Select Page

Bitcoin what is it?

What is Bitcoin?

A Bitcoin, in essence, is money. It's a new kind of digital money. A digital money that allows you to make payments safely, cheaply, quickly and freely around the globe. The revolution that is causing Bitcoin part of its design. It is both a protocol, a payment network and a currency.

It was originally proposed as a concept in 2008, but was released in January 2009 by Satoshi Nakamoto.

What makes Bitcoin special is not that it is a digital currency. The euro, dollar or other currencies are also largely digital, and it is digital money that has existed for decades. Almost all the money that exists is digital. Nor does it make it special that you have reduced transaction costs, or that you perform fast transactions.

These and other characteristics, eventually, will also end up offering them the banks. The main difference, what really makes Bitcoin magical, is that it is a P2P network.Nobody issues the money. This feature separates politics and money. If we understand how money and central banks work, this is a key difference. Since this currency is not controlled by any bank, government or company, it depends on a network made up of computers of people. A decentralized network managed by its users. Therefore the price of Bitcoin is determined by supply and demand. Its value cannot be diluted by monetary policy or the whim of a liquidity-thirsty government.

Bitcoins are not files, there is no specific thing that refers to a bitcoin. The approach is different. Bitcoin is the unit of account for balance sheets managed by the blockchain. What each user has is a key (a password) that manages an address (or account number) on the blockchain.

Just as email was an incredible step forward in communicating, Bitcoin represents a giant step in terms of payment systems.

The analogy that best illustrates the nature and potential of Bitcoin is that "Bitcoin is to money what the Internet to information".

If you are interested in the topic we recommend you also

What are cryptocurrencies and their main features


Call Now ButtonLLámanos