Bitcoin
What is....
Bitcoin?
Bitcoin is a digital asset that exists soley within cyberspace. It was the first and orginal Cryptocurrency, jumpstarting an entirely new asset class.
Now you may be asking “What is a Cryptocurrency?” But that is a topic for another article.
Bitcoin was originally invented by pseudonymous developer Satoshi Nakamoto. Nakamoto designed Bitcoin using a new form of transaction verification coined, blockchain. In simple terms blockchain is a list of records linked together to form a chain of previous transactions. By looking at this chain an individual is able to look at the history of transactions and verify that the transactions are legitimate. This manner of record collection forms a distributed ledger.
To learn more about blockchain check out the official Wikipedia page here: Blockchain
Other Resources:
A Simple Introduction to Blockchain Technology – Coin Bureau
Blockchain Definition: What You Need to Know (investopedia.com)
it used for?
When first created Bitcoin was intended to be used as a completely decentralized digital currency to facilitate daily transactions. As popularity grew it soon became apparent that the nature of Bitcoin was not suitable to handle the volume of day-to-day transactions.
As the Bitcoin protocols popularity grew people began to realize that the deflationary aspects of the coins mining process were perfectly suited for a store of value. This meant Bitcoin was starting to find itself compared to Gold as a hedge against inflation.
These days Bitcoin can be seen as the ETF of the crypto market. If BTC rises so does the market, and if it stumbles so too shall the ones who follow. Although crypto is a speculative game Bitcoin is the safest bet. In 2018 Bitcoin became 10 years old! This milestone became the first true checkpoint in Bitcoins overall history according to the Lindy Effect.
For more on the Lindy Effect: Examining The Lindy Effect Bitcoin – Bitcoin Magazine
the long-term potential?
No one can say for certain what will happen to Bitcoin in the next 10 years, but it is my belief that it will be adopted as a reserve currency by banks and major financial institutions. Due to its supply limit of 21 million coins and the diminishing supply schedule Bitcoin is an ideal place to store wealth long-term. Especially if that wealth totals tens of trillions of dollars.
Price predictions aside I am under the impression that Bitcoin will become a household name utilized by the most elite institutions on the planet. The precedent Bitcoin set when it became the world’s truest form of asset is one that will be replicated for millennia to come. The best explanation of this concept I have heard comes from Michael Saylor the CEO of MicroStrategy.
*Regardless of Political Opinions*
If you truly watch this video, you will see it Michael Saylor explaining the importance of Bitcoin in the grand scheme of humanity. Highly recommend watching the entire thing.