What is Bitcoin?
Bitcoin is money no one can take without your permission. It cannot be inflated away or confiscated, because no one person, company, or government controls it.
Bitcoin is digital money governed by computer code running on thousands of computers across the world. This computer code is separately run by many thousands of disparate individuals and organizations. This distributed base of code and people is ultimately what gives bitcoin its strong assurances against seizure and inflation.
Bitcoin is the first money system ever created that has a monetary policy anyone can understand and rely on, because no individual or organization has the ability to change it. When Bitcoin was launched in 2009, its monetary policy was defined in its initial codebase as a fixed-supply of 21,000,000 bitcoins. Copies of this code are now running all over the world, working together to process bitcoin transactions every second of every day. Unlike every other digital money system, there is no central point of control that make changes to the money supply.
This distributed nature and fixed supply give bitcoin properties similar to gold, but in electronic, digital form. That makes it fit for the modern economy, and allows for other capabilities that are not possible with physical assets. One way to conceptualize bitcoin is as "digital gold", but there are many ways to think about bitcoin.
How Bitcoin is Different
Until Bitcoin, all electronic money and digital transactions had to be managed by some authority, be it a bank, company, or government. Someone always had to sit in the middle of your transaction, with the ability to approve or deny it, and the currency used always had to be controlled by a central issuer that fully controlled monetary policy (ie, usually a government currency like USD or EUR).
This is not the case with bitcoin. When you want to use it, you can connect your wallet software to the internet and let it talk to the bitcoin network as a whole. You do not need to "login" to any service or have someone else issue transactions on your behalf. Combined with bitcoin's algorithmic monetary policy, this means you fully control your bitcoin, and no one can interfere with your ability to use it, or inflate the value away through monetary policy.
Why Bitcoin Matters
A few of the implications of bitcoin's unique properties include:
Bitcoin is the first scarce digital asset. Until bitcoin, anything digital could be easily copied. Satoshi Nakamoto's solution to this "double spending problem" and related issues around distributing the initial money supply fairly, was a breakthrough in computer science.
Scarcity is a key property of money. Until bitcoin, money native to the internet was not possible. With digital scarcity, native digital money can exist. It's been said that "if the internet were a country, bitcoin would be its currency".
Bitcoin is an open protocol, like other foundations of the internet such as tcp/ip (internet data packets) and smtp (email). Open protocols often dominate indefinately once they achieve an initial critical mass, due to the network effects that build-up on top of them. Bitcoin as a protocol for digital money and store of value is likely no different.
A store of value that's purely digital has many advantages over physical counterparts. Bitcoin can be moved with ease across the world, verified as authentic immediately, and even encrypted and "backed-up" in a "brain wallet" (memorized key).
As scarce digital value with no middleman, bitcoin represents perhaps the only asset that can be completely owned, controlled, and transported without reliance on any 3rd party.
The combination of bitcoin's properties as "digital gold", its censorship resistance, and flexibility due to its digital nature make it a powerful tool for people to take direct control over their financial lives, and/or take refuge from inflationary central bank monetary policies. This is why some describe bitcoin as "a peaceful revolution".
Bitcoin (pre)History
With the rise of PCs and public-key cryptography in the late 1970s, people began to realize that a fully electronic currency, not controlled by any single entity, might be possible. For 30 years, various cryptographers and entrepreneurs launched attempts at such a currency, but never solved key engineering and incentives trade-offs necessary to make it work well.
This changed in late 2008 when Satoshi Nakamoto published the bitcoin whitepaper to a cryptography mailing list, and subsquently published the bitcoin code and launched the bitcoin network in early 2009. Satoshi's achievement was three decades in the making, melding ideas from many other digital currency attempts into one elegant system. For decades many suspected that if a natively-digital money system without central control could be made to work, it would grow and thrive; Bitcoin is proving that true.
ethereum logo ann bitcoin api bitcoin earn bitcoin
tether купить
ethereum php bitcoin database bitcoin js
bitcoin com bitcoin people автомат bitcoin компания bitcoin bitcoin instaforex
алгоритм ethereum Blockchain. An umbrella term for a variety of technologies that distribute control across a large network of individual actors for security purposes.mercado bitcoin monero купить продать monero amd bitcoin
monero hashrate токены ethereum bitcoin сети pps bitcoin bitcoin obmen bitcoin motherboard ethereum block bitcoin spinner bitcoin wikileaks асик ethereum new bitcoin bitcoin видеокарты bitcoin доходность bitcoin flapper fast bitcoin 1070 ethereum bitcoin cz ethereum org geth ethereum bitcoin pool ethereum стоимость clockworkmod tether monero настройка математика bitcoin bitcoin etf bitcoin таблица asic ethereum bitcoin картинка
monero algorithm weather bitcoin
antminer bitcoin coin bitcoin price bitcoin bitcoin usa bitcoin dynamics
майнинг monero bitcoin hunter escrow bitcoin cryptocurrency nem keystore ethereum reklama bitcoin monero client 1000 bitcoin фьючерсы bitcoin форк ethereum проекты bitcoin space bitcoin electrum ethereum raiden ethereum pay bitcoin вывод monero ethereum создатель calculator cryptocurrency
claymore monero cryptocurrency magazine frontier ethereum bitcoin history 60 bitcoin boom bitcoin 0 bitcoin bitcoin rig
python bitcoin bitcoin блог ethereum web3 pull bitcoin trezor ethereum надежность bitcoin hourly bitcoin майнинг monero компиляция bitcoin tether майнить global bitcoin
tether usb In addition to utility value, Ether also has speculative value. This is value that is derived from speculative activities (such as trading and investing) which currently accounts for most of the value behind all crypto-assets. As observed in 2017, crypto-assets can attract substantial speculative interest, with some assets increasing in value by 1000x over just a few months. This speculative interest often brings fresh capital into the ecosystem that can be reinvested into various verticals, but it can be damaging to the short-term market sentiment of all crypto-assets.monero gpu bitcoin freebitcoin ethereum покупка майнер ethereum cryptocurrency nem bitcoin аккаунт Highest fees among exchangesbitcoin otc bitcoin mainer bitcoin monkey goldsday bitcoin bitcoin market tor bitcoin bitcoin block bitcoin обменник bitcoin cny bitcoin forum bounty bitcoin cryptocurrency chart plus500 bitcoin бот bitcoin bitcoin мерчант wikipedia ethereum 2016 bitcoin card bitcoin
scrypt bitcoin продажа bitcoin bitcoin зебра bitcoin io смесители bitcoin monero fee
master bitcoin bitcoin venezuela stealer bitcoin auction bitcoin bitcoin slots bubble bitcoin bitcoin добыть bitcoin block
bitcoin рубли bonus bitcoin падение ethereum ethereum buy
platinum bitcoin bitcoin fpga earn bitcoin download bitcoin win bitcoin bitcoin fees monero обмен ethereum получить bitcoin io bitcoin сети bitcoin hyip bitcoin statistics bitcoin оборот bitcoin майнинг розыгрыш bitcoin вход bitcoin обмен monero box bitcoin coinmarketcap bitcoin monero pools bitcoin desk bitcoin buying bitcoin anonymous nicehash monero lealana bitcoin bitcoin land 1080 ethereum server bitcoin
bitcoin клиент koshelek bitcoin nanopool ethereum bitcoin funding алгоритм ethereum calculator bitcoin monero fr развод bitcoin Ключевое слово компьютер bitcoin konvertor bitcoin 1080 ethereum bitcoin ira
casinos bitcoin tether пополнение bitcoin etf konvert bitcoin обмен monero
miner bitcoin
хешрейт ethereum стратегия bitcoin кран ethereum etoro bitcoin
продам bitcoin продать ethereum bitcoin пул mindgate bitcoin bitcoin word Mining hardwareethereum пул
stakeholder has preferential rights or treatments, but each stakeholder benefits from bitcoin’sbitcoin land bitcoin redex bitcoin майнинг bitcoin nachrichten bitcoin froggy bitcoin work и bitcoin p2pool monero bitcoin onecoin tether provisioning кран ethereum bitcoin кредиты bitcoin etherium market bitcoin bitcoin вирус cryptocurrency capitalization ethereum биткоин bitcoin отслеживание
bio bitcoin bitcoin mining bitcoin 2048
bitcoin etf валюта ethereum проект bitcoin
bitcoin биткоин bitcoin ocean blender bitcoin bitcoin code пожертвование bitcoin рынок bitcoin json bitcoin eth ethereum генераторы bitcoin monero cryptonote ethereum alliance android tether bitcoin монета options bitcoin monero github geth ethereum bitcoin часы lamborghini bitcoin ethereum криптовалюта
bitcoin tor bitcoin ishlash monero node bitcoin магазин ccminer monero сервера bitcoin bitcoin обменять casino bitcoin
2. How do you explain Blockchain technology to someone who doesn't know it?In 2012, the Cryptocurrency Legal Advocacy Group (CLAG) stressed the importance for taxpayers to determine whether taxes are due on a bitcoin-related transaction based on whether one has experienced a 'realization event': when a taxpayer has provided a service in exchange for bitcoins, a realization event has probably occurred and any gain or loss would likely be calculated using fair market values for the service provided.'Monero is a Proof-of-Work (PoW) cryptocurrency, based on the RandomX algorithm, and relies on different privacy features such as Ring Confidential Transactions (RingCT) to prevent non-transacting parties from distinguishing between individual transactions, and stealth addresses to maintain the confidentiality of transacting parties.Some of the key features include:master bitcoin bitcoin monero mine monero bitcoin nedir bitcoin таблица credit bitcoin bitcoin список monero dwarfpool bitcoin take bitcoin carding
bitcoin пузырь bitcoin фарм antminer bitcoin
etoro bitcoin bitcoin yandex bitcoin майнить cubits bitcoin сборщик bitcoin xbt bitcoin bitcoin машины fast bitcoin ads bitcoin Smart contract visualizationbitcoin обменник bitcoin бизнес bitcoin sec market bitcoin best bitcoin bitcoin converter wikileaks bitcoin joker bitcoin ethereum кошелька bitcoin установка
bitcoin work clockworkmod tether приложения bitcoin bitcoin рухнул вход bitcoin bitcoin best bitcoin талк
bitcoin gift bitcoin freebitcoin bitcoin gif майн ethereum price bitcoin bitcoin установка bitcoin wordpress bitmakler ethereum добыча bitcoin bitcoin cgminer bitcoin мерчант регистрация bitcoin
дешевеет bitcoin ethereum обвал баланс bitcoin ethereum client golden bitcoin контракты ethereum bitcoin shops bitcoin greenaddress bitcoin подтверждение форк bitcoin bitcoin hacking carding bitcoin daemon monero bitcoin 4096 платформ ethereum часы bitcoin bot bitcoin ethereum parity wallets cryptocurrency
форк bitcoin index bitcoin bitcoin fund
кредит bitcoin arbitrage cryptocurrency monero вывод bitcoin markets Validate blocks produced by miners, enforcing rules on miners who (if malicious) may be motivated to collude and change the rules.криптовалют ethereum
tether ico bitcoin история
bitcoin doge прогнозы bitcoin bitcoin система tether io bitcoin bestchange ethereum wiki bitcoin golden
ethereum валюта
bitcoin instagram project ethereum кошельки bitcoin bitcoin окупаемость rate bitcoin стратегия bitcoin проект bitcoin bitcoin zona bitcoin playstation dwarfpool monero monero сложность foto bitcoin ethereum wikipedia bitcoin spinner bitcointalk monero bitcoin map all bitcoin значок bitcoin bitcoin лотерея bitcoin get компьютер bitcoin 8 bitcoin The main purpose of this component of blockchain technology is to create a secure digital identity reference. Identity is based on possession of a combination of private and public cryptographic keys.токен bitcoin apk tether bitcoin knots equihash bitcoin
bitcoin magazin bitcoin ann sportsbook bitcoin machines bitcoin bitcoin hype кости bitcoin bitcoin падение
bitcoin knots ann bitcoin
bitcoin kazanma
bitcoin автосборщик bitcoin split ethereum node capitalization cryptocurrency monero xeon app bitcoin калькулятор ethereum bitcoin eth solidity ethereum
bitcoin расшифровка bitcoin mining tera bitcoin ethereum course котировка bitcoin ethereum forks график ethereum monero график bitcoin автоматом
транзакции monero
boom bitcoin
collector bitcoin сборщик bitcoin получить bitcoin tether app книга bitcoin monero обменять bitcoin hub 2016 bitcoin бот bitcoin stock bitcoin bitcoin base
server bitcoin status bitcoin pizza bitcoin How do we make changes to the system? In order to change the consensus code we must somehow achieve human consensus to change the rules of the system. The Bitcoin Improvement Proposal process is described here. It's not perfect, but consensus-building is a messy process.bitcoin шахты course bitcoin monero форум bitcoin баланс bcc bitcoin
пул monero ethereum получить вывод ethereum bitcoin escrow bitcoin nvidia майнер bitcoin ethereum проекты bitcoin magazin armory bitcoin
cryptocurrency calendar ethereum обозначение monero algorithm bitcoin шахты bitcoin rate tether верификация bitcoin golden nem cryptocurrency field bitcoin A miner's fee is 12.5 Bitcoins for adding a block onto the Blockchain; however, the reward reduces by half every four years. When the fourth year approaches, the Bitcoin reward will go down to 6.25 Bitcoins, and miners also get the sum of all the transaction fees for a particular block.bitcoin уязвимости bitcoin покер segwit bitcoin ethereum график bitcoin лохотрон bitcoin китай
bitcoin microsoft ethereum mine
monero майнить bitcoin cards bitcoin today bitcoin пополнение buy tether bitcoin основы monero купить bitcoin зарегистрироваться
ethereum прибыльность cms bitcoin bitcoin сбербанк кран bitcoin bcn bitcoin проекта ethereum Currency is usable if it is a store of value, or, put differently, if it can reliably be counted on to maintain its relative value over time and without depreciating. In many societies throughout history, commodities or precious metals were used as methods of payment because they were seen as having a relatively stable value. Rather than require individuals to carry around cumbersome quantities of cocoa beans, gold or other early forms of currency, however, societies eventually turned to minted currency as an alternative. Still, the reason many examples of minted currency were usable was because they were reliable stores of value, having been made out of metals with long shelf lives and little risk of depreciation.2 