What is Bitcoin?
Have you heard of Bitcoin, but never fully understood what it really is? Here you get a simple introduction and how to buy and sell bitcoins.
Everything we know as cryptocurrency and “blockchain” started with Bitcoin.
Despite the fact that blockchain technology was experimented with as early as the 90s, Bitcoin was the first to launch an open, decentralized network.
On January 3, 2009, Satoshi Nakamato released the first block, also known as the “Genesis block”. It contained the message “The Times 03 / Jan / 2009 Chancellor on the brink of second bailout for banks.”, Referenced from a headline on the front page of The Times – a perfect day to start the Bitcoin adventure!
What is Bitcoin?
Bitcoin is a digital currency and a decentralized peer-to-peer network, operated by the users themselves.
The transactions go directly from sender to recipient, without intermediaries (banks). All transactions are published in the network to prevent the money being spent multiple times. Valid transactions are stored in new blocks that are generated approximately every ten minutes. Each block contains information about the previous block, which means that all blocks are linked together – hence the word “blockchain”.
Who Invented Bitcoin?
No one (or few?) Actually knows who Satoshi Nakamato is – which is probably a pseudonym.
(If you google the name, you get a picture of a man from Japan, but he is not the founder of Bitcoin.)
There have been many attempts to identify who Nakamoto is without anyone succeeding. However, there are rumors that the NSA (intelligence service in the US) has managed to find out who it is, by having analyzed trillions of texts and compared it with Nakamato’s 50 most used words … or is it just a conspiracy theory?
The benefits of Bitcoin
With Bitcoin, you get money transferred instantly, regardless of what day it is, when in the day you transfer, or whether the recipient is on another continent.
Since there are no intermediaries in the network, one must not identify oneself in order to be able to receive or transfer funds. However, since all transactions and balances are open to all to see, precautions must be taken to ensure anonymity.
Ever since its inception in 2009 and until today, there has been only one case of Bitcoin’s software being tampered with.
The incident was named “Value overflow incident”. In short, someone managed to generate 184 billion Bitcoins out of thin air. This was done by taking advantage of the fact that Bitcoin did not calculate the sum of the total values of outputs. The error was corrected within a few hours and the transactions were omitted in the approved blockchain.
Almost all, absolutely all Online Casino and Sportsbook betting sites use Bitcoin (BTC) as payment on both deposits and withdrawals.