What is Bitcoin and is it legitimate

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Bitcoins represent an escape from the imprisonment of the traditional financial system in which we are forced to participate in birth, a system that has been undermined by inflationary monetary policy, the monopoly of nation-states on money creation, lousy investment and debt.

Bitcoin is a starting point for reconstructing honesty and a true measure of value in society among borderless, apolitical, and decentralized systems. Most people know Bitcoin on the surface. They know it is a form of money and may even have bought it. Bitcoin is often presented as a new class of assets, cryptocurrencies. Cryptocurrencies are essentially sophisticated databases. Bitcoin, for example, is a large database of who owns which bitcoin and which transactions have been made.

The difference with Bitcoin is that no central authority runs this large and sophisticated database. Your bank can unilaterally modify its database to change the amount it thinks it has, and this is often the case. With bitcoin, the only authority on the network is the one on which the majority of bitcoin users agree. Bitcoin is a natural, decentralized, uncontrolled, digital thing. Bitcoin has innovated by bringing decentralized scarcity to the digital world. No one knew it was still possible before the invention of Satoshi Nakamoto in 2008.

Bitcoin is not only an asset, but a mission: to create a new financial and monetary order based on a sound currency without third parties, open, transparent, and resistant to censorship. Bitcoin is the only chance we have of decentralizing the power of the ruling class in search of rents. For most people, the Bitcoin project is not about making it easier to buy coffee, but about becoming a potent currency, an even better form of gold. Most members of the Bitcoin community envision a final phase during which implementation of Bitcoin will be a massively adopted cryptocurrency, which is both a store of value and a medium of exchange.

Bitcoin is often referred to as a settlement network where the gross space is not intended to facilitate low-value individual transactions. Instead, it is believed to be used to settle higher value transactions, for which fees are less problematic. This likely includes one-time settlement transactions for secondary payment solutions, such as the settlement of millions of Lightning Network payments in a single blockchain settlement transaction. Currently, Bitcoin blockchain is by far the most powerful of all existing cryptocurrencies, based on the only hash rate.

For some, Bitcoin is not exactly money, and it is money from the past. The concept of money will have to evolve to adapt to reality and not remain the same, as the legacy claims. Bitcoin is an advance in information theory because it allows anyone to conduct verifiable, time-stamped, tamper-proof, and transparent transactions without a third party. According to information theory, creativity requires stable support for fractal growth, and these people view bitcoin as an extremely sound way of doing so. In Knowledge and Power, Gilder indicates that a low entropy carrier is required to convey high entropy information. This camp also agrees with Bitcoin’s deflationary policy, as it views capitalism and technological advancement as a fundamentally deflationary system.

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