What Is A Bitcoin?
Bitcoin is a peer to peer decentralized currency created shortly after the financial crises of 2008.
Decentralization means there is no government, bank or middle man governing the Bitcoin economy. All Bitcoin investors contribute to the growth of the Bitcoin economy in some way.
There is also a bit of anonymity when using Bitcoin. Each transaction on the Bitcoin network uses a special string of characters that tie a person to a wallet of of funds. This allows the transactions to remain somewhat anonymous.
The decentralized part of Bitcoin was the primary reason the anonymous coder best know as Satoshi Nakamoto decided to come up with the concept Bitcoin.
Who Is Satoshi Nakamoto?
Satoshi Nakamoto is perhaps the most interesting figure in Bitcoin. Although his identity still remains unknown to this day. He is said to be the original creator of Bitcoin.
In the early stages of Bitcoin, Satoshi Nakamoto made himself known through posting on blogs claiming to be a Japanese coder looking for help with a code he thought would change the world.Many doubt the story that a 37 year old man from Japan is the original founder of Bitcoin, because he coded in English and posted in perfect English on the blogs.
There is actually a belief that the creator of Bitcoin may actually be a group of people instead of a single person. Whomever ever the founder of Bitcoin really is, they are said to control roughly one million Bitcoins. And as of December 2017 that is equals almost $20 billion USD!
To better understand why you should care about Bitcoin. It may be helpful to better understand why people care so much about this new “currency“.
Bitcoin operates on something called the blockchain. The blockchain is a network of computers designed to check and recheck all transactions done in the network.
For example: Let’s say you are looking to purchase a car with Bitcoin. While one computer is confirming your new car purchase (made with Bitcoin) another computer is checking to confirm that the first computer is calculating the price correctly. This is going on while another computer is confirming the proper amount of money is withdrawn from your account and another server is cross checking all the previous transactions for accuracy.
This network of fast computing servers are comprised of computers that that span the globe. Each computer processing tons of calculations to confirm each purchase on the network. This way of processing transactions creates more trust among the users on the network.
Servers from around the world compete to be the first persons to confirm a transaction on the Bitcoin network. Why? Because they get paid in Bitcoins!
The parties who confirm the transactions the fastest, called Bitcoin miners. Get paid in Bitcoin. The more Bitcoin you have in this case, the better.