What is Bitcoin and Why is Bitcoin Important?

Bitcoin Cash Bitcoin - What is Bitcoin and Why is Bitcoin Important? The inventor of Bitcoin, Satoshi Nakamoto, described Bitcoin as the "Peer-to-Peer Electronic Cash System" in the original 2009 Bitcoin handbook - a document that creates a roadmap for Bitcoin. Until now, this is still the most simple and accurate description.

what is bitcoin and why is bitcoin important

What is Bitcoin and Why is Bitcoin Important?

Bitcoin is a consensus network that enables the new payment system and digital money completely. This is the first decentralized peer-to-peer payment network supported by its users without central authority or intermediaries. From a user perspective, Bitcoin may best be described as 'cash for the Internet', but Bitcoin can also be seen as the most prominent entry-level bookkeeping system that exists.

It is also known as digital cash, cryptocurrency, international payment networks, internet money - but whatever you call it, Bitcoin is a revolution that changes the way everyone sees and uses money.

The beauty of Bitcoin is that it does not require a central server or third party clearing house to complete the transaction - all payments are peer-to-peer (P2P) and completed in about 10 minutes - unlike credit card payments, which can take weeks or months before they finally settled.

how do bitcoin works

Bitcoin Work Protocols

All Bitcoin transactions are recorded permanently on a distributed ledger called "blockchain" - this ledger is shared between all "miners" Bitcoin and "knots" worldwide, and can be viewed publicly. These miners and nodes verify transactions and maintain network security. For the electricity they use to do this, the miners are rewarded with a new bitcoin with each 10 minute block (the present prize is 12.5 BTC per block).

The Bitcoin protocol is also limited to 21 million bitcoins, which means that nothing more can be created. This means that no central bank, individual or government can come and just 'print' more bitcoins when it suits them. In this sense Bitcoin is the currency of deflation, and therefore tends to grow in value based on this property only.

Bitcoin is still a cutting-edge experiment in technology and economics, and like the worldwide web in 1995, its diverse potential, goals and applications have yet to be decided. Is it just electronic money? The basis for smart contracts and electronic stocks? Is it subterranean and subversive, challenging the power of government, or integrating it into the mainstream of finance and not being noticed? If you know the answers to these questions, or if you can figure out how to use them, there may be many lucrative opportunities for you in the Bitcoin space.

bitcoin opportunity in the future

Bitcoin Opportunity on the Future

The Bitcoin universe is changing rapidly and often - to stay ahead of the game, need to follow news almost every hour and discuss the latest events with other community members. BitcoinCashBitcoin.com exists to be a reliable information center for beginners and industry insiders. That being said, 'stay ahead of the game' is not a must if you just want to use Bitcoin as a currency to buy goods and services, or want to receive Bitcoin for transactions - thousands of people around the world do it every day.

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