Bitcoin Introduction & Review

Bitcoin is a digital currency invented by Satoshi Nakamoto in 2008. It is one of a handful of a new class of currency called cryptocurrencies. Decentralization is one of Bitcoin’s notable traits. No government or single entity has influence on it, dictates its use or regulates it; people who have Bitcoins own them exclusively. Internet users can earn Bitcoin by mining it. They do this by allowing Bitcoin peer-to-peer access on their computer. The peer-to-peer network then accesses the users’ processing power to confirm Bitcoin transactions. The Bitcoin network credits its members according to how many transactions their hardware has confirmed. Some early mining operators became millionaires. In order to create value, the Bitcoin currency requires more processing power to complete transactions as time goes on. Now, Bitcoin is so expensive to mine that only commercial operators can afford the equipment and expenses to mine the currency profitably. Where Did Bitcoin Come From? There is great mystery surrounding the creator of Bitcoin. The inventor of the digital currency never came forward after launching the product. After Bitcoin’s release, its inventor took a large amount of Bitcoins and transferred ownership and responsibility of the Bitcoin company to another party. Some doubt Nakamoto’s identity, because the paper that he published introducing the concept of Bitcoin contained perfect English. Other people theorize one person could not have written a currency application of this complexity, and that Satoshi Nakamoto is actually a moniker that represents a group. Why Was It Invented? In the paper published by Nakamoto, he expressed his concerns that internet commerce is completely reliant on third-party banking processors. In his...