Bitcoin was the first cryptocurrency launched in 2009, in the time of the Global Financial Crisis, by the anonymous founder Satoshi Nakamoto. Bitcoin is a digital asset secured with cryptography and was created to be an alternative to fiat money.
Bitcoin was a new electronic cash system that requires no third party to send and received money. In other words, it is completely decentralized with no server or central authority, such as government control.
With this new technology, owners who own bitcoin in the system are completely anonymous, in the sense that, there are no names, account numbers, or country identification number that links Bitcoin to its owners. This blockchain technology uses encryption keys to connect buyers and sellers without a third-party connection. Therefore, there are no bills to print or coins to mint with this technology.
The aim of bitcoin is to provide lower transaction fees to transfer money using a peer-to-peer system to facilitate instant payments. It is faster, cheaper, and the most reliable way to transact business compared to the traditional way of doing business through a bank.
Bitcoin is not a physical coin, but it’s a collection of computers or nodes that run its code and store its blockchain. For better understanding, payments are verified by the use of a massive amount of computer power, and balances are kept on an open or public ledger that everyone has access to, along with the bitcoin transaction information, which of course is anonymous.
Despite its non-legal obligation, bitcoin grew very fast in popularity and triggered the launch of many virtual currencies called Altcoins.