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December 12 2022 Cryptocurrency

What is bitcoin for and how was it born?

The answer to the question of what bitcoin is good for can be answered simply by saying that it is good for online payments. However, this does not even begin to cover the many opportunities and innovations that bitcoin and blockchain technology offer.

The bitcoin network, like other networks running on blockchain, is decentralised and therefore free from any central control. Unlike normal financial systems, it is not controlled by banks or governments. 

As the catalyst of the cryptocurrency revolution, bitcoin is held by many as a long-term investment in their portfolio. Others seek to profit from exchange rate fluctuations. One way to do this is to use spot bots, which are also available on our site, where the bots execute trades autonomously after setting the buy and sell price.

How was Bitcoin born?

The domain name was registered on 18 August 2008. And on 31 October of the same year, a paper on Bitcoin published under the name Satoshi Nakamoto was made available on a cryptography mailing list. 

Nakamoto made the free source code available in January of the following year, and on 3 January 2009, the Bitcoin network was created when Nakamoto himself mined the first block of the blockchain. This block is called the genesis block.

In that first block, Nakamoto placed a message for posterity, both marking the date of the block's creation and a reference to an article in The Times. The article was about bailing out a banking system that had been crippled by the 2008 crisis, and Nakamoto intended it as a jibe, while laying the foundations for a possible next, better, digital banking system.

What is bitcoin for?

Bitcoin was originally created by Satoshi Nakamoto, whose exact identity is still unknown, to allow people to send money over the internet. They could do this without any central control, including banks and governments.

The security of this form of sending money is illustrated by the fact that the SHA-256 algorithm on which it is based has been released by the US National Security Agency. If someone wanted to try all possible keys to crack it, they would have to try more times than there are atoms in the universe.

A public ledger records all transactions, and copies of this ledger are stored on servers in many different locations around the world. Essentially, anyone with enough knowledge and a suitable server machine can create such a server called a node. The public ledger stored on these servers can be used to cryptographically read which bitcoins are held by whom.

How can bitcoins be traded?

You can define several trading styles depending on how long you want to trade. On our site, we have put together packages of automated trading bots for each style.

The longest term is positional trading, where we want to hold the cryptocurrency we buy for a longer period of time, trusting that the price will move up. In swing trading, we want to take advantage of a change in the price of bitcoin or another cryptocurrency over a period of one to thirty days. It is significantly less time consuming and significantly less stressful than day trading.

If you have any questions about bitcoin or any other cryptocurrency, please contact us at one of our contact numbers!

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