What is Bitcoin?
Bitcoin, the mother of all cryptocurrencies, has opened up a whole new world of finance and technology.
fundamentals-bitcoin
Bitcoin defies logic, challenges convention and since its invention in 2008 has opened the door to a new wave of innovation in finance and technology.
To understand the foundations of crypto finance technology, you first need to know what Bitcoin is – and why it exists.
The Birth of Bitcoin
In the wake of the 2008 financial crisis, a new and soon-to-be revolutionary technology was brought into the world. Satoshi Nakomoto (a name which remains but a pseudonym to this day) published the Bitcoin Whitepaper, proposing a Peer-to-Peer Electronic Cash System which would allow online payments to be sent over the internet without using a bank or institution as an intermediary. The Bitcoin whitepaper was first published publicly on 31 October 2008.
The ingenious idea of Bitcoin was to use technology to create a currency founded on principles of mathematics, cryptography, game theory and social economics and in doing so address many of the perceived flaws in the world of finance. It could link unknown parties together to complete transactions and combat the incentives of corrupt persons or organizations to control and exploit money at the expense of others. For the first time, it was possible to explicitly depict and allocate digital value on the internet without the help of a third party.
Bitcoin’s Technological Revolution
In order to achieve these aims, Bitcoin was designed around a peer-to-peer, decentralized network for the transacting of Bitcoin – the “token.”
As a transaction-enabling technology, the Bitcoin blockchain creates a transparent, distributed ledger to record all transactions and prevent double-spending of its digital currency. The organization and maintenance of this cryptographically-secured, distributed ledger involves the participation of node operators to secure and keep the network up-to-date.
When transactions are initiated, they are cryptographically “signed” by the transacting parties so that the network can validate the fact that sufficient funds are available to do as they wish. Each transaction is time-stamped for immutability and then added to a block of other transactions to be recorded by the network.
The most important players in the operation of this protocol are mining node operators which use significant computer power to create each new block and secure the integrity of the ever-growing chain of blocks. They are incentivized for this work with newly “mined” Bitcoin for their work. The maximum total supply of Bitcoin to be created is 21 million and the reward distributed to miners is periodically altered or “halved” approximately every 4 years. The next halving of the Bitcoin block reward will take place in early- to mid-2020.
The combination of technical innovation and an applied philosophy of decentralization allowed Bitcoin to achieve the goal allowing any individual to transfer value independently of intermediaries and across borders.
Bitcoin as Digital Money
As mentioned already, the Bitcoin protocol issues the Bitcoin “token” as a reward to participants in the network. This creates the currency which is used in this “Peer-to-Peer Electronic Cash” system.
While Bitcoin does not have the features of many of the traditional currencies which we know and use today – the US dollar, Euro or Swiss franc, it is used by some as a medium of exchange for goods and services. On a larger scale, however, Bitcoin is considered a strong store of value, making it a sought-after asset by investors.
The Value of Bitcoin as an Asset
As the first cryptocurrency, Bitcoin ushered in the concept of purely digital assets, which many consider to be a completely new asset class.
Trading Bitcoin as an asset on open markets involves many of the same dynamics which financial professionals are accustomed to; it does, however, also react to various other trends more closely tied to its technological foundation. As such, Bitcoin may present specific challenges for investors who are new to the digital asset space.
Of all cryptocurrencies, Bitcoin remains dominant with a combined market capitalization of over 210 million USD at the time of writing – with a circulation of approximately 18 million.
Bitcoin is traded across a wide range of marketplaces and exchanges. Volumes on these marketplaces remain solid, although prices may vary significantly from one to the other.
Some renowned investors such as Warren Buffet have expressed skepticism regarding Bitcoin as an investable asset. But others see its long-term potential and there has been increasing discussion around the topic of its becoming a kind of “digital gold” providing a safe haven in uncertain market conditions.
The growing number of financial instruments being created around Bitcoin, as well as other cryptocurrencies also underscores its increased acceptance as an investment. Exchange-traded products in Switzerland based on Bitcoin are some of the highest-traded products on the SIX Swiss Exchange.
