It's no new thing to us that Bitcoin is the most populous coin in the crypto market that controls the prices of other coins. If you observe, a decrease in Bitcoin brought about a decrease in steem coin. What really is Bitcoin, how is it connected to steem, what's its history and why is it that popular a coin?
What is Bitcoin |
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Bitcoin as we all know is a cryptocurrency that its operation is majorly on a decentralized database called Blockchain.. It is a digital form of cash asides fiat currencies issued by the government. It was first launched in 2009. It is controlled by any central user like fiat currencies. Its financial system is run by computed distributed worldwide. It allow users send and receive digital money. What makes it an appealing crypto asset is its ability to resist censorship.
What makes Bitcoin unique and popular? |
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Bitcoin is unique and popular because the following features as number one crypto asset. These are;
- Transparency: In traditional institutions, the transactions carried out are recorded by banks of which the informations involved aren't available to the public, whereas on Bitcoin, transactions are recorded on a public ledger that's plainly visible to all users including the name and addresses of the sense and receiver.
- Decentralization: Bitcoin operates on a decentralized database, meaning it isn't control by a central authority but by nodes which is a make-up of different computers. Anyone can join and secure this network.
- Permissionless: Anyone can participate in a Bitcoin network without seeking for permission by any central authority. That's the beauty of Bitcoin.
- Limited Supply: The limited supply of Bitcoin helps prevent inflation as there will never be more than 21 Million bitcoins in circulation.
How does Bitcoin work and what is it used for? |
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Bitcoin acts as a store of value and a digital currency used to make online purchases globally where one can send and receive as well.
- They are used for private transactions in the sense that, although the transaction and address itself is made public, the users aren't easily identifiable.
- Bitcoin as a crypto asset is used as a long-term investment project by others who but at a low rate and expect it to increase overtime.
History of Bitcoin |
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This Bitcoin was first introduced in 2008 and launched in 2009 as a white paper by Satoshi Nakamoto which is a peer-to-peer electronic cash system that would operate solely on a decentralized system without reliance on government or other central authority.
In 2009 when it was launched, Satoshi and Hal Finney did a transaction between themselves which involved sending 10 bitcoins from Satoshi to Finney. When people[small community of tech enthusiast] discovered this, they began making use of it which enhanced its popularity today. Satoshi identity still remains a mystery as many don't know if he's actually a person or group.
In conclusion, Bitcoin and other coins have revolutionized the way we think about money. It is a decentralized digital currency operating on a peer-to-peer network that allows users send and receive money without third parties or intermediaries. I'll discuss whether Bitcoin is safe and what its halving is on my next post.
Tips |
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The price of Bitcoin increased some days ago to the rate of $30k from $27k as show in the screenshot.
| I got this information from the crypto mentorship I undergo some months back as we were handling tutorials on the basics of crypto and others like Nft, metaverse, defiband the likes of them. I'm a crypto analyst in the making. |  screenshot of class |
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