Mastermind behind Bitcoin

Although the concept of blockchain has been around for a long time, it wasn’t until the invention of Bitcoin that it became commercially viable. While the circumstances surrounding Bitcoin’s inception remain a mystery, it wouldn’t be incorrect to credit Satoshi Nakamoto as the creator, who did more than just reveal something revolutionary. Satoshi initiated a philosophical movement that would have far-reaching consequences.

Bitcoin

Satoshi Nakamoto didn’t just create Bitcoin; he also wrote a whitepaper detailing the cryptocurrency’s implementation, roadmap, vision, and nearly everything else relevant. But that isn’t what distinguishes Satoshi’s contribution to the crypto community. Satoshi Nakamoto’s identity was never revealed, in spite of the temptations and possibilities of becoming a key figure in the crypto space. Even with the possibility of symbolic immortality, Satoshi chose anonymity in order to maintain Bitcoin’s status as a decentralized system and ensure that it cannot be linked to a single person.

Why was Bitcoin created?

Bitcoin was created in 2008 as a response to the Great Financial Crisis and the financial world’s reliance on banks to act as financial intermediaries in all transactions.

Satoshi Nakamoto, the alleged founder, had the idea of removing banks from financial transactions and replacing them with a peer-to-peer payment system that did not require third-party confirmation. This eliminated the need for banks to be involved in every transaction.

It would rely on the standard of “proof of work”, which employs mathematical algorithms to confirm transactions without using a central authority (banks). The blockchain takes the place of the central network.

Why is it relevant now?

Partially due to the COVID-19 pandemic, the concept of scarcity of units has gained traction in the financial landscape 12 years later. Central banks all over the world are debasing their currencies, and investors are looking for a safe haven or “insurance policy” against inflationary pressures. In this context, an “insurance policy” simply means that investors keep their money somewhere other than central banks so that their funds are unaffected by rising inflation.

Gold and other precious metals have been used to provide insurance for nearly 5,000 years. Prior to the year 2008, however, Bitcoin did not exist. Now investors are looking at Bitcoin as a possible companion to precious metals as inflation insurance.

Arguments for Bitcoin performing this role are that it has a finite scale, meaning that it cannot exceed the mathematical algorithms that program the blockchain, thus eliminating inflation characteristics. It is also portable in its nature. A “virtual wallet” can be created with any phone or device. It’s clear that Bitcoin is far more modern and portable than a physical bar of gold. The arguments against this campaign are that it lacks the history and intrinsic value of gold. Opponents argue that it is worthless because it is backed by nothing.

Some of the key characteristics that make bitcoin special

Decentralization

Bitcoin’s decentralization is the first and most important feature. Bitcoin has no central authority, unlike traditional currencies, which are issued and managed by a central authority, which could be the government of a country or any other organization. Bitcoin’s decentralization offers a number of advantages over traditional currency, including immunity from seizure, taxation, and theft.

Transparency

It is well known to us that no one knows how much bitcoin a person owns, but it is visible to everyone on the ledger board how many transactions have been made by which user and who is/are the bitcoin receiver/receivers. As a result, everyone in the Bitcoin ecosystem understands the transaction. And, based on the above-mentioned history on the ledger board, the assets owned by any person can be easily determined if one so desires.

Fast

Bitcoin transactions are faster than other banks’ or any other method of transaction. When money is sent in the form of bitcoin, it takes only a few minutes to get from one end of the world to the other. Simultaneously, if the same amount is sent via any other bank or method, it will take up to a week or more to arrive.

Value is determined by Demand

There is no fixed value or price of Bitcoin. Its value and price entirely depend on its demand. The members of the ecosystem of Bitcoin determine the cost and value of Bitcoin in the market.

Simple to Setup

In general, banks require extensive documentation and procedures for opening and managing accounts, including dealer records, credit checks, and numerous legal documents for user identification. However, you can create a Bitcoin address in a matter of seconds, without the need for any legal documents. You must create a strong password, which you must not forget.

Expert Consulting from Kelly+Partners Accountants

For those seeking expert guidance in navigating the complexities of cryptocurrency investments and transactions, consider consulting with Kelly+Partners Accountants Burbank. With over 20 years of experience in serving the forensic accounting and business management needs of Burbank, CA, and the surrounding areas of Los Angeles County, our team offers specialized cryptocurrency consulting services. Whether you require assistance in understanding the financial implications of Bitcoin transactions or need strategic advice on integrating cryptocurrencies into your business operations, our dedicated consultants are here to assist you. Contact us today to learn more about how we can help you optimize your cryptocurrency endeavors.

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