Bitcoin technology will form the basis of money in the future. What the internet did for communication, Bitcoin is doing for finance. It is introducing a fundamentally different network centric and flat system that allows users to do transactions without recourse to authority and intermediaries. It derives trust from the collaboration and computation of thousands of nodes.
When we use the term “Bitcoin” we are referring to the following:
1. Decentralized peer to peer network of money
2. Unit(s) of digital currency
3. Computer software protocol (set of programmed rules) which is the framework needed for that digital currency to exist and function.
A Bitcoin is simply a digital record in an active and growing public ledger that keeps track of who owns what within the Bitcoin system. It is important to understand that there are no actual physical bit ‘coins’, only records of ownership of units of value.
This ledger is known as a ‘blockchain’ because transaction records are recorded in groups known as ‘blocks’ and the blocks are chained together. When a Bitcoin is sent from one person to another it does not actually move anywhere, there is only an alteration in the ledger’s ownership record for that ‘coin’.
Bitcoin Is the first blockchain. Bitcoin is the largest open global blockchain that exists today. Bitcoin is the first borderless, transnational, open system of access for financial payments and trust that enables innovation without permission with high resistance to censorship, coercion, and geopolitical manipulation. Bitcoin is a mathematical proof system that is fundamentally neutral to participants. It exhibits a principal that on the internet we call ‘net neutrality’ and brings that to finance.
With a market cap now over $10 Billion, and new users each day, the Bitcoin network is growing in usage and application. The list of high profile merchants and business includes Amazon, PayPal, Whole Foods, WordPress, Target, Tesla, Dell etc. and more companies continue to accept the currency every day. Those who embrace and learn to survive and thrive in this new world of digital currencies will become the movers and shakers of the future. So, those businesses and individuals who wish to stay ahead of the pack should endeavor to learn as much about it as possible.
It is my sincere hope that this book will help you to gain the valuable insight you need to help you along your upcoming Bitcoin journey.