What is Bitcoin
What is Bitcoin
History of Bitcoin
Bitcoin, the first and most well-known cryptocurrency, was created in 2008 by an individual or group of individuals under the pseudonym Satoshi Nakamoto. The Bitcoin whitepaper, titled "Bitcoin: A Peer-to-Peer Electronic Cash System," was published on October 31, 2008. The first Bitcoin block, known as the Genesis Block, was mined on January 3, 2009, marking the official launch of the Bitcoin network. The goal of Bitcoin was to create a decentralized, digital currency that allows for peer-to-peer transactions without the need for a central authority or intermediary, like a bank.
Who created Bitcoin?
Satoshi Nakamoto is credited with the creation of Bitcoin, but it is unclear whether this name represents a single person or a group of people. Nakamoto was responsible for writing the original Bitcoin white paper and mining the first blocks. Nakamoto continued to work on the Bitcoin project and communicated with the community through online forums until mid-2010, when they gradually withdrew from public involvement. The development of Bitcoin was then taken over by a decentralized group of developers, with Gavin Andresen initially becoming the lead developer. Over time, many developers and contributors have worked on Bitcoin's code, making it a community-driven open-source project.
How does Bitcoin work?
Bitcoin operates on a decentralized network of computers using blockchain technology. A blockchain is a distributed ledger that records all transactions across the network in a secure, transparent, and immutable manner. Bitcoin’s blockchain is powered by the Proof of Work (PoW) consensus mechanism, where miners solve complex cryptographic puzzles to validate transactions and add them to the blockchain.
Bitcoin's design includes a fixed supply limit of 21 million coins, which is a key feature to prevent inflation. Bitcoin transactions are pseudonymous, meaning that while transaction details are public, the identities of the parties involved are not directly tied to their wallet addresses. Bitcoin's scripting language, though limited compared to newer blockchains, supports basic smart contract functionalities.
Which networks support Bitcoin?
Bitcoin operates on its own dedicated blockchain, often referred to simply as the Bitcoin network. Unlike some other cryptocurrencies, Bitcoin does not natively support other blockchains, though there are various third-party solutions to enable cross-chain interactions. Bitcoin is supported on numerous platforms, including exchanges, wallets, and payment services, making it one of the most widely supported cryptocurrencies.
How popular is Bitcoin?
Bitcoin is the most popular and valuable cryptocurrency by market capitalization, often exceeding hundreds of billions of dollars. It has maintained a dominant position in the cryptocurrency market, often referred to as the "king of cryptocurrencies." Bitcoin's price and market cap have seen significant growth since its inception, with notable bull runs in 2013, 2017, and 2020-2021. Despite volatility, Bitcoin remains a leading asset in the cryptocurrency space and is often a benchmark for the performance of the broader market.
Bitcoin Community and Media
Bitcoin has one of the largest and most active communities in the cryptocurrency space. The community consists of developers, miners, investors, enthusiasts, and advocates who contribute to its development and adoption. Discussion and development primarily occur on platforms like GitHub, Reddit, and Twitter. Bitcoin frequently makes headlines in mainstream media, often discussed in the context of its price movements, regulatory developments, and its impact on the financial system.
What is a Bitcoin wallet?
A Bitcoin wallet stores private keys, which are strings of characters that allow you to manage a Bitcoin address. Your Bitcoin wallet holds private keys, which are a unique series of characters that enable you to control funds at a specific blockchain address. Bitcoin wallets don't hold Bitcoin. Your cryptocurrency is always stored on the Bitcoin blockchain. The purpose of your Bitcoin wallet is to create and store private keys that let you access and manage multiple Bitcoin accounts. In essence, a Bitcoin wallet is a tool that enables you to store, send, receive, access, and manage Bitcoin (BTC).
How does a Bitcoin wallet work?
Bitcoin wallets work using public and private key pairs. Each wallet can create many key pairs to manage multiple blockchain accounts. The private key is a unique string of characters that gives access to a specific Bitcoin account. You must always keep the private key secure to protect the funds. On the other hand, the public key is safe to share and is used to receive Bitcoin. To withdraw funds from a Bitcoin wallet, you must have access to the corresponding private key. Tangem Wallet generates and stores private keys inside its chip.
How to select the best Bitcoin wallet?
Choosing the best Bitcoin wallet depends on your needs. It is recommended to use a hardware wallet to protect against online threats and ensure the secure storage of significant Bitcoin holdings. If you need to manage a wallet with multiple users, you might need a multi-sig wallet. To manage Bitcoin Ordinals, you have to find a wallet that supports it. Ultimately, the best Bitcoin wallet varies based on your needs and goals.
Supported Networks
Tangem Wallet supports Bitcoin on these networks
- Ethereum
- Solana
- Atom
- Polkadot
Bitcoin official links
Discover the power of crypto with the Tangem App.
Install the app on your phone or download APKHow to buy Bitcoin in Tangem Wallet.
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Bitcoin FAQ
- Owning cryptocurrency can be important for several reasons: it provides a decentralized way to store and transfer value, offers potential for investment growth, enables participation in emerging financial technologies, and can be used for secure and private transactions.
- A cryptocurrency wallet is a tool or device that allows you to store, manage, and use your cryptocurrency. It keeps your private keys secure and enables you to interact with various blockchain networks, including Bitcoin and Ethereum.
- When choosing a cryptocurrency wallet, consider factors such as security, ease of use, and cryptocurrencies supported. Also determine whether you prefer a hardware or software wallets. Research reviews and compare features to find the best option for your needs.
- Bitcoin's popularity is largely due to its robust and decentralized network, which is supported by thousands of miners around the world. The proof-of-work consensus mechanism requires miners to solve complex mathematical problems, ensuring that transactions are legitimate and preventing double-spending. Additionally, Bitcoin’s network is highly resistant to attacks because altering the blockchain would require overwhelming the majority of the network’s computational power, which is practically impossible for any single entity.
- Bitcoin was initially created as a digital currency for peer-to-peer transactions, and it continues to be used as a medium of exchange, though its use case has evolved over time. Today, Bitcoin is also considered a store of value, often referred to as "digital gold," and is used as a hedge against inflation by investors. It can be used for a variety of applications, including online purchases, remittances, and as collateral in decentralized finance (DeFi) platforms. Bitcoin is widely accepted by merchants, payment processors, and even some governments as legal tender.
- The legal status of Bitcoin varies by country. In some countries, like El Salvador, Bitcoin has been adopted as legal tender, while in others, it faces restrictions or outright bans. In most developed countries, Bitcoin is regulated as a digital asset, with varying degrees of oversight by financial authorities. Regulations typically focus on anti-money laundering (AML) and know-your-customer (KYC) requirements, especially for exchanges and financial institutions dealing with Bitcoin.
- The choice of Bitcoin wallet you opt for is crucial. Bitcoin software wallets, installed on mobile or computer, typically come at no cost but carry risks of centralization. On the other hand, Bitcoin hardware wallets, physical devices incurring expenses, boast superior security features. Although there's an initial investment with hardware wallets, the potential losses from insecurity far outweigh the price. Should you fall victim to hacking, the value you stand to lose could far exceed the cost of a hardware wallet.
Why choose Bitcoin wallet with Tangem.
Private. No registration and KYC required to use the app. We don't track your data.
Secure. Your private keys are encrypted and never leave your device. Only you have control over your funds.
Innovative Design Options. Choose from a variety of elegant designs, including unique co-branded editions and our innovative ring-form factor wallet, ensuring both style and functionality.
24/7 Online Support. Fast support for your needs. Live chat and email support for customers from all over the globe.
Other crypto assets supported in Tangem Wallet.
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