The First Cryptocurrency: Bitcoin



Bitcoin is a cryptocurrency, payment system and merchandise. The term also applies to the protocol and the P2P network that supports it, and is commonly called a digital currency. Designed in 2009, the final identity of its creator or creators is unknown, appearing under the pseudonym of Satoshi Nakamoto . It is based on blockchain technology, similar to a large accounting book, public and distributed, which reflects the history of all transactions, in what is known as blockchain, hard to falsify. to the network or to the protocol and bitcoin to refer to the monetary units.

Bitcoin is characterized by being decentralized, that is, it is not backed by any government or central bank and “lacks legal certainty”. It uses a work test system to prevent double spending (that the same bitcoin is used several times) and reach consensus among all the nodes that make up the network exchanging information about an unreliable and potentially compromised network (resolves the problem of Byzantine generals). The transactions do not need intermediaries and the protocol is open source.

Bitcoin, and in general cryptocurrencies, are an innovative project in constant evolution and change. There is a certain consensus on the potential of cryptocurrency or digital money, auguring a future in which these will become a system of universal exchange. Its technology, blockchain, can solve the security problems posed by decentralized exchanges between equals, and can be applied in many fields. However, the current cryptocurrencies, the bitcoin among them, are often compared by some authors with approaches similar to the Ponzi scheme although the same reports clarify that there are strong differences between a Ponzi scheme with technology and the processes that support Bitcoin and many other cryptocurrencies . The specific cases of cryptocurrencies where an obvious pyramid scheme could be detected have been generally attacked by the governments themselves, as is the case of the BitConnect cryptocurrency, where its founders carried out strong campaigns promising high yields.

The character of bitcoin is highly speculative, deregulated, so it escapes any control outside the bitcoin system itself, with its future in question (December 2017). Some economists attribute a zero value to him, with signs of having surpassed the thresholds that would take to the collapse to him, although generally these opinions do not correspond to experts in the technology. However, if the approach of these economists was correct, as it was not backed by any tangible good, government, financial or economic entity, and if the technology could not support it, its owners would be defenseless in the face of falling prices.

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