Bitcoin is define in the official website as “an innovative payment network and a new kind of money.”
From this definition we understand that bitcoin is not just a currency but a whole system of payment, it has been created in late 2008 by an anonymous individual who calls himself “satoshi nakamoto” the information you may find on the internet about this person in most cases lack proof so we will not discuss his identity for the time being and instead try to focus on our subject.
Bitcoin has also been defined as a decentralized digital currency that can be transferred on the peer-to-peer bitcoin blockchain.
Bitcoins are created to reward users who engage in an activity called miniming.
Mining is the process of solving highly complex problems that require great computational power this is what is also called Proof of work (PoW). The created bitcoin may be exchanged for other currencies, services and products. Bitcoin is accepted in a wide range of online and real life stores as a method of payment
Pros of bitcoin
1 – no third party which means Independence from a central authority.
2 – Accessibility and liquidity.
3 – High return potential.
Cons of bitcoin
1 – the large amount of electricity required to genreate bitcoin leaves a massive carbon footprint.
2 – it’s price volatility, the price of bitcoin changes widely in a short period of time.
3 – it may be hacked and stolen from exchanges.