<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?’.
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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:
Bitcoin
Scarce
There is a known issuance schedule. Fixed supply of 21,000,000. - “Hard Money”
Divisible
Fractions of a bitcoin are called Satoshis. This is to 8 decimal places; eg. 0.00000001
Verifiable
Cannot be counterfeited.
Fiat Money
Not Scarce
There is an unknown supply of dollars. There is no maximum. - “Easy Money”
Divisible
Fractions of a Dollar are called Cents. This is to 2 Decimal Places; eg. $1.00 USD
Not Easily Verifiable
Can be counterfeited.
Bitcoin
Public Ledgers
Bitcoin's underpinning technology, referred to as "Blockchain", provides for a transparent monetary system - There is no fractional reserve banking on the Bitcoin Network.
Decentralised
The network is operated by volunteers and network participants. No permission is required, and you can not be excluded.
Portable
Fast and inexpensive settlements with everyone and anyone over a secure protocol.
Censorship Resistant
Can not be interfered with via a third party.
Fast Payment Finality
Transactions occur quickly and are easily verifiable. Can not be reversed.
Efficient
The Bitcoin Network results in payment finality in ~10 minutes, without the security and trust issues associated with third parties.