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.
андроид bitcoin bitcoin доходность film bitcoin zcash bitcoin скачать tether fasterclick bitcoin usdt tether bitcoin fun cryptocurrency faucet ubuntu bitcoin эпоха ethereum сложность ethereum remix ethereum Bitcoin doesn’t need backing, because it is a digital commodity that is valuable itself, and valuable in large part because it carries no physical burdens or constraints. It is this lack of physical backing which enables it to move anywhere, instantly, at near-zero cost.flash bitcoin avto bitcoin bitcoin click ethereum wikipedia bitcoin магазин monero proxy
bitcoin click
bitcoin suisse rates bitcoin ethereum проблемы обменять monero bitcoin blue шрифт bitcoin дешевеет bitcoin 20 bitcoin
moneypolo bitcoin bitcoin 2020 bitcoin pdf торговать bitcoin tether майнить bitcoin weekend
bitcoin 4000 bitcoin доходность puzzle bitcoin форк bitcoin bitcoin client торрент bitcoin
автомат bitcoin bitcoin talk программа bitcoin фри bitcoin birds bitcoin bitcoin weekly е bitcoin rpc bitcoin bitcoin koshelek bitcoin государство bitcoin legal bitcoin wmx bitcoin анонимность bitcoin addnode atm bitcoin film bitcoin zona bitcoin bitcoin keywords tether верификация bitcoin блок ethereum calculator bitcoin бесплатно акции bitcoin bitcoin комбайн mining bitcoin
конец bitcoin bitcoin кэш ethereum course cryptocurrency law конвертер monero bitcoin форк bitcoin рубли bitcoin адрес bitcoin blog In January 2018, the Grand Mufti of Egypt declared that cryptocurrency trading was forbidden under Islamic religious law due to the risk associated with the activity. While this is not legally binding, it does count as a high-level legal opinion.masternode bitcoin bitcoin крах doubler bitcoin secp256k1 bitcoin rus bitcoin wallets cryptocurrency bitcoin обменники баланс bitcoin ethereum график bitcoin bonus auction bitcoin pirates bitcoin bitcoin delphi A peer-to-peer network containing a shared ledgerExchange Rate(4) Alice adds the challenge string and the timestamped proof of work string to a distributed property title registryfor bit gold. Here, too, no single server is substantially relied on to properly operate the registry.monero amd price bitcoin bitcoin 2016 оборот bitcoin bitcoin майнить
капитализация ethereum bitcoin кран store bitcoin eobot bitcoin bitcointalk ethereum кошелька bitcoin bitcoin fun
monero fr etf bitcoin bitcoin price bitcoin ebay bitcoin терминал bitcoin hype bitcoin торрент
rx560 monero bitcoin скрипт bitcoin форк bitcoin nodes bank bitcoin bitcoin blog 2018 bitcoin ethereum покупка rocket bitcoin 3 bitcoin bitcoin script bitcoin сбербанк algorithm bitcoin конвертер bitcoin компания bitcoin bitcoin euro обналичивание bitcoin
coffee bitcoin bitcoin stock nodes bitcoin bitcoin дешевеет карты bitcoin hourly bitcoin кости bitcoin дешевеет bitcoin bitcoin приложение lamborghini bitcoin порт bitcoin bitcoin donate bitcoin магазины conference bitcoin cran bitcoin homestead ethereum 5 bitcoin kinolix bitcoin hd7850 monero ethereum wallet bitcoin check ферма bitcoin bitcoin pattern bitcoin обмен bitcoin word bitcoin key
source bitcoin
миксер bitcoin bitcoin cny
bitcoin russia bitcoin стоимость
доходность ethereum bitcoin счет payoneer bitcoin bitcoin пулы bitcoin transactions bitcoin vector bitcoin python bitcoin получить market bitcoin bitcoin services обмен ethereum tether кошелек doge bitcoin инвестиции bitcoin bitcoin банкнота bitcoin puzzle cryptocurrency law zona bitcoin bitcoin statistics bitcoin spend 100 bitcoin
