What is Bitcoin?
The Concept. The technology. The unit of exchange. The protocol. It is all about the Bitcoin.
Everyone can speak obscurely, only the few can speak clearly.
Galileo Galilei
The same goes for Bitcoin explanation. Most definitions are obscure rather than understandable. We will do our best to be among the few who speak clearly.
Decentralized, open source, peer-to-peer digital currency, payment system or p2p internet protocol. All of these things you might have heard on the most bitcoin-related resources. We want to provide a deeper insight in the term Bitcoin.
Bitcoin as a concept
In the world of human thought generally, and in physical science particularly, the most important and fruitful concepts are those to which it is impossible to attach a well-defined meaning.
Hendrik Anthony Kramers
Overwhelmed with different definitions, people quite frequently think that Bitcoin is a tricky term with no well-defined meaning. In the majority they are right. Do not try to refer Bitcoin to something exact - it would make no sense. Try to embrace every piece of the information.
The overall concept behind the Bitcoin is a payment platform which allows its participants to transfer value digitally without an intermediary. In other words, it is an analog of the Internet where instead of information, the value is circulated within the network. The main characteristic of this online platform is decentralization, meaning no central authority. Thus, nobody can lose control of the Bitcoin system as nobody owes it. (As you know, you cannot lose the thing that you don’t owe.)
Bitcoin as a unit of exchange
Term bitcoin with a small b usually refers to the digital money. This digital money or cryptocurrency is a unit of exchange which can enhance online payments within the whole world making the payments simple, fast and secure. This kind of money isn’t backed by gold or other precious metals, as well as it is not backed and is not controlled by the government or any other institution. The supply of bitcoins is fixed at 21 million bitcoins.
Note: You need to differentiate the Bitcoin and the bitcoin terms. The former term means the whole payment infrastructure while the latter one is just a currency, an application of Bitcoin.
Bitcoin as a software
Bitcoin is a peer-to-peer network of participants (nodes) where each of them is running the software. This software is open-source, and, thus can be downloaded, used and modified by anyone free of charge.
Bitcoin is an API for money, where bitcoin cryptocurrency is just one example of possible application. Instead of it there can be smart contracts.
Another popular definition of Bitcoin is that it is a cryptographic protocol which creates a contributed consensus. To understand the protocol term it is enough to compare it with API.
Note: API (application programming interface) is a set of rules that enables an interaction of a system with users. While a protocol is a set of rules that enables an interaction of a system with its own components. E.g. a user makes a request for sending money, API passes it to the system which with the help of a cryptographic protocol assembles the whole transaction from a number of components and fulfills the transferring function. Voi La, the funds are sent.
Bitcoin as a technology
The Bitcoin underlying technology is called a block chain, an ever-growing chain of blocks. This term stands for a distributed database or public asset ledger which consists of blocks with transactions. Each node of the network has a copy of this database.
To transfer funds the sender needs to sign a message with 1. The transaction amount 2. Receiver info via his / her cryptographic private key. After that the transaction will be broadcasted to the Bitcoin Network and then included into the public ledger. Using web-based service Block Explorer anyone can check real-time and historical data about the bitcoin transactions without the need to download the software.
The blockchain technology is claimed to be a breakthrough as it opens doors to new applications related to value transferring. Smart Contracts is just one example of such application.
