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What is Bitcoin?

Alexandre Roubaud avatar
Written by Alexandre Roubaud
Updated over 2 weeks ago

Bitcoin is a whole new way to store and exchange value around the world ๐ŸŒ.
Itโ€™s the first open, global, and censorship-resistant monetary network ๐Ÿ”. It allows anyone to send and receive money instantly, with very low fees, and without a central authority ๐Ÿ’ธ.

๐Ÿ‘จโ€๐Ÿ’ป Who created Bitcoin?

It all started with a group of tech enthusiasts called the cypherpunks, who, even in the early days of the internet, emphasized the importance of creating anonymous digital cash to help protect our privacy and individual freedoms ๐Ÿ•Š๏ธ.

In the 80s and 90s, several attempts were made: Ecash, Digicash, Cybercash, E-gold, HashCash, and more.
But in 2008, everything changed. A mysterious person (or group) under the name Satoshi Nakamoto introduced Bitcoin to the world in a white paper titled
โ€‹ Bitcoin: A Peer-to-Peer Electronic Cash System ๐Ÿง .And thatโ€™s how the revolution began!

What is Bitcoin?

๐Ÿง  So, what exactly is Bitcoin?

Before being a currency, Bitcoin is a computer protocol.
It enables a completely new way to store and transfer value on the internet, without relying on any third party like a bank โ€” and does so in a way that is:
โœ… ultra secure
โœ… censorship-resistant
โœ… programmable

This system is powered by a digital asset called bitcoin (BTC) ๐Ÿช™
And itโ€™s not just any asset โ€” it has all the key characteristics of money:

  • Durable, divisible, portable, fungible

  • Easy to transfer and store

  • And above all: its issuance is predictable and deflationary ๐Ÿ“‰ (only 21 million bitcoins will ever exist)

Unlike fiat currencies ๐Ÿ’ถ (like euros or dollars), which can be printed at will, Bitcoinโ€™s fixed supply gives people confidence.
Itโ€™s both a revolutionary payment network and a revolutionary monetary system โ€” combined in one single protocol โœจ

How do bitcoin transactions work?

When you own bitcoin, you hold it in a digital storage space called a wallet. Bitcoin wallets can generate unique deposit addresses that change after every transaction. Think of an address like a confirmation code that changes after each login attempt. Your wallet address changes to keep your info safe. You can send or receive bitcoin from one wallet to another using these dynamic wallet addresses.

When you send or receive bitcoin, those transactions are processed by the bitcoin blockchain. The blockchain is a public, distributed digital database that tracks and verifies bitcoin transactions securely with cryptography โ€“ a way of keeping information safe through code. Powerful computers around the world spend energy solving complex mathematical problems to secure the network, and as a result, are compensated for their work with newly created bitcoins. This is called mining (or proof of work). Any person can download a new kind of database on their computer, the blockchain, to validate that each Bitcoin exists โ€“ and confirm its rightful owner. You become your own bank.

How do I use bitcoin on Bitstack?

You can own bitcoin by buying it on any exchange or app that offers it.

With Bitstack, you can:

  • ๐Ÿ’ฐ Buy and sell bitcoin instantly

  • ๐Ÿš€ Send and receive bitcoin effortlessly

  • ๐Ÿ”„ Round up your daily purchases to invest spare change in bitcoin

  • ๐Ÿ“… Set up recurring purchases, starting from just โ‚ฌ1

Bitstack makes Bitcoin accessible, fun, and secure for everyone ๐Ÿงก

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