Satoshi Nakamoto, an unknown software developer who proposed bitcoin in 2008 by using mathematical proof as an electronic payment system. Satoshi created bitcoin as a response to the financial crisis of 2008.
Bitcoin acts under the same circumstances as any other currency, meaning Bitcoin can be used theoretically anywhere that accepts Bitcoin as a proper exchange of value. While stores are slowly adopting Bitcoin, here are some places you can use your Bitcoin on the internet:
- https://spendabit.co amazon but with Bitcoin
- https://bitify.com/ miscellaneous Bitcoin-related items
- https://btctrip.com/ travel using Bitcoin
- Bitcoin is a digital form of currency and differentiates from your average currency and some altcoins in these 5 major ways:
- No single entity controls the bitcoin network. It is maintained by a group of volunteer coders, and run by an open network of dedicated computers spread around the world called nodes.
- Limited Supply
- Fiat currencies (dollars, euros, yen, etc.) have an unlimited supply – central banks can issue as many as they want, and can attempt to manipulate a currency’s value relative to others. With bitcoin, on the other hand, the supply is tightly controlled by the underlying algorithm. A small number of new bitcoins are distributed into the blockchain network every hour, and will continue to do so at a diminishing rate until a maximum of 21 million Bitcoins has been reached.
- Partial Anonymity
- Since there is no central “validator,” users do not need to identify themselves when sending bitcoin to another user. When a transaction request is submitted, the protocol checks all previous transactions to confirm that the sender has the necessary bitcoin as well as the authority to send them. The system does not need to know his or her identity. With that being said when buying Bitcoin from an exchange most require that you reveal your identity and keeps record of whatever bitcoin you buy or sell.
- Bitcoin transactions cannot be reversed, unlike electronic fiat transactions. This is because there is no central person in charge of the transaction that can return the money.
- The smallest unit of a bitcoin is called a satoshi. It is one hundred millionth of a bitcoin (0.00000001).
Due to Bitcoin being open source, anyone can take the code and edit it to create a different coin than Bitcoin creating an Altcoin. An altcoin is basically any coin that “forked” away from Bitcoin, some prime examples being Ethereum, Litecoin, and Ripple.
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value.” – Don & Alex Tapscott, authors Blockchain Revolution (2016)
The blockchain network lives in a state of consensus, the network reconciles every transaction that happens in ten-minute intervals. Each group of these transactions is referred to as a “block”. A network of so-called
computing “nodes” make up the blockchain.