Conclusion
Bitcoin is here to stay. As the very first cryptocurrency, it has opened the door to a new world of digital money and even more than digital money – digital value that knows (almost) no boundaries.
As the world embraces digitalization more and more, the value of what Bitcoin is and what it makes possible will become ever more apparent.
майнинга bitcoin cryptocurrency gold bitcoin форк bitcoin видео bitcoin fees ethereum faucets windows bitcoin bitcoin порт bitcoin oil mmm bitcoin ethereum homestead hd7850 monero zcash bitcoin scrypt bitcoin 5 bitcoin bitcoin book котировка bitcoin bitcoin daemon
краны monero
алгоритм monero captcha bitcoin bitcoin работать
hit bitcoin claymore monero bitcoin ann bitcoin monkey local ethereum pull bitcoin консультации bitcoin вебмани bitcoin bitcoin кошелек пулы ethereum bitcoin scrypt bitcoin greenaddress
ethereum биткоин aml bitcoin bitcoin игры bitcoin today keys bitcoin ethereum ann bitcoin xt monero пулы форумы bitcoin
bitcoin vip bitcoin фермы ethereum claymore bitcoin maps ethereum mine casascius bitcoin lamborghini bitcoin bitcoin birds monero кран bitcoin prices avatrade bitcoin порт bitcoin аналоги bitcoin bitcoin abc my ethereum secp256k1 bitcoin bitcoin get bitcoin etherium сбербанк bitcoin
bitcoin playstation business bitcoin bitcoin apk обзор bitcoin bitcoin pps сложность monero bitcoin mining bitcoin pdf korbit bitcoin ethereum install ethereum transactions
bitcoin hardfork daily bitcoin
wallpaper bitcoin ethereum addresses вклады bitcoin bitcoin uk bitcoin оборудование bitcoin стратегия
bitcoin хардфорк bitcoin fpga bitcoin раздача bitcoin hyip bitcoin metatrader
testnet ethereum bye bitcoin ads bitcoin
bitcoin instagram alien bitcoin bitcoin сети gadget bitcoin ethereum markets ethereum обменники ethereum install index bitcoin ethereum mist фонд ethereum картинки bitcoin продать monero bitcoin инструкция monero bitcointalk carding bitcoin криптокошельки ethereum ethereum доходность ethereum цена bitcoin казино
ethereum io сложность ethereum bitcoin key bitcoin 2020
bitcoin lion ethereum info 22 bitcoin bitcoin bloomberg equihash bitcoin token ethereum
логотип ethereum rbc bitcoin bitcoin динамика 1 monero bitcoin мониторинг казино ethereum bitcoin приват24 bitcoin окупаемость bitcoin вложения cryptonator ethereum cryptocurrency magazine paypal bitcoin forum ethereum ethereum описание
bank bitcoin skrill bitcoin bitcoin gold btc ethereum cpa bitcoin ethereum fork bitcoin koshelek ethereum алгоритм
ethereum доходность secp256k1 ethereum bitcoin tm
rub bitcoin фермы bitcoin bitcoin fpga bitcoin update
mooning bitcoin reverse tether book bitcoin avatrade bitcoin bitcoin telegram wallpaper bitcoin bitcoin update обменники bitcoin 99 bitcoin converter bitcoin dapps ethereum bitcoin converter cpuminer monero bitcoin evolution bitcoin iphone gift bitcoin bitcoin комментарии fpga ethereum лотерея bitcoin frontier ethereum зарабатывать bitcoin скачать ethereum bitcoin capital валюта bitcoin linux ethereum bitcoin land bitcoin ротатор инструкция bitcoin gadget bitcoin bitcoin scripting bitcoin вложить monero калькулятор ico cryptocurrency android tether создатель bitcoin
bitcoin instagram
bitcoin elena tether bootstrap bitcoin nodes
connect bitcoin x2 bitcoin bitcoin payza cryptocurrency это email bitcoin bitcoin up goldsday bitcoin ethereum browser iso bitcoin importprivkey bitcoin bitcoin knots bitcoin часы kinolix bitcoin новости bitcoin компиляция bitcoin java bitcoin Suppose Bitcoin has been around for a while after a period of explosive demand. It’s at a point where some money is flowing in regularly, and many people are holding, but there’s not a surge in enthusiasm or anything like that. Just a constant low-key influx of new capital. For simplicity, we’ll assume people only buy once, and nobody sells, which is of course unrealistic, but we’ll address that later.bitcoin информация
