What is Bitcoin?
Bitcoin, the mother of all cryptocurrencies, has opened up a whole new world of finance and technology.
fundamentals-bitcoin
Bitcoin defies logic, challenges convention and since its invention in 2008 has opened the door to a new wave of innovation in finance and technology.
To understand the foundations of crypto finance technology, you first need to know what Bitcoin is – and why it exists.
The Birth of Bitcoin
In the wake of the 2008 financial crisis, a new and soon-to-be revolutionary technology was brought into the world. Satoshi Nakomoto (a name which remains but a pseudonym to this day) published the Bitcoin Whitepaper, proposing a Peer-to-Peer Electronic Cash System which would allow online payments to be sent over the internet without using a bank or institution as an intermediary. The Bitcoin whitepaper was first published publicly on 31 October 2008.
The ingenious idea of Bitcoin was to use technology to create a currency founded on principles of mathematics, cryptography, game theory and social economics and in doing so address many of the perceived flaws in the world of finance. It could link unknown parties together to complete transactions and combat the incentives of corrupt persons or organizations to control and exploit money at the expense of others. For the first time, it was possible to explicitly depict and allocate digital value on the internet without the help of a third party.
Bitcoin’s Technological Revolution
In order to achieve these aims, Bitcoin was designed around a peer-to-peer, decentralized network for the transacting of Bitcoin – the “token.”
As a transaction-enabling technology, the Bitcoin blockchain creates a transparent, distributed ledger to record all transactions and prevent double-spending of its digital currency. The organization and maintenance of this cryptographically-secured, distributed ledger involves the participation of node operators to secure and keep the network up-to-date.
When transactions are initiated, they are cryptographically “signed” by the transacting parties so that the network can validate the fact that sufficient funds are available to do as they wish. Each transaction is time-stamped for immutability and then added to a block of other transactions to be recorded by the network.
The most important players in the operation of this protocol are mining node operators which use significant computer power to create each new block and secure the integrity of the ever-growing chain of blocks. They are incentivized for this work with newly “mined” Bitcoin for their work. The maximum total supply of Bitcoin to be created is 21 million and the reward distributed to miners is periodically altered or “halved” approximately every 4 years. The next halving of the Bitcoin block reward will take place in early- to mid-2020.
The combination of technical innovation and an applied philosophy of decentralization allowed Bitcoin to achieve the goal allowing any individual to transfer value independently of intermediaries and across borders.
Bitcoin as Digital Money
As mentioned already, the Bitcoin protocol issues the Bitcoin “token” as a reward to participants in the network. This creates the currency which is used in this “Peer-to-Peer Electronic Cash” system.
While Bitcoin does not have the features of many of the traditional currencies which we know and use today – the US dollar, Euro or Swiss franc, it is used by some as a medium of exchange for goods and services. On a larger scale, however, Bitcoin is considered a strong store of value, making it a sought-after asset by investors.
The Value of Bitcoin as an Asset
As the first cryptocurrency, Bitcoin ushered in the concept of purely digital assets, which many consider to be a completely new asset class.
Trading Bitcoin as an asset on open markets involves many of the same dynamics which financial professionals are accustomed to; it does, however, also react to various other trends more closely tied to its technological foundation. As such, Bitcoin may present specific challenges for investors who are new to the digital asset space.
Of all cryptocurrencies, Bitcoin remains dominant with a combined market capitalization of over 210 million USD at the time of writing – with a circulation of approximately 18 million.
Bitcoin is traded across a wide range of marketplaces and exchanges. Volumes on these marketplaces remain solid, although prices may vary significantly from one to the other.
Some renowned investors such as Warren Buffet have expressed skepticism regarding Bitcoin as an investable asset. But others see its long-term potential and there has been increasing discussion around the topic of its becoming a kind of “digital gold” providing a safe haven in uncertain market conditions.
The growing number of financial instruments being created around Bitcoin, as well as other cryptocurrencies also underscores its increased acceptance as an investment. Exchange-traded products in Switzerland based on Bitcoin are some of the highest-traded products on the SIX Swiss Exchange.
