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.
wikileaks bitcoin
bitcoin compare
bitcoin xl usa bitcoin life bitcoin ethereum wikipedia bitcoin forum ethereum gold airbitclub bitcoin продать ethereum вики bitcoin bitcoin kaufen bitcoin weekly ethereum игра ethereum poloniex ethereum pow bitcoin что счет bitcoin bitcoin мошенники download bitcoin moneybox bitcoin bitcoin easy torrent bitcoin токен bitcoin bitcoin parser bitcoin авито bitcoin calculator monero обмен jaxx bitcoin ethereum купить reindex bitcoin digi bitcoin калькулятор monero monero cpu ethereum complexity testnet ethereum 3d bitcoin etoro bitcoin обвал ethereum zcash bitcoin bitcoin суть cryptocurrency law games bitcoin окупаемость bitcoin bitcoin лопнет краны ethereum заработок ethereum ethereum алгоритм security bitcoin china bitcoin биржи bitcoin bitcoin mastercard bitcoin click wiki ethereum часы bitcoin
эмиссия bitcoin bitcoin кости
Swap tokens – you can trade ETH with other tokens including Bitcoin.bitcoin classic
бесплатно bitcoin генераторы bitcoin bitcointalk bitcoin bitcoin биткоин stats ethereum playstation bitcoin monero настройка кошельки bitcoin coingecko bitcoin trade bitcoin arbitrage cryptocurrency nicehash monero cryptocurrency exchanges bitcoin покупка tp tether accelerator bitcoin bitcoin planet
мерчант bitcoin bitcoin transaction bitcoin safe alpari bitcoin bitcoin fire сеть ethereum добыча bitcoin конференция bitcoin партнерка bitcoin datadir bitcoin ethereum dao avatrade bitcoin хабрахабр bitcoin 50 bitcoin bus bitcoin 0 bitcoin
ultimate bitcoin
bitcoin quotes bitcoin euro bitcoin analysis bitcoin service ethereum investing bitcoin котировки обвал bitcoin bitcoin avalon bitcoin lion история bitcoin rus bitcoin bitcoin super mikrotik bitcoin bitcoin xyz bitcoin london microsoft bitcoin bitcoin покер банкомат bitcoin ethereum os настройка monero
ethereum info decred ethereum фарм bitcoin Just like Ether, Bitcoin is a top cryptocurrency. It’s the first one ever released.bitcoin работа maining bitcoin bitcoin android dogecoin bitcoin bitcoin work bitcoin смесители bitcoin фирмы платформ ethereum ethereum покупка bitcoin rate bitcoin world ethereum покупка trezor bitcoin
краны monero bitcoin redex This would be a lot more efficient, transparent and secure than using centralized servers, as everything could be put on to the same network. Furthermore, the network would never go down and it is fraudproof!The Origin of Cryptocurrencyудвоитель bitcoin bitcoin генератор bitcoin часы ethereum статистика обмен tether 1060 monero bitcoin conference ethereum описание bitcoin 2048 bitcoin ledger bitcoin waves bitcoin бот bitcoin tm forecast bitcoin wirex bitcoin ethereum rotator биткоин bitcoin
20 bitcoin avto bitcoin bitcoin торги сокращение bitcoin ethereum хешрейт bitcoin bitrix hacking bitcoin bitcoin прогноз программа tether bitcoin роботы ethereum russia bitcoin genesis boom bitcoin добыча bitcoin проект ethereum secp256k1 ethereum twitter bitcoin bitcoin dance topfan bitcoin контракты ethereum bitcoin word обвал ethereum bitcoin account bitcoin автоматически avto bitcoin ethereum twitter programming bitcoin bitcoin linux swarm ethereum panda bitcoin bitcoin торговать erc20 ethereum ютуб bitcoin ecdsa bitcoin 6000 bitcoin адрес bitcoin bitcoin автоматически master bitcoin bitcoin ваучер collector bitcoin рынок bitcoin reddit bitcoin bitcoin установка
проекта ethereum bitcoin экспресс алгоритм bitcoin bitcoin софт trade cryptocurrency bitcoin 2017 bitcoin auto развод bitcoin bitcoin акции bitcoin instaforex global bitcoin ethereum кошелек reklama bitcoin bitcoin сокращение приложение bitcoin
trade cryptocurrency ethereum обвал bitcoin форки bitcoin заработок hosting bitcoin bitcoin network bitcoin market galaxy bitcoin ethereum создатель amazon bitcoin putin bitcoin bitcoin биткоин asrock bitcoin box bitcoin торги bitcoin магазин bitcoin bitcoin options доходность bitcoin tracker bitcoin кран ethereum money bitcoin bitcoin форекс bitcoin серфинг bitcoin капча solo bitcoin bitcoin pattern bestexchange bitcoin bitcoin вебмани bitcoin china space bitcoin eth ethereum bitcoin accelerator bitcoin lion flypool monero total cryptocurrency lealana bitcoin bitcoin pizza
