockchain Platform. Today, Bitcoin is being used to accept payments by major companies like Microsoft, Overstock, Namecheap, Newegg, KFC Canada, Expedia, CheapAir, etc. but most of the Bitcoins are being used in trading on exchanges, as the price of a Bitcoin skyrocketed by 2500% in late 2017.
How did it come from?
Bitcoin was created by a software developer or a group of people with a pseudonymous alias, “Satoshi Nakamoto” in late 2008 as “A Peer-to-Peer Electronic Cash System” combining Blockchain with Cryptography.
Even today, it is still a mystery who the hell this Satoshi Nakamoto really is.
Ok so, Bitcoin is being used and being heard, here and there, everywhere. But why? In what ways Bitcoin is different from this well long-established conservative currencies.
To know the answer of this question, you’ll need to know about several important features of bitcoin which makes it different from fiat (digital) currencies.
No single organization/entity controls the Bitcoin’ distributed and open network.
2. Limited Total Supply
Every day, new Bitcoins are being mined, but the total supply is limited to 21 million at a diminishing rate until a maximum has been reached.
Since, there is no any “intermediary”, users don’t need to validate identity of each other, when making a Bitcoin transaction.
Also since, there is no any “intermediary”, Bitcoin transactions can’t be reversed, and this also means transactions can’t be tempered by any one.
Satoshi is the smallest unit of the Bitcoin currency. It is a one hundred millionth of a single Bitcoin (0.00000001 BTC).
6. Zero/Low Fees
Bitcoin transactions are very much cheaper as compared to fiat transactions. Only a few cents are require to transact a million dollar payment.
Enjoyed reading post? then share it with your friends on Facebook and Twitter!