What Is Bitcoin? Everything You Need To Know About Bitcoin

What Is Bitcoin? Everything You Need To Know About Bitcoin

Education
November 4, 2017 Blockchain Magazine
156
Bitcoin is the most popular cryptocurrency on the planet! It is a virtual currency made by a n anonymous creator/creators who go by the name “Satoshi Nakamoto”. Bitcoin was officially released in 2009, the world first cryptocurrency! Now if you were to count, there are more than a thousand cryptocurrency in the market. But if
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Bitcoin is the most popular cryptocurrency on the planet! It is a virtual currency made by a n anonymous creator/creators who go by the name “Satoshi Nakamoto”. Bitcoin was officially released in 2009, the world first cryptocurrency! Now if you were to count, there are more than a thousand cryptocurrency in the market. But if you look at the market share of each cryptocurrency, Bitcoin is the undisputed king.

What made bitcoin so popular, in one word, it’s the underlying blockchain technology that made bitcoin famous. Bitcoin presented a transparent, decentralized means of virtual payment that was unheard of back then.

What Makes Bitcoin So Popular?!

You can summarise the success of bitcoin to 3 main reasons

  • Bitcoin payments are decentralised; no taxes are levied on it
  • Bitcoin is limited in number (only 21 million)
  • It offers superior security than fiat money

To put it into context, if you were to transfer some amount of money from your account to another, you normally do it through the bank. The bank is the one who processes the money, thus charging taxes and services fees.

But bitcoin is decentralized, the transactions you make are not taxable.

Also, there isn’t unlimited number of bitcoins to be had! When the supply is limited and demand increases, the value also increases. Hence the value of bitcoin is regulated and recognised by the users themselves.

The third reason why bitcoin got so much popular is because of the security it offers. There are several cases being reported everyday where fiat money being forged thus scamming people. But Bitcoin presented itself to be secure than any form of government issued currency.

The records of transaction made by bitcoin is added to the blockchain. The addition is then validated by all the users in the network. So even if someone tried to record a different value, the system ignores it for the majority votes.

As time years passed, bitcoin gained more and more relevance. As the relevance increased, the value of Bitcoin also surged. In time, Satoshi’s invention gained the name Digital Gold!

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