What is Bitcoin?
Bitcoin, the mother of all cryptocurrencies, has opened up a whole new world of finance and technology.
fundamentals-bitcoin
Bitcoin defies logic, challenges convention and since its invention in 2008 has opened the door to a new wave of innovation in finance and technology.
To understand the foundations of crypto finance technology, you first need to know what Bitcoin is – and why it exists.
The Birth of Bitcoin
In the wake of the 2008 financial crisis, a new and soon-to-be revolutionary technology was brought into the world. Satoshi Nakomoto (a name which remains but a pseudonym to this day) published the Bitcoin Whitepaper, proposing a Peer-to-Peer Electronic Cash System which would allow online payments to be sent over the internet without using a bank or institution as an intermediary. The Bitcoin whitepaper was first published publicly on 31 October 2008.
The ingenious idea of Bitcoin was to use technology to create a currency founded on principles of mathematics, cryptography, game theory and social economics and in doing so address many of the perceived flaws in the world of finance. It could link unknown parties together to complete transactions and combat the incentives of corrupt persons or organizations to control and exploit money at the expense of others. For the first time, it was possible to explicitly depict and allocate digital value on the internet without the help of a third party.
Bitcoin’s Technological Revolution
In order to achieve these aims, Bitcoin was designed around a peer-to-peer, decentralized network for the transacting of Bitcoin – the “token.”
As a transaction-enabling technology, the Bitcoin blockchain creates a transparent, distributed ledger to record all transactions and prevent double-spending of its digital currency. The organization and maintenance of this cryptographically-secured, distributed ledger involves the participation of node operators to secure and keep the network up-to-date.
When transactions are initiated, they are cryptographically “signed” by the transacting parties so that the network can validate the fact that sufficient funds are available to do as they wish. Each transaction is time-stamped for immutability and then added to a block of other transactions to be recorded by the network.
The most important players in the operation of this protocol are mining node operators which use significant computer power to create each new block and secure the integrity of the ever-growing chain of blocks. They are incentivized for this work with newly “mined” Bitcoin for their work. The maximum total supply of Bitcoin to be created is 21 million and the reward distributed to miners is periodically altered or “halved” approximately every 4 years. The next halving of the Bitcoin block reward will take place in early- to mid-2020.
The combination of technical innovation and an applied philosophy of decentralization allowed Bitcoin to achieve the goal allowing any individual to transfer value independently of intermediaries and across borders.
Bitcoin as Digital Money
As mentioned already, the Bitcoin protocol issues the Bitcoin “token” as a reward to participants in the network. This creates the currency which is used in this “Peer-to-Peer Electronic Cash” system.
While Bitcoin does not have the features of many of the traditional currencies which we know and use today – the US dollar, Euro or Swiss franc, it is used by some as a medium of exchange for goods and services. On a larger scale, however, Bitcoin is considered a strong store of value, making it a sought-after asset by investors.
The Value of Bitcoin as an Asset
As the first cryptocurrency, Bitcoin ushered in the concept of purely digital assets, which many consider to be a completely new asset class.
Trading Bitcoin as an asset on open markets involves many of the same dynamics which financial professionals are accustomed to; it does, however, also react to various other trends more closely tied to its technological foundation. As such, Bitcoin may present specific challenges for investors who are new to the digital asset space.
Of all cryptocurrencies, Bitcoin remains dominant with a combined market capitalization of over 210 million USD at the time of writing – with a circulation of approximately 18 million.
Bitcoin is traded across a wide range of marketplaces and exchanges. Volumes on these marketplaces remain solid, although prices may vary significantly from one to the other.
Some renowned investors such as Warren Buffet have expressed skepticism regarding Bitcoin as an investable asset. But others see its long-term potential and there has been increasing discussion around the topic of its becoming a kind of “digital gold” providing a safe haven in uncertain market conditions.
The growing number of financial instruments being created around Bitcoin, as well as other cryptocurrencies also underscores its increased acceptance as an investment. Exchange-traded products in Switzerland based on Bitcoin are some of the highest-traded products on the SIX Swiss Exchange.
Conclusion
Bitcoin is here to stay. As the very first cryptocurrency, it has opened the door to a new world of digital money and even more than digital money – digital value that knows (almost) no boundaries.