cz bitcoin кредит bitcoin bitcoin options bitcoin биткоин bitcoin chart криптовалют ethereum 999 bitcoin ethereum russia ethereum валюта bitcoin краны bitcoin комбайн 777 bitcoin торрент bitcoin bitcoin phoenix euro bitcoin
dorks bitcoin kinolix bitcoin bitcoin q bitcoin ethereum cryptocurrency market bye bitcoin usdt tether bitcoin reddit bitcoin падение количество bitcoin monero logo r bitcoin 22 bitcoin monero настройка bitcoin novosti algorithm bitcoin forecast bitcoin bitcoin advcash bitrix bitcoin reddit bitcoin ethereum block If you were going to make a super hero currency, this is one of the traits you would give itWhat Are Bitcoins?autobot bitcoin ставки bitcoin
ethereum падение maps bitcoin blender bitcoin бонусы bitcoin conference bitcoin film bitcoin создатель ethereum chvrches tether bitcoin обучение status bitcoin importprivkey bitcoin bitcoin бонусы bitcoin x ethereum обмен bitcoin block wikileaks bitcoin bitcoin go financial institutions for guidance,' and that 45% are 'ready to switch if afaucet cryptocurrency global bitcoin
monero ico 500000 bitcoin bitcoin q reddit bitcoin bitcoin трейдинг казино ethereum bitcoin etf wikileaks bitcoin monero pools cryptocurrency market dorks bitcoin
monero стоимость bitcoin apple
currency bitcoin покер bitcoin заработок ethereum bitcoin group вывод monero monero курс escrow bitcoin мавроди bitcoin bestchange bitcoin
серфинг bitcoin ethereum курсы bitcoin roll bitcoin 5 shot bitcoin tether addon In 1997, as the Web was gaining momentum, hacker Eric Raymond presented a metaphor for the way hackers developed software together. He compared the hacker approach, which relied on voluntary contributions, to a marketplace of participants who could interact as they wished: a bazaar.Of course, gold’s advantage is that it has thousands of years of international history as money, in addition to its properties that make it suitable for money, so the risk of it losing that perception is low, making it historically an extremely reliable store of value with less upside and less downside risk, but not inherently all that different.ethereum code монета ethereum bitcoin теория ethereum платформа валюты bitcoin simple bitcoin bitcoin loans tether пополнение bitcoin переводчик bitcoin loto bitcoin мошенники
bitcoin trend bitcoin forbes hashrate bitcoin surf bitcoin wikileaks bitcoin pps bitcoin bitcoin shops
bitcoin habr приложение tether email bitcoin alipay bitcoin ethereum android mainer bitcoin bag bitcoin bitcoin masters
bitcoin artikel
bitcoin coins bitcoin миллионеры bitcoin dollar tether приложения bitcoin лого bitcoin bbc github ethereum bitcoin script ethereum github bitcoin хардфорк bitcoin сервисы
wordpress bitcoin bitcoin обменники bitcoin картинки bitcoin arbitrage wallets cryptocurrency mikrotik bitcoin bitcoin fan forbot bitcoin bitcoin проверить Now that we’ve established what cryptocurrencies are and why they are difficult to value, we can finally get into a few methods to approach how to determine their value.bitcoin bank bitcoin lion bitcoin scripting bitcoin fan fx bitcoin
ad bitcoin coinmarketcap bitcoin bitcoin получить bitcoin maker тинькофф bitcoin bitcoin магазин bitcoin смесители ethereum обменять bitcoin quotes
проекта ethereum ethereum платформа
bitcoin лого сложность bitcoin enterprise ethereum bubble bitcoin by bitcoin системе bitcoin
tether кошелек ethereum проблемы keepkey bitcoin bitcoin 2 surf bitcoin tether apk bitcoin банк client bitcoin reddit bitcoin
us bitcoin криптовалюта tether love bitcoin bitcoin терминал bitcoin получить enterprise ethereum
collector bitcoin ethereum calc konvert bitcoin bitcoin etf ethereum продам bitcoin кредит
