Bitcoin is an advanced digital form of money, fully liquid, defined by its founder Satoshi Nakamoto, as digital cash. Bitcoin is the peer to peer protocol network. A unit is written “bitcoin” or “btc”
After the financial crisis in 2007, the world has experienced a loss of faith and trust in the global financial system, and the (old) idea of creating a fully decentralized money has gain momentum.
Bitcoin has been introduced on the internet in 2008, with the publication of a paper written under the alias of Satoshi Nakamoto into which he defines Bitcoin as digital cash.
A very strong ambition that revolved around 3 issues:
- Bitcoins should be transferable directly from one user to another.
- Implementation of measures to prevent the same bitcoin from being spent twice.
- Guaranteeing money/value without central authority.
Bitcoin is a combination of several earlier innovations such as B-Money and HashCash aiming to create a completely decentralized electronic cash network independent of any central authority for currency issuance, settlement and validation of transactions.
Bitcoins can be sent and received exactly like an email through a protocol.
The protocol is available as open source software that can be run on a different computing devices such as laptops and smartphones.
Users can exchange bitcoin over the network to do just about anything that can be done with fiduciaries currencies, including buy and sell goods, send cash to individuals or organizations, or extend credit.
Bitcoins can be acquired, sold, and traded for other currencies on specialized currency exchanges. Bitcoin in a sense is the perfect form of money for the Internet because it is fast, secure, and borderless.