🌐Bitcoin — what is this?

The first cryptocurrency was Bitcoin (BTC). It is recognized by many as a full-fledged means of payment.

The first cryptocurrency was Bitcoin (BTC). It is recognized by many as a full-fledged means of payment. But to understand what it is, it is worth first understanding the history and the technical part of its establishment.And the first thing to learn is that Bitcoin is a virtual currency. Unlike the U.S. dollar, it is not backed by material resources such as gold.

Who created bitcoin?

Surprisingly, no one knows who the creator of Bitcoin is. This person (or maybe a group of people) published a 9-page document on one of the forums in 2008. It detailed the Bitcoin blockchain technology. The last time Satoshi posted on the forum was December 15, 2010, and disappeared:

How does Bitcoin function?

Cryptocurrency is best compared to cash. Why not with the ones in your bank account, you may ask, since they are also electronic? The difference is that when you give your fiat dollars or euros to the bank, any manipulations you make with them will be carefully controlled, and if the bank doesn’t like something, it can refuse to transfer or withdraw funds — that’s the peculiarity of centralization.

All cryptocurrencies, in turn, are stored in decentralized wallets, and thanks to blockchain technology, only the owner of the wallet has access to it, and the security level of such a wallet is ten times higher than that of any bank. At the same time, you can pay for various goods on the Internet, book hotels, airplane tickets or just transfer cryptocurrency anywhere in the world.

Any amount, without intermediaries or anyone’s permission. Interesting, isn’t it? All this is possible only thanks to blockchain technology. Let’s figure out how it works.