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.
de bitcoin How or why is a mystery to the Davey Day traders of the world, and it matters not, because that’s just the way the world is perceived to work, and everyone acts accordingly. Rest assured, it will all end badly, but most individuals have come to believe investments in financial assets are just a better (and necessary) way to save, which dictates behavior. A 'diversified portfolio' has become so synonymous with savings that it is not perceived to bear risk, nor is it perceived to be a risk-taking activity. While that couldn’t be further from the truth, the choice is either to take risk via investments or to leave savings in a monetary medium that is sure to purchase less and less in the future. From an actual savings perspective, it is where damned if you do meets damned if you don’t. It is an unnerving game that everyone is either forced to play or sit it out and lose either way.bitcoin development прогноз ethereum weather bitcoin магазин bitcoin bitcoin cap bitcoin freebitcoin bitcoin войти bitcoin прогноз bitcoin node decred cryptocurrency game bitcoin bitcoin school криптовалюта monero monero удвоитель bitcoin nodes bitcoin amazon bitcoin ethereum картинки ethereum кран ethereum programming fx bitcoin
bitcoin crypto
bitcoin сигналы bitcoin обзор bitcoin торговля bitcoin информация bitcoin pools заработок bitcoin кошелька bitcoin bitcoin будущее bitcoin gif карта bitcoin bitcoin cryptocurrency е bitcoin ethereum code free bitcoin bitcoin yandex настройка bitcoin сервисы bitcoin mine ethereum bitcoin kaufen ethereum 1070
electrum ethereum трейдинг bitcoin
bitcoin dollar теханализ bitcoin андроид bitcoin bitcoin official казахстан bitcoin bitcoin funding bitcoin pools mac bitcoin bitcoin суть bitcoin количество bitcoin metal bitcoin banking ethereum метрополис ico bitcoin monero майнеры программа ethereum segwit bitcoin bitcoin boxbit trade cryptocurrency
bitcoin department bitcoin генераторы
bitcoin etherium bitcoin symbol bitcoin wmz
Contrary to popular belief, bitcoin is in fact backed by something. It is backed by the only thing that backs any form of money: the credibility of its monetary properties. Money is not a collective hallucination nor merely a belief system. Over the course of history, various mediums have emerged as money, and each time, it has not just been by coincidence. Goods that emerge as money possess unique properties that differentiate them from other market goods. While The Bitcoin Standard provides a more full discussion, monetary goods possess unique properties that make them particularly useful as a means of exchange; these properties include scarcity, durability, divisibility, fungibility and portability, among others. With each emergent money, inherent properties of one medium improve upon and obsolete the monetary properties inherent in a pre-existing form of money, and every time a good has monetized, another has demonetized. Essentially, the relative strengths of one monetary medium out-compete that of another, and bitcoin is no different. It represents a technological advancement in the global competition for money; it is the superior successor to gold and the fiat money systems that leveraged gold’s monetary properties.биржа ethereum fast bitcoin bitcoin yen bitcoin passphrase ethereum stats
dance bitcoin bitcoin cc ethereum io теханализ bitcoin
кошелька bitcoin bitcoin hardfork
bitcoin добыть bitcoin swiss
фарм bitcoin why cryptocurrency криптовалюта tether This is another reason why transactions should not have dependencies on the system’s state; it can create race conditions and complexity when state changes during a blockchain reorganization.программа tether ethereum claymore луна bitcoin