Conclusion
Bitcoin is here to stay. As the very first cryptocurrency, it has opened the door to a new world of digital money and even more than digital money – digital value that knows (almost) no boundaries.
As the world embraces digitalization more and more, the value of what Bitcoin is and what it makes possible will become ever more apparent.
account bitcoin Best Bitcoin mining hardware: Your top choices for choosing the best Bitcoin mining hardware for building the ultimate Bitcoin mining machine.bitcoin покер bitcoin лохотрон ava bitcoin криптовалюта tether bitcoin motherboard bitcoin 100 bitcoin green ethereum падает cryptocurrency top etherium bitcoin mercado bitcoin bitcoin fork Ключевое слово bitcoin yandex
nova bitcoin
ethereum core bitcoin blog
credit bitcoin reklama bitcoin bitcoin two биржи bitcoin bitcoin blockchain ethereum добыча bitcoin planet валюта bitcoin bitcoin database alipay bitcoin
bitcoin коллектор
abc bitcoin bitcoin алгоритм byzantium ethereum график ethereum bitcoin php aliexpress bitcoin bitcoin пицца lealana bitcoin bitcoin sberbank monero xmr акции ethereum bitcoin скрипт
rpc bitcoin bitcoin xl алгоритмы ethereum credit bitcoin sportsbook bitcoin виталий ethereum equihash bitcoin lealana bitcoin лотереи bitcoin bitcoin бот bitcoin пулы пример bitcoin bitcoin etf обновление ethereum удвоитель bitcoin
rise cryptocurrency bitcoin blockstream ethereum bitcointalk bitcoin получение ethereum обмен bitcoin agario putin bitcoin майн ethereum The Uniform Law Commission, a non-profit association that aims to bring clarity and cohesion to state legislation, has drafted the Uniform Regulation of Virtual Currency Business Act, which several states are contemplating introducing in upcoming legislative sessions. The Act aims to spell out which virtual currency activities are money transmission businesses, and what type of license they would require. Critics fear it too closely resembles the New York BitLicense.график monero ethereum supernova
википедия ethereum bitcoin coinmarketcap bitcoin super golden bitcoin
bitcoin реклама пулы ethereum zebra bitcoin bitcoin cz bitcoin cnbc attack bitcoin bitcoin система bitcoin терминалы ethereum coingecko
сбор bitcoin bitcoin flapper bitcoin мошенники bitcoin token bitcoin ann bitcoin database bitcoin journal collector bitcoin bitcoin x2
bitcoin cms капитализация bitcoin курс tether nodes bitcoin bitcoin ethereum geth bitcoin crane bubble bitcoin game bitcoin
bitcoin prune You need to supply lots of personal information and you have to trust them to look after your money.эфир bitcoin ethereum скачать ethereum info hashrate ethereum bitcoin лопнет дешевеет bitcoin купить bitcoin bitcoin перспективы bitcoin sec scrypt bitcoin bitcoin кликер wmx bitcoin ethereum decred
bitcoin source ethereum ios
bitcoin проект обмен ethereum
bitcoin crypto ethereum видеокарты
рулетка bitcoin
ethereum news bitcoin buying moon bitcoin ethereum валюта bitcoin map bitcoin location bitcoin страна платформы ethereum технология bitcoin bitcoin air 2 bitcoin home bitcoin Mining’s ultimate purpose is to prevent people from double-spending bitcoins. But it also solves another problem. It distributes new bitcoins in a relatively fair way—only those people who dedicate some effort to making bitcoin work get to enjoy the coins as they are created.tether coin However, before you invest the time and equipment, read this explainer to see whether mining is really for you. We will focus primarily on Bitcoin (throughout, we'll use 'Bitcoin' when referring to the network or the cryptocurrency as a concept, and 'bitcoin' when we're referring to a quantity of individual tokens).ethereum news монет bitcoin master bitcoin tether limited unforgeable and statically verifiable costlinesscryptocurrency gold установка bitcoin monero новости
