What is Bitcoin?

[CoinMany6]

What is Bitcoin?

Bitcoin is a decentralized cryptocurrency and an innovative payment network. It’s free of central banks and provides a peer-to-peer network to transfer money. Every transaction is transparent and immutable. Investors use Bitcoin as a means of exchange as well as a store of value to hedge against inflation.

Who gave birth to Bitcoin? Satoshi Nakamoto, the anonymous name of the creator of Bitcoin. Satoshi began to think of a new currency when he saw central banks publish cash which caused inflation during the economic crisis. Fiat could be of less value due to inflation and people couldn’t do anything. He created Bitcoin with the purpose to provide an alternative payment method without the control of the central government.

How does Bitcoin mining work?

What is Bitcoin mining? Bitcoin mining is the process of getting new Bitcoin. It also confirms the transactions in the network running in Bitcoin code and sync to all nodes on the chain. ‘Mining’ is performed on a computer for hash operations. The first computer to find the solution to complex math puzzles will get the right for the next block and this happens every 10 minutes. The ability to find the solution depends on the portion of the network’s total mining power.

The supply of Bitcoin is limited and the total supply is 21 million. The current Bitcoin is 19.2 million. The Bitcoin quantity will be reduced by 50% every time it reaches 210000 blocks or reduced once every four years by design.

What determines Bitcoin’s price?

Since its birth, Bitcoin has had volatile prices due to many factors. Unlike fiat, Bitcoin is not issued by the government or bank therefore monetary policy, inflation rate, or financial measurement don’t influence its price. Bitcoin acts more like a commodity. The price is influenced heavily by supply and demand. It depends on how many coins are in circulation and how many people are willing to buy.

[MVL~$]

Bitcoin is a virtual currency. Which ranks first in the cryptocurrency world. It cannot be held or touched, only certain amounts of it can be seen by you. It is a digital currency that you can invest in if you want, you can hold bitcoins if you want. Bitcoin's value fluctuates over time. It was created by Satoshi Nakamate in 2009. It is currently valued at $43,000 in 2024. It peaked around 2021 when it was valued at $69,000.

[Lida93]

Additionally, something about else about bitcoin is that it's all inclusive in the sense that anyone anywhere in the world with internet access can have access and make use of it  for all transactions. And with it's anonymity in nature you are confident of your privacy being intact and safe away from a third party unlike what is obtained with the traditional banking system. Etc.

[Dianacruze]

Bitcoin operates on a decentralized network of computers, known as nodes, which use blockchain technology to record and verify transactions. The blockchain is a distributed ledger that contains a chronological record of all transactions ever made on the network. Each block in the blockchain contains a batch of transactions, cryptographically linked to the previous block, forming a chain of blocks.

Key features of Bitcoin include:

Decentralization: Bitcoin operates without a central authority or single administrator. It is maintained by a network of nodes that validate and record transactions, ensuring the security and integrity of the network.

Limited Supply: The total supply of Bitcoin is capped at 21 million coins, making it a deflationary asset. This scarcity is designed to mimic the scarcity of precious metals like gold and can potentially increase the value of Bitcoin over time.

Peer-to-Peer Transactions: Bitcoin enables peer-to-peer transactions without the need for intermediaries such as banks or payment processors. Users can send and receive Bitcoins directly to and from each other, anywhere in the world, quickly and with low transaction fees.

Security: Bitcoin transactions are secured using cryptographic techniques. Each transaction is verified by multiple nodes on the network and added to the blockchain through a process called mining, which involves solving complex mathematical puzzles.

Pseudonymity: While Bitcoin transactions are transparent and recorded on the blockchain, the identities of the parties involved are often pseudonymous. Users are identified by cryptographic addresses rather than personal information.

Bitcoin has gained widespread adoption as a digital currency and store of value, attracting investors, traders, and users worldwide. It has also inspired the creation of thousands of other cryptocurrencies, collectively known as altcoins, and has had a significant impact on the development of blockchain technology and the broader cryptocurrency ecosystem.

