Bitcoin is a global digital cryptocurrency created in 2008. It is the first decentralized digital currency and has attracted many people to its use as a form of payment due to how it can be transferred without any intermediaries. Created by a person or a group of people whose identity is unknown and who goes by the pseudonym “Satoshi Nakamoto”, Bitcoin is the world’s largest cryptocurrency, and it has been growing in importance ever since its inception.
Bitcoin is a peer-to-peer online currency, which means that all transactions take place directly between equal, independent network users, without the need for any middleman to enable or facilitate them. According to Nakamoto, Bitcoin was designed to “enable internet payments to be transferred directly from one party to another without passing via a financial institution.”
The goal was to create a more efficient way to transfer money and pay for goods between two parties without having to deal with third-party institutions like banks or credit card companies- Which often include high fees and extended wait times because of their slow processing systems.
Bitcoin has grown in popularity over the last few years as it has been increasingly adopted by merchants and businesses for use in payments. Although there are no specific laws against using bitcoins in transactions with others, some countries have banned its use within their borders and a few have created legislation regarding its use for payments. The value of this cryptocurrency has also risen exponentially over time.
Who Are the Founders of Bitcoin (BTC)?
Nobody knows for sure who invented Bitcoin, at least not definitively. However, the moniker Satoshi Nakamoto is connected with the person or group of persons that published the first bitcoin whitepaper in 2008 and worked on the first bitcoin software in 2009.
Over the years, different individuals have claimed or have been suggested to be the mastermind behind the pseudonym for several years. However, as of June 2021, the genuine identity (or identities) behind Satoshi still remains unknown.
A popular belief is that Satoshi Nakamoto is a lone genius that developed Bitcoin singlehandedly. However, significant scientific breakthroughs, no matter how novel they appear, are based on prior research.
Adam Back (Hashcash founder), Wei Dai (b-money founder), and Hal Finney ( Reusable Proof-of-work) were included in the Bitcoin whitepaper as well as several significant works from several areas. Many of the individuals involved in the aforementioned projects are thought to have played a role in the development of cryptocurrency.
What is Bitcoin (BTC) Used For?
Bitcoin was created as an efficient means of transferring money and paying for goods over the internet. The goal of the digital currency was to provide an alternative to the current banking system, where individuals can exchange money without any single person or organization having complete control.
What Is the Unique Point of the Bitcoin (BTC)?
The Bitcoin network allows users to transfer value easily and quickly with no need for third-party intermediaries such as banks or clearinghouses who take fees for every transaction. Bitcoin provides fast, inexpensive payments anywhere in the world without relying on banks that may be unreliable or not even exist in some countries with less financial infrastructure—unlike other currencies and payment networks like PayPal or Venmo. Its decentralized nature means it is outside of government control—one of its defining features.
How Many BTC is in Circulation?
Just like most cryptocurrencies, Bitcoin is also finite—only 21 million Bitcoins can ever be created. Currently, there are about 16 million in circulation, mostly owned by early investors and held as a store of value rather than used for transactions. This makes it similar to gold or other precious metals that hold their value over time. Due to this, some people look at Bitcoin as a commodity instead of a currency.
Is Bitcoin (BTC) Network Secured?
Bitcoin is very secure. To have a fraudulent transaction go through, a hacker would need to control more than half of the Bitcoin network—and the computational power to do that exceeds that of the world’s fastest supercomputers.
What makes Bitcoin so safe? Here are four primary reasons why the Bitcoin network is heavily secure:
Reason 1: Bitcoin uses secure cryptography
Bitcoin uses a system of secure cryptography to ensure that Bitcoin wallets cannot be hacked. It uses its own cryptographic protocol, the blockchain, to record all transactions made by users and the number of coins each person or organization owns. The system is constantly updated and records every single operation in a public ledger.
Anyone can access this public ledger and verify that other users are following the rules of the network by checking transactions against it periodically. This security level is so high that Bitcoin has also been used as a means for people who need privacy from widespread monitoring activity (e.g., whistleblowers) to exchange information without fear of being identified or tracked when sending cash via electronic means.
Reason 2: Bitcoin is public
While being open to the public may not sound safe, Bitcoin’s ledger transparency ensures that all transactions, including those involving anonymous parties, are visible to the public. This makes it extremely difficult to defraud or deceive the system.
When compared to established companies’ frequent data breaches, Bitcoin appears to be a lot safer. This is because you do not contribute any personal information to the blockchain when you purchase or sell bitcoin, such as your passwords, credit card numbers, or physical address, so there is nothing to leak. That is not the case when hackers break into traditional financial systems, as the folks at Equifax can attest.
Reason 3: Bitcoin is decentralized
Bitcoin’s global network, which spans the globe, includes over ten thousand nodes that keep track of all transactions. This vast number of nodes assures that if one of the servers or nodes fails, others will pick up the slack.
It also indicates that attempting to breach one of the servers is futile. Unless you control 51 percent of the nodes, there is nothing you could take that the other nodes and servers can not prevent – which is not impossible but highly unlikely.
Reason 4: Bitcoin does not require permissions
If you have to be granted access by some central authority or organization, then being public and decentralized is meaningless. Bitcoin is open and fair to everyone because it is unregulated and requires no permissions.
How Do I Buy Bitcoin (BTC)?
- Create an Account with a Trading Platform
Most exchanges allow you to trade Bitcoin on their platforms because it is the largest and the most popular cryptocurrency in the world.
In addition, all of these exchanges feature user-friendly iOS and Android apps for mobile devices. Most exchanges will need you to verify your identity when opening an account by giving a government-issued ID, driver’s license, or Social Security number in some countries. After validating your identity, you should be able to trade BTC and a variety of other cryptocurrencies.
- Buy a Wallet (optional)
While you may keep your newly purchased Bitcoin on the exchange where you bought it, It is usually a good idea to transfer cash that you will not be trading within the near future to a personal wallet where you have greater control.
Most exchanges keep the private keys that allow you to access and send Bitcoin; thus, your Bitcoin is not entirely safe there. Although major trading platforms employ stringent security procedures to safeguard their holdings, certain exchanges have been hacked, exposing the assets of their customers to the public. Purchasing a hardware wallet or downloading a safe software wallet are the best options.
- Make Your Purchase
Once your account has been set up and validated on one of the exchanges listed in Step 1, you can link your bank account or another payment method and deposit your fiat cash. (USD, EUR, etc.). After depositing your funds, you will be able to purchase Bitcoin and other assets on Coinbase, Indexpairs.com, and many other major exchanges instantly, but you will not be able to move them off the platform until the deposit fully clears in a few days.