Bitcoin: The What, Who, Why, Where and How
What is bitcoin?
Bitcoin is a kind of money. What makes money, money is money’s ability to exchange itself with a commodity or a particular service. Anything of value can do that. A laptop, an apple fruit, a paper with or without words in it can be used as money. Bitcoin does just that. Hence, Bitcoin can be given the same universal definition of money - that is, a medium of exchange for goods and services. But like I stated in my first sentence, it is a ‘kind’ of money.
What kind of money? A digital or virtual kind of money. It is digital in the sense that, it is not printed like your naira or dollar. Virtual in the sense that, it is not physically felt or produced like other commodities that can serve as a medium of exchange. Now let’s try defining it, technically.
Bitcoin is a kind of money or peer-to-peer payment system that is digitally created and handled through encryption techniques with transactions taking place without any intermediary. Transactions are confirmed though, by network nodes, documented in a public ledger which is called the blockchain.
Who invented bitcoin?
The inventor of the bitcoin is still largely unverified. The name used as alias by the person who invented the bitcoin is Satoshi Nakamoto. “Satoshi Nakamoto” published a paper on a The Cryptography Mailing list, describing the bitcoin digital currency.
Who can use Bitcoin?
Anybody can. No one has to be a computer guru to use the bitcoin currency.
When was bitcoin invented?
Satoshi, in October 2008 published the paper detailing the bitcoin currency. January 2009, he released the first bitcoin software that started the network.
Why was bitcoin invented?
I believe bitcoin was primarily invented to protect privacy in transactions. Secret information is not required on any bitcoin transactions, unlike the credit card transaction where private information is required every now and then.
Why use bitcoin?
- · Transaction fees for bitcoin are nominal (check out https://jostpay.com), unlike credit card transactions.
- · No central bank can take it away from owner, as no central government has control.
- · No one can steal private information, as the platform requires none of it.
- · There can only be 21 million bitcoin in the world. That is, the number of bitcoin won’t surpass that. This tells us that, in the bitcoin world, inflation won’t come up, deflation is more likely.
- · From the above, we can say using bitcoin is cheap.
- · You can create your own money (We’ll talk about that in the How)
Where can you use bitcoin?
Bitcoin can be used both online and offline. It can be spent on computers, pizza, event tickets, on anything.
How is bitcoin created?
Bitcoin is created through an activity called mining. Mining is when new bitcoins are generated by a competitive and decentralized process. Individuals who engaged in this activity are rewarded by the network for their services. Bitcoin miners are managing transactions and securing the network using specialized hardware and are rewarded with new bitcoins in exchange.
How can I own a bitcoin?
Now, you don’t have to be a miner to own a bitcoin. You can buy bitcoin from certified exchangers (check out https://instantexchangers.net) with your local currency. But first, you’ll then need to create a bitcoin wallet where you can safely store your digital money (check https://jostpay.com).
That’s it; you’re good to go on your bitcoin adventure.
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Bitcoin: The What, Who, Why, Where and How Reviewed by Richard Oyome on 01:36 Rating: