The first cryptocurrency and still the largest
Bitcoin is the very first real cryptocurrency. All other cryptocurrencies were developed as an alternative for this coin and are therefore called Altcoins. The Bitcoin is a means of payment and that’s the end of the matter. It is a real blockchain 1.0 project on which no smart contracts can be built and where it is not about dApps. The coins are increasingly being accepted internationally as a method of payment and as a store of value. The unmatched security and reliability has ensured that this cryptocurrency is the absolute number one measured in both market capitalization and worldwide acceptance. There is a big team working voluntarily behind the scenes and solving all problems that can arise from such a meteoric rise on the world stage in just 10 years.
Satoshi Nakamoto: the person behind Bitcoin
The idea of the Bitcoin comes from Satoshi Nakamoto, probably a pseudonym. Nobody knows who this person is. And although it has often been discussed, it is not actually relevant anymore. BTC has already proven that it is a reliable currency and that hard work is being done behind the scenes without a founder. The idea behind the coin is relatively simple: being able to send money directly to other people with a high degree of safety, anonymity and speed.
Bitcoin is not set up to overthrow the banking system or to make fiat money unnecessary. Some hardcore libertatians have this idea, but it has never been in the roadmap of the coin itself. Bitcoin (BTC), on its own merit, was to become a safe alternative. The popularity of this digital money exceeded all expectations, partly due to the banking crisis in 2008 and a general loss of trust in the financial system.
Scalability and security through mining
Bitcoin relies heavily on the people who mine the coins. Nowadays, this requires specialized equipment and a large budget. The electricity bill becomes huge if you want to compete with other miners for the blocks. The miners are the people who run the computers that approve the transactions on the Bitcoin network. All transactions must be verified and processed quickly and securely. This was not the case for a long time. Because of the increasing popularity there were too many transactions and Bitcoin became slow and criticism flared up. By making changes to the code and the network, most of these problems are now solved. It is clear that the developers are ready when there are problems, but it takes some time to find consensus on the right solutions. Scalability does remain a challenge for the future. But we must not overlook the fact that Bitcoin (BTC) was set up as a secure peer-to-peer payment network, and not as a blockchain that has to grow infinitely in length and width to accommodate all kinds of other functions on the blockchain. Cryptocurrencies such as Cardano and Ethereum were established for this purpose. These chains can deal with more than just payments and therefore have other blockchains.
Bitcoin is:
- Free: there is no exclusion of certain countries or people
- Borderless: there is no country or border that can stop a transaction
- Neutral: the network knows no good or bad, only valid or invalid transactions
- Censorship resistant: there is no restriction and no restriction possible on sender, recipient, time or purpose when using Bitcoin
- Public: all software is open source and can and may be adapted and used by anyone
Is Bitcoin the future?
Yes, Bitcoin (BTC) has become an integral part of the world of digital money. It is the #1 cryptocurrency, it has the largest market capitalization and is often the first cryptocurrency for companies to accept as payment. That is not some hype. Paying with Bitcoin and getting paid with Bitcoin is becoming more and more common. As a result, the demand for the coins continues to rise, and with limited supply it results in prices often showing high peaks. Bitcoin is a reliable alternative to the fiat money, a speculative asset and a new way to diversify an investment portfolio. Bitcoin, the first and largest cryptocurrency, belongs in every serious cryptocurrency portfolio. Add it to your portfolio now before the next price rise!