Bitcoin is a new digital payment method. It is the answer to the question of an alternative payment system that arose after the disastrous financial crises of 2008.
The most characteristic feature of this new system is that it is set up in a decentralised way. There is no central organization that controls the Bitcoin system or has, for example, the exclusive right to print coins, such as the dollar, euro or other currencies. Bitcoin is therefore a digital currency and, like with cash money, is a way to exchange value directly from person to person, without involving a third party. This is called a peer-to-peer (P2P) transaction.
Each transaction is stored on the Blockchain. A Blockchain can be seen as a kind of digital ledger consisting of thousands of computers where all transactions are recorded. When, how many and how often new coins are created is fixed in the Bitcoin algorithm. It has been established that more than 21 million Bitcoins (BTC) can never be created. This doesn't have to be a problem, since a Bitcoin can be divided into small parts. This means that the digital currency is also suitable for microtransactions.
- Who invented Bitcoin?
- What is Bitcoin?
- What is Blockchain?
- What is a Node?
- Wat is Cryptocurrency?
- What is an Altcoin?
- What are the differences between Coins en Tokens?
- What are Bitcoin Miners doing exactly?
- What is a Bitcoin address?
- How to store Bitcoins?
- What is an ICO?
- How to start trading crypto currencies
- Crypto definitions
- What is DeFi?