At the end of the second decade of the 21 century, we may have witnessed the rise of a technology which could have big impact for the next years to come. For centuries, money was a property owned by central governments which gave them power and control in return. A very famous quote about money and control comes from James A. Garfield(The 20th president of the USA):
“He who controls the money supply of the nation controls the nation”
But suddenly there was Bitcoin, a form of digital money which has no central authority and resides within the internet. What makes Bitcoin so special and is it really a form of money. To makes things more clear about this revolutionary technology, I have listed some revolutionary facts about this digital currency.
1.The founder of Bitcoin
First there is this mysterious founder called Satoshi Nakamoto. So far, this person or group of people have never been identified and there is much secrecy about it’s real identity.
On October 31 2008, a then-unknown Satoshi Nakamoto published a whitepaper titled Bitcoin: A Peer-to-Peer Electronic Cash System on the website for cryptography fans called Metzdowd.
Although the bitcoin.org domain had already been registered earlier on August 18, 2008, the first bitcoin transaction would happen only the following year, on January 12 2009 – three days after the first block of data was mined on January 9 – the date the paper was released is regarded as the day when Bitcoin made its first appearance in the world.
In the first period, Nakamoto was actively present in the bitcoin community, also replying to emails(email@example.com) and commenting on socials.
For instance, there is evidence of an exchange of emails with Hal Finney, the second person ever to have made use of the software running bitcoin, filing bug reports and suggesting improvements.
However, in December 2010, Nakamoto handed the reins of Bitcoin to Gavin Andersen, disappearing from the scenes in 2011 when s/he stated the desire to “move on to other things”, the last message before the new appearance on P2P.
2. Online Digital Currency
Just like fiat currency, Bitcoin does not have a physical backing. It's a total digital solution. As a matter of fact, Bitcoin is backed by computer code and miners or nodes. The Bitcoin White paper describes it as online digital cash. To be honest, paying online or in stores with Bitcoin will result in very high transaction fees and high waiting times. As a result, using Bitcoin as digital cash is a little far-fetched nowadays. The Bitcoin community knows about these scaling issues and is working hard to build a second layer on Bitcoin Blockchain, called the Lightning network.
A second well known fact about Bitcoin is the cryptography being used on every crypto transaction. This very difficult cryptographic puzzle makes the protocol extremely difficult to hack and very secure. If you compare cryptocurrency vs fiat currency one can say that cryptocurrency is much more secure and far more cost-efficient. As a result of being efficient, the transaction fees for transportation value across borders is very low. In this digital age, where 90% of global transactions are digital this easy-to-transfer property gives cryptocurrency value for sure!
3. Decentralized payment network
Bitcoin is a form of digital money which resides within a global network of running computer nodes. These nodes are online 24 hours a day. These distributed network of computers are called a Blockchain which handle all transactions on the network. This Blockchain can be described as a database with a history off all the transactions that happened on the network.
Every single node on the network has an exact local copy of it stored on their hard-drive. This makes the total network so powerful, because if millions of copies exists it will impossible to DDOS-attack or hack the network. In other words, no central authority takes care of security and control but all data is stored and secured in a decentralized way.
4. Borderless digital money
Besides being decentralized another fact about Bitcoin is the easy way it can be used on a global scale. Not many people, especially in the western world realize this, but this is a truly revolutionary property! Let me explain this with an example with fiat currency.
Nowadays the majority of people in the world are using fiat currency to send money to other accounts. All this fiat currency is created and controlled by central banks. Besides, if we want to send money abroad we have to use their payment network. Currently, to do this is a very costly and slow operation. Also, if your bank doesn’t like the transaction you make or it exceeds a certain limit it could block your account within 24 hours with no questions asked. This could give you a lot of trouble and is also very strange because it’s your money we're talking about.
With the introduction of Bitcoin and other cryptocurrencies, you are for the first time in history in full control of your own money. Furthermore, Bitcoin can be used on a global scale and in an instant way which makes it far more superior.
5. Traceable and transparent system
Bitcoin and Blockchain technology are using a distributed network of nodes which validate transactions but also keep a copy of the entire transaction history on a local hard disk. Every participant which uses the network can track and trace every transaction that happened in the past.
As a result of this open functionality fraud or cheating is banned out of the system. Shadow accounting, for example, a very popular method by global companies cannot happen on this system. Not only the financial world and accounting would benefit from this, but also supply chain management systems. Alternatively, every good added to the system can be tracked and traced from producer to consumer.
6. Anonymous and secure
If all transactions on the Blockchain can be tracked and traced, what happens to privacy then? This is a very legit question to ask. As a matter of fact, Bitcoin transactions are open and transparent, but also linked to anonymous public addresses. In other words, Bitcoin transactions can be moved with private keys and send to public keys. These keys or addresses are hashed functions and are looking similar to this: 17ykeWjeAV78Lm9KpehyG2nfmSnQ2dK7UX
Whate is a private key?
A Bitcoin private key is just a secret alphanumeric number. Anyone having this secret number is entitled to spend those bitcoins, and that’s why a Bitcoin private key needs to be safeguarded very carefully.
Usually, this key resides in a Bitcoin wallet file and you are the only one responsible for storing it safe. This is very different than saving and securing your money at a bank.
7. Bitcoin is an Asset with haters
Last in the list I want to mention that since it's introduction Bitcoin gained also a lot of haters which is remarkable. Firstly, it is created as an alternative to the traditional financial system. Currently, the financial system is controlled by governments and big corporations and this was the case for centuries. Recently, the government of India has banned crypto and also Iran wasn’t a big fanboy of this cryptocurrency.
Not only corporations and governments are a big fan of this new technology, but there are also appearing haters from a side which you shouldn’t expect it. For example, gold bugs a group of people who aren’t a fan of the traditional financial system. As a matter of fact, these gold bugs see Bitcoin as a threat being a haven and are claiming that Bitcoin has no intrinsic value and only exists in cyberspace. A good example is Peter Schiff who has undergone many twitter fights with Bitcoin fanatics. Although gold bugs and cryptocurrency investors shave the same investment strategy, Bitcoin isn't the one for them.
So far this resource post about my favorite online asset Bitcoin. If you are interested in online opportunities regarding crypto or earning money online, visit my blog: Release-YourdigitalTalent