Frequent questions and answers Was ist Bitcoin (BTC)?
The cryptocurrency Bitcoin is very popular due to its very rapid rate development. We will explain to you what characteristics and attributes define the digital currency.
What makes Bitcoin so special?
Like other currencies, Bitcoin also functions as a medium of exchange and payment. It can be used to pay for goods and services as well as perform financial transactions. One thing that makes it superior to conventional currencies like the Euro or Dollar is its non-local nature. No institution controls the framework conditions or money supply. The Bitcoin network controls itself.
Who is the developer of Bitcoin?
Satoshi Nakamoto is considered the official software developer of Bitcoin. However, the name is a pseudonym. Who is behind it is still not clear. It is also not known whether this was a collaborative effort.
What is Bitcoin based on?
Mathematics is the only basis of Bitcoin. It is not dependent on an institutional structure that vouches for its value. Bitcoins are generated using a complex software that follows a mathematical formula. This process is called mining. This software is an open-source product. That means that it is completely transparent. Everyone can understand in principle exactly what the software does and whether it does what it is supposed to do. The technology on which Bitcoin is based on is called blockchain. The network itself makes decisions using a consent mechanism defined in the program code, and no individual instance can make a decision. This makes blockchains at least as interesting as Bitcoin for companies, institutions, and governments.
How many Bitcoins are there in total?
The Bitcoin protocol was developed for a maximum of 21 million Bitcoins that miners can mine. These coins can be split into smaller units that are called Satoshi – named after the Bitcoin inventor Satoshi Nakamoto.