Bitcoin is a decentralized currency, meaning no government or financial institution controls it. Instead of a central power controlling it, bitcoin operates based on a cryptography system, allowing users to receive and send payments without an intermediary institution.
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What is Bitcoin and how it works
Satoshi Nakamoto is the name associated with Bitcoin creation, nobody knows if the pseudonym refers to a group or a person. The purpose of the currency is to be a peer-to-peer payment system, removing the intermediary in a transaction between two parties.
Blockchain is the name of Bitcoin’s distributed ledger, which is a key feature of the cryptocurrency. The Blockchain is public and transparent, anyone can see and interact with it, and it keeps a record of all transactions that occurred in the network. The maintenance of the network is made with the use of complex algorithms, verified and processed by a global network of computers (known as nodes).
Since Bitcoin is decentralized, it does not have the same regulations and restrictions that traditional currencies have. Although it has been and can be used for controversial activities, it is mainly seen as a tool for empowerment and financial freedom, especially in countries with limited access to financial systems and unstable currencies.
Bitcoin transactions and Storage
Transactions in Bitcoin have low fees compared to most traditional payment methods, it is processed securely and quickly. It can be bought on centralized exchanges such as Coinbase, Binance and KuCoin, and also be used to purchase from merchants who accept it. It is also possible to buy Bitcoin peer-to-peer, with more privacy, using decentralized exchanges such as Bisq, LocalBitcoins, Robosats and etc.
Users of Bitcoin have several ways to store their balances in different types of wallets. The most common are Paper Wallets, Hardware Wallets (Cold Wallets) and Software Wallets (Hot Wallets). No matter which kind of wallet is chosen, security and best practices must always be taken into account.
The future of Bitcoin
Bitcoin has a great potential for disrupting traditional financial systems and empowering individuals, although despite the attention and popularity gained over the past decade, it is still a volatile currency. It is not possible to foresee the future of Bitcoin at this moment, but every year more and more people have adopted the currency, some speculate it can become the main global currency, used as reference in the entire world. No matter what path Bitcoin takes, watching the impact and the evolution of the technology can be intriguing and interesting in the years to come.
