Bitcoin is a cryptocurrency, a new kind of money, and an innovative payment network. It was invented in 2008 by Satoshi Nakamoto (an unknown person or group of people). Bitcoin uses peer-to-peer technology to operate with no central authority or banks, and it is the first decentralized currency based on blockchain technology.
There are no physical bitcoins. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin. Bitcoins are created as a reward for a process known as mining.
Bitcoin got very popular and has triggered the launch of hundreds of other cryptocurrencies known as altcoins.
Bitcoin is often referred to as digital gold. It’s increasingly attracting investors’ interest because it is the most profitable financial asset in the last 10 years.
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How does Bitcoin work
“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party,”
– Satoshi Nakamoto (Bitcoin Whitepaper)
Satoshi Nakamoto is a name used by a person or a group of persons who developed bitcoin. Nakamoto created Bitcoin’s Whitepaper.
Satoshi Nakamoto started working on bitcoin in 2007. The domain bitcoin.org was registered on 18 August 2008. On 31 October 2008 Nakamoto published a whitepaper describing a digital cryptocurrency, titled “Bitcoin: A Peer-to-Peer Electronic Cash System”.
Nakamoto released version 0.1 of the bitcoin software on 9 January 2009 and launched the network by mining the genesis block of bitcoin (block number 0). The reward was set up at 50 bitcoins.
Satoshi Nakamoto was active in the development of bitcoin software until mid-2010. He made all modifications to the source. By the end of 2010, he handed over control to Gavin Andresen.
Satoshi Nakamoto has never revealed any personal information. It is a pseudonym. Among those who might be Nakamoto were discussed:
- Hal Finney
- Nick Szabo
- Dorian Satoshi Nakamoto
- Craig Wright
Bitcoin broke its all-time-high in December 2020 when reached above 20 thousand dollars. In early 2021 it creates a new all-time-high with 40 thousand dollars. Not only retail investors helped the increase of the price but the institution as well. A recent jump over 40 thousand dollar benchmark was caused by Elon Musk’s Twitter post that Tesla bought Bitcoin worth 1,5 billion.
- Price $50,101.00
- Market Cap
How to Buy Bitcoin
Buying Bitcoin is simple nowadays. There are few options for how to buy Bitcoin today.
- Crypto exchanges
- Bitcoin ATM
- Local Bitcoins
You can also earn free bitcoin. There are few ways how legally get some cryptocurrency without investing your money but time.
Store your Bitcoin
Bitcoin can be stored in online wallets or hardware wallets. It is not recommended to store your bitcoin on exchanges. If you don’t own your private keys you don’t own your cryptocurrency.
Online wallet (hot wallet)
Digital currency can be stored in the cloud and accessed through an internet browser or a smartphone app. Some crypto exchanges provide hot wallet, but it is not recommended to store a lot of value there. There are some preferable options among the crypto community.
- Coinomi app
Hardware wallet (cold wallet)
A cold wallet is an encrypted portable device that allows you to store your bitcoins and other cryptocurrencies safely. The most preferred options are: