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WHAT IS A BITCOIN IMPROVEMENT PROPOSAL (BIP)?

Bitcoin Improvement Proposals, or BIPs, are the standards by which changes to
the Bitcoin…


WHAT ARE BITCOIN FORKS?

The word “fork” is somewhat confusing because there are different kinds of
“forks” that…


IS BITCOIN LEGAL?

In a technical sense, bitcoin can be used anywhere that the Bitcoin network can…


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BITCOIN NEWS, ARTICLES, CHARTS, AND GUIDES

 * Posted on Jul 24
   
   
   WHAT IS A BITCOIN IMPROVEMENT PROPOSAL (BIP)?
   
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 * Posted on Jul 24Jul 24
   
   
   WHAT ARE BITCOIN FORKS?
   
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 * Posted on Jul 24
   
   
   IS BITCOIN LEGAL?
   
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WHAT IS A BITCOIN IMPROVEMENT PROPOSAL (BIP)?

Posted on 24. July 2021

Bitcoin Improvement Proposals, or BIPs, are the standards by which changes to
the Bitcoin protocol are recommended. They can include very significant protocol
changes — including updates that require soft forks or hard forks — or changes
to software implementations or the BIP process itself.

BIPs were introduced by early Bitcoin developer Amir Taaki, originally based on
the process used for improving the programming language Python. Taaki submitted
the first BIP in 2011.

To read more about the history of BIPs and how they lead to changes in Bitcoin,
check out our guide on the process.

BITCOIN LAYER TWO

Periods of very high network activity on Bitcoin do not allow for practical uses
such as buying coffee or transacting in small amounts due to the high
transaction fees that come with high network usage. Solutions to this problem
have come in the form of second-layer technologies, like Lightning. Lightning is
a layer built on top of Bitcoin that allows for near-instant micropayments by
settling transactions off-chain.

As a second layer scaling solution to Bitcoin, Lightning is computer code which
gives you a mathematical guarantee to claim the funds being transacted with. The
Lightning Network is perhaps the most promising (but not the only) second-layer
technology being developed that will make this possible. Certainly, there will
be many more use cases we may not have even imagined yet.

WHAT IS THE LIGHTNING NETWORK?

The Lightning Network is arguably the most popular and well-developed “layer
two” protocol for Bitcoin, designed to facilitate faster, cheaper and more
private payments. In essence, the Lighting Network exists on top of Bitcoin,
creating channels for payments that are not recorded on the Bitcoin blockchain
(and can thus be facilitated much more quickly and for smaller fees).

Funding these channels or closing the transactions in them does require
recording on the blockchain, thus utilizing the network’s robust double-spend
protection.

To read more about how this layer two solution visit our Lightning Network
guide.

QUANTUM COMPUTING AS A THREAT TO BITCOIN

The concept of quantum computing stems from the 1980s and in recent years,
quantum computers that can solve problems that are out of reach for standard
computers have emerged. Some have suggested that a quantum computer would be
strong enough to threaten Bitcoin, by becoming strong enough to break public-key
cryptography, dominate the mining landscape or otherwise change the dynamics of
computing such that Bitcoin is no longer able to function the way it was
designed.

Among the threats that Bitcoin faces, quantum computing is one that has not
developed far enough yet to truly test the technology. But it appears that
Bitcoin could be adapted to exist effectively alongside more powerful quantum
computers if necessary.

To read more about what the growth of quantum computing could mean for Bitcoin,
read our guide.


WHAT ARE BITCOIN FORKS?

Posted on 24. July 202124. July 2021

The word “fork” is somewhat confusing because there are different kinds of
“forks” that can mean very different things.

CODEBASE FORK
A codebase fork is a copy of the code of a software implementation. A codebase
fork typically makes tweaks to the original codebase. In the context of Bitcoin,
codebase forks can be entirely compatible with the Bitcoin protocol, they can
cause a blockchain fork or they can establish a whole new cryptocurrency.

BLOCKCHAIN FORK
A blockchain fork happens when a blockchain branches into two versions of
transaction history. This can happen for a number of reasons, can be expected or
unexpected and can, depending on the circumstances, lead to a number of
outcomes, ranging from a single orphaned block to a whole new cryptocurrency.

HARD FORK
A hard fork is a type of protocol upgrade that loosens or removes rules. If all
users upgrade, a hard fork doesn’t cause a blockchain fork. Especially in the
context of Bitcoin, some argue that unless all users upgrade, the “upgraded”
protocol shouldn’t be called a hard fork at all, but a new cryptocurrency or
“forkcoin.”

SOFT FORK
A soft fork is a type of protocol upgrade that tightens or adds rules. Soft-fork
upgrades can cause blockchain forks, but enforcement by a majority of hash power
guarantees eventual convergence on the same transaction history. A
miner-activated soft fork (MASF) is triggered by hash power, while a
user-activated soft fork (UASF) is activated by users.

GRAY AREAS
While the different terms seem clear enough, the reality of Bitcoin is complex.
The difference between hard and soft forks is not always obvious, and sometimes
it’s not even clear what should be considered a protocol upgrade at all. There
are a number of cases in which experts to this day disagree on how certain
events should be categorized, and there have been politically motivated attempts
to rewrite history to boot.


IS BITCOIN LEGAL?

Posted on 24. July 2021

In a technical sense, bitcoin can be used anywhere that the Bitcoin network can
be accessed (essentially, anywhere with internet access), and governments or
authorities would have a difficult time restricting their citizens from doing
so. That said, governments could make using bitcoin an illegal act, and some
have.

Few countries, like Ecuador, have deemed bitcoin completely illegal. Some
others, like China, have put varying restrictions on the use of bitcoin and
other cryptocurrencies, deeming their use legal for some purposes and illegal
for others. Yet other governments have issued laws or reforms that clearly
indicate that bitcoin is legal. And most governments around the world have not
taken an official stance on bitcoin.

Overall, in most parts of the world, it is legal to send, receive, mine and
generally use bitcoin as an individual.

For more information about Bitcoin’s legality, visit our “Is Bitcoin Legal?”
guide.

WHAT ARE THE OBSTACLES FACED BY BITCOIN?

While Bitcoin adoption had been growing over the years, there are still not that
many places to spend coins. On top of that, it is usually not possible to pay
taxes or bills in bitcoin. Therefore, instead of paying with bitcoin directly,
many users still find themselves selling bitcoin for fiat currency in order to
pay their expenses.

Bitcoin’s value has also proven to be quite volatile over the years. While most
(though not all) fiat currencies tend to have relatively stable purchasing power
over time, there have been times when bitcoin lost well over half of its
purchasing power within months. On the flipside, bitcoin has also experienced
years when the value surged.

Compared to most bank accounts and payment providers, Bitcoin can be relatively
hard to use. Or perhaps more specifically: Bitcoin can be relatively hard to use
securely. Like cash in your wallet, if you lose your bitcoin (your private keys)
they are really lost; there is no help desk to call and get your money back.

In most casual conversations, you can get away with knowing that bitcoin is,
basically, a digital currency. But of course, it’s much more complicated than
that and utilizing it to its fullest potential comes with a steep learning
curve.

CAN BITCOIN SCALE?

The ongoing debate about whether or not Bitcoin can scale sufficiently on its
path to mass adoption has led many people to question if it will ever reach that
point at all.

The Bitcoin protocol’s main focus is providing security in transactions. It
prevents double-spending by making it incredibly difficult to reverse a
transaction because of the energy spent verifying these transactions. It only
releases a set number of bitcoins into the world — and it does so very slowly.
It is meant to be simple in purpose but highly secure in practice. When all of
these feats are achieved, it eventually obtains the characteristics of a store
of value, and that is all Bitcoin needs to be.

Bitcoin is a low-level protocol that can be used in conjunction with other
protocols. The scaling opportunities in Bitcoin lie in the additional protocol
layers that will be built on top of it, such as Lightning Network. As many have
come to realize, it is these other protocols that can help to solve many of
bitcoin’s scaling issues without having to alter Bitcoin’s current software. The
idea, as Bitcoin began to grow, is that layers will be built on top of it.


HOW DOES BITCOIN COMPARE TO TRADITIONAL ASSETS?

Posted on 24. July 2021

Many people who accrue bitcoin don’t necessary “do” anything with it other than
hold (or “HODL”) it as a long-term investment or savings. The bitcoin price
relative to fiat currency has been very volatile, but has been trending up over
the years. Some users also describe bitcoin as a digital store of value,
likening it to a digital version of gold.

For more information about the inherent value built into bitcoin, visit our
guide “What Gives Bitcoin Value?”

Bitcoin is one of the most unique technologies to emerge since the advent of the
internet. Some believe it’s the most important invention since agriculture,
while others think it’s the most overhyped financial asset since tulip bulbs.
But there are some distinct advantages that Bitcoin has as an asset compared to
others in the traditional economic system.

Bitcoin is inflation resistant. By design, there will only ever be 21 million
bitcoin. Where the value of fiat currencies is inflated and manipulated by
central banks and commercial banks, Bitcoin’s emission schedule is predictable
and limited. This is also why some people consider it a good store of value: a
“digital gold.”

Bitcoin is also highly censorship resistant and difficult to confiscate. While
authorities can strip individuals of their bank accounts, seize their
traditional assets or flag their credit cards, it is much more difficult to stop
an individual from using bitcoin when and where they want.

This also means that, compared to fiat currencies, bitcoin is much easier to
transfer across borders. While it can be difficult, slow and expensive to send
dollars, euros or yen across countries, bitcoin can seamlessly be transferred
and sent around the world, regardless of an individual’s location.

Transactions are connected to a user’s Bitcoin address, which is stored on its
general ledger, called the blockchain. If that address is linked to a real
identity, transactions can be traced back to the user; if it isn’t, they can’t.
This relative anonymity makes the platform appealing for things like incognito
purchases over the internet.

A key component of Bitcoin’s blockchain is the fact that it is an open,
distributed ledger. Through the distributed nature of this ledger, the
transactions on the blockchain are verified by the consensus of every member,
offering security and trust without a third-party overseer.

Bitcoin can also be difficult to utilize as an investment or savings asset
because of its relative novelty in our financial system. Financial regulations
surrounding bitcoin and other digital currencies are constantly evolving and it
can be difficult to source sound advice around how to manage it, integrate it
into your financial portfolio and pay taxes on it.

To read more about the financial regulations surrounding the original
cryptocurrency, visit our bitcoin and taxes guide.


IS BITCOIN A GOOD INVESTMENT?

Posted on 24. July 2021

Questions about the value of bitcoin as an investment will likely differ
depending on who you ask.

Those with a vision of a fully-distributed future in which the lack of a
centralized overseer becomes key to an asset’s value will tell you that, yes,
bitcoins are poised to become only more valuable in the future. Others who put
more value in the traditional trust afforded by banks and government
institutions would likely steer you away from bitcoins as an investment.

While determining how “good” any investment will be is ultimately a guessing
game, there are some tried and true ways to determine an asset’s worth. One of
the simplest ways to think about bitcoin as an investment is to consider its
rise against the U.S. dollar. Recently, bitcoin prices eclipsed $1,000 and have
reached beyond $1,500. If you had invested in the digital currency when its
worth was still hovering around $150 just a few years ago, or when it was first
introduced in 2009 and worth nothing against the dollar, you would probably be
convinced that it made for a good investment.

Furthermore, an underpinning concept behind Bitcoin is that there will only ever
be 21,000,000 tokens, meaning that it may stay consistently valuable or increase
in value relative to other types of currency which can be printed endlessly.
Other reasons that the asset seems like a good investment include its growing
popularity, network effects, security, immutability and status as the first ever
in a growing world of digital currencies.

That being said, there is at least one significant argument for limiting
bitcoins to a small portion of your portfolio at the most. Bitcoin is known for
stark jumps in price, high peaks and deep valleys that would make it difficult
to have confidence in the asset as a long-term money maker that can be depended
on. Tying every dime you have to such a volatile asset would be imprudent. A
good rule to follow is never to invest more than what you would be willing to
lose.

 


HOW CAN I USE BITCOIN?

Posted on 24. July 2021

Once you’ve joined the revolution by getting your hands on some bitcoin, you may
be wondering how exactly you should use it. There’s no prescribed way to make
the most of your bitcoin, but there is an increasing number of options.

MAKING PURCHASES WITH BITCOIN
A growing list of retailers and service providers accept bitcoin as payment.
Using bitcoin at one of these retailers can be as easy as selecting a “pay with
BTC” option at checkout.

Even if retailers or service providers don’t accept bitcoin directly, you may
use bitcoin to purchase a gift card for that retailer or service provider.
Several gift card websites accept bitcoin in exchange for gift cards to major
online and brick-and-mortar retailers like Amazon, Target and more. (This could
come in handy if you don’t have a bank account or there is another reason you
prefer not to sell bitcoin for fiat currency.)

GET PAID IN BITCOIN
Whether you have a daily job, sell physical goods or perform one-off services,
there are advantages to accepting bitcoin for payment.

For example, because of its borderless nature, bitcoin is useful for those who
live in a different part of the world from whoever is paying them. It’s also an
ideal payment solution for those who live in countries where the fiat currency
is particularly volatile or difficult to trust.

Individuals interested in getting paid in bitcoin can search for freelance jobs
that offer BTC payment on listing sites like Cryptogrind. Businesses that are
interested in accepting bitcoin payments can leverage services offered by
payment processors like BitPay and BTCPay Server.


HOW CAN I BUY BITCOIN?

Posted on 24. July 2021

Though new bitcoin are minted through mining, and bitcoin can of course (like
any other money) be accepted in trade, another easy way to get bitcoin is to buy
it with fiat currency.

BITCOIN EXCHANGES
Most people purchase bitcoin through online exchanges. The majority of bitcoin
exchanges operate an order book that matches buy and sell orders. This means
that the “price” of bitcoin relative to fiat currency is determined by users of
the exchange, through supply and demand.

Buying bitcoin on an exchange typically requires the use of a debit card or
direct bank account transfer, and most exchanges require personal information in
order to comply with anti-money laundering and know-your-customer regulations.

OVER THE COUNTER
Another common approach to buying bitcoin is the use of an over-the-counter
(OTC) desk. Unlike going through an exchange, an OTC desk serves as a middleman
that completes Bitcoin transactions without an order book — connecting buy and
sell orders directly.

BITCOIN ATMS
Bitcoin ATMs are kiosks that resemble traditional ATMs but connect users to the
internet and let them purchase bitcoin with bank cards or cash. Some bitcoin
ATMs allow users to sell bitcoin as well.

IN PERSON
It is, of course, also possible to buy bitcoin from someone who already owns
bitcoin, in person. Many cities have Bitcoin meetups, where people might be
willing to sell bitcoin. There are also websites on which buyers and sellers can
find each other to meet up in person for a trade.

For more information on buying and acquiring bitcoin, visit our “How to Get
Bitcoin” guide.

HOW DO I STORE BITCOIN?

Slightly simplified, bitcoin are stored on Bitcoin addresses. They can be spent
with “private keys”: unique strings of numbers and letters associated with these
address. Therefore, the owner of the private key is essentially the owner of the
coins. Storing bitcoin really means storing the private keys. This can
technically be done in any way you like: on a USB drive, a piece of paper or you
could even try to remember it (but this is not recommended).

Here are some of the more common solutions for storing your bitcoin, including
products available in our store:

HARDWARE WALLETS
Many people use hardware wallets to store bitcoin. These are physical devices
that encrypt the keys needed to spend bitcoin. Critically, these devices remain
offline, so they cannot be hacked.

SOFTWARE WALLETS
Software wallets are pieces of software that you download and run on your
computer or mobile device. While software wallets are often fairly easy to use,
they are also connected to the internet, which can make them somewhat vulnerable
to advanced hackers. That said, many software wallets can be used in combination
with a hardware wallet for increased security.

PAPER WALLETS
Paper wallets are physical pieces of paper that contain your Bitcoin address
keys and therefore your bitcoin. Paper wallets typically have a private key,
Bitcoin address and a QR code representing them both printed on them. The
downside of a paper wallet is that they can be used only to store bitcoin; you
cannot spend from them. (Instead, you’d have to insert the private key in a
software wallet, at which point the paper wallet shouldn’t be used again.)

Because paper wallets are actually relatively difficult to set up securely,
their use is not really recommended any longer.

CAN I KEEP MY BITCOIN ON AN EXCHANGE?

The majority of bitcoin exchanges have bitcoin wallets built in to enable the
deposit and withdrawal of assets. When a user deposits bitcoin into an
exchange’s wallet, that user is trusting the exchange with control of that
bitcoin, and naturally, doing so brings a certain amount of risk.

Large exchanges may hold on to cryptocurrency for millions of unique accounts
and take a variety of measures to ensure that these funds are safe so that they
can retain their customers’ trust. But, over the years, many online exchanges
have proven vulnerable to hacks, while other, less reputable ones have lost or
even stolen user funds.

As a result, keeping your bitcoin on an exchange as a primary storage facility
is generally not advised.

For more best practices on storing bitcoin, read our guide to bitcoin wallets.

HOW DO I KEEP MY BITCOIN SAFE?

The best way to keep bitcoin safe is to take precautions to protect the keys
that grant access to your Bitcoin address.

But ultimately, the ideal process for keeping your coins safe depends largely on
what works for you. If you are someone who keeps forgetting passwords, losing
phones and displacing important documents, and you’re not dealing with
life-changing amounts of bitcoin anyway, frankly, maybe a reliable third-party
wallet would be best for you. (Even though this is certainly not ideal for
overall security.) If you are tech-savvy and are dealing with large amounts of
money, you could consider a multisignature setup with multiple wallets and
encrypted backups dispersed over different locations. And there are also many
solutions between these two extremes.

That said, in general, it’s advised to at least store your private keys yourself
and keep a backup (typically a seed phrase) in a secure location.

To read more about bitcoin addresses, private and public keys and protecting
your HODLings, check out our guide on keeping bitcoin safe.


HOW DOES BITCOIN WORK?

Posted on 24. July 2021

Bitcoin is a form of electronic cash. Where most digital forms of money rely on
a central party to make it work, like a bank or a payment processor, Bitcoin is
maintained by a network of users. As an open network, anyone can become a user
by simply downloading a piece of open-source software on their computer and
connecting to the Bitcoin network through the internet.

Users on the network can send each other transactions. Once such a transaction
is made, all computers on the network check the transaction to make sure the
transaction is valid — for example, verifying that the coins in the transaction
really exist and really belonged to the person sending the transaction. Because
everyone checks everything, no one can be cheated.

New coins come into circulation through a process called “mining,” which is done
by a subset of users called “miners.” Anyone can become a miner; however, mining
does require computation resources and, therefore, electricity. About once every
10 minutes, in what is best understood as a lottery, one lucky miner is rewarded
with new bitcoin. At first, these were 50 coins every 10 minutes, but this
number drops every four years, until around the year 2140, when the reward drops
to zero. At that point, there will be 21 million coins in circulation, and there
will never be more.

In what is one of Bitcoin’s more elegant design features, miners actually
provide a service to the network while investing computational resources into
mining: they confirm the transactions that users send each other. Miners combine
all transactions on the network into “blocks,” and the miner who wins the
“lottery” has their block and all of the transactions in it accepted by the
network. This way, even if two miners saw two conflicting transactions (for
example, because a user tried to cheat and send the same bitcoin to two
different people), only one of the transactions will go through.

For more information on mining, visit our “What Is Bitcoin Mining?” guide.

Every time a new block is found, it refers to the previous block. Over time, the
blocks form a “blockchain.” If it were to happen that two miners find a new
block (“win the lottery”) at the same time, there can be a short period when
there are two different, competing transaction histories. This is resolved
through a race: the first blockchain to be extended with another block will be
considered valid by the entire network. Over time, therefore, the Bitcoin
network always settles on a single version of transaction history.

To read more about the foundational distributed ledger technology introduced by
Bitcoin, read our guide to the fundamentals of a blockchain.

Finally, it’s worth noting that users on the network don’t identify themselves
with their real names. Instead, they use Bitcoin addresses, which are seemingly
random strings of numbers and letters. Because Bitcoin addresses cannot always
be tied to a real-world identity, the electronic cash can be used fairly
anonymously. (Though it should be pointed out that Bitcoin’s privacy guarantees
are in actuality fairly weak for a number of reasons; unless you’re fairly
savvy, it’s best to assume you are not fully anonymous.)

WHO CONTROLS BITCOIN?

Bitcoin is not controlled by any single manager or entity, but instead it is
maintained by a network of users. One of Bitcoin’s most powerful and unique
qualities is the fact that the transactions on its blockchain ledger are
verified by the consensus of the network’s members and not by a third party or
“trusted” authority.

In this sense, no single party or consortium “controls” Bitcoin in the way that
a government controls a fiat currency or that a board controls a corporation.
When users run a full Bitcoin node in order to validate transactions and blocks
on the blockchain, they choose which specific protocol that node will use.

IS BITCOIN ANONYMOUS?

Though there is a common misconception that bitcoin transactions can be
conducted in the dark and free from third-party monitoring, bitcoin is not
anonymous. It does, however, grant a level of pseudonymity that the traditional
financial system typically does not (although purely cash-based transactions
remain far more anonymous than bitcoin transactions).

Because every bitcoin transaction is publicly broadcasted and immutably recorded
on the Bitcoin blockchain, it is possible for blockchain analysts to trace these
transactions and potentially link them to real-world identities.

However, developers throughout the bitcoin space are consistently working on
tools that are meant to help obscure bitcoin transactions and add additional
anonymity layers.

For more information, check out our guide on Bitcoin anonymity.


WHAT IS BITCOIN

Posted on 24. July 202124. July 2021

Bitcoin is digital money that isn’t controlled by any bank or company or person.
Bitcoin was invented in 2008 by a pseudonymous programmer called Satoshi
Nakamoto. The volunteer network went live in 2009, and people around the world
have been contributing to this open-source project ever since.

If you want to get your first bitcoin with just four easy steps, you can follow
our guide and get everything you’ll need through our store. In the meantime,
here are the simple terms you need to know in order to understand Bitcoin.

BASIC BITCOIN TERMINOLOGY

 * Hot Wallet: Downloading a bitcoin wallet to your device is the most
   convenient way to send and receive small amounts of bitcoin. However, there
   are important trade-offs to carrying your funds on a device, like a mobile
   phone, that is connected to the internet.
 * Open Source: The Bitcoin network is made up of individual participants,
   choosing to run particular software that is publicly accessible and
   collaborative in its maintenance. No single person or company owns, hosts or
   runs the network, making it highly resilient to threats.
 * Decentralization: Bitcoin users, miners and full nodes are scattered all over
   the world. It is these groups in aggregate that make up the network. With no
   headquarters, CEO or employees, there is no central point of failure.
 * Peer To Peer (P2P): When two people exchange money and goods in person, they
   are doing so in a decentralized way. But online transactions have continued
   to rely on trusted third parties because we’ve lacked a way to enforce
   honesty. Bitcoin incentivizes honesty through its transparent and auditable
   design.
 * Full Node: Full nodes are hardware that maintain a full copy of the Bitcoin
   blockchain, while enforcing the network’s predefined rules. They can
   independently validate, broadcast and relay transactions, without the need to
   trust any third party. This arrangement results in decentralization. (You can
   buy plug-and-play hardware or build your own full node at home following this
   guide.)
 * Block Explorers: One of the features of bitcoin’s open and public blockchain
   is the ability to view all historical transactions as well as transactions
   taking place in real time that settle on Bitcoin’s main layer. Block
   explorers are tools which capture a live feed of the transaction data
   produced by the Bitcoin network.
 * Timestamps: Bitcoin’s pseudonymous creator, Satoshi Nakamoto, referred to
   their creation as a “timechain,” as each block includes an approximate
   timestamp. This makes it possible to determine the sequence of all
   transactions and ensure no bitcoin can be double-spent. When combined with
   digital signatures, the Bitcoin blockchain acts as a de facto global public
   store of record.
 * Self Custody: Securing your sats is not a passive exercise. As the value of
   your bitcoin holdings grows, so should the strength and resilience of your
   security measures and backup procedures. The reality of being a bitcoiner
   means continually updating your knowledge regarding best practices and
   regularly testing your set up. There are many wallet options that you can
   choose from.
 * Private Key: A private key in the context of Bitcoin is a key connected to an
   address (technically, the address is the hash of the public key corresponding
   to the private key) that is stored behind the scenes and allows you to send
   bitcoin that have been previously sent to that address. Note that because of
   the way the encryption algorithm that Bitcoin uses (ECDSA) works, it is
   possible to generate the public key and the address from just the private
   key. It’s very important to keep your private key safe.

Bitcoin means different things to different people. For some, it’s the future.
For others, it is a speculative bubble about to burst any day now. And for most,
Bitcoin is still a mysterious platform for internet money.

Fully understanding Bitcoin and the changes it is bringing to our world can be a
lifetime pursuit. But it helps to start with a few basics. To get a sense of
what Bitcoin really is, let’s take a look at the fundamentals of its history,
technical underpinnings, status as a financial asset and more.

WHO INVENTED BITCOIN?

Bitcoin was invented by Satoshi Nakamoto, (almost certainly) a pseudonym. No one
has been able to conclusively connect the Satoshi Nakamoto moniker to an actual
person or group of people.

Satoshi Nakamoto first introduced his proposal to the world in November 2008,
when he submitted a white paper that describes Bitcoin to a cryptography mailing
list. A couple of months later, Satoshi Nakamoto published the software. On
January 3, 2009, Satoshi Nakamoto mined the first-ever Bitcoin block, dubbed the
“genesis block,” setting the Bitcoin protocol in motion.

While he was actively involved with the Bitcoin project in the early days,
Satoshi Nakamoto vanished in 2011, leaving few clues as to who he might be. Over
time, there have been many instances of people claiming to be Satoshi Nakamoto,
and others who’ve had that claim thrust upon them, but none with conclusive
evidence. Sporadically, there have also been some messages from accounts
associated with Satoshi Nakamoto since 2011, but many question the authenticity
of these later messages.

There has been a lot of speculation about how many bitcoin Satoshi Nakamoto
mined in the early days, when few people had even heard of Bitcoin. Estimates
range from about 50 to 1 million. Interestingly, even if the high end of the
estimate is correct, Satoshi Nakamoto appears to have touched very few, if any,
of his coins.

In the end, most Bitcoiners agree that Satoshi Nakamoto’s true identity doesn’t
matter much. The protocol stands on its own, regardless of who or what Satoshi
Nakamoto was.

To read more about Satoshi Nakamoto, visit our guide on the inventor of Bitcoin.

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RECENT POSTS

 * WHAT IS A BITCOIN IMPROVEMENT PROPOSAL (BIP)?
 * WHAT ARE BITCOIN FORKS?
 * IS BITCOIN LEGAL?
 * HOW DOES BITCOIN COMPARE TO TRADITIONAL ASSETS?
 * IS BITCOIN A GOOD INVESTMENT?


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