the 10 basics of Bitcoin
But first, why Bitcoin only? Why not other ‘coins’?
Bitcoin is the original and most decentralized and scarce cryptocurrency. It embodies the purest form of monetary sovereignty and security. Bitcoin is safeguarded by its robust network and immutable protocol. All other alt-coins lack genuine innovation and seek to capitalize on Bitcoin's success by offering ‘new’ features and they sacrifice either security, decentralization or scarcity.
Bitcoin operates on a decentralized network, meaning it's not controlled by any single entity, government, or corporation. This decentralization ensures no central authority can manipulate the currency or its transactions.
1. Decentralized Nature
Bitcoin transactions are recorded on a public ledger called the blockchain. This transparent and immutable ledger ensures the integrity of transactions, making it extremely difficult to tamper with or alter transaction history.
2. Blockchain Technology
Bitcoin has a finite supply cap of 21 million coins, making it a deflationary currency. This absolute scarcity is designed to combat inflationary pressures often associated with fiat currencies, ensuring long-term value preservation.
3. Limited Supply
Bitcoin provides individuals with greater financial sovereignty, allowing them to have full control over their wealth without reliance on intermediaries such as banks or governments. Users can send and receive funds globally without needing permission or approval from any third party.
4. Financial Sovereignty
Transactions on the Bitcoin network cannot be censored, providing individuals with a censorship-resistant means of transferring value. This is particularly important in regions where financial censorship is prevalent or where individuals seek to bypass restrictive monetary policies.
5. Censorship Resistance
While Bitcoin transactions are pseudonymous, meaning they are not directly tied to real-world identities, they are still traceable on the blockchain. However, various privacy-enhancing techniques such as CoinJoin and the Lightning Network can be used to enhance privacy for Bitcoin transactions.
6. Privacy
Bitcoin is accessible to anyone with an Internet connection, allowing for borderless transactions and financial inclusion for individuals who may not have access to traditional banking services.
7. Global Accessibility
8. Hedge Against Fiat Devaluation
Bitcoin is often seen as a hedge against fiat currency devaluation and economic instability. Its decentralized nature and limited supply make it immune to the whims of central banks and government policies that can erode the value of traditional currencies.
The Bitcoin ecosystem continues to evolve with ongoing innovation and development. This includes advancements in scalability, privacy, and usability, as well as the emergence of decentralized finance (DeFi) applications built on top of the Bitcoin network.
9. Innovation and Development
Bitcoin empowers individuals by providing them with a form of money that is not subject to the control or manipulation of any central authority. This empowerment fosters greater economic freedom and autonomy, enabling individuals to take control of their financial futures.
10. Empowerment of Individuals
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