bitcoin main bitcoin virus kaspersky bitcoin bitcoin matrix monero пул daily bitcoin
bitcoin daily ethereum cryptocurrency coins bitcoin bitcoin analytics принимаем bitcoin ethereum addresses price bitcoin фото bitcoin
bitcoin capitalization
amazon bitcoin
bitcoin история bitcoin оборот ethereum игра client bitcoin monero ann bitcoin investing foto bitcoin github ethereum bitcoin торговля ethereum логотип donate bitcoin андроид bitcoin приложения bitcoin tether gps вклады bitcoin магазин bitcoin trade cryptocurrency банк bitcoin падение ethereum bitcoin media payoneer bitcoin xbt bitcoin клиент bitcoin little bitcoin
bitcoin презентация ethereum упал ethereum эфир bitcoin mastercard monero прогноз bitcoin аналоги accepts bitcoin bitcoin анализ auction bitcoin bitrix bitcoin
loco bitcoin bitcoin лохотрон bitcoin valet cryptocurrency law gps tether
конвертер ethereum hyip bitcoin платформы ethereum bitcoin world полевые bitcoin ethereum crane bitcoin payza rise cryptocurrency polkadot ico ethereum криптовалюта bitcoin окупаемость bitcoin explorer
casascius bitcoin bitcoin capital
sell bitcoin Before you decide to try it for yourself and while you’re still asking, 'Should I invest in Ethereum or some other cryptocurrency?' instead of telling us that you will, let’s take a look and see if it is something you may want to do.bitcoin технология 'Chain' refers to the fact that each block cryptographically references its parent. A block's data cannot be changed without changing all subsequent blocks, which would require the consensus of the entire network.bitcoin оборудование nem cryptocurrency bitcoin maps
ad bitcoin курсы bitcoin bitcoin alliance uk bitcoin майнить bitcoin conference bitcoin транзакции bitcoin
bitcoin advertising bitcoin org
ethereum платформа bitcoin capitalization site bitcoin kran bitcoin webmoney bitcoin
bitcoin окупаемость bitcoin вход monero cpu bitcoin metal ethereum падает bitcoin 20 bitcoin майнер bitcoin перевод hashrate bitcoin Many beginners in cryptocurrency believe that Ethereum is only as a financial currency, like Bitcoin. This is wrong for many reasons; let’s look at the basics.bitcoin laundering Other Cryptocurrenciestor bitcoin rush bitcoin bitcoin сколько сложность monero bitcoin 2000 ethereum прогнозы tether пополнение bitcoin sha256 github ethereum calculator ethereum login bitcoin bitcoin free
moneypolo bitcoin bitcoin rpg bitcoin аккаунт tether iphone скрипт bitcoin parity ethereum cryptocurrency price блоки bitcoin
bitcoin зарабатывать
currency bitcoin bitcoin gadget ethereum пул bitcoin 1000 day bitcoin bitcoin карты bitcoin weekly bitcoin упал ethereum contract bitcoin работать testnet ethereum bitcoin алматы ферма ethereum
bitcoin strategy cgminer monero оборудование bitcoin эпоха ethereum bitcoin investing loco bitcoin bitcoin xl keystore ethereum adc bitcoin store bitcoin difficulty monero bitcoin мастернода bitcoin анимация Memory: a component to store data temporarily.bitcoin сервисы bitcoin cny ethereum видеокарты miningpoolhub monero trinity bitcoin bitcoin пирамида scrypt bitcoin bitcoin trojan
создатель ethereum 22 bitcoin
cryptocurrency calendar bitcoin оборудование сбербанк bitcoin bitcoin carding Alice need not provide currency to Bob in-person. She may instead transfer this value by first entrusting her currency to a bank who promises to store and protect Alice's currency notes. The bank gives Alice a written promise (called a 'bank statement') that entitles her to withdraw the same number of currency bills that she deposited. Since the money is still Alice's, she is entitled to do with it whatever she pleases, and the bank (like most banks), for a small fee, will do Alice the service of passing on the currency bills to Bob on her behalf. This is done by Alice's bank by giving the dollar bills to Bob's bank and informing them that the money is for Bob, who will then see the amount the next time he checks his balance or receives his bank statement.bitcoin зарегистрироваться
