Why does Bitcoin matter?
Why does Bitcoin matter? This is a huge topic so we are going over tip-of-the-iceberg information only. Specific aspects will be need their own posts. I’m going to cover what Bitcoin is, its place in the cryptocurrency world, why blockchain is important and what does cryptocurrency, Bitcoin and blockshain mean for the standard consumer.
What is Bitcoin?
Bitcoin is the poster child cryptocurrency on everyone’s lips. But why does bitcoin matter?
Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by an unknown person or group of people under the name Satoshi Nakamoto and released as open-source software in 2009.
Where does Bitcoin belong in the world of cryptocurrency?
Cryptocurrencies have no real world equivalent. A value is placed on the coin based on the current Market Cap Value.
A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies.
Why is the blockchain important?
What validates the value of all cryptocurrencies is the blockchain.
A blockchain originally block chain, is a continuously growing list of records, called blocks, which are linked and secured using cryptography. Each block typically contains a hash pointer as a link to a previous block, a timestamp and transaction data. By design, blockchains are inherently resistant to modification of the data. The Harvard Business Review describes it as “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.” For use as a distributed ledger, a blockchain is typically managed by a peer-to-peer network collectively adhering to a protocol for validating new blocks. Once recorded, the data in any given block cannot be altered retroactively without the alteration of all subsequent blocks, which requires collusion of the network majority.
Bitcoin’s place in the world of cryptocurrencies is the front. It was the forerunner, avant gard, the top of market cap. This was laughed at in 2008 but it had been worth a few hundred dollars back then. At the end of 2017 it is around 20,000 USD. Many online market places accept BTC. It is the basis for purchasing many different cryptocurrencies. BTC even split into multiple coins throughout its history. None of these children have dethroned BTC.
So, why does bitcoin matter in relation to blockchain?
Behind all of this is the blockchain. This recent tech works to confirm and facilitate new transactions. Each block is an everlasting ledger of the previous transactions. Blockchain’s usefulness isn’t limited to cryptocurrencies. The standard consumer needs to know a few things about the cryptocurrency boom currently happening. Investing in the stock market might seem overwhelming. Crypto investing is much more welcome. There are always hazards when it comes to investing and this method contains hazards as well. Protecting your money is crucial and hackers are focusing on this boom heavily. Two layer authentication is terribly important. I plan on covering how to do this in the future. BTC and totally virtual currencies are becoming the norm. Printing money isn’t in the interest of the reserve, however the reserve will lose control to decentralized currencies without incentives. The blockchain will assist in world trade opportunities and much more.
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