Bitcoin, What’s so Special?

What is Bitcoin?

Bitcoin, also known as (BTC), is a digital currency or as many know a “cryptocurrency” that was created back in 2009 by a mysterious “Satoshi Nakamoto”. The cryptocurrency offers low transaction fees, and unlike a traditional government run bank, bitcoin is decentralized. Bitcoin follows all of the ideas laid out on what is called a Whitepaper.

There is no physical bitcoin, only a balance that is kept on a public blockchain which allows everyone transparent access to all transactions. Bitcoin, despite not being a legal currency in most of the world has gained a lot of traction and is growing day by day. Bitcoin has prompted the creation of other coins also known as “altcoins”.

Why Bitcoin?

No one can cheat the system, that’s what makes crypto so secure. Bitcoin balances are kept by using public and private keys, which are a long line of numbers and letters created through a mathematical encryption algorithm. Also known as an “address” which is published worldwide so that others may send bitcoin to your address. Bitcoin is run on a collection of computers through that all keep a copy of the blockchain. Now, think of the blockchain as a set of building blocks, each set of transactions is a set in a “block”, and is recorded as a transparent transaction available to the public computers running it. If someone were to try and “attack” your bitcoin they would need your private key.

Bitcoin Timeline:

Aug. 8, 2008:

• The domain name bitcoin.org is registered, the identity of the person who registered the domain name is not public information.

Oct. 31, 2008

• An announcement is made on the cryptography mailing list “I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third party. This whitepaper is now published on bitcoin.org, entitled “Bitcoin: A Peer-to-Peer Electronic Cash System’’.

Jan. 3, 2009

• The first bitcoin block is mined, also known as “Genesis block” which contains the text “The times 03/Jan/2009 Chancellor on brink of second bailout for banks.”

Jan. 8, 2009

• Bitcoins software is announced on the Cryptography Mailing List

Jan. 9, 2009

• Block 1 is mined!!

There has been recent chatter over the years of other countries adopting cryptocurrency. Is it here to stay? Can it really replace a national currency? We will just have to wait and see.