поиск bitcoin новости bitcoin bitcoin euro bitcoin easy bitcoin advcash bitcoin 1000 monero amd bitcoin книга хардфорк bitcoin
tradingview bitcoin cc bitcoin bitcoin advcash bitcoin telegram poloniex monero r bitcoin mac bitcoin monero dwarfpool bitcoin auto apple bitcoin cryptocurrency обналичить bitcoin bitcoin start
bitcoin transaction iphone bitcoin titan bitcoin bitcoin падение kurs bitcoin foto bitcoin Here we see a pretty strong pattern. During the 12-24 months after launch and the subsequent halvings, money flows into the reduced flow of coins, and the price goes up due to this restricted supply. Then after a substantial price increase, momentum speculators get on board, and then other people chase it and cause a mania, which eventually pops and crashes. Bitcoin enters a bear market for a while and then eventually stabilizes around an equilibrium trading range, until the next halving cycle cuts new supply in half again. At that point, if reasonable demand still exists from current and new users, another bull run in price is likely, as incoming money from new buyers flows into a smaller flow of new coins.bitcoin фарм ethereum клиент opencart bitcoin hashrate bitcoin видео bitcoin bitcoin msigna best bitcoin r bitcoin
email bitcoin bitcoin flapper bitcoin block panda bitcoin bitcoin main monero minergate reddit bitcoin bitcoin виджет bitcoin войти monero bitcoin бизнес порт bitcoin bitcoin форекс poloniex ethereum neo cryptocurrency
bitcoin сервер bitcoin instagram форк bitcoin
flappy bitcoin maining bitcoin hyip bitcoin payoneer bitcoin polkadot su bitcoin книга bitcoin tube
bitcoin sha256
bitcoin darkcoin история bitcoin
bitcoin hosting bitcoin pay ethereum web3 bitcoin миксер ethereum заработок iota cryptocurrency bitcoin marketplace ethereum api monero cpuminer tether майнить
ubuntu ethereum bitcoin london bitcoin otc ethereum vk bitcoin ваучер дешевеет bitcoin bitcoin установка 0 bitcoin cryptocurrency charts bitcoin картинка книга bitcoin
secp256k1 ethereum настройка monero king bitcoin bitcoin cache bitcoin регистрация monero вывод bitcoin lurk Gas Limit:cooperating group of attacker nodes.bitcoin banking
film bitcoin bitcoin 123 рост bitcoin приложение tether пузырь bitcoin sportsbook bitcoin uk bitcoin ethereum хешрейт bitcoin machines finney ethereum bitcoin china bitcoin выиграть bitcoin flapper locals bitcoin
скрипт bitcoin bitcoin com
bitcoin instant bitcoin source bitcoin продам bitcoin reward capitalization bitcoin
hacking bitcoin bitcoin часы bitcoin бумажник заработать ethereum fox bitcoin
ethereum windows
bitcoin zona byzantium ethereum
bitcoin life ethereum продам nodes bitcoin bitcoin перевод generate bitcoin майнинг bitcoin bitcoin account keystore ethereum icons bitcoin bitcoin simple bitcoin agario box bitcoin token ethereum monero hardfork bitcoin global bitcoin paw block bitcoin bitcoin air pow bitcoin bitcoin switzerland сборщик bitcoin monero обменять перспектива bitcoin bitcoin 4000 bitcoin автокран андроид bitcoin coin bitcoin registration bitcoin spin bitcoin wikileaks bitcoin проблемы bitcoin cryptocurrency dash bitcoin key bitcoin direct bitcoin pools bitcoin token bitcoin wiki смысл bitcoin иконка bitcoin bitcoin etherium bitcoin регистрации bitcoin вывод ethereum developer antminer bitcoin bitcoin бизнес kinolix bitcoin
bitcoin plugin mikrotik bitcoin The design behind Ethereum is intended to follow the following principles:bitfenix bitcoin Because they are removed from the Internet, at one point paper wallets were considered to be more secure than other forms of cryptocurrency storage.bitcoin технология bitcoin euro master bitcoin monero dwarfpool On 1 September 2020, the Wiener Börse listed its first 21 titles denominated in cryptocurrencies like bitcoin, including the services of real-time quotation and securities settlement.20 bitcoin nodes bitcoin ocean bitcoin tether обменник tether приложение
смесители bitcoin bitcoin magazine пулы bitcoin вложения bitcoin bitcoin yandex bitcoin node будущее bitcoin
реклама bitcoin bitcoin авито ethereum видеокарты bitcoin прогноз bitcoin joker bitcoin qt
bitcoin save bitcoin motherboard