What is Bitcoin?
It is a decentralized digital currency that is based on cryptography. An electronic peer-to-peer cash system launched in January 2009 by an unknown individual or group with the pseudonym of Satoshi Nakamoto. Created to be solution to a centralized system controlled by the countryâs central bank. Bitcoin decentralization enables peer-to-peer transfer around the globe anytime and anywhere. It works through Proof of Work consensus mechanism. Wherein, there's a miner who will work to verify every transaction in the network. This makes the network resilient against fraud, there's a nodes around the globe that validate transaction and the records are accessible by the public, making it a decentralized network.
It has a fixed 21 million supply, currently 19.4 is in circulation. Well there's Bitcoins that is totally burned and out in circulation; the owner who forgots his seed phrase or a hardware wallet that gone missing. Every 4 years there's a Bitcoin halving happening which will reduce the block reward to miners by half. This is a significant event for everyone, as it will make a high volatility which the traders may speculate.#
So why Bitcoin = Digital Gold?
Gold is limited in supply, we don't know how much gold is underground. Making it appreciate in value overtime. Just like gold, Bitcoin is also have a limited supply there will be only 21 million (in reality there will be less than that) Bitcoin when the whole supply is mined. Both is a store of value, through out centuries gold is a hedge on inflation. Bitcoin will be also a store of value and hedge on inflation, many people are being aware of that. The only difference is that gold is tangible and Bitcoin is digital also it is decentralized no authority can control it. In addition, Bitcoin can be divisible (just like gold which is divisible in grams or ounce) and is much easier to store or transfer electronically much applicable in today's technology. While it seems like Bitcoin has great points in every aspects, still gold is the king with $12 trillion market valuation due to it's wide mass adaption. But we believe Bitcoin will reach that spot too in the future.
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