Bitcoin simply explained.
Here you can find out everything you need to know about the world's first cryptocurrency. We not only look at the Bitcoin price, but also show you why Bitcoin was created in 2008 and what problems this cryptocurrency solves.
Bitcoin is a digital currency that is not controlled by any government or institution. There are no physical coins or banknotes, everything is managed online. Simply put, Bitcoin is a bank-free digital money system. An unknown person, or group of people, created Bitcoin in 2008 under the pseudonym Satoshi Nakamoto. Nakamoto envisioned a world in which people could make electronic payments to each other without using a bank. His vision was to make everyone their own bank and create a system in which there would be no need for intermediaries.
Bitcoin is based on a technology called blockchain. The blockchain is a decentralized database that records all Bitcoin transactions. When someone sends Bitcoin to another person, this is recorded and confirmed in the blockchain. There is no possibility of Bitcoin being spent twice or counterfeited, as the transactions are public and immutable. By the way, in this article we have explained the topic of blockchain in a simple and understandable way.
Bitcoins are created through a process called mining. The best way to explain Bitcoin mining is to imagine the following: people all over the world use computers to solve mathematical puzzles and receive Bitcoin as a reward. These puzzles validate transactions on the blockchain. There is only a limited number of Bitcoin that can be created, namely 21 million.
The Bitcoin price is determined by supply and demand. Since there is a limited number of Bitcoin and more and more people are interested in Bitcoin and other cryptocurrencies such as Ethereum or Solana, the value of Bitcoin can develop positively. Bitcoin is increasingly being called digital gold because it has many of the same properties as physical gold. The acceptance of Bitcoin by companies and institutions also contributes to its value. Because gold, unlike the Swiss franc, is also limited, many also see Bitcoin as digital gold.
Did you know that each Bitcoin can be divided into 100 million smaller units, known as Satoshis (Sats for short)? This means that you can also purchase fractions of a Bitcoin in your Bitcoin wallet and in the form of Satoshis. This means you don't have to ask "How much is 1 Bitcoin?" to be part of the crypto community.
✅Trust: Bitcoin is decentralized and is not controlled by a central authority or institution. This means that no individual or company can have control over the network, which increases users' trust in the currency.
✅No manipulable inflation: Bitcoin is not tied to a and is therefore not subject to government-controlled inflation or other economic fluctuations. Bitcoin experiences low during mining (as does gold). Since the amount of new bitcoins is reduced by 50% every four years, inflation also decreases every four years. This makes Bitcoin a stable currency that can be a safe investment option even in economically uncertain times.
✅Financial inclusion: In many countries, people do not have access to traditional banking services, whether due to geographical barriers, high fees or a lack of trust in banks. Bitcoin offers an alternative way to carry out financial transactions without having to rely on banks. Anyone with a smartphone or computer and internet access can use Bitcoin, regardless of where they live or how much money they have.
✅Fast transactions: Bitcoin transactions are usually confirmed and completed within a few minutes. This means that you can send and receive money quickly and easily without having to wait for slow banking processes.
Bitcoin is therefore a revolutionary development in the field of finance and technology. However, there are also challenges, including its high volatility and the fact that the currency is not yet widely used globally and is not accepted by many companies and institutions. Nevertheless, Bitcoin remains a promising technology that could play an important role in the future.
The Bitcoin price is created by the interplay of supply and demand on various trading platforms worldwide. These platforms allow users to buy and sell bitcoins, with the price being determined by the relationship between supply and demand. Factors such as general confidence in Bitcoin, regulatory developments, technological advances, macroeconomic events and even social media sentiment can all influence the price of Bitcoin. As Bitcoin is always compared in value against a traditional currency, the Bitcoin price CHF may reflect a different figure than the Bitcoin price USD in comparison. It can be observed that Bitcoin always has a higher value in the currency where the inflation rate is higher. So if you want to invest in Bitcoin by buying Bitcoin, you should always keep an eye on the exchange rates of your preferred currency.
This article does not constitute investment advice or a solicitation to buy or sell digital assets or other financial instruments or to enter into any other financial transaction. The main purpose of this article is to provide general information. No representations or warranties, express or implied, are made regarding the fairness, accuracy, completeness, or correctness of this article or the opinions contained therein. Therefore, it is advisable not to rely on the fairness, accuracy, completeness, or correctness of this article or the opinions contained herein. Some statements in this article may contain forward-looking expectations based on our current views and assumptions. These statements are subject to uncertainties and may lead to actual results, performance, or events differing from the statements made in this article.
The Cryptonow Group and its subsidiaries, as well as any advisory or representative persons, cannot be held liable in any way for this article.
It is important to note that investing in digital assets carries risks as well as potential gains.
