Bitcoin Meaning: Definition, Examples, and Translations
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bitcoin
[ˈbɪtˌkoɪn ]
Definition
digital currency
Bitcoin is a decentralized digital currency that was introduced in 2009 by an anonymous entity known as Satoshi Nakamoto. It operates on a peer-to-peer network and allows for secure transactions without the need for intermediaries like banks. Transactions are recorded on a public ledger called the blockchain, which is maintained by a network of computers known as miners. Bitcoin has gained popularity as both a form of payment and a store of value, often referred to as 'digital gold.' Its limited supply, capped at 21 million coins, contributes to its value over time.
Synonyms
cryptocurrency, digital currency, virtual currency.
Examples of usage
- I bought some bitcoin as an investment.
- Bitcoin is accepted by many online retailers.
- He transferred bitcoin to pay for his services.
- Investing in bitcoin can be very volatile.
- She keeps her bitcoin in a digital wallet.
Translations
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Interesting Facts
Historical Origins
- The concept was introduced in a white paper titled 'Bitcoin: A Peer-to-Peer Electronic Cash System' published in 2008 by an anonymous person or group using the name Satoshi Nakamoto.
- The first transaction using bitcoin occurred in 2010 when a programmer bought two pizzas for 10,000 bitcoins, highlighting its initial low value.
- Bitcoin was the first cryptocurrency to use blockchain technology, allowing secure and transparent transactions.
Technology
- Blockchain, the technology behind bitcoin, is a distributed ledger that records all transactions across a network of computers.
- Mining is the process by which new bitcoins are created, requiring significant computational power to solve complex mathematical problems.
- Bitcoin transactions are verified by network nodes through cryptography and stored in a public distributed ledger, ensuring transparency.
Economics
- Since its inception, bitcoin has introduced a new way of thinking about money, characterized by decentralization and limited supply, with only 21 million bitcoins expected to exist.
- The price of bitcoin has shown extreme volatility, rising from less than a dollar in its early days to tens of thousands of dollars, driven by demand, speculation, and adoption.
- Bitcoin is often viewed as 'digital gold,' seen as a hedge against inflation and currency devaluation.
Cultural Impact
- Bitcoin has inspired the creation of thousands of other cryptocurrencies, part of a broader movement towards digital finance and blockchain technology.
- Figures such as Elon Musk and institutions like Tesla have influenced bitcoin's popularity and price through endorsements and investments.
- The rise of bitcoin has spurred discussions about financial regulation, privacy, and the future of banking, affecting global economic conversations.
Legal and Regulatory
- Regulations regarding bitcoin vary widely by country, with some governments embracing it while others impose strict restrictions or outright bans.
- Tax treatment of bitcoin profits as capital gains has been a contentious issue, leading to varying compliance practices.
Origin of 'bitcoin'
The term 'Bitcoin' was first introduced in a white paper published in 2008 by an individual or group using the pseudonym Satoshi Nakamoto. The first block of the Bitcoin blockchain, known as the Genesis Block, was mined in January 2009. Bitcoin was created as a response to the financial crisis of 2008 and aimed to provide an alternative to traditional financial systems. The word 'bit' references the binary system used in computing, while 'coin' relates to the idea of currency. Since its inception, Bitcoin has sparked the rise of thousands of alternative cryptocurrencies and has led to significant innovations in the fields of finance and technology, making it a pivotal development in the world of digital assets.