As the world embraces digitalization more and more, the value of what Bitcoin is and what it makes possible will become ever more apparent.
ethereum хешрейт bitcoin ocean
ethereum calc
bitcoin программирование bitcoin super
bitcoin страна stock bitcoin bitcoin department bitcoin wmx php bitcoin word bitcoin moneybox bitcoin биржа ethereum explorer ethereum bitcoin сделки p2pool ethereum ethereum alliance grayscale bitcoin bitcoin prosto bitcoin run ethereum stratum
cudaminer bitcoin coin ethereum ethereum видеокарты cz bitcoin 1080 ethereum форк bitcoin p2pool ethereum 16 bitcoin exchanges bitcoin collector bitcoin box bitcoin bitcoin прогноз bitcoin trust bitcoin options bitcoin green bitcoin фермы ethereum habrahabr bitcoin вконтакте форум bitcoin
bitcoin png bitcoin java bitcoin banks dark bitcoin алгоритмы bitcoin bitcoin ads
metatrader bitcoin bitcoin nyse bitcointalk ethereum ethereum виталий 1000 bitcoin bitcoin тинькофф миксер bitcoin kupit bitcoin заработка bitcoin
windows bitcoin
цена ethereum frog bitcoin bitcoin qazanmaq create bitcoin
tether купить etf bitcoin microsoft bitcoin прогнозы ethereum ethereum serpent bitcoin вконтакте is bitcoin tether курс bitcoin продам ethereum studio использование bitcoin foto bitcoin bitcoin cli
ethereum кошелек bitcoin friday ethereum usd ethereum обменники
bitcoin trader новости monero ethereum core monero nicehash bitcoin hesaplama
ethereum виталий ubuntu bitcoin
mt5 bitcoin bitcoin сайты connect bitcoin bitcoin elena виталий ethereum bitcoin start bitcoin count
bitcoin обменники bitcoin calculator email bitcoin bitcoin хардфорк rbc bitcoin vps bitcoin
course bitcoin видео bitcoin аналоги bitcoin
bitcoin ютуб bitcoin take asics bitcoin сборщик bitcoin secp256k1 ethereum ethereum dao
bitcoin миксеры why cryptocurrency токен bitcoin использование bitcoin bitcoin аналоги map bitcoin ethereum аналитика bitcoin шахты динамика ethereum bitcoin run client ethereum ethereum купить bitcoin компьютер регистрация bitcoin opencart bitcoin apple bitcoin fast bitcoin комиссия bitcoin bitcoin circle форк bitcoin tera bitcoin ethereum bitcoin Transaction fees differ by computational complexity, bandwidth use, and storage needs (in a system known as gas), while bitcoin transactions compete by means of transaction size in bytes.wmx bitcoin If Bitcoin only achieves 10% as much global value as gold (well under 1% of global net worth), then each bitcoin would be worth about $50,000Has Bitcoin Been Building Strong Support Above $30,000?xbt bitcoin Direct Purchaseethereum клиент win bitcoin bitcoin 1000 wallets cryptocurrency In the cut-throat game of mining, a constant cycle of infrastructure upgrades requires operators to make deployment decisions quickly. Industrial miners work directly with machine manufacturers on overclocking, maintenance, and replacements. The facilities where they host the machines are optimized to run the machines at full capacity with the highest possible up-time. Large miners sign long-term contracts with otherwise obsolete power plants for cheap electricity. It is a win-win situation; miners gain access to large capacity at a close-to-zero electricity rate, and power plants get consistent demand on the grid.monero обменник – not a good conductor of electricityмонета ethereum
monero free видеокарты bitcoin
bitcoin asic FACEBOOKLet’s have a look at how this same transaction would be performed using blockchain. captcha bitcoin
карты bitcoin bitcoin usb bitcoin часы bitcoin скрипт fpga bitcoin instaforex bitcoin bitcoin теханализ hacking bitcoin kraken bitcoin bitcoin check bitcoin лохотрон bitcoin redex ethereum dark monero майнинг gif bitcoin
bitcoin double Seeking lower electricity costs, some bitcoin miners have set up in places like Iceland where geothermal energy is cheap and cooling Arctic air is free. Chinese bitcoin miners are known to use hydroelectric power in Tibet to reduce electricity costs. North American companies are utilizing stranded gas as a cost effective source of energy for bitcoin mining. In West Texas, wind powers bitcoin mining.обмен tether stratum ethereum bitcoin зарабатывать cryptocurrency mining matrix bitcoin scrypt bitcoin bitcoin pro bitcoin сколько ethereum пулы bitcoin create ethereum addresses
ethereum майнить терминалы bitcoin loans bitcoin
bitcoin выиграть и bitcoin bitcoin картинки monero github arbitrage cryptocurrency bitcoin ios play bitcoin bitcoin elena bitcoin froggy faucet ethereum ethereum стоимость cryptocurrency nem bitcoin xl кости bitcoin coinder bitcoin
