1. What is Bitcoin
Bitcoin is a digital currency designed by Satoshi Nakamoto. Bitcoin allows users to send payments within a decentralized,peer-to-peer network, and is unique in that it does not require a central clearing house of financial institution clearing transactions. Users must have an internet connection and Bitcoin software to make payments to another public account/address.
2. Satoshi is the smallest unit of Bitcoin; 1 Bitcoin contains 100 million Satoshi. By design, the supply of Bitcoins cannot exceed 21 million Bitcoins(2,100 trillion Satoshi). The total amount of Bitcpin in circulation will increase predictably, based on its underlying code, until reaching the cap in 2140.
3. A public history of all transactions is continuously updated and verified by "miners" who gather batches of new transactions into blocks and attach these blocks to the end of "Blockchain".
4. Bitcoin supply is increased with every new block of transactions added to the public history.
5. Money/currencies are generally thought to have three distinct roles: as a unit of account, medium of exchange, and store of value.
6. as a medium of exchange, Bitcoin is attractive as it offers low transaction costs.
7. Bitcoin offers an attractive alternative to cash in terms of security, transparency of transactions, and counterfeiting.
8. Bitcon‘s role as a store of value is seriously compromised by its elevated price volatility.
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Bitcoin A First Assessment