masternode bitcoin The financial services industry is an open field that uses blockchain technology extensively, but it's not the only one. Forbes mentions healthcare, crowdfunding, and ride-sharing in its article 'Eight Ways Blockchain Will Impact the World Beyond Cryptocurrency.' Let's look at a few other fields.tracker bitcoin connect bitcoin кошель bitcoin bitcoin double bitcoin auto flappy bitcoin master bitcoin bitcoin покупка uk bitcoin casper ethereum Find the download for the appropriate version of Windows here, or GPU mining instructions for other operating systems here.вывод ethereum
обмен monero forecast bitcoin microsoft bitcoin ethereum project bitcoin greenaddress
форумы bitcoin bitcoin lurkmore ecdsa bitcoin wiki bitcoin salt bitcoin ethereum клиент картинки bitcoin bitcoin мастернода big bitcoin
bitcoin eu bitcoin генераторы monero gpu bitcoin портал
clame bitcoin bitcoin bcc bitcoin statistics блок bitcoin 1080 ethereum bitcoin покупка
bitcoin logo теханализ bitcoin
инструмент bitcoin bitcoin song торговать bitcoin bitcoin ферма bitcoin cny block bitcoin bitcoin шахта
bitcoin blog ethereum asics bitcoin weekly bistler bitcoin python bitcoin раздача bitcoin мастернода ethereum card bitcoin
win bitcoin падение ethereum bitcoin видеокарты autobot bitcoin
pool monero konvert bitcoin machine bitcoin withdraw bitcoin аналитика bitcoin bitcoin keys bitcoin keywords zebra bitcoin debian bitcoin bitcoin x2 x2 bitcoin bitcoin vip платформа bitcoin bitcoin loan programming bitcoin заработка bitcoin epay bitcoin bitcoin казино bitcoin hunter продам bitcoin
blue bitcoin bitcoin стратегия
bitcoin окупаемость bitcoin автоматически bitcoin 20 ethereum pool торговать bitcoin bitcoin комиссия cryptocurrency charts bitcoin farm bestchange bitcoin bitcoin legal bitcoin qr cryptocurrency capitalisation терминалы bitcoin bitcoin sec bitcoin china bitcoin bitrix in bitcoin yota tether серфинг bitcoin bitcoin transaction bitcoin wmx kupit bitcoin купить ethereum ethereum алгоритмы биржа ethereum bitcoin информация bitcoin converter cryptocurrency forum bitcoin sweeper tether валюта flash bitcoin bitcoin bitrix
okpay bitcoin приложение bitcoin bubble bitcoin
monero proxy ethereum transactions bitcoin service ethereum пулы bitcoin rt
bitcoin lurkmore
1080 ethereum bitcoin зебра cpa bitcoin криптовалюта ethereum
ads bitcoin bitcoin magazin tether обмен testnet ethereum monero gpu bitcoin xpub capitalization bitcoin сколько bitcoin value bitcoin
bitcoin программа bitcoin динамика mercado bitcoin курс ethereum back to top Proof Of WorkIn any event, while historically intrinsic value, as well as other attributes like divisibility, fungibility, scarcity, durability, helped establish certain commodities as mediums of exchange, it is certainly not a prerequisite. While bitcoins are accused of lacking 'intrinsic value' in this sense, they make up for it in spades by possessing the other qualities necessary to make it a good medium of exchange, equal to or better than commodity money.transactions bitcoin пул bitcoin bitcoin onecoin bitcoin check short bitcoin bitcoin antminer кран monero
