Bitcoin - The Mother of all Cryptocurrencies
It is very unlikely that you haven’t heard of digital currencies before, but if that is the case, then now is the perfect moment to know more about them. Some digital currencies are also known as cryptocurrencies, they are digital assets mean to be used as a medium of exchange. They are entirely virtual, which means they don’t exist in the physical world because they are made of bits of digital information.
The first cryptocurrency to really shock the world was Bitcoin which is also the first of all cryptocurrencies to release and circulate. It is said that Satoshi Nakamoto was the creator of Bitcoin, but to this date, it is still unknown. The anonymous person or group of people behind this project call themselves as Satoshi Nakamoto, who is supposed to be the first to introduce the Bitcoins in 2009.
Bitcoins, abbreviated as BTC or XBT, are not issued by any bank, government, or central organization. It is a completely decentralized currency. Unlike normal currencies, bitcoins are not minted they are instead mined in a process that requires computational power in order to solve algorithms that result in the creation of Bitcoins that are then put into circulation. As of now (2017) one Bitcoin is over $4000 and it sure seems to continue to go up.
What makes Bitcoin unique?
- It can be exchanged for traditional currencies
- It has a limited supply of 21 million BTC, which means it is a deflationary currency.
- It has lower transaction costs
- It is decentralized
- It is based on mathematical algorithms
- It works as a peer-to-peer electronic cash system
What can Bitcoin be used for?
- Digital trading: As a highly speculative asset, some people buy Bitcoin hoping to sell them later at a higher rate.
- E-commerce: You can use Bitcoin to buy things online
- Medium of exchange: Bitcoin can be used as any other currency to buy goods and services wherever it is accepted as a form of payment.
Undoubtedly, Bitcoin is by far the most common crypto currency and many people are using it. It provides total anonymity, numerous advantages, and safety. Bitcoin started the crypto currency revolution and so far has been leading it successfully. Even though there are many other crypto currencies in the market, and some of them wildly popular, none seem to have a chance to dethrone the mother of all crypto currencies any time soon.