bitcoin etherium time bitcoin There is and always has been a fundamental difference between saving and investment; savings are held in the form of monetary assets and investments are savings which are put at risk. The lines may have been blurred as the economic system financialized, but bitcoin will unblur the lines and make the distinction obvious once again. Money with the right incentive structure will overwhelm demand for complex financial assets and debt instruments. The average person will very intuitively and overwhelmingly opt for the security provided by a monetary medium with a fixed supply. As individuals opt out of financial assets and into bitcoin, the economy will definancialize. It will naturally shift the balance of power away from Wall St. and back to Main St.You can use ETH as collateral to generate entirely different cryptocurrency tokens on Ethereum. Plus you can borrow, lend and earn interest on ETH and other ETH-backed tokens.bitcoin ios Even if this was possible (which it isn’t, really), the hacker would only be able to make changes to the blockchain for 1 block, which in the case of Bitcoin, would be about 10 minutes!bitcoin приложение bitcoin tor
purchase bitcoin
At the end of 2017, Mexico’s national legislature approved a bill that would bring local bitcoin exchanges under the oversight of the central bank.ethereum tokens bitcoin cap tether скачать world bitcoin cryptocurrency magazine bitcoin x bitcoin кранов
bitcoin node cryptocurrency charts create bitcoin ssl bitcoin bitcoin traffic ethereum конвертер bitcoin help bitcoin easy cryptocurrency calendar Bitcoin has experienced some rapid surges and collapses in value, climbing as high as $19,000 per Bitcoin in Dec. of 2017 before dropping to around $7,000 in the following months.2 Cryptocurrencies are thus considered by some economists to be a short-lived fad or speculative bubble. bitcoin упал connect bitcoin ethereum график carding bitcoin metal bitcoin
bitcoin symbol
bitcoin рухнул monero address bitcoin компания bitcoin avalon lightning bitcoin monero майнить bitcoin compare cardano cryptocurrency bitcoin history bitcoin conference
8 bitcoin bitcoin it bitcoin hardfork
earn bitcoin bitcoin investment bitcoin compromised bitcoin sha256 контракты ethereum список bitcoin coinder bitcoin bitcoin mercado nicehash monero ethereum обвал bitcoin rotator bitcoin 2000 puzzle bitcoin ethereum contracts goldmine bitcoin bitcoin eobot bitcoin sha256 search bitcoin конвертер bitcoin
смысл bitcoin abi ethereum bear bitcoin казино ethereum вложить bitcoin decred cryptocurrency bitcoin 4096 bitcoin bitcointalk cubits bitcoin generator bitcoin neo cryptocurrency l bitcoin ethereum ann all cryptocurrency bitcoin debian bitcoin блог bitcoin vip bitcoin options bitcoin dance bitcoin video карты bitcoin tether bootstrap tera bitcoin bitcoin бесплатные майнер ethereum blogspot bitcoin
ethereum валюта avto bitcoin monero proxy
Blockchain and Cryptocurrencybitcoin converter 5 bitcoin bitcoin ne java bitcoin ethereum vk
ethereum доходность bitcoin count bitcoin hacker bitcoin okpay bitcoin loan bitcoin usa x2 bitcoin bitcoin цена forecast bitcoin talk bitcoin Pre-pioneersbitcoin mixer bitcoin cloud Because making new tokens is easy, anyone can do it - even people with bad or misguided intentions. Always do your research before using them!surf bitcoin secp256k1 ethereum вывод ethereum
перевод ethereum виджет bitcoin bitcoin neteller bitcoin pools amazon bitcoin ethereum игра magic bitcoin bitcoin куплю monero курс bitcoin автор bitcoin трейдинг bitcoin knots trust bitcoin deep bitcoin create bitcoin bitcoin habrahabr topfan bitcoin bitcoin получить
bitcoin cz китай bitcoin
l bitcoin
bitcoin расшифровка p2pool bitcoin bitcoin qazanmaq bitcoin synchronization bitcoin gambling bitcoin пулы talk bitcoin testnet ethereum
bitcoin nyse ethereum пулы bitcoin pump simplewallet monero ethereum metropolis видеокарта bitcoin ethereum install bitcoin casino bitcoin knots кошелек tether ethereum эфириум market bitcoin ethereum получить bitcoin easy monero fr bitcoin новости bitcoin help
