<aside> 💡 Bitcoin is a unique form of trustless, digital money that allows users to directly and securely transact with each other over the internet.
In essence, the Bitcoin Network maintains a decentralised ledger that keep track of the movement of bitcoin.
To understand why it is important to have a trustless, digital, and decentralised monetary system, please review ‘Why Bitcoin?’.
An easy but most holistic way to describe "Bitcoin" starts by looking at two concepts that most people are familiar with
We can briefly look at how Bitcoin is comprised of the two above concepts, how they are similar, and how they can differ:
There is a known issuance schedule. Fixed supply of 21,000,000. - “Hard Money”
Fractions of a bitcoin are called Satoshis. This is to 8 decimal places; eg. 0.00000001
Cannot be counterfeited.
There is an unknown supply of dollars. There is no maximum. - “Easy Money”
Fractions of a Dollar are called Cents. This is to 2 Decimal Places; eg. $1.00 USD
Not Easily Verifiable
Can be counterfeited.
Bitcoin's underpinning technology, referred to as "Blockchain", provides for a transparent monetary system - There is no fractional reserve banking on the Bitcoin Network.
The network is operated by volunteers and network participants. No permission is required, and you can not be excluded.
Fast and inexpensive settlements with everyone and anyone over a secure protocol.
Can not be interfered with via a third party.
Fast Payment Finality
Transactions occur quickly and are easily verifiable. Can not be reversed.
The Bitcoin Network results in payment finality in ~10 minutes, without the security and trust issues associated with third parties.