What is bitcoin?
Bitcoin is a digital currency, or cryptocurrency, as it’s also called. Bitcoin is the first and largest cryptocurrency measured on market value, which in June 2022 was about 2,700 billion DKK according to Coinbase. So, if you’re interested to learn more about cryptocurrency, bitcoin is a great place to start.
The bitcoin story: Who created bitcoin?
Bitcoin was conceived by the anonymous character, Satoshi Nakamoto. It’s not known whether it’s a single individual or a group of individuals.
In 2008, Satoshi Nakamoto published a whitepaper, “Bitcoin: A Peer-to-Peer Electronic Cash System ”, which described the fundamental features of bitcoin and blockchain. In 2009, the idea became reality and the first bitcoin was in circulation.
The driving force behind bitcoin and blockchain was the idea of decentralising money. This means getting rid of the unnecessary intermediaries between buyers and sellers.
And why was this so important for Satoshi Nakamoto?
Intermediaries can be corrupt, and they may impose extra and unnecessary fees on transactions, which in reality could have happened directly between buyers and sellers. As Satoshi Nakamoto writes in the whitepaper:
“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party.”
Instead of basing transactions on trust, transactions need to be based on proof - just like the case is with modern banks and similar intermediaries.
But intermediaries can also be corrupt, which is why you need to trust that their proof is truthful. With bitcoin and blockchain the proof is secured by the technology: Cryptographic proof.
GET STARTED WITH BITCOIN
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