• Shane

What is Bitcoin

Updated: Dec 7, 2020

Bitcoin, also referred to as BtC, is a crypto currency first established in 2008. The original inventor is unknown and many be a group of people who are collectively refer to as Satoshi Nakamoto. To this day it is not certain who they are.

The mystery around the establishment of this crypto currency led to a lot of assumption that this was a scam or illegitimate service. However after 12 years of operation many people are looking to crypto currency and bitcoin specifically as a form of investment. For more information about the legality of the currency check out our "Is Bitcoin legal" article.

At some point in 2010 Nakamoto handed control of bitcoin over to Gavin Andresen. It is estimated that Nakamoto had mined 1 million bitcoin.

Bitcoins origins come from "mining" this is the process of creating bitcoin. This is a complex computing process which is better explained in our article "What is BC mining".

It is a decentralised currency meaning that it is not created or backed by any central banking institute, for example the bank of England. Instead it operates on a peer to peer format. The bitcoin is stored in a public ledger called a block chain. This means that you can store any bitcoin you own in a folder on your own computer.

The volatility of BtC was highlighted from these early years. In 2011 the currency had an initial worth of $0.30. It peaked during that year at $11.00 and then fell back to $4.77. The following year was much the same. Starting at $5.27 peaking at $13.30 then crashing down to $3.80 in just 16 days.

In September 2012 Gavin Andresen started The Bitcoin Foundation in a hope of providing stability by having a clear path to the future for the currency.

Bitcoin can now also be traded on many investment sites. The production of bitcoin through mining has now become almost prohibitively expensive without large investment into equipment and so most new investors look to trading platforms for the ease and security that brings. More information about this, and what might be best for you can be found on our site.

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