What is Bitcoin?
It’s on the news, in the papers, on your Facebook feeds, and even Warren Buffet is talking about it. So what exactly is Bitcoin Created in 2008 by a developer called Satoshi Nakamoto (not his real name and no one knows who he is), Bitcoin is a secure digital currency with no central authority and is powered by its users.
Bitcoin is limited edition.
What makes it even more special is that only 21 million Bitcoins are all that will ever exist. A few Bitcoins trickle out every hour till the limit is reached, but no more than that will ever be created. Unlike real money, which has an unlimited supply as central banks can keep printing more to manipulate its value, Bitcoins cannot be managed due to its limited amount. As such, it is highly likely to grow in value.
Bitcoin in controlled by its users.
No bank or central government has any control over Bitcoins. All transactions are recorded permanently on the blockchain across a network of computers around the globe. It’s viewable to everyone and cannot be manipulated or altered, as no single person owns it. Bitcoins also can’t be used twice because once the transaction has been recorded in the blockchain, everyone on the network will know about it.
Bitcoin transactions are permanent.
Once a Bitcoin transaction has been recorded on the network, it cannot be cancelled, unlike real money. As Bitcoins aren’t controlled by a bank or a central government, you cannot change your mind and ask for your Bitcoins back once the transaction has passed an hour.
Bitcoin users are (kind of) anonymous.
Bitcoins aren’t controlled by a central authority, so all its users are semi-anonymous because they don’t need to identify themselves during a transaction. The only identification required is the user’s wallet address. However, since the network can be seen by everyone, any transactions carried out can also be seen by all.
So if you’re a criminal, or terrorist, or planning to launder money, Bitcoins may not be for you.
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