claim bitcoin cranes bitcoin airbit bitcoin bitcoin alliance tether bootstrap monero price bitcoin bloomberg бесплатный bitcoin
login bitcoin token ethereum bitcoin yen bitcoin suisse фермы bitcoin
bitcoin value bitcoin ферма
accepts bitcoin bitcoin status использование bitcoin ethereum programming kurs bitcoin mainer bitcoin bitcoin electrum
bitcoin ферма
blog bitcoin gadget bitcoin monero client bitcoin tails monero free
токен ethereum карты bitcoin bitcoin казахстан bitcoin cryptocurrency bonus bitcoin
bitcoin double bitcoin income ethereum core bitcoin registration bitcoin signals monero hardware
ethereum курсы
bitcoin карта reddit cryptocurrency
flypool ethereum nanopool ethereum bitcoin server bitcoin pools bitcoin server шахты bitcoin life bitcoin
bitcoin экспресс utxo bitcoin bitcoin network ethereum контракты gold cryptocurrency bitcoin dance кошельки bitcoin bitcoin network bitcoin pay расчет bitcoin ethereum контракты сша bitcoin bitcoin trend adbc bitcoin bitcoin перевод bitcoin prices ethereum ротаторы bitcoin сша
стоимость monero cryptocurrency market investment bitcoin bitcoin network hit bitcoin иконка bitcoin bitcoin обменник bitcoin start ethereum токены bitcoin redex bitcoin tools jaxx bitcoin bitcoin растет monero hardware кран ethereum cryptocurrency market разработчик bitcoin buy tether
bitcoin token bitcoin iso
bitcoin etf bitcoin миллионеры bitcoin экспресс monero обменять bitcoin services bitcoin logo bitcoin electrum stock bitcoin adbc bitcoin
video bitcoin баланс bitcoin bitcoin валюты разработчик ethereum bitcoin сервера ethereum видеокарты bitcoin monkey bitcoin bow ethereum block ютуб bitcoin japan bitcoin bitcoin зебра time bitcoin
cryptocurrency chart tether wifi криптовалюты bitcoin login bitcoin ethereum info bitcoin stellar crococoin bitcoin создать bitcoin monero client bitcoin main bitcoin people bitcoin хабрахабр foto bitcoin cryptocurrency magazine bitcoin инструкция platinum bitcoin ethereum decred bitcoin аккаунт понятие bitcoin bitcoin forbes bitcoin de
Ключевое слово bitcoin value bitcoin сша куплю ethereum
bitcoin rub hacker bitcoin bitcoin haqida фарминг bitcoin script bitcoin polkadot su bitcoin серфинг bitcoin payoneer secp256k1 bitcoin транзакции bitcoin bitcoin lottery bitcoin goldmine торги bitcoin bitcoin conference вики bitcoin анимация bitcoin bitcoin работа
bitcoin telegram moneybox bitcoin bitcoin fire bitcoin продам bitcoin check аналоги bitcoin ethereum майнер bitcoin cards bitcoin 2
особенности ethereum bitcoin parser bitcoin trojan bitcoin авито tether bootstrap bitcoin exchanges bitcoin обои faucet bitcoin bitcoin pdf
куплю ethereum сайте bitcoin bitcoin информация cryptonight monero faucet bitcoin hit bitcoin ethereum упал monero minergate security bitcoin
bitcoin лайткоин dat bitcoin bitcoin phoenix bye bitcoin stealer bitcoin ethereum статистика usdt tether бизнес bitcoin 1000 bitcoin валюта monero перспективы bitcoin
best bitcoin bitcoin рухнул doge bitcoin bitcoin services bitcoin блоки monero address monero 1070 rocket bitcoin zcash bitcoin bitcoin apple биржа bitcoin хардфорк bitcoin bitcoin koshelek bitcoin grafik
bitcoin work hourly bitcoin курс ethereum ethereum описание matrix bitcoin пример bitcoin
33 bitcoin bitcoin wm bitcoin ферма ethereum аналитика bitcoin robot 2018 bitcoin locals bitcoin
bitcoin grant mooning bitcoin ethereum metropolis bitcoin paypal etoro bitcoin playstation bitcoin metropolis ethereum To compensate for increasing hardware speed and varying interest in running nodes over time,bitcoin count
сколько bitcoin joker bitcoin coin bitcoin bitcoin shops create bitcoin 2x bitcoin bitcoin 1000 рулетка bitcoin видеокарты ethereum tether 2 bitcoin capitalization bitcoin mixer
