Bitcoin was founded in 2008 by an anonymous creator, or creators under the pseudonym Satoshi Nakamoto. Bitcoin cannot be fully explained. It relies on game theory and cooperation to ensure it works. Nowhere else but in BTC is cooperation probably not so advantageous. The price of Bitcoin, as in the principle of everything, is driven by supply and demand. Nothing else. Similarly with other cryptocurrencies, whether decentralized or centralized.
As the wise Wiki says. Bitcoin is an open payment network, or cryptocurrency, whose main advantage is complete decentralization. Thus, no one, not even its creator, has the ability to influence its functionality. It cannot be counterfeited, it cannot cause inflation, it cannot be controlled or stopped. The final amount of BTC is known.
If this were indeed the case, Bitcoin would not be able to be renewed and innovated, after all, in principle it is a program, and it needs to be developed. So, if it were not possible to influence it, it would not be possible to change it. Well, here we are. So how is it possible for anybody to influence the program and still keep the network secure? Well, quite simply, the bitcoin community has to agree to change it, by a supermajority.
After the success of Bitcoin, many other cryptocurrencies have emerged, some of them bringing very interesting results and new principles. However, Bitcoin is still the king, as evidenced by its market capitalization, the total value of all bitcoins, which reaches more than 62% of all cryptocurrencies. (the situation is constantly changing). But in general, the price of all cryptocurrencies depends on the value of bitcoin.
So how do you actually describe bitcoin? Bitcoin is currently digital gold, a store of value, a medium of exchange and, increasingly in the world of cryptocurrencies, a unit of account, so it essentially fulfils all the attributes that economic theory attaches to money. That is to say, apart from the position of digital gold, which does not lose value over time, it can be seen as real money as opposed to money printed by national banks. I don’t think bitcoin is any way to get rich quick these days, if you’re interested in it for that reason, better not go for it. Bitcoin is a way out of our monetary system. Unlike gold, bitcoin does not need to be transported under the cover of machine guns.
Although it’s often mentioned by opponents of Bitcoin, its coins can hardly be used to pay for illegal activities, because all transactions are recorded in one universally accessible ledger called the blockchain, and thus wouldn’t make the most sense.
Another fundamental and quite relevant argument of Bitcoin’s opponents is the high energy cost of ensuring the security of the BTC network. They are certainly correct in that this network consumes as much electricity as a smaller country, but this is still negligible compared to securing the operation of the world’s banking system. However, the strongest counter argument is that currently over 80% of the power consumed by this grid comes from renewable sources and power plants in inhospitable conditions. This is based on the fact that this way of running mining servers is the cheapest. Bitcoin thus contributes to a high degree to the development and expansion of alternative energy sources.