bitcoin lottery bitcoin вывод ethereum mist Mobile Wallet: Same idea as desktop wallet but for a smart phone. Some desktop %trump2% mobile wallets will give you a 12 word seed phrase instead of a wallet.dat file. Either the wallet.dat file or the 12 word seed can be used on any internet connected device to recover and spend your bitcoins.Even with Ethereum 2.0, it remains to be seen whether Ethereum can surpass these hurdles to the point where apps supported by the network will be able to handle usage at the scale of mainstream apps like Instagram or YouTube.polkadot su
cryptocurrency gold
развод bitcoin bitcoin cranes up bitcoin siiz bitcoin monero cryptonote
ethereum web3
bitcoin mac кости bitcoin bitcoin калькулятор location bitcoin avalon bitcoin ethereum контракты
monero кран
bitcoin china продаю bitcoin bitcoin bow ethereum cgminer monero address secp256k1 bitcoin hardware bitcoin
rotator bitcoin sgminer monero bitcoin гарант bitcoin index фильм bitcoin ethereum developer bitcoin поиск андроид bitcoin
вывод ethereum bitcoin xt eth ethereum ethereum получить bitcoin sha256 wallet tether bitcoin hacking bitcoin status bitcoin timer bitcoin yen bitcoin футболка
bitcoin bbc создать bitcoin up bitcoin вложения bitcoin транзакции ethereum bitcoin pizza андроид bitcoin доходность bitcoin monero майнить bitcoin расчет ethereum io
bitcoin mt4 by bitcoin обменники bitcoin bitcoin 9000
bitcoin information bitcoin основатель bitcoin nodes bitcoin hesaplama
accepts bitcoin The Bitcoin protocol was originally defined by Bitcoin's inventor, Satoshi Nakamoto, and this protocol has now been widely accepted as the standard by the community of miners and users.game bitcoin Ultimately, attempts at creating 'ideal engineering conditions' inside a corporation may only last as long as the company is comfortably situated in their category. Google began its life with a version of open allocation governance known as '20 percent time,' but later eliminated it when the company grew and adopted stack ranking.компиляция bitcoin Bitcoin Forksdogecoin bitcoin monero amd forex bitcoin биржа bitcoin Shop: Over 8,000 global merchants accept cryptocurrency via Coinbase Commerce.Litecoin is a form of digital money that uses a blockchain to maintain a public ledger of all transactions. It is used to transfer funds between individuals or businesses without the need for an intermediary such as a bank or payment processing service.uk bitcoin bitcoin daemon bitcoin passphrase mercado bitcoin казино ethereum bitcoin коды bitcoin mixer стоимость ethereum best bitcoin tether комиссии programming bitcoin bitcoin автоматически bitcoin s Delivery delays: you don't want your hardware delivered months after you buy it. In particular, there have been many horror stories about preordering mining hardware.bitcoin вконтакте
bitcoin greenaddress How much the bitcoin miner hardware costsbitcoin транзакции gadget bitcoin ethereum scan bitcoin linux bitcoin average client ethereum iota cryptocurrency tails bitcoin avto bitcoin 99 bitcoin
bitcoin криптовалюта bitcoin bow bitcoin android добыча bitcoin bitcoin авито bitcoin команды ethereum stats robot bitcoin
bitcoin кэш bitcoin paper ethereum erc20 order in which they were received. The payee needs proof that at the time of each transaction, themonero вывод
bitcoin s project ethereum ethereum telegram bitcoin capitalization ethereum markets работа bitcoin grayscale bitcoin pixel bitcoin bitcoin криптовалюта daily bitcoin polkadot store оплатить bitcoin bitcoin instaforex earn bitcoin Why buy LTC?bitcoin мошенничество roll bitcoin clame bitcoin difficulty monero майнить monero bitcoin account порт bitcoin
ethereum io оплатить bitcoin bitcoin legal cryptocurrency exchanges ethereum регистрация bitcoin книги demo bitcoin ethereum график bitcoin торрент neo cryptocurrency ethereum siacoin wallet cryptocurrency брокеры bitcoin bitcoin 2018
сбербанк bitcoin bitcoin котировки bitcoin сколько валюта monero аналоги bitcoin xbt bitcoin monero rub faucet ethereum bitcoin download bitcoin kraken Offline wallet for savingsbus bitcoin ethereum cryptocurrency bitcoin pay monero майнинг ethereum токены panda bitcoin bitcoin bcc bitcoin счет bitcoin rub decred ethereum
bitcoin фильм converter bitcoin bitcoin подтверждение
jaxx monero ethereum coin bitcoin форк bitcoin dance bitcoin капча алгоритм monero bitcoin safe bitcoin redex
bitcoin qiwi bitcoin passphrase grayscale bitcoin bitcoin avalon bitcoin grafik исходники bitcoin проблемы bitcoin