How Bitcoin is Revolutionizing The World

There has been a lot of talk and major news coverage about Bitcoin. The thing is, the media doesn’t do a good job covering this topic. There is a lot of confusion about what it is and why people should even pay attention to it. In this article, I will provide a brief introduction to Bitcoin. The topic is long and complicated so I can’t cover everything. This will just be a simplified explanation of what it is and how it is revolutionizing the world.

What is Bitcoin?

The simple answer is that it is a form of digital currency also known as cryptocurrency.

Bitcoin was invented by an anonymous creator by the name of Satoshi Nakamoto. Some people say Satoshi is a collective group of several different people. No one knows for sure as Satoshi remains anonymous for good reason.

What is so great about this digital currency?

It is the first form of digital currency created without a centralized network. The sole purpose of its creation was for it to be a decentralized currency. That means no single entity can have full control over the production of the currency.

The way this is achieved is through a peer to peer network of computers known as nodes. These peers are also called miners. Miners use computer hardware and software to solve complicated algorithms. Cryptocurrencies such as Bitcoin are created and rewarded to Miners for solving these algorithms and verifying transactions. All miners have access to the entire ledger of verified transactions. They confirm transactions of Bitcoin that is sent from one address to another. All of these verified transactions are stored as a block of data in a ledger known as the blockchain.

The blockchain is a permanent ledger that has the entire history of all the verified transactions. Everything that is stored on the blockchain is permanent and can’t be altered in any way. The blockchain is the true innovation and beauty of Bitcoin. It makes it so the transactions are transparent and secure. No one has any control over the blockchain and therefore it can’t be manipulated and changed once the transactions are verified. This blockchain allows transactions to happen instantaneously and globally on a massive scale.

How is Bitcoin revolutionizing the world?

In reality it’s actually the blockchain that is revolutionizing the world, but Bitcoin is the initial creation that sparked this entire movement. Bitcoin gained a lot of attention and value when it was used on a massive scale in an online black market called the Silkroad. It was mainly used to purchase illicit drugs and other goods. This black market truly paved the way for utilizing Bitcoin the way it was intended. Transactions were fast, secure, and anonymous. Because of this, the Silkroad flourished and Bitcoin shot up in value. Once Bitcoin started to gain lots of attention and media coverage, hordes of people started to get involved as investors and day traders. An entire industry spawned from the ground up as a result of Bitcoin. In less than 10 years, the cryptocurrencies market cap went up over $160 billion USD!

Since the creation of Bitcoin, many people and organizations have utilized blockchain technology to create alternate cryptocurrencies also known as alt coins. It doesn’t stop there. People have realized that the blockchain technology can be applied to various massive industries. As such, there are many different organizations working on developing their own applications that will use the blockchain in very innovative ways.

For example, Ether another cryptocurrency has become highly popular. Some even speculate that it will overtake Bitcoin in market cap. The reason there is a lot of excitement around Ether is that it is based on its own blockchain called Ethereum. This unique blockchain serves as a platform for developers and there are other alt coins being developed around Ethereum. Ethereum can also validate something called smart contracts which has potential use for real estate, finance, and many other huge industries.

Bitcoin is here to stay

Bitcoin is not doomed to crash and burn as they say. The real value is the blockchain technology itself and it will truly change the world on a massive level. The industry is still very new and there is a very bright future ahead. If you think you are too late to join the party, you are sorely mistaken. Do your own research and don’t trust any single source of information. Many people are becoming wealthy from investing in the right cryptocurrencies. Don’t be one of those people who look back at this 20 or 30 years from now and regret not doing anything about it.

Wishing you all the best,

-Phil Kim

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