THE MOST IMPORTANT THING YOU SHOULD KNOW ABOUT BITCOIN
Over the years, we have seen how not only the economy and finance have evolved, adapting to a world that is constantly changing, but also the impact that these elements have on the daily life of society and, as in many cases, fiat currencies can be replaced by digital currencies. Online brokerages like immediatefuture.io allow investors to purchase this electronic money with conventional currency.
It is indisputable that Fiat currencies are the ones that determine the monetary value of the goods and services that are offered in the world. Still, new tools have emerged that allow the acquisition of said assets without using them, as is the case of using Bitcoin as a payment method.
To understand what Bitcoin represents in today’s society and its impact on the future, it is essential to break down the two perspectives of Bitcoin; the first is Bitcoin as a cryptocurrency (token), that is, a valuable asset, and the second as a protocol, where its operability is based on a distributed network of information.
Who gave rise to Bitcoin?
Bitcoin has resonated with incredible popularity in recent years, undoubtedly making us return to its beginnings to learn more about it.
This digital asset was created in 2018 without knowing the physical identity of its creator, then a pseudonym with which he became known. Satoshi Nakamoto created Bitcoin as an electronic payment system to eliminate the chain of traditional financial intermediaries.
With this intention, Nakamoto tried to promote financial operations in a personalized way, where only the users had control of the executed operations, offering security, verification within reach of the participants, and the immutability of the transactions.
Until now, the identity of Satoshi Nakamoto is still unknown; although several people have emerged who claims to be this ingenious computer scientist, it could be a group of developers and engineers who were in charge of giving rise to this digital currency.
Bitcoin’s most relevant elements
There are a large number of people who, since the beginnings of cryptocurrencies, have become their faithful followers over the years; many have even achieved millions of dollars in profits, as well as others have been withdrawing on the evolutionary path, and others are skeptical at the impact of digital currencies.
It is essential to highlight the elements that make Bitcoin one of the most attractive digital creations, knowing that its development and use are entirely digital.
- Decentralization is the key.
It is the most relevant characteristic of this digital asset; consequently, it was created to make money accessible to all people, where intermediaries such as traditional banking are left aside because no institution or third party controls the Bitcoin blockchain.
In addition to attracting all those interested parties who are uncomfortable with the control of banks, this digital asset and its cryptographic combination also make it possible to eliminate double spending, that for many is inconvenient and only enriches financial institutions.
- Bitcoin issuance is limited.
The legal tender currencies, known as Fiat, are characterized by unlimited, which gives governments and central banks the power to issue the amount they want and even manipulate their value about other currencies, where inevitably, the cost of this process is paid by the users of the coins.
Unlike Bitcoin, where the supply of this digital asset is limited to a maximum of 21 million, which is directly controlled by the algorithm, where its issuance will be determined over time, this limited feature makes Bitcoin much more attractive.
- anonymity attracts
Bitcoin users know that electronic payments are tracked to comply with anti-money laundering laws and other laws regulating illegal electronic transactions.
Although semi-anonymity is maintained, transactions are verified through the wallets’ addresses.
Conclusion
It is interesting how the creation of this digital asset allows the sending and receiving of payments from one user to another without having to use an intermediary, this being a bank where operations are 100% electronic and whose users are those who have the power to execute transactions directly.
Bitcoin represents the cryptocurrency market leader, not only because of its market capitalization but also because it is the first cryptocurrency that gave way to a new financial system from digital, which has shown significant growth since its creation.
