What is Bitcoin (BTC)?
Bitcoin (BTC) is a digital currency operating without intermediaries, unlike the typical currency that banks and governments regulate. By being above any form of regulation, it operates under cryptography and peer-to-peer means.
This cryptocurrency was created and released to the public in January 2009. This was after the founding individual/group alias Satoshi Nakamoto announced its release in October 2008.
After mining the first Bitcoin block in 2009, many other blocks have followed suit. This has resulted in Bitcoin halving, whereby the mining rewards get halved for every 210,000 blocks entering the system. For instance, in 2009, the currency’s awards amounted to 50 Bitcoins. But as of 11th May 2020, the rewards stand at 6.25 coins.
This digital currency is divisible up to 8 decimal places. This gives you a hundred millionth fraction known as a satoshi. Since its launch, it has risen drastically in value. And it is one of the most prominent digital forms of currency today.
Who Created Bitcoin (BTC)?
The domain name Bitcoin.org was created in August 2008. As of this writing, the domain is WhoisGuard Protected, implying that you cannot decipher the registration details.
That said, a group of developers or individuals whose details remain unknown launched the coin. However, the individual or group goes by the pseudonym, Satoshi Nakamoto.
Though there has been speculation on who Satoshi Nakamoto could be, the details lack factual verification. Although the initial developer(s) stays unknown, other developers contributed to its growth. They include Wei Dai, Hal Finney, Gavin Andresen, and Nick Szabo.
Other developers include Peter Todd and Pieter Wuille, who contributed to the launch of the first Bitcoin client, Bitcoin Core.
Note that a Bitcoin client refers to the software enabling the network participants to connect to the blockchain via a node. Adam Back joined the protocol in 2014 and introduced Blockstream, which now builds new infrastructure for the cryptocurrency’s network.
How Does Bitcoin (BTC) Work?
Bitcoin (BTC) operates under a digital chain known as a blockchain. That means it is a body of data consisting of blocks carrying the details of each Bitcoin transaction. The information stored in these blocks includes seller and buyer details, the date and time of the transaction, its value, and a unique code.
Stacey Harris, a Pelicoin consultant, indicated that when a new blockchain is added, it becomes visible and accessible to the public. In other words, everyone has access to it. And Buchi Okoro, the founding CEO of Quidax, likened the blockchain to a public Google document. As such, anyone with a link to the document can make changes. And when a change or update is made, everyone linked to that blockchain will receive them.
While the sound of involving a massive crowd within the blockchain sounds risky, note that this is what makes it trustworthy. Several Bitcoin holders have to verify a block before it’s added to the blockchain, and they do so using a unique-generated code. These various codes make it hard for fraudulent transactions to close within the network.
Is Bitcoin (BTC) a Good Investment?
Despite its volatility and significant rise in value over the years, Bitcoin (BTC) is seen as a sound investment. As such, financial experts support the decision to purchase Bitcoin (BTC) if the client desires to invest.
However, the best approach to view a Bitcoin (BTC) investment is as a passive one. But advisers recommend that your Bitcoin (BTC) investment should not make up the bulk of your portfolio. And that you should see it as a long-term investment. That said, Bitcoin has proven to be a sound investment for some, especially those who entered the market early on.
You might also be interested in…
View Previous