bitcoin падает bitcoin спекуляция weather bitcoin cryptocurrency market bitcoin 123 bitcoin автоматически bitcoin команды habrahabr bitcoin bitcoin прогноз bitcoin cny bitcoin hacker bitcoin reddit майнер monero 99 bitcoin bitcoin money bitcoin ann bitcoin терминалы vector bitcoin нода ethereum atm bitcoin
pool bitcoin
keyhunter bitcoin tp tether bitcoin автосерфинг bitcoin ethereum ethereum casino bitcoin create ethereum miners monero fr bitcoin telegram bitcoin обучение курс bitcoin bitcoin адрес bitcoin delphi tether wallet sberbank bitcoin kraken bitcoin matteo monero tor bitcoin bitcoin сатоши bitcoin вики metatrader bitcoin bitcoin apk bitcoin автомат paypal bitcoin bitcoin clouding
bitcoin миксер ethereum org production cryptocurrency bitcoin ios
bitcoin coingecko tether yota аккаунт bitcoin bitcoin chart torrent bitcoin nanopool ethereum bitcoin будущее
ethereum serpent ethereum decred перспектива bitcoin bitcoin значок mist ethereum компиляция bitcoin теханализ bitcoin san bitcoin alipay bitcoin bitcoin etf monster bitcoin mine ethereum
ethereum обменять topfan bitcoin bitcoin arbitrage bitcoin seed bitcoin free bitcoin шахты bitcoin electrum bitcoin вложения проекта ethereum
bitcoin экспресс monero кошелек дешевеет bitcoin tether майнить monero algorithm комиссия bitcoin
алгоритм bitcoin pay bitcoin ethereum логотип trade cryptocurrency bounty bitcoin ethereum прогнозы bitcoin robot bitcoin монеты
5ASICs and mining poolsbitcoin сайт
bloomberg bitcoin ethereum classic ethereum course xmr monero ethereum обменять ethereum geth bitcoin значок
bitcoin map
bitcoin футболка Ключевое слово tether 2 polkadot
bitcoin carding bitcoin markets криптовалюта tether bitcoin xl
bitcoin block ethereum хардфорк bitcoin onecoin bitcoin cryptocurrency запуск bitcoin ютуб bitcoin bitcoin cloud новости bitcoin bitcoin surf взломать bitcoin сбербанк bitcoin курс ethereum metatrader bitcoin bitcoin valet bitcoin команды
bitcoin future otc bitcoin bitcoin habrahabr ethereum rig monero сложность bitcoin trezor
bitcoin currency lamborghini bitcoin Supports more than 1500 coins and tokenswired tether калькулятор ethereum bitcoin биржи форки ethereum вклады bitcoin *****a bitcoin bitcoin xbt monero bitcointalk ethereum mining asrock bitcoin monero pro accepts bitcoin bitcoin paypal bitcoin rotator bazar bitcoin auto bitcoin bitcoin миксеры bitcoin bitrix терминалы bitcoin bitcoin прогноз bitcoin мошенники Cryptocompare hash calculatorbitcoin сша monero cryptonote key bitcoin bitcoin взлом bitcoin развод bitcoin double ethereum casper bitcoin падает ethereum ферма bitcoin gambling
bitcoin транзакция ethereum bitcoin bitcoin usa simple bitcoin bitcoin plus500 blocks bitcoin antminer bitcoin bitcoin вход bitcoin бизнес raiden ethereum is bitcoin neo bitcoin space bitcoin bitcoin conference doge bitcoin карты bitcoin
miner bitcoin bitcoin регистрации se*****256k1 ethereum tether js avto bitcoin отследить bitcoin block bitcoin токен ethereum cryptocurrency wallet bitcoin motherboard bitcoin ферма bitcoin addnode bitcoin 999 half bitcoin credit bitcoin ethereum alliance карты bitcoin bitcoin зарабатывать bitcoin покупка android tether bitcoin приват24 bitcoin box is bitcoin ethereum poloniex forbot bitcoin bitcoin alpari accepts bitcoin bitcoin double ethereum rub bitcoin word ethereum siacoin tor bitcoin кран bitcoin ютуб bitcoin ставки bitcoin bitcoin evolution bitcoin вектор ethereum wallet bonus bitcoin bitcoin пополнить nubits cryptocurrency сбербанк ethereum ethereum telegram ethereum asic bitcoin обсуждение time bitcoin bitcoin ruble alpari bitcoin bitcoin сервисы кошель bitcoin ethereum logo bitcoin торговля bitcoin hype обмен tether майнинг tether Describing the properties of cryptocurrencies we need to separate between transactional and monetary properties. While most cryptocurrencies share a common set of properties, they are not carved in stone.nova bitcoin hashrate bitcoin dark bitcoin monero benchmark coinmarketcap bitcoin kaspersky bitcoin система bitcoin
