What Is Bitcoin?

what is bitcoin

What Is Bitcoin?

This is a very interesting question because Bitcoin means different things to different people and interest groups.  The most common term associated with Bitcoin is “cryptocurrency”.  Some call it a “currency” which is not entirely accurate.  Bitcoin is many things to many people.

what is bitcoin

Bitcoin is all of the following:

  • a software protocol
  • decentralized protocol used to assign and transfer value without the need for a trusted third party intermediary
  • Store Of Value
  • Settlement Layer
  • scarce digital asset
  • the first decentralized peer-to-peer payment network powered by its own users without the need for a trusted intermediary
  • created and released into the world in 2009 by an unknown person using the alias Satoshi Nakamoto
  • Wikepedia says the following: It is a decentralized digital currency without a central bank or single administrator that can be sent from user-to-user on the peer-to-peer bitcoin network without the need for intermediaries.[7]

What Is A Bitcoin?

A Bitcoin or a unit of Bitcoin is the output from the process known as mining.  Miners are rewarded for protecting and supporting the network by receiving units of Bitcoin when they complete a block.  This is known as the “block reward”.  The block reward size drops in half every four years and there will only ever be 21 Million total Bitcoins in circulation.

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What Is Bitcoin Used For?

Bitcoin is used for several things.  Many hold it s a Store Of Value to protect against inflation and the loss of purchasing power.  Many use it for speculation.  Many use it to purchase things. ome receive their pay in Bitcoin.

If one spends enough time roaming the crypto space, one will certainly encounter a “Blockchain” talking head that declares “it’s all about Blockchain and not Bitcoin”.  Generally this is a scammer or snake oil salesmen of some sort trying to pitch you on why their new arcade token is “better than Bitcoin”.  Nic Carter does a masterful job tearing apart the lunacy of the entire “Blockchain vs Bitcoin” debate.

In the middle half of 2018 the Lightning Network began to emerge in force.  The Lightning Network is a second layer protocol on top of he main Bitcoin blockchain.  Lightning nodes and the overall size of the network are exploding in size.  Forbes captured how payments via Lightning are skyrocketing.  

The Lightning Network continues to dazzle and skyrocket as many “altcoins” are left to wonder what purpose they strive to serve if Bitcoin can enable lightning fast payment rails as a second layer to the core Bitcoin blockchain.  Why do we need thousands of coins as a method of payment or store of value?

The Bitcoin community took it upon itself to pass the Lightning Torch to high value contributors.  This has been highly successful and even enabled a Tweetstorm by none other than @jack.  Herewith below:

More on this interaction and Lightning Torch movement is found here.

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2 Comments on “What Is Bitcoin?”

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