With everything suddenly becoming digital, like communication, watching, learning, reading, shopping, gaming, etc., it's no surprise that finance is already catching up with the trend. And no, I'm not only talking about GCash, PayMaya, or even digital banks like Unionbank or Tonik. I'm talking about cryptocurrencies.
Before we jump into Bitcoin, let's define these three terms: Fiat money, Digital currency, and cryptocurrency. This module includes 2 parts with a dive on the different types of currencies available in the market and what cryptocurrency is in particular.
The idea of Bitcoin was first introduced during the Global Financial Crisis back in 2008. On October 31, Satoshi Nakamoto uploaded their authored whitepaper named "Bitcoin: A Peer-to-Peer Electronic Cash System." Here Satoshi Nakamoto laid out their idea for a decentralized digital currency, taking out the need for trust and intermediaries in transactions.
Bitcoin is designed to let you store, receive, and send money to anyone in the world without the need for any bank or company. Before Bitcoin came along, you always needed the likes of BDO, Cebuana Lhuillier, or Western Union since they are responsible for verifying the money you send and receive.
In the previous chapters, we discussed how bitcoin is a new form of currency and a way of transferring value between people. Now that we understand how bitcoin works, let's see how it actually fares against other forms of currencies.
Aside from being a reliable form of money, Bitcoin also helps solve several problems that affect you, me, and everyone else in the world. Some of these problems include trust systems, authorization, and transparency. Let's take a quick look at what these problems are.
Suppose you decide to venture further into the cryptocurrency space. In that case, you'll be met with a few obstacles like crypto jargon or slang. But, don't worry! Let's break them down one by one so you don't feel left out!
Now that we've covered Bitcoin from the inside out, we're pretty much all wrapped up here. The final thing we need to brush on is how to properly invest in bitcoin and other cryptocurrencies. Here are some general reminders from the Bitskwela team.