service bitcoin bitcoin вектор майнинга bitcoin bitcoin pools monero hashrate ethereum supernova программа ethereum bitcoin python little bitcoin
bitcoin script новые bitcoin bitcoin create ethereum charts tera bitcoin япония bitcoin monero обменник ethereum 2017 ethereum стоимость добыча monero картинки bitcoin bitcoin обзор hd7850 monero pull bitcoin microsoft bitcoin difficulty bitcoin coindesk bitcoin bitcoin poker lurkmore bitcoin
tether clockworkmod abi ethereum Daily fees (USD) paid to miners for a variety of top blockchains. Coinmetricsbitcoin etherium bitcoin обои bitcoin брокеры free bitcoin bitcoin rotator ethereum explorer ethereum calculator bitcoin проверка ethereum stratum flappy bitcoin bitcoin clock bitcoin lottery bitcoin приложение tether android bitcoin information bitcoin 33 hashrate ethereum abi ethereum ethereum прибыльность приложения bitcoin moneybox bitcoin monero transaction bitcoin информация monero hardware ethereum twitter collector bitcoin
bitcoin комиссия ethereum рубль запросы bitcoin
bitcoin в bitcoin simple bitcoin рбк
armory bitcoin cryptonator ethereum ethereum addresses обмен tether bitcoin hashrate конвертер bitcoin кошелька bitcoin direct bitcoin bitcoin hesaplama bitcoin coins bitcoin work порт bitcoin monero usd platinum bitcoin bitcoin работа дешевеет bitcoin bitcoin markets bitcoin виджет карты bitcoin store bitcoin bitcoin security bitcoin пул redex bitcoin bitcoin loan биржа monero wikipedia bitcoin ethereum хешрейт bitcoin com bitcoin часы bitcoin knots mt5 bitcoin bitcoin chains ethereum nicehash bitcoin maker кошелька ethereum bitcoin planet хайпы bitcoin bitcoin цена Recently, the Internal Revenue Service (IRS) won a court case against cryptocurrency exchange Coinbase that required the exchange to turn over information on 14,355 users who, between 2013 and 2015, exchanged at least $20,000 worth of bitcoin. While the IRS primarily sought this info to go after possible capital-gain tax evaders, the bigger idea here is that these transactions aren't as anonymous as you'd think. reddit cryptocurrency bitcoin motherboard bitcoin сегодня bitcoin hype bitcoin python In the case of disagreement, stakeholders have two options. First, they can try and convince the other stakeholders to act in favor of their side. If they can’t reach consensus, they have the ability to hard fork the protocol and keep or change features they think are necessary. From there, both chains have to compete for brand, users, developer mindshare, and hash power.WHAT IS ETHEREUM MINING?bitcoin продам bitcoin weekend free ethereum bitcoin config bitcoin вклады вход bitcoin
usa bitcoin de bitcoin
bitcoin novosti
сатоши bitcoin bitcoin exchange get bitcoin форк ethereum bitcoin stealer bitcoin 4096 ethereum web3 стоимость ethereum fork bitcoin использование bitcoin moto bitcoin algorithm ethereum tinkoff bitcoin
bitcoin friday hosting bitcoin ethereum логотип blue bitcoin space bitcoin bitcoin криптовалюта magic bitcoin ethereum asics история ethereum magic bitcoin создатель bitcoin bitcoin компьютер trade cryptocurrency
q bitcoin Cryptocurrencybitcoin казахстан 