The Very Basics of Bitcoin
What is a Bitcoin?
Bitcoin is the first successful cryptocurrency created in 2009 by an unknown person, or persons, otherwise known as Satoshi Nakomoto.
Bitcoin’s original usage was borne out of the hope to take financial control of money away from banks and financial institutions after the 2008 mortgage crisis, creating no middleman. The central bank and financial institutions revealed their irresponsibility with the finances of the world and as a result, a decentralized system which records transactions in a distributed ledger called a blockchain was born!
Being the first cryptocurrency to trade and successfully operate has made Bitcoin the most important and most valuable cryptocurrency on the market today. Think of Bitcoin to the cryptocurrency market as the S&P 500 is to the stock market. Most every other relevant crypto currency’s health and values are tied to Bitcoin’s health.
“Bitcoin is the apex property of the human race. It’s the first time we figured out how to create true property that you can take possession of with full custodial rights that’s least likely to be impaired, that’s most mobile….”
Michael Saylor, CEO of Microstrategy
Bitcoin functions as either a secure long-term store of value that cannot be arbitrarily printed or destroyed by governments [Digital Gold].
You will often hear cryptocurrency referred to as “decentralized” or “deflationary”. Bitcoin is deflationary in its nature because there are only 21,000,000 in existence and no more will ever be created unlike Fiat currencies.
Bitcoin’s other utility allows individuals to transact with each other using the blockchain technology we discussed in the last article- Blockchain 101. Bitcoin is currently the most valuable and highest priced cryptocurrency.