trade cryptocurrency gek monero bitcoin kazanma bitcoin markets hacking bitcoin bitcoin инструкция динамика bitcoin ethereum ico In many cases, monetary discretion — the ability to inflate supply at will when required — is presented as an innovation relative to Bitcoin. But to me, it simply recaptures the model espoused by dominant monetary regimes: a central entity retaining discretion over the money supply, periodically inflating it to finance policy initiatives. As we have seen in places like Venezuela and Argentina, governments tend to abuse this privilege. Why would cryptocurrency developers be any different?korbit bitcoin electrum bitcoin bitcoin автоматически tether транскрипция bitcoin пополнение algorithm bitcoin
bitcoin cost bitcoin 10000 bitcoin monkey bitcoin проект
dark bitcoin bitcoin арбитраж bitcoin api alliance bitcoin
bitcoin руб bitcoin bear заработок ethereum javascript bitcoin In the caveman era, people used the barter system, in which goods and services are exchanged among two or more people. For instance, someone might exchange seven apples for seven oranges. The barter system fell out of popular use because it had some glaring flaws:forecast bitcoin обменники bitcoin bitcoin mt4 bitcoin skrill mine monero ethereum frontier cryptocurrency wallet раздача bitcoin
bitcoin scripting monero algorithm LLL (Lisp Like Language) – similar to Lisp and was only really used in the very early days. It is probably the hardest to write in.bitcoin xl зарегистрировать bitcoin bitcoin convert
россия bitcoin bitcoin play bitcoin автоматический ethereum algorithm bitcoin motherboard
raspberry bitcoin top cryptocurrency
обменник bitcoin bitcoin demo рулетка bitcoin delphi bitcoin 6000 bitcoin капитализация ethereum
инструкция bitcoin trezor bitcoin bitcoin fire decred ethereum
bitcoin вложить daemon bitcoin bitcoin удвоить bitcoin trading bitcoin калькулятор стоимость monero bitcoin теханализ qiwi bitcoin nodes bitcoin
алгоритм bitcoin keystore ethereum добыча bitcoin miner bitcoin polkadot ico bitcoin lurk mainer bitcoin
moon bitcoin bitcoin local
bitcoin earn bitcoin scanner bitcoin tor 33 bitcoin bitcoin казахстан mine ethereum bitcoin grafik bitcoin links bitcoin mmgp
account bitcoin ava bitcoin конвертер ethereum tether кошелек monero rur bitcoin maps Finally there is the cheapest option of them all, the Moonlander 2. To use the Moonlander all you have to do is plug it into your USB port, it’s that simple.get bitcoin bitcoin kran bitcoin explorer ethereum torrent ethereum получить
bitcoin auto bitcoin mt4 earn bitcoin
пул ethereum порт bitcoin bitcoin автосерфинг bitcoin портал стоимость ethereum kran bitcoin all bitcoin ethereum logo ethereum homestead bitcoin продам bitcoin курс fields bitcoin bitcoin лохотрон tether android geth ethereum эмиссия bitcoin bitcoin экспресс bitcoin криптовалюта metropolis ethereum cryptocurrency prices film bitcoin bitcoin calc wmx bitcoin ethereum новости trade cryptocurrency bitcoin info daemon bitcoin иконка bitcoin cryptocurrency tech index bitcoin tether coin market bitcoin secp256k1 bitcoin bitcoin json bitcoin favicon bitcoin это bitcoin китай робот bitcoin bitcoin utopia account bitcoin rus bitcoin mt5 bitcoin cpa bitcoin проблемы bitcoin bitcoin 3d шифрование bitcoin рынок bitcoin bitcoin usd bonus bitcoin
bitcoin tails card bitcoin etoro bitcoin
zcash bitcoin ethereum siacoin secp256k1 ethereum 10000 bitcoin bitcoin center
bitcoin проверить bitcoin ads box bitcoin график bitcoin покер bitcoin токен ethereum windows bitcoin planet bitcoin bitcoin playstation скачать bitcoin торги bitcoin utxo bitcoin bitcoin код bitcoin de laundering bitcoin loco bitcoin
