It’s not very often that something comes along and redefines our society in some way. First, it was automobiles. Then the television, the internet, and the cell phone. It seems that we are constantly creating things that are introducing us to a new way of living, and propelling us forward to hopefully some magnanimous. So what’s next on this road to innovation and discovery? Is it the time machine? Perhaps it’s the flying cars we saw on TV as kids? Unfortunately, I think those things are still a few years off. The next big things is bitcoin.
What is Bitcoin?
Bitcoin is a form of digital currency, created and held electronically. Bitcoin is produced by people and businesses, all around the world. It’s the first example of a new category of money known as cryptocurrency. Now, I know what you’re probably thinking. Cryptocurrency sounds like somethings that was used in an 80’s sci-fi film.
Where did Bitcoin come from?
Bitcoin was created by a software developer by the name of Satoshi Nakamoto. The Idea he had for bitcoin, was to create a currency that was independent from any central authority. An electronic currency with very low transaction fees. So what makes this new currency any different from the USD or Euro?
Bitcoin is conventional in the sense that is can be used to buy things electronically. The same way any other world currency can. The characteristic that sets Bitcoin apart is its decentralization. Meaning that no single institution can control this currency network. Knowing that large banks can’t touch their money puts most at ease.
What is Bitcoin based on?
Bitcoin isn’t based on any conventional currency per say. Probably the only characteristic it shares would be the fact that it holds worth. Bitcoin is based on mathematics. Around the globe people are using software programs that follow a formula to produce bit coin. The software is open source, meaning that anyone can check it and make sure it’s doing what it’s supposed to do.
That concludes the first part in our Introduction to Bitcoin. Come back tomorrow for part two on the Introduction to Bitcoin. Check Our Resources page for a list of trusted companies like Signature One Capital, which have received 4 stars or better. Check Our Reviews page for more insight into trusted companies