What is Bitcoin?
Bitcoin is the first successful digital currency and payment system created by “Satoshi Nakamoto.” Satoshi Nakamoto is a pseudonym for the person or group of people that created it in 2008. Bitcoin is the very first decentralized electronic currency, meaning it is not managed by a single company or government. This gives the ability to hold bits of value that cannot be manipulated by a government or entity. It is open source allowing anyone to contribute to further development and use. It is being utilized all over the world by individuals without any middle men or third party transaction companies, saving money that would otherwise be spent on fees.
Bitcoin is the very first digital currency that is totally dispersed over a network of decentralized computers. Decentralized means that there is no single computer or server that contains all the data. This data is held and distributed by many computers spread around the world. This concept most likely was influenced by the use of bit torrents, where many computers host part of a file that can be downloaded by other users to create a whole and are simultaneously being transferred or downloaded to others. The network is comprised of many users, so no bank or payment processor is needed in between you and whoever you’re sending out Bitcoin to. This decentralization is the basis for Bitcoin’s security and anonymity.
Bitcoin is more reliable than other contending currencies because as stated above it is not controlled by one single organization. Its adoption will work similarly to the way computer systems were embraced, making individuals more effective in the marketplace. Thus, giving it unique value more than just a mere currency.