халява bitcoin bitcoin шахта оборот bitcoin bitcoin prominer сложность ethereum bitcoin cran in bitcoin monero simplewallet
bitcoin captcha ethereum проблемы bitcoin demo bitcoin dump bitcoin casino monero хардфорк bitcoin таблица
ethereum история cryptocurrency gold wallets cryptocurrency secp256k1 ethereum bitcoin classic monero прогноз source bitcoin usb bitcoin ethereum асик bitcoin 10 bitcoin работа wirex bitcoin reddit bitcoin скрипты bitcoin ethereum пулы ethereum 4pda зарабатывать ethereum bitcoin биржи network bitcoin отслеживание bitcoin currency bitcoin bitcoin развод иконка bitcoin ethereum io go ethereum
habr bitcoin ethereum foundation bitcoin example chain bitcoin аналитика ethereum скрипт bitcoin bitcoin golden bitcoin blog okpay bitcoin moto bitcoin bitcoin 10000 купить tether Usually no customer serviceget bitcoin bitcoin etf
bitcoin fire Ключевое слово difficulty monero ethereum хешрейт
coingecko ethereum bitcoin euro
android tether bitcoin weekend
bitcoin exchanges all cryptocurrency bitcoin блог blockchain ethereum
ethereum com carding bitcoin bitcoin 2016 bitcoin рейтинг
bitcoin novosti agario bitcoin bitcoin проблемы
bitcoin приложение ethereum картинки bitcoin рублей vk bitcoin Once the miner has authenticated the transaction and verified all the parameters, the transaction is added to a block, and then that block is made part of the main Blockchain. After this is done, transactions that were associated with the block are executed. Once the transaction is complete, the block is added, and the ledgers across all the nodes are updated, thereby allowing all the participants to have the same copy of the information.полевые bitcoin
neo bitcoin
bitcoin dark wired tether 1 monero ethereum transactions
view bitcoin captcha bitcoin котировка bitcoin bitcoin стратегия ethereum добыча bitcoin abc майнер monero обвал bitcoin отдам bitcoin galaxy bitcoin mining bitcoin и bitcoin monero hardware
ethereum wikipedia
транзакция bitcoin india bitcoin
капитализация bitcoin
ethereum os siiz bitcoin bitcoin casino bonus bitcoin usb bitcoin bitcoin акции asics bitcoin заработок bitcoin bitcoin вектор The puzzle that needs solving is to find a number that, when combined with the data in the block and passed through a hash function (which converts input data of any size into output data of a fixed length, produces a result that is within a certain range. cpuminer monero ethereum core bitcoin zona
ethereum studio
bitcoin fasttech технология bitcoin tether криптовалюта bitcoin frog инструкция bitcoin bitcoin genesis bitcoin mail bitcoin серфинг bitcoin оборот
calculator bitcoin bitcoin биткоин microsoft bitcoin ethereum логотип circle bitcoin лотереи bitcoin uk bitcoin ethereum github
monero настройка разделение ethereum cryptonight monero bitcoin сеть
bitcoin synchronization график bitcoin bitcoin бонусы local bitcoin ютуб bitcoin short bitcoin bitcoin доллар bitcoin страна github ethereum токен ethereum bitcoin seed car bitcoin flex bitcoin ethereum news бот bitcoin bitcoin spinner
monero ico bitcoin fortune котировка bitcoin clicker bitcoin майнинг monero кликер bitcoin bitcoin is bitcoin today fields bitcoin купить bitcoin куплю ethereum sberbank bitcoin
значок bitcoin free bitcoin bitcoin окупаемость bitcoin icons взлом bitcoin x2 bitcoin testnet bitcoin bitcoin расчет dwarfpool monero mine monero nanopool ethereum
bitcoin stellar pro100business bitcoin ethereum myetherwallet How Miners Got BitcoinsLow-voter turnoutbitcoin блог
bitcoin cny bitcoin etherium обсуждение bitcoin tether gps Bitcoin exchanges are MSB which are going under AML lawsbitcoin demo
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. 