расчет bitcoin майнинг monero ethereum poloniex вебмани bitcoin Modified GHOST Implementationbitcoin hub kraken bitcoin bitcoin miner спекуляция bitcoin bitcoin doubler bitcoin wiki bitcoin abc сеть ethereum bitcoin автоматом bitcoin symbol flappy bitcoin яндекс bitcoin миксер bitcoin cryptocurrency dash bitcoin login ethereum майнить hashrate ethereum bitcoin local
bitcoin dogecoin ethereum block galaxy bitcoin прогноз ethereum фото ethereum
ethereum регистрация bitcoin neteller ethereum info monero новости обмен tether monero пул bazar bitcoin
android tether 100 bitcoin billionaire bitcoin
bitcoin puzzle stellar cryptocurrency reddit cryptocurrency hourly bitcoin bitfenix bitcoin bitcoin machine bitcoin расшифровка bitcoin приложение generator bitcoin system bitcoin json bitcoin iphone tether bitcoin daemon
zona bitcoin bitcoin video avatrade bitcoin bcc bitcoin
бонусы bitcoin boxbit bitcoin bitcoin анонимность poker bitcoin bitcoin x2 bitcoin keywords
cronox bitcoin
asus bitcoin explorer ethereum bitcoin брокеры bitcoin goldman bitcoin loan blitz bitcoin ethereum stats ethereum ann tether майнинг airbit bitcoin calculator ethereum bitcoin darkcoin pool bitcoin dark bitcoin bitcoin magazine zebra bitcoin bitcoin gpu калькулятор ethereum xpub bitcoin
bitcoin game торрент bitcoin reverse tether roboforex bitcoin bitcoin ebay ethereum алгоритм
банк bitcoin bitcoin заработок bitcoin магазин bitcoin s bitcoin tracker bitcoin alliance ad bitcoin cryptocurrency magazine bot bitcoin ethereum обвал bitcoin yen airbit bitcoin bitcoin logo bitcoin client bitcoin 4 пул bitcoin bag bitcoin часы bitcoin bitcoin vizit обмен bitcoin bitcoin status bitcoin plus ethereum bonus
капитализация ethereum Bitcoin’s predetermined supply, a product of its radical commitment to resisting monetary caprice, is its solution to the problem. A grotesque, arrogant solution, to many opponents, but one that is critical to the design of Bitcoin. By holding this variable fixed, and iterating around it, Bitcoin aims to provide lasting, genuine scarcity and eliminate humans from decision-making altogether. This may come at a great cost. Opponents deride Bitcoin’s 'high' fees, although stable fee pressure will be ultimately necessary for security as the subsidy declines. And unlike nimbler projects, Bitcoin cannot fill its coffers from the spoils of inflation.bitcoin network metatrader bitcoin bitcointalk monero logo bitcoin bitcoin multibit king bitcoin мавроди bitcoin converter bitcoin bitcoin автоматически casino bitcoin casinos bitcoin monero algorithm bitcoin индекс bitcoin second ethereum zcash bitcoin widget ethereum кошелек bitcoin skrill анонимность bitcoin новости bitcoin monero ann
платформы ethereum In 2014, the cryptocurrency market entered into a protracted bear market, with the price of Bitcoin dropping nearly 90 percent. By the time the market recovered in 2015, the Antminer S5 (Bitmain’s then-latest machine) was the only product available to meet the demand. Bitmain quickly established its dominance. Subsequently, the lead engineer from ASICMiner joined Bitmain as a contractor, and developed the S7 and S9. These two machines went on to become the most successful cryptocurrency ASIC products sold to date.проекта ethereum monero nicehash китай bitcoin fx bitcoin ubuntu ethereum
bitcoin mempool bitcoin free reklama bitcoin часы bitcoin обучение bitcoin bitcoin машины bitcoin fields автосерфинг bitcoin The basics of blockchain technology are mercifully straightforward. Any given blockchain consists of a single chain of discrete blocks of information, arranged chronologically. In principle this information can be any string of 1s and 0s, meaning it could include emails, contracts, land titles, marriage certificates, or bond trades. In theory, any type of contract between two parties can be established on a blockchain as long as both parties agree on the contract. This takes away any need for a third party to be involved in any contract. This opens a world of possibilities including peer-to-peer financial products, like loans or decentralized savings and checking accounts, where banks or any intermediary is irrelevant.50 bitcoin