Before you buy your first Bitcoin, you probably want to know what it is, and why there’s been so much hype about it.

Who created Bitcoin?

Known as the godfather of all cryptocurrencies, Bitcoin made its debut in 2009 and is the first cryptocurrency in the world.

Bitcoin’s pseudonymous creator, Satoshi Nakamoto, released a whitepaper which explained Bitcoin — a new peer-to-peer electronic payment system that would enable secure and verifiable transactions without  intermediaries (such as banks).

How Does Bitcoin work?

Bitcoin transactions are recorded on a distributed, public ledger known as the blockchain.

The blockchain allows bitcoin transactions to be recorded and verified. As blockchain promotes transparency, it is not controlled by a single or centralised organisation. 

Perhaps you might be wondering —how does a blockchain ensure that transactions are verifiable and secure?

All confirmed transactions recorded on the blockchain are immutable , which means these records cannot be altered or tampered with.By virtue of being built on peer-to-peer networks, blockchains are less vulnerable to hackers since there is no central point of storage. Instead, the blockchain operates on a decentralised, peer-to-peer network of interconnected devices, also known as nodes. 

A node represents one unit in the blockchain network, and each node owns a copy of the recorded transactions on the blockchain.

Every time someone initiates a bitcoin transaction, they will need the help of nodes to verify the transaction. Nodes help to verify that the user has sufficient spendable balance to send to their recipient.

For example, if you want to pay someone 0.005 BTC for a pair of Nike shoes, the network of nodes will help confirm that you actually have that spendable balance of 0.05 BTC to send out to the recipient.

For example, if you want to pay someone 0.005 BTC for a pair of Nike shoes, the network of nodes will help confirm that you actually have that spendable balance of 0.05 BTC to send out to the recipient.

Why Does Bitcoin Have Value?

Only 21 million bitcoin will ever be produced. This helps to control the scarcity of the digital currency, ensuring that there is a finite supply. Bitcoin’s controlled supply also helps it hedge against inflation, since the network cannot simply decide to produce more bitcoin at will.

Bitcoin can be broken down into smaller units. The divisibility of bitcoin into decimal points allow it to be used as a form of payment for goods and services, and reflect value in fiat currencies like USD and SGD. People can also own a fraction of bitcoin.

What Can You Use Bitcoin For?

👀 Here’s an interesting bitcoin byte! 

The first-ever Bitcoin transaction involved a programmer from Florida who paid 10,000 bitcoin for two large pizzas from Papa John’s - just imagine how much those pizzas would be worth today!

🍕What is Bitcoin Pizza Day ? Read about it HERE 👉

What is the Bitcoin Price Today?

See real-time bitcoin prices in SGD and USD on Coinhako 👉 Click HERE

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