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    • What is Bitcoin?
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    • What is Bitcoin?
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What is Bitcoin?

First we need to get a few definitions out of the way:
  1. Cryptocurrency - A digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a digital ledger or computerized database using strong cryptography to secure transaction record entries, to control the creation of additional digital coin records, and to verify the transfer of coin ownership.  
  2. Blockchain - A growing list of records, called blocks, that are linked using cryptography.  Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data, making it resistant to modification.
  3. Distributed Ledger - A consensus of replicated, shared, and synchronized digital data geographically spread across multiplees, countries, or institutions.  There is no central administrator or centralized data storage.
Bitcoin is a cryptocurrency.  It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.  Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.

Bitcoin Analysis

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  • Inflation Immune - There can only ever be 21 million Bitcoin once all is mined around 2140.  Due to coins that have been lost forever they will only become more scarce.  No more can be printed like other fiat currencies.
  • Transaction Final - Once all confirmations have occurred the transaction is irreversible.  Scammers can't force refund from their side.  
  • Extremely Fast Settlement - Much faster than ACH, Swift, Wire Transfer, or Credit Card settlement time frames.
  • Ubiquity - Ability to send Bitcoin to anyone anywhere.
  • Transparency & Anonymity - All transactions are recorded on the distributed ledger but kept anonymous should the wallet holder choose to remain so.  
  • Decentralized - Funds cannot be "frozen" like conventional banking systems.  Transaction are validated by a global peer-to-peer network.
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  • Scammers & Hackers - Both are highly common in the cryptocurrency space mainly due to the lack of general understanding.  
  • Transaction Final - Once all confirmations have occurred the transaction is irreversible.  To get a refund the recipient would have to send back willingly.  
  • Volatile Market - Bitcoin prices can still vary as much at 40% in one day.  As mass adoption continues and price adjusts to real value volatility will decrease.
  • Awaiting Mass Adoption - Bitcoin skeptics are still at large in the world and there are lots of reason people wouldn't want a shift in wealth like Bitcoin is bringing.  Slowly but surely adoption is getting close to critical mass.
  • Old Technology - Since Bitcoin is the original cryptocurrency, it's one of the least efficient.  While still much more efficient than conventional money transfer it's much slower than it's new counter parts on the market.    

Bitcoin Timeline

  • Aug 18, 2008 - bitcoin.org is registered
  • Oct 31, 2008 - First Whitepaper is released by Satoshi Nakamoto
  • Jan 3, 2009 - Bitcoin network created when Nakamoto mines the first block
  • Mar 17, 2010 - BitcoinMarket.com (now-defunct) starts operating as the first bitcoin exchange.
  • May 22, 2010 - Laszlo Hanyecz makes first real-world transaction by buying two Papa John's pizzas in Jacksonville, Florida for 10,000 BTC.
  • June 8, 2011 - Price of BTC rises to $31.50 for new all time high (first parabolic shift)
  • Nov 28, 2012 - 1st Bitcoin halving, rewards for each block goes from 50 to 25 Bitcoins. 
  • January 1, 2014 - Price of BTC rises to $770 for new all time high (second parabolic shift)
  • July 9, 2016 - 2nd Bitcoin halving, rewards for each block goes from 25 to 12.5 Bitcoins
  • Dec 17, 2017 - Price of BTC rises to $19,783.06 for new all time high (third parabolic shift)
  • May 11, 2020 - 3rd Bitcoin halving, rewards for each block goes from 12.5 to 6.25 Bitcoin
  • ???? ??, 202? - Price of BTC rises to $???,??? for new all time high (fourth parabolic shift)
  • March - June 2024 - 4th Bitcoin halving, rewards for each block goes from 6.25 to 3.125 Bitcoin
What is Bitcoin?