Bitcoin is a decentralized cryptocurrency initially described in a whitepaper in 2008 by an individual or a group of individuals under the pseudonym Satoshi Nakamoto. The coin saw the light for the first time in 2009. Bitcoin is a peer-to-peer digital currency, which means that all the transactions occur directly between independent, equal network users that require no middle man to authorize the transactions. According to Nakamoto, the intention was to allow: “online payments to be sent directly from one party to another without going through a financial institution.” There have been concepts of similar digital currencies before BTC, although Bitcoin is nevertheless the first cryptocurrency.
The identity of Bitcoin’s inventor, Satoshi Nakamoto, becomes unknown until today. Satoshi published the whitepaper where they thoroughly described how a peer-to-peer digital currency could be implemented. In the document, the proposition to use the decentralized ledger of transactions is described. These blocks are secured by cryptographic algorithms that are known as the blockchain. In 2009 Nakamoto mined the first block, also known as the genesis block; this was the day when the first cryptocurrency was launched. Even though Nakamoto was the inventor of Bitcoin, other individuals helped to improve the cryptocurrency’s software by eliminating the vulnerabilities and adding new features.
The biggest advantage of Bitcoin is that it is the first cryptocurrency. Bitcoin’s creation gave birth to a new industry of millions of users who trade and invest in Bitcoin. The inception of Bitcoin resulted in the development of thousands of competing cryptocurrencies. The whole cryptocurrency market, worth more than $300 billion, is based on the concept implemented by Bitcoin: money can be transferred by anyone, anywhere, without the involvement of a middleman, such as banks and other financial services institutions.
Bitcoin’s overall supply is limited by its software; it will never exceed 21 million coins. Coins are generated by the process known as “mining.” Miners spend their computational resources, and, in return, they receive rewards for every block they have added to the blockchain. When Bitcoin just was launched, the reward was 50 Bitcoins for a block; today it is only 6 Bitcoins. Bitcoin was not premined, which means that the coins were not mined or distributed among the inventors before the project went public.
For this cryptocurrency exists both hot and cold wallets. Hot wallets are connected to the web, while cold wallets allow to store coins offline. Just to name a few hot wallets: Ledger, Trezor, and CoolBitX.
Bitcoin is almost synonymous with cryptocurrency, which implies that you can buy Bitcoin on virtually any crypto exchange. We hope that this introduction to the world of Bitcoin will be useful and informative for you.