Satoshi’s Bitcoin

Bitcoin is one of the first digital currencies to utilize peer-to-peer technology to facilitate instant payments. One of the positive advantages of using Peer-to-Peer Technology is that…

The year 2008

The Year 2008 made a striking impact on the future of the financial system in the world. Where on one side of the world, in the United States Of America, World-renowned Investment banks like Lehman Brothers and JP Morgan were filing for bankruptcy, and the most significant financial crisis after the great depression had begun, which now we referred to as “The Great Recession.”

The Great Recession sparked Bitcoin creation

Apart from making thousands of people homeless, the Recession also became the reason for people to be skeptical of financial institutions. While the world was experiencing the Great Recession, which resulted from a blunder from financial institutes, On the other side of the world, a person known as “Satoshi Nakamoto” was writing a paper that would change the future of the financial system as we know it.

“A version of electronic cash that will allow payments to be sent directly from one party to another party without going through a financial institute.” That was the first line from Satoshi’s famous white paper on Bitcoin in which he/she clarifies his intentions about Bitcoin, its future, and what Bitcoin stands for. Satoshi imagined Bitcoin as an alternative financial system based on software technology. And would be outside the control of third parties or prominent financial institutes.

How Bitcoin Works and What Is Bitcoin Mining

Bitcoin is not a physical currency; Bitcoin consists of balances kept on a public ledger. To which everyone has transparent access. (Ledger- the general account in digital form for all Bitcoin transactions) A copy of this ledger exists on all the systems part of this Bitcoin network. The individuals who operate these systems are known as Bitcoin miners. Their work is to verify these transactions. In return, they get the bitcoins.

Peer-to-Peer Technology

Bitcoin is one of the first digital currencies to utilize peer-to-peer technology to facilitate instant payments. One of the positive advantages of using Peer-to-Peer Technology is that Bitcoin and other cryptocurrencies operate differently from fiat currency and financial institutes. A decentralized system, like Bitcoin, sets the release rate ahead of time and according to an algorithm.

Investment or Currency

Although the creator of Bitcoin, Satoshi Nakamoto, had imagined it as a software-based currency, the world still needs to make it a reality. Today, Bitcoin has become one of the preferred investment options for many. It is believed that the lack of belief in financial institutions and the collapsing value of gold and real estate is the primary reason behind the success of Bitcoin.

Who is the creator of Bitcoin?

“Satoshi Nakamoto” This name is the only thing the world knows about the creator of Bitcoin. Between 2009 and 2021, numerous individuals claimed to be Satoshi Nakamoto, but their claims were never substantiated. Apart from the self-proclaimed Bitcoin founders, many believe “Satoshi Nakamoto” never existed and that someone else has created Bitcoin. Conspiracy theorists have named many people as the creator of Bitcoin, from cryptographic pioneer Hal Finney to Computer scientist Nick Szabo. Even Elon Musk’s name has popped up in this conversation. Though we don’t have a real “Satoshi Nakamoto”, many believe a team of people created Bitcoin.