A Simple and Effective Beginner’s Guide to Bitcoin
Bitcoin is a Cryptocurrency that is completely decentralized in nature. No government or central authority can control, tax or track it. It seeks to create a system, where transactions are done in a safe, secure and fast manner.
It also aims to ensure that the receiver receives the sum deposited in full. This means that there are no intermediaries, which take a cut or commission over your hard-earned money. In the following sections, we will look at some of the core features of Bitcoin.
However, before we begin to discuss what Bitcoin is all about, let us first delve into why it was created in the first place.
The History of Bitcoin
Bitcoin was launched in 2008, following a White Paper release by its founder. Satoshi Nakamoto. If you remember, 2007-08 was the period, when the world witnessed one of the biggest financial crashes that plunged countries and corporations in economic despair.
In the same White Paper, the mysterious Satoshi Nakamoto defined Bitcoin in very simple terms- ‘it is a peer-to-peer electronic cash system’. Many people have referred to Bitcoin and other cryptocurrencies as Internet Money.
Most experts and commentators say that Bitcoin emerged because of the failure of ‘Fiat Currencies’. The financial crisis of 2007-08, created sufferings for people who invested in fiat currencies or believed that governments would control the same from depreciating.
In other words, they suffered catastrophic economic damage for no fault of their own, simply because they trusted banks, financial institutions and governments.
Top Features of Bitcoin
In this section, we will look at some features, which have made Bitcoin one of the best creations of the digital world, since the internet.
- Complete Anonymity-
Bitcoin is anonymous, meaning no one knows who owns how much. It also means that there is no public evidence of who is transferring and who is receiving. All transactions are done through a secure encryption code. This makes it impossible for authorities to track. The undetectable nature means that the government cannot take your money away from you.
- Bitcoin is Decentralized-
Another core value, which makes Bitcoin highly desirable is the decentralization factor. This means that Bitcoin and other cryptocurrencies are outside the ambit of governmental interference. They are a truly global currency, which cannot be regulated, monitored or taxed upon by governments, central banks or other authorities.
- Eliminates Transaction Fees-
Every time you make a transfer using PayPal or Western Union, you end up paying 2%-10% transaction fee. If you cumulate the same over a period, you end up paying a huge sum as extra. Bitcoin eliminates this problem. It makes sending and receiving money easy without incurring any financial charges in the form of commissions. It helps you save your hard-earned cash.
- Bitcoin is the Safest mode of doing transactions-
Bitcoin transactions use Blockchain technology to work. If you know about Blockchain, you would know that it is the safest and most trusted way to carry out transactions. Some of the biggest Fortune 500 Companies are experimenting with Blockchain technology to carry out high volume transactions. Blockchain is also lightning fast as compared to other modes.
- Bitcoin is a Global Entity-
We are always talking about a borderless world. How people, material and currency should be enabling in nature. However, in reality, countries and governments are always putting borders, even on free platforms like the internet. Bitcoin seeks to break down monopoly barriers and create a global economic system, which does not depreciate according to the whims and fancies of policy makers.
Bitcoin and it’s uses entail a truly global outlook to the world’s economic and financial landscape. It is no surprise that even after a decade of being called a ‘trend’ Bitcoin continues to attract new investors to the ecosystem.