Bitcoin Review

Bitcoin is a decentralized, secure, and untaxable digital currency that is not backed by any central authority. Lately, Bitcoin has been accepted by leading banks such as Goldman Sachs and the National Bank of Canada. What’s more is that the underlying technology of Bitcoin, Blockchain, is being explored by various companies and governments as a replacement for their old data transfer systems.

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That’s part of the appeal of Bitcoin. It works on Blockchain, which is a system that allows transactions to go occur, without tax payments. This makes Bitcoin an attractive option for anyone looking to save money.

Origin

Bitcoin was created in 2009 by an unknown person / persons. They simply refer to themselves as Satoshi Nakamoto. It was a response to the Great Recession of 2008, a symbol of the desire to break free from the authority of banks and governments around the world that had gotten off scot free after robbing people of their savings, livelihoods, pensions and their entire lives (in some cases).

Functions

Bitcoin allows anyone to trade any amount of money for any fraction or whole units of Bitcoin. The transactions are kept public on Blockchain and need to be validated by 51% of the nodes on the Blockchain before they are confirmed.

After every few transactions are validated, the person operating the node that validated the latest transaction is rewarded with a certain number of Bitcoins; this is called a block reward and the action of getting that reward is called Bitcoin mining. That reward however, begins to decrease as time goes on. You could have received fifty new Bitcoins in 2009, but now mining is incredibly hard and requires extensive computer-processing power that it’s simply not worth it.

The creators or creator of Bitcoin designed it in such a way that there could be no more than 21 million of them in existence (at one time). Hence, the more Bitcoin is mined, the closer we will get to that asymptote and the harder it will get to mine Bitcoin in the future.

Today, Bitcoin stands at almost $6500 and is the largest crypto-currency in the world. Due to Biycoin’s meteoric rise and fall in 2017, the whole world paid attention to it. All the naysayers were now interested in what it has to offer.