What is bitcoin?

Many people now view Bitcoin as an investment asset. However, it is worth taking an interest in the purpose behind the anonymous creator (or creators) of the first cryptocurrency. 

Satoshi Nakamoto, when making BTC available to the world in 2009, primarily wanted a crypto-based money that could function on the internet.

No central issuer

What distinguishes the most important cryptocurrency from traditional currencies is the absence of a central bank or other issuer. In addition, Bitcoin is protected against inflation thanks to a special mechanism that has been included in its code from the very beginning: there will never be more than 21,000,000 BTC.

Cryptocurrency immune to inflation

A predetermined amount of currency does not exist, of course, in the case of fiat currencies (PLN, EUR, USD), so they are constantly being printed. This leads to the risk that the issuer will put into circulation such a large amount of new money that it will reduce the value of the money in circulation. A decrease in the purchasing power of national money can be seen all over the world, which leads to constant increases in the prices of products and services.

With Bitcoin and many other cryptocurrencies, no such risk exists. There is no possibility that someone will suddenly “create” more units of the asset. Thus, BTC is effectively protected against an artificial decrease in purchasing power. It is also worth remembering the large amounts of lost Bitcoins (this includes cryptocurrencies stored in wallets to which the owners have lost the keys). Not surprisingly, many people refer to the oldest cryptocurrency as a deflationary currency.

Not enough BTC for millionaires, but enough for it to become a global currency

The 21 million bitcoin limit mentioned at the beginning is an oft-used argument for the cryptocurrency’s growth. If every millionaire in the world wanted to have at least 1 BTC in their wallet, there wouldn’t be enough for everyone. At the same time, nothing stands in the way of being able to pay for dinner in a restaurant with it, despite the cryptocurrency’s continuous rise in value. This is possible thanks to the division introduced by the creator. Just as each zloty is divided into 100 pennies, so each BTC is divided into 100 000 000 satoshi.

Open code with protection against unwarranted changes

Bitcoin has open code (open source), so anyone with technical expertise can verify for themselves whether the above information is true. At the same time, there is no risk that someone will make adverse changes to the cryptocurrency’s code. Any such amendment must first be accepted by the majority of users.

For a small fee, you can transfer cryptocurrency to the other side of the world at any time and no matter what day of the week or time of day it is. This makes bitcoin very easy for international transactions. Cryptocurrency can be stored on wallets available as apps or on hardware devices. Every year, the process of using cryptocurrency is getting simpler with the development of new solutions. So, it is not true to say that cryptocurrencies should only be dealt with by people with high technical knowledge. 

Nowadays, all you need to do is download one of the many apps available on iOS / Android and fund it with bitcoins purchased from an exchange office or bitmachine. This is enough for you to start sending BTC to your friends or pay for online purchases.

It is also worth mentioning that while the oldest cryptocurrency does not provide complete anonymity, it definitely increases the privacy of transactions.

Interested in buying or selling bitcoin? Check out our offer to exchange cryptocurrencies at an exchange office or Bitcoin ATM.

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