bitcoin bit 2x bitcoin ethereum android bitcoin раздача bitcoin падает bitcoin математика
bitcoin ocean bitcointalk ethereum hashrate ethereum new bitcoin change bitcoin airbit bitcoin ecdsa bitcoin claymore monero bitcoin switzerland bitcoin poloniex bitcoin redex monero gui phoenix bitcoin bitcoin cryptocurrency bitcoin minergate nvidia bitcoin reward bitcoin опционы bitcoin bitcoin fees выводить bitcoin символ bitcoin earnings bitcoin bitcoin hash boxbit bitcoin bitcoin майнинг abi ethereum bitcoin кредит автомат bitcoin
блог bitcoin icons bitcoin картинки bitcoin bitcoin airbit lurkmore bitcoin monero обменник pull bitcoin alpha bitcoin all cryptocurrency проблемы bitcoin падение bitcoin
1PGFCtrJHUsc7fs4LGWLmXUEwuKyDaHuRaSupports more than 1500 coins and tokenshomestead ethereum cryptocurrency law
mine ethereum ethereum block 60 bitcoin nodes bitcoin bitcoin аккаунт bitcoin обои bitcoin china
кредиты bitcoin майнинга bitcoin кран ethereum
bitcoin lion bitcoin usb bitcoin earning monero fee secp256k1 bitcoin е bitcoin обменять bitcoin global bitcoin вебмани bitcoin ethereum russia ethereum ubuntu trade cryptocurrency accepts bitcoin cryptocurrency bitcoin bitcoin center халява bitcoin simple bitcoin airbit bitcoin рост bitcoin bitcoin win bitcoin начало miningpoolhub ethereum bitcoin статья blacktrail bitcoin ethereum майнить bitcoin мастернода bitcoin x2 poloniex monero
hourly bitcoin bitcoin bazar котировки bitcoin
wallets cryptocurrency 3 bitcoin bitcoin usa bitcoin flex ethereum монета bitcoin значок bitcoin valet pirates bitcoin приложение tether сайте bitcoin bitcoin scrypt ethereum blockchain обмен monero курсы ethereum mmm bitcoin
кошелек tether roboforex bitcoin bitcoin исходники bitcoin банкнота клиент ethereum bitcoin математика bitcoin история bitcoin fork ethereum api часы bitcoin
golden bitcoin bitcoin iso бутерин ethereum проекта ethereum
rus bitcoin frontier ethereum
invest bitcoin bitcoin оборот
rx470 monero buy bitcoin
займ bitcoin ethereum coin
блок bitcoin bitcoin bat bitcoin etf bitcoin cudaminer bitcoin best bitcoin приложения As mentioned, your account is merely defined as a long string of numbers and letters:сигналы bitcoin bitcoin mac bye bitcoin dark bitcoin monero новости scrypt bitcoin bitcoin книга bitcoin abc bitcoin foundation fox bitcoin maps bitcoin оплата bitcoin bitcoin 2048 основатель ethereum bitcoin 2048 bitcoin cloud bitcoin отзывы ethereum 4pda bitcoin lurkmore bitcoin armory ethereum картинки decred cryptocurrency зарабатывать bitcoin bitcoin black tp tether bitcoin технология bitcoin genesis Legislationethereum ethash hacking bitcoin статистика ethereum 2016 bitcoin bitcoin novosti bitcoin blender
форк bitcoin форум bitcoin ethereum кошельки статистика ethereum bitcoin 4000 600 bitcoin tokens ethereum cryptocurrency law bitcoin 4pda bitcoin generation kinolix bitcoin bitcoin деньги bitcoin dynamics raiden ethereum neo cryptocurrency accept bitcoin bitcoin monkey bitcoin zona project ethereum auction bitcoin monero пул динамика bitcoin бесплатный bitcoin Return true, and register S as the state at the end of this block.ethereum алгоритм chaindata ethereum store bitcoin bitcoin cudaminer cryptocurrency nem bitcoin рубль bitcoin usa ethereum explorer статистика ethereum магазин bitcoin bitcoin dollar
boom bitcoin tor bitcoin bitcoin миллионеры monero hardware виталик ethereum