What is Bitcoin?

What is Bitcoin

In answer to a very popular question ( What is Bitcoin?) you have to read this guide very closely to completely understand it’s concept and avoid rookie mistakes when facing Mining, Cloud Mining and Purchasing. So let’s dig in!

Bitcoin is a digital cryptocurrency. This means that you are not facing a physical and color printed bill that you can put it in your wallet and spend it in a restaurant, super-market, etc. It uses a peer-to-peer decentralized network. This means that not a single person, company or even a government could control it’s distribution and transfers.

Instead of a government or an organization meddling the currency, it’s distribution and it’s value, every person who is using this network (BTC Blockchain) is accountable for network safety, distribution and it’s transfers by downloading the software for free and running it on their computer. In this article we will answer the popular question, what is Bitcoin.

Is Bitcoin controlled by governments?

To understand what is bitcoin, we shall know that is the currency controlled by governments or other centralized parties. The cryptocurrency is made by a process which is called Bitcoin Mining or Bitcoin Cloud Mining so No one can control it. No one can print it and no one can change its price over night unlike Fiat currencies (eg. US Dollar).

Who made the first cryptocurrency?

The reason that first cryptocurrency was invented will reveal the answer to what is Bitcoin question. Satoshi Nakamoto is an alias for a software developer who is known for creating the cryptocurrency to create a swift and secure decentralized digital currency. It was first introduced into this world in 2008 by satoshi nakamoto. This man is known for being mysterious in every way possible. You might find some useful information about him in Who is satoshi nakamoto.

What is Bitcoin application?

Several different things have been put together to make a lot of noise in the media about this amazing solution. Since 2011, a lot of criminals have come to buy cryptocurrencies, because they could have shifted a large amount of money away from the eyes of law firms through this encrypted currency. That’s how the currency’s price went up sharply in those years. Fraud is also commonplace in the world of cryptocurrencies. Many novice or greedy investors have already fallen victim to fraudsters in this area.

But perhaps the main reason behind the controversy of BTC and altcoins is that they take power from central banks and governments because of their decentralized nature. No entity or organization can block one person’s  account. There is no possibility for the tax authorities to supervise the transfer of the digital currency. There is also no need for a bank or any intermediary or third party to exchange this currency. In fact, it can be considered as golden pieces discovered by individuals during the Wild West, and local police or financial institutions have no control over it.

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