What is Bitcoin: Bitcoin 101
08 May 2020, by Bittrex Team
Bitcoin was created in 2008, following the financial crisis that damaged trust in traditional assets such as property and stocks.
Enter Satoshi Nakamoto, a presumed pseudonym for the person or persons who first introduced the world to Bitcoin and blockchain.
To explain it, they wrote a short, technical report often referred to as the Bitcoin Whitepaper. It describes Bitcoin as a peer-to-peer electronic cash system, a de-centralized, uncensored, secure asset with multiple use cases, created to withstand global turmoil.
It sparked one of the biggest technical innovations of all time.
Satoshi understood that access to Bitcoin would revolutionize how payments are made on a global level. Guided by his belief in equality, he released Bitcoin on a public network for all coders to improve upon. That’s why today we see other cryptocurrencies built on various blockchains and multiple exchanges allowing access to Bitcoin and other electronic assets.
Bitcoin, and the innovation behind it, has revolutionized financial technology and it fundamentally disrupts how people exchange and hold value on a global scale. For many, Bitcoin is “Digital Gold.” It is portable, easily transferable, un-hackable* and can be held on a simple piece of paper.
Think about that for a moment. A trader could own millions of dollars of Bitcoin and hold it on a “paper wallet.” Who wouldn’t be interested in that?
Key features of Bitcoin:
- Decentralized: Bitcoin is controlled by everyone who owns it. That means you, as an owner, have control over your asset. There is no central bank or government regulating Bitcoin. There is no organization that can impede its growth and scale or, ultimately, control its price or volume. It is the traders, buyers and miners who own Bitcoin who control its growth.
- Open: Bitcoin was created to be transacted for any currency in the world. This allows people who traditionally do not have access to capital to access Bitcoin, opening a world of new possibilities.
- Secure: Bitcoin is encrypted using the strongest hash-based encoding and backed by unbreakable blockchain technology. Basically, Bitcoin cannot be hacked or destroyed.*
- Private: Bitcoin transactions do not rely on traditional intermediaries, such as banks, or the exchange of identifiable information between parties. All transactions are added to a public ledger, but there are no personal identifying factors or bank statements attached to them.
- Infinitely fractional: Each Bitcoin is fractional to 100 million units otherwise referred to as “Satoshi’s”. So you do not need to buy an entire Bitcoin, you can buy $10 worth of Bitcoin. A Satoshi represents one hundred millionths of a Bitcoin. So, 1 Bitcoin is equivalent to 1,000 millibitcoins (mBTC), 1,000,000 microbitcoins (μBTC), or 100,000,000 Satoshis.
How to buy Bitcoin:
The easiest, and arguably best, way to buy cryptocurrency is through a robust, secure and mature exchange with lightning-fast trading speeds. For those reasons—and more—Bittrex is one of the world's leading digital asset trading platforms. And with exchanges in the U.S. and partners around the globe built on top of our technology, it is the best place to start trading.
Over the past six years, Bittrex has set the standard for excellence, compliance and customer support. It is the perfect place to start your journey with Bitcoin.
So what are you waiting for? Join Bittrex, and start buying and trading Bitcoin today!
*While Bitcoin itself may be unhackable or destroyed, users remain vulnerable to various hacks.
Read our article on How to Manage Your Online Security Like a Pro.