What is Bitcoin & Why Does it Exist? Explained!

Vinod Dsouza
bitcoin btc
Source: Pixabay

Bitcoin was launched in 2009 by an anonymous person or entity named Satoshi Nakamoto in the aftermath of the 2008 market crash. Nakamoto designed Bitcoin as a virtual currency that is foolproof that cannot be tampered with by bad actors. BTC operates free from the purview of the governments and banks that largely have no control over its transactions. Blockchain technology remains the centerpiece in the overall happenings of the crypto, NFT, and Web3 sector.

Also Read: Bitcoin Could Drop Massively in Price From $19,000 Levels

Why Does Bitcoin Exist?

bitcoin btc
Source: Wallpaperflare.com

First and foremost, Nakamoto launched Bitcoin to provide a safety net to investors from the wrongdoings of the traditional financial markets. While the traditional markets solely rely on numerous software for transactions that remain gullible to hacks, Bitcoin is not. Instead, BTC relies on peer-to-peer cryptography in the blockchain sphere.

The transactions are run on a ledger record that is publicly available and viewable at any point. The copies of the transactions are distributed to various servers around the world and diminish the chances of fraudulent activities. Anyone with a computer can set up one of these servers, and they are called nodes.

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All transactions on the network are publicly broadcasted and information is shared from node to node globally. The transaction details get collected approximately every 10 minutes by miners into a group called a block. Then, it gets permanently added to the blockchain and becomes a definitive account book of Bitcoin.

The worldwide servers record transactions cryptographically and any changes made to the document will flash red signals to the other servers. Therefore, there’s not an iota of chance for anyone to tamper with a transaction, and fraudulent activities get diminished.

In conclusion, Bitcoin exists for the safety of investors’ transactions and remains to be tamper-proof to date. The system is so secure that no passwords, key phrases, or seed phrases, among others, get stored in the network. The user holds the key to his/her Bitcoin and the investor is the central authority.