WHAT IS BITCOIN? Many people have been confused about what bitcoin really is.
Many publishers will come to the internet to describe the term the way they understand it but what is bitcoin in the real sense?
What Dr Craig Wright wrote in his whitepaper titled Bitcoin in 2008 is the best answer. He explained the decentralized electronic payment system and how it can be used.
The term Bitcoin has fixed protocols, a decentralized blockchain of an electronic cash system, and digital coin.
You may want to ask, “who uses bitcoin?”, well, everyone can use bitcoin
It is some people’s belief that bitcoin will eventually overthrow our normal currency, while some others think it is a censorship-resistant and a digital currency that is free from seizure. Well, all of them are wrong.
According to Craig, Bitcoin needs to work within the law to be valid. Bitcoin is private but has an open and unchangeable ledger.
Bitcoin is economically designed and not just technical innovation. There are fixed protocols that make bitcoin decentralized.
There is a cash system created by bitcoin whereby, users don’t have to rely on other financial institutions in order to make transactions.
“Double-spending” of a coin is another reason why the protocols are set. They make sure each coin unit is unique.
The system runs on top of a distributed unchangeable network, kept by thousands of incentivized miners all over the world.
What is Bitcoin to an average man?
Many people have been hearing about bitcoin but their question has been what is bitcoin?
Bitcoin is a unit of the Digital currency which is also called cryptocurrency. Some people call bitcoin blockchain technology which is very wrong.
Bitcoin is not under the control of any particular government like our normal fiat currency.
Nevertheless, Bitcoin can never experience inflation because the supply is always limited. For all over the world we have just 21 million bitcoin.