air bitcoin bitcoin com ethereum crane майнеры monero bitcoin io ethereum myetherwallet dogecoin bitcoin project ethereum ethereum алгоритм bitcoin greenaddress обменять ethereum
microsoft bitcoin bitcoin torrent ethereum linux abi ethereum trezor bitcoin alpari bitcoin bitcoin лопнет bitcoin capital ethereum bitcoin продать bitcoin
blockchain ethereum bitcoin команды email bitcoin buy ethereum bitcoin cost bitcoin миллионер chaindata ethereum bitcoin monkey bitcoin future
explorer ethereum
Example of a naïve CoinJoin transaction.капитализация bitcoin hd bitcoin mac bitcoin finex bitcoin количество bitcoin wordpress bitcoin ubuntu ethereum график ethereum 3d bitcoin tether limited настройка monero 1070 ethereum ethereum network bitcoin авито будущее ethereum bitcoin продать etoro bitcoin bitcoin average bitcoin ru polkadot stingray bitcoin c
mining ethereum preev bitcoin bitcoin настройка bitcoin сегодня trade bitcoin
bitcoin elena курс ethereum 2013–2016monero ico bonus bitcoin rate bitcoin bitcoin nvidia почему bitcoin bitcoin зарегистрироваться bitcoin euro wallpaper bitcoin бот bitcoin ethereum complexity bitcoin сети trading cryptocurrency gambling bitcoin bitcoin проверить cryptocurrency magazine bitcoin market bitcoin работать bitcoin экспресс joker bitcoin bitcoin бесплатные ethereum russia виталик ethereum bitcoin bloomberg collector bitcoin ethereum видеокарты
bitcoin миксер майнеры monero
bitcoin icons
bitcoin клиент change bitcoin проект bitcoin secp256k1 bitcoin bitcoin хайпы bitcoin автомат
autobot bitcoin шахта bitcoin monero cpu bitcoin fork abc bitcoin loco bitcoin click bitcoin bitcoin зарегистрировать bitcoin electrum ethereum telegram bitcoin 1000 bitcoin официальный bitcoin кости bitcoin valet доходность bitcoin bitcoin обналичивание бонус bitcoin monero пул bitcoin poloniex ethereum пулы bitcoin transaction bitcoin обмен monero amd monero 1060 cryptocurrency mining circle bitcoin ethereum addresses wechat bitcoin bitcoin formula bitcoin keywords wmz bitcoin хешрейт ethereum компьютер bitcoin ethereum кошельки получение bitcoin
bitcoin etherium wikipedia bitcoin bitcoin кошельки ethereum usd bitcoin обменник love bitcoin bitcoin сервер bonus bitcoin bitcoin bazar играть bitcoin clockworkmod tether bitcoin otc tor bitcoin ethereum кошелек qiwi bitcoin pixel bitcoin magic bitcoin panda bitcoin асик ethereum bitcoin ваучер технология bitcoin ethereum alliance bitcoin аналоги инвестиции bitcoin bitcoin market bitcoin cache dag ethereum alpha bitcoin е bitcoin bitcoin world erc20 ethereum bitcoin skrill ethereum купить ethereum биткоин bitcoin instant
bitcoin фарминг bitcoin ethereum monero кошелек bitcoin sha256 ethereum pos лото bitcoin bitcoin cgminer cryptonote monero bitcoin freebitcoin пицца bitcoin
bitcoin source bitcoin сегодня bitcoin masters ethereum проблемы polkadot store создатель ethereum bitcoin wallet
xronos cryptocurrency claim bitcoin анонимность bitcoin bitcoin cash bitcoin make ethereum вики
bitcoin miner iota cryptocurrency торрент bitcoin monero кран ethereum 4pda ninjatrader bitcoin ethereum telegram bitcoin cash ethereum обменники bitcoin birds
шахта bitcoin hacking bitcoin system bitcoin bitcoin ocean main bitcoin monero обменник 99 bitcoin ethereum course видеокарты ethereum bitcoin marketplace видеокарты bitcoin bitcoin calculator 4. Blockchain in Financial Servicesethereum монета
blue bitcoin bitcoin fpga bitcoin video bitcoin магазин nodes bitcoin bitcoin mastercard
advcash bitcoin bitcoin fees card bitcoin настройка monero
ropsten ethereum
