The concept of Bitcoin can be divided into two parts: the crytocurrency, a electronic version of currency released on the Internet and the protocol, which offers a trading platform for people to make transaction using Bitcoin.
There are three main features of Bitcoins
The most important characteristic of Bitcoin is decentralized. In the traditional way, people empower banks or other reliable financial systems to do the money management work for them, which is good but sometime can be dangerous because once the organization is hacked, it causes great financial loss. Therefore, Bitcoin system is created to reduce the risk of being hacked by distributing the work to the whole system and using technology to connect all parts together and prevent from mistakes. It moves the powerful medium away and replaces it with a group of coders and because every computers that participate in the transaction are capable of witnessing the process, therefore, they can be supervisors, and guarantee a smooth and safe transaction.
Bitcoin system is a protocol based on a rather complicated mathematical proof, with every single block is partly made of information from the previous block and locked by highest level of technology, which means it is also impossible to tamper with.
On the trading system, people are able to make transaction without leaving much personal information, even the two parties who actually participate in the transaction directly sometime have no need to know the name of the man they trade with, which significantly reduces the risk of information leakage.
4. Borderless payments
For Bitcoin is a chain of codes that circulates around the system on the Internet, therefore, as long as you have a computer that is connected, you can send your money to every other country(as long as the service is available in that country) on the platform in a rather short time, without waiting for one or two weeks for the money to transfer from institution and institution. It not only helps you save you time but also helps you save your money. Every transaction and money transfer service on Bitcoin system costs you a rather small amount of transaction fee, much lower than the cost in the bank.
The price of Bitcoin to USD was originally quite steady. In Apr 2017, the price started to rocket and reached the historical high at 20,089 USD on Dec 17, 2017. And after that, it saw a considerable decline while varying. In 2018, the price of bitcoin is rather voliate for governments are introducing regulations on Bitcoin. By the time of May 21,2018, the price stands at $8.528.47,much higher the initially price.
The introduction of Bitcoin founder
Satoshi Nakamoto, who claims to be a Japanese-American. The name is the creator of Bitcoin protocol and related software, Bitcoin-Qt, but his real identity is unknown.
Satoshi Nakamoto delivered a thesis in 2008, which was called Bitcoin: A Peer-to-Peer Electronic Cash System . The thesis stated his new assumption about electronic currency. In 2009, he designed a digital currency-- Bitcoin. In 2010, he faded out gradually and handed over the project to other members in the Bitcoin community. The well-known Bitcoin market up-and-down, but the identity of Satoshi Nakamoto never be public. The rumor about the "Father of Bitcoin" involved from the National Security Agency to financial experts, which makes Bitcoin more mysterious. It is reported by foreign media that the computer scientist, TedNelson had declared that Shinichi Mochizuki, the Professor of Mathematics in Kyoto University is the founder of Bitcoin. The founder have been used Satoshi Nakamoto as pseudonym for a long time, and the field of Internet has also speculated about its true identity. Nelson released a video claiming that he had determined that Shinichi Mochizuki is the real founder of Bitcoin.
Shinichi Mochizuki is famous in 2013 for proving ABC conjecture. He studied at Phillips Exeter College in high school, and only spent two years to graduate from school. There is few Nakamoto Satoshi's information on the Internet. Especially in recent years, he almost disappeared completely , so his life experience has also become a mystery. On March 7, 2014, when the news that Bitcoin founder Dorian P. Nakamoto was found was issued, it quickly became the most appealing news on the Internet.
The Practical Utilization of Bitcoin
1.Medium of exchange
Bitcoin was viewed as “money” for the first time when Laszlo Hanyecz, a user of Bitcoin Talk, asked for using Bitcoin to buy two pizzas. Nowadays, people are capable of buying substantial actual goods and services in Bitcoin for more and more stores and institutions accept Bitcoin as payment. For example, we can pay our membership fee on Reddit and purchase other services on the website using Bitcoin or book a hotel room or tickets through the system.
2.Accelerator to faster, lower cost money transfer service
Developers point out that Bitcoin has features of being decentralize, peer-to-peer and global which secure a faster and lower cost cross-board money transfer service for it remove the tedious process of transferring money from one country to the other country, from one institution and the other institution. Instead it replaced central institution with a distributed system online, where millions of miners cooperated to help you processes your transaction information in the real time, thus we can finish payment or money transfer within seconds.
What’s more, we can also use Bitcoin to buy financial products, such as stocks, futures or bonds, etc. There is news coverage about Bitcoin and Goldman Sachs’ cooperation to launch Bitcoin futures, as well as NASDAQ is going to set up Bitcoin exchange.
The performance of Bitcoin
Bitcoin is one of the top crytocurrencies that dominates the cryto-market. Through boundless technical upgrading and efforts to seek cooperation with financial institutions, people’s increases confidence towards Bitcoin and it starts to permeate into nearly every aspect of our daily life, which can be seen when stores or institution open up Bitcoin payment channel, and, German even recognizes it as real “currency”.
Data from some reaches show that by the time of June,2017, the trading amount of Bitcoin in China solely went up to about 3.4129 trillion RMB, nearly 30% of world’s total trading amount. Then the price of Bitcoin tends to be rather volatile, since earlier 2018, the price curve has experience numerous fluctuation, with the high went up to nearly $1,0000 and the low down to under $7200 this June.