[Litzki1990]

Bitcoin is a digital precious currency that has a huge market value but has no real existence. Bitcoin is only a virtual coin and you will never notice its presence in real life. In 2009, this coin officially came to the market for the first time. Although this coin officially entered the market in 2009, people started to know about this coin since 2010. After 2009, since 2010 when people gradually got to know about this coin, its popularity and value gradually increased. It goes without saying that in 2024, its popularity and value have increased significantly compared to 2009 and 2010. A large number of people now know about Bitcoin and a large number of people now invest in Bitcoin. As its popularity has gradually increased since the beginning, it is expected that its popularity will increase even more in the future.

[Dr.Bitcoin_Strange]

What determines Bitcoin’s price?

Since its birth, Bitcoin has had volatile prices due to many factors. Unlike fiat, Bitcoin is not issued by the government or bank therefore monetary policy, inflation rate, or financial measurement don’t influence its price. Bitcoin acts more like a commodity. The price is influenced heavily by supply and demand. It depends on how many coins are in circulation and how many people are willing to buy.

Bitcoin price was not really volatile from the first and second year it was created.

The first recorded price of bitcoin came in late 2009 when users in the BitcoinTalk online forum exchanged 5,050 BTC for $5.02 via PayPal. This transaction valued bitcoin at about $0.00099 per BTC, or about one-tenth of a cent.

So, the first price was $0.00099 which did not just jump from that price to $5, it took a long  and gradual progression. Price begins to get more volatile afte the first halving. You are right that Bitcoin price is also affected by demand and supply. There are other factors too that can contribute to the price volatility such as FUD and bad occurrences in the world or world economy.

[Cantsay]

I see that you copied this thread you made from bitcoin talk to this forum without adding any reference link to it.

So to avoid being accused of plagiarism or being punished due to plagiarizing your own post I’ll suggest you add a link at the bottom of the Op.

And if you make a subsequent thread - make sure to add the source link.

Here’s the link from Bitcointalk: https://bitcointalk.org/index.php?topic=5427526.

[robelneo]

People talk or love to introduce Bitcoin but forget to attach the creator's whitepaper which explains everything you know about Bitcoin, It is the compilation of Satoshi's

thoughts and how everything works, and what it's trying to resolve, its good to know that there are many explanation and articles about Bitcoin online, this is the proof that Bitcoin has come a long way and being integrated by various industry.

Bitcoin: A Peer-to-Peer Electronic Cash System

[Mia Chloe]

Is this supposed to be a question? Because of I were asked I would say;
Bitcoin is the first decentralized crypto currency which was created and launched by a pseudonymous entity "Satoshi NAKAMOTO" in the year 2009. This pretty much the main information.

[Z-tight]

People talk or love to introduce Bitcoin but forget to attach the creator's whitepaper which explains everything you know about Bitcoin, It is the compilation of Satoshi's

thoughts and how everything works,

The BTC whitepaper is a good resource, but it can be a little bit too technical and difficult to understand for newbies, if i introduce someone to the BTC network, i do not show them the whitepaper immediately, there are a lot of resources and articles about BTC that explains it in an easier way for newbies to understand, if you introduce a newbie to BTC through a difficult route, they may lose interest early.

[Aanuoluwatofunmi]

I see defining bitcoin as a common and ordinary thing anyone can do when they make the action to go online and google it, there could be various interpretation on what bitcoin is, but the best way is to begin by knowing what a cryptocurrency is first, that will serve as an intro to understanding better what Bitcoin is for a lay man, if you want a digital currency and are tired of being under the control of the central authorities, then maybe bitcoin is the best for you.

[Learn Bitcoin]

Bitcoin operates on a decentralized network of computers, known as nodes, which use blockchain technology to record and verify transactions. The blockchain is a distributed ledger that contains a chronological record of all transactions ever made on the network. Each block in the blockchain contains a batch of transactions, cryptographically linked to the previous block, forming a chain of blocks.

I am sorry, but I have to report your post because you have used AI to generate this post. This is something frowned upon and the forum moderation does not allow publishing content using AI. You can take it as a friendly suggestion. If you continue like that, the moderators may ban you or give you some strikes that it too bad for your account.

It is advised to stay away from AI and write your own content if you want to stay clear. It's possible to build a account only if you write original content.

[Sevi]

Bitcoin is a decentralized currency introduced in the market now a days with a huge market value and  interms of exchange bitcoin store of value to hedge against inflation.