bitcoin school platinum bitcoin tether майнить команды bitcoin bitcoin air bitcoin direct bitcoin betting bitcoin changer ethereum studio accepts bitcoin заработать ethereum bitcoin surf cryptocurrency wallet bitcoin go проверка bitcoin адрес ethereum bitcoin knots tether iphone xbt bitcoin bitcoin golden
dao ethereum bitcoin koshelek ethereum получить bitcoin 2017 биржа bitcoin greenaddress bitcoin терминал bitcoin
cryptocurrency bitcoin formula rigname ethereum monero usd bitcoin биржи bitcoin golden bitcoin login bitcoin com
cms bitcoin monero difficulty играть bitcoin monero биржи bitcoin venezuela иконка bitcoin zcash bitcoin capitalization bitcoin carding bitcoin bitcoin onecoin bitcoin dogecoin bitcoin игры monero amd bitcoin mac system bitcoin make bitcoin difficulty bitcoin pump bitcoin миллионер bitcoin bitcoin настройка bitcoin украина claymore monero php bitcoin bitcoin 1000 bitcoin авито bitcoin reddit By design, bitcoin exists beyond governments. But bitcoin is not just beyond the control of governments, it functions without the coordination of any central third parties. It is global and decentralized. Anyone can access bitcoin on a permissionless basis and the more widespread it becomes, the more difficult it becomes to censor the network. The architecture of bitcoin is practically purpose-built to resist and immunize any attempts by governments to ban it. This is not to say that governments all over the world will not attempt to regulate, tax or even ban its use. There will certainly be a fight to resist bitcoin adoption. The Fed and the Treasury (and their global counterparts) are not just going to lay down as bitcoin increasingly threatens the monopolies of government money. However, before debunking the idea that governments could outright ban bitcoin, first understand the very consequence of the statement and the messenger.bitcoin gadget mine ethereum
tether gps bitcoin s форк ethereum пример bitcoin
аналоги bitcoin bitcoin скачать bitcoin satoshi куплю ethereum продам bitcoin yandex bitcoin bitcoin word monero криптовалюта bitcoin dark bitcoin like реклама bitcoin карты bitcoin bitcoin asic bitcoin options why cryptocurrency bitcoin agario forecast bitcoin get bitcoin kurs bitcoin bitcoin nedir продажа bitcoin block ethereum курса ethereum okpay bitcoin ethereum usd ethereum аналитика bitcoin обвал bitcoin мерчант tether android bitcoin escrow ethereum info bitcoin 10000 999 bitcoin китай bitcoin ethereum os bitcoin safe bitcoin mixer bitcoin monkey bitcoin 10 utxo bitcoin bitcoin прогнозы bitcoin usa cfd bitcoin bitcoin cards trade bitcoin wikipedia cryptocurrency bitcoin games bitcoin кошелька
ethereum майнить bitcoin maker зарегистрировать bitcoin bitcoin команды cryptocurrency tracker bitcoin ethereum myetherwallet bitcoin eth daily bitcoin erc20 ethereum bitcoin wordpress mmm bitcoin flypool monero hub bitcoin кости bitcoin iso bitcoin ethereum addresses fox bitcoin local bitcoin hit bitcoin ethereum краны exchange bitcoin математика bitcoin bitcoin халява bitcoin department видеокарты ethereum сборщик bitcoin платформу ethereum metropolis ethereum wikileaks bitcoin usb bitcoin кошельки bitcoin bitcoin sha256 криптовалюту monero reward bitcoin bubble bitcoin купить monero kinolix bitcoin
playstation bitcoin курс bitcoin plasma ethereum удвоить bitcoin ethereum асик ethereum addresses
разработчик bitcoin ферма ethereum bitcoin fpga cranes bitcoin mikrotik bitcoin monero usd 6000 bitcoin bitcoin расчет monero ann автомат bitcoin registration bitcoin plus bitcoin часы bitcoin покер bitcoin
картинка bitcoin monero кошелек япония bitcoin monero bitcointalk bitcoin onecoin bitcoin convert