Bitcoin: A Digital Currency Created by Satoshi Nakamoto

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Bitcoin (BTC), a cryptocurrency, is a type of digital currency which was introduced in 2009 by pseudonymous developer "Satoshi Nakamoto". Since then 12 million bitcoins have come into existence with a current market cap of around 8 billion USD [1]. The algorithm is designed as to allow only 21 million BTC to come into existence ever. Bitcoin uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network [2]. Bitcoin is not the first attempt. But none have managed before to take off so dramatically and with such wide adoption to achieve escape velocity. The questions which are important now are how the bitcoin managed this success in such a short time? How it will try to transform in coming years? And finally, how it has affected various national economies worldwide? Needless to say, all other crypto currencies like Litecoin, PPCoin etc., are based on BTC with slight modifications and follow similar analysis. As the novelty of the BTCs is not underestimated, so should not be the capability of the core people who have put their faith in it. The 21st century has seen many examples of aggressive internet activism leading to a revolution in real life. The rapid growth of bitcoins should be attributed to this phenomenon also apart from the obvious utilities of BTCs which are in itself innovative and robust simultaneously. It is not unknown that there are anarcho-technologists all across the world – people who distrust government authority and believe in the power of distributed networks and open-source software. The timing of BTCs in 2009 just after 2008 financial crisis adds weight to that distrust and propagates the idea of BTC... ... middle of paper ... ... mind is that at present, it is a wild horse. The next wave of entrepreneurs, investors, and general public, who would like to ride on it, needs a bit more civilized one. Works Cited 1. http://bitcoinwatch.com/ 2. http://bitcoin.org/en/ 3. http://www.forbes.com/sites/afontevecchia/2013/11/12/winklevoss-twins-say-bitcoin-market-to-hit-400b-urge-regulators-not-to-push-innovation-to-china/ 4. http://techcrunch.com/2013/10/29/chamath-palihapitiya-owns-5-million-in-bitcoins-wants-to-own-10-15-million/ 5. http://www.technologyreview.com/view/520376/emtech-mit-2013-media-roundup/ 6. http://www.huffingtonpost.com/2013/10/02/silk-road-fbi_n_4030750.html 7. http://bitcoin.org/bitcoin.pdf 8. http://www.theguardian.com/technology/2013/nov/08/hackers-steal-1m-from-bitcoin-tradefortress-site 9. Ibid. 7 10. http://www.coindesk.com/information/is-bitcoin-legal/

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