Topic: What exactly was the idea behind bitcoin? (Read 527 times)

Bitcoin is created as an alternative currency for fiat, there are many benefits of having a bitcoin. There are many things that bitcoin is now giving to me, first is that I am using it for online payment, second is that I am using it to earn money, that is the usual or common thing that bitcoin could give to people because a lot of people now are thinking that bitcoin is really good for earning money, well that is also possible but it is not easy as that.

You have answered it already.
The purpose of having Bitcoin is to give you an alternative way of payment(cashless) and we are adopting it now. Many people will look that impossible and they'll think just a scam thing which is absolutely wrong and that also a reason why you don't have any from this because you might belong with them.
But if you believe and trust the idea of why satoshi brought this into the market and see big companies are investing this, you will find how potentially beneficial it was.

"Firstly , bitcoin is limited in number (21 million) and the world population is higher than that if not twice" higher than what? What the hell are you talking about? there about 8 billion people ionn earth. What hs this got to do with anything? Have you never heard of fractions before?

"if you invested in bitcoin at an early stage it would have made you twice richer" err ok? It will depends on when you bought them how can you say twice?

Right now I agree with you somewhat about the transactions. The high fees are not nice and not what crypto was really meant for.

Satoshi Nakamoto created Bitcoin for the purpose of financial transactions on the internet without intermediaries or not using bank services. So Bitcoin
can be said as the money for the internet, but the system works without a single administrator which is called a decentralized currency. Therefore
Bitcoin can be used to buy goods or pay for services, just like money in the real world. But many also make Bitcoin a digital asset, because it is
very profitable and many people have become rich because of it.

It is true that bitcoin serves as a digital money or as we all know cryptocurrency which can be earned and can be seen mostly in online. This digital money is oftenly used in online gambling, online transactions and even in online playing bills. Bitcoin somehow manage to adopt the innovation of technology in the 21st century where mostly used today also because of pandemic is hassle free or digital. The idea of bitcoin is to have a decentalized yet changing coin in the market where we can be used as a source of income. In trading, rhis kind of coin are mostly used because it is also hassle free to send money online and as the year passed by, bitcoin started to developed and change time by time. Every year it improves.

Bitcoin is currently being used as digital money in some country.The power of bitcoin is blockchain, that's way bitcoin can be easily transferred from one place to another.Many countries currently allow bitcoin,so in the future all countries may allow it as digital money.

Have you heard about blockchain technology? That's actually the essence of creating this bitcoin. It was created beyond expectations , the conveniency, data security, etc has been adopted by many companied nowadays.

It's also been used today as  digital payments because if you can noticed new trends like electric payments, ewallets are going to be popular especially pandemic hits our economy.

Actually in your doubt this part of the answer to your informational conjecture about bitcoin, just conjugate in the present tense and maybe it could be valid, but you must add and change the negation in the sentence to "... I can see it as a currency for the future ".

That is, the "idea" of bitcoin is running and is a success, it works, due to its configuration in the 21 million it allows to have an inflationary "control" over the emission of available bitcoin, so there will always be a satoshi for whom want it and can buy it.

In other appreciations, in effect the mining and disposition of bitcoin in the result of a transaction has its "times" but it is not a problem, it is a characteristic of bitcoin. In general, those who do not understand bitcoin associate this as a problem, but it really is not, bitcoin works like this, for now in my humble opinion it works great, if you want bitcoin to arrive fast, pay the right rate it is that simple.

Now, for the times to come, scalability is needed, yes and no, anyway there are already improvements that are being used, but the sum of all this even if bitcoin does not change anything, it is undoubtedly the currency for the future.

Bitcoin is a consensus network that enables a new payment system and a completely digital money. Bitcoin is a decentralized digital currency, without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoins are created as a reward for a process known as mining.

Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet.

World richest people like bill gates behonde btc.
The bastards rich

Also, it is for those who doesn't want to endanger their lives because of their wealth. Because of it's pseudo feature, you can't tell whether what's the status in life of someone unless you're already had a Big name on your state.

Can be very evil people beghind the btc just make your money with btc and through away
In this world only safe way is to hold cash

We dont control btc we dont know who did so what you dont know you dont tryst trust

Decentralisation is its main difference from fiat currencies or other digital currencies under any government. Cryptocurrencies are not regulated directly by any banks or authority. The idea of Bitcoin in my perspective is a currency for freedom. Free of tax, faster transactions, and anonymity in some aspects. But to get close with the reality Bitcoin is not being used as it was meant to be. Nowadays cryptocurrencies not only Bitcoin  are more popular on investment purposes. Which I think is a great example that idea on something that was created could be altered by how will it be used by people.

Bitcoin is the internet's money. Not only that, it's the future's currency. Sure, bitcoin can't totally eradicate fiat, no doubt about that, but it will be massively adopted through the world.
As for the limited supply of bitcoin (21 million), it is true this can't go round if we are to have 1btc each. Don't forget, however, that bitcoin is divisible. Its unit is Satoshi. 1 Btc is 100 million Satoshi which means you can buy in units.
As to what Satoshi was trying to do when he created Bitcoin was to return financial power and control back to the masses. He wanted to take power from centralized institutions like banks and the government and give those power to the people so they'd have control over their own money.

That's right, sometimes it seems to me that people did not read the whitepaper at all, it says about it on the first page.

From a user perspective, Bitcoin is pretty much like cash for the Internet. It is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. Another factor, is that bitcoin in encrypted. If you are donating to a political party, for example, and fear persecution, Bitcoin is perfect for this. It is also what makes it a criminals choice, especially for money laundering purposes.

It depends on each people on how they want to treat bitcoin. To me, bitcoin is a true form of money as long as there are people willing to receive bitcoin instead of FIAT. The supply and demand theory has made the price of bitcoin increases years by years since more people want to own their bitcoin for several reasons.

Being capped at 21 million is not a weakness of bitcoin but it has made bitcoin invulnerable from the inflation. While fiat is controlled by the central bank, they try to devalue the money and always defend that it is good for the economic system because of the stability that the inflation can bring. Moreover, bitcoin is developed by a special team which understand what people want and their desire. And there is a concept of splitting bitcoin even smaller part than satoshi. About the congesting problem, many upgrades have been installed to the blockchain such as SegWit and lightning network which provenly make transactions becoming faster

Therefore, dont hesitate to hold more bitcoin unless you are not a true fan. Will you choose to be the pioneer? or just a imitator

People wanted a currency after the Financial Crisis that would not be regulated by a central authority. When people placed their trust in a bank, the bank lost the money of the customers and the government printed more money as a firefighting measure, which in turn reduced the value of money already in circulation in the country. Since no maximum limit was imposed on the number,There was still some unpredictability and confusion about the decline in the value of people's money with money that could be printed by the government.

By setting the maximum number of Bitcoins that could ever be in circulation and the pace at which fresh Bitcoins would be generated, Bitcoin solved this issue. The maximum number and the output rate cannot go beyond the limit set.The coding used in its design is the reason. Also, for easy verification, this code is made available to all to ensure that no more Bitcoins are created.

In this way, the value of each Bitcoin relied only on the market supply and demand and was free of all sorts of government interference, such as when, for different purposes, the government arbitrarily changed the value of a currency.Now, whenever we make a transaction with our stored money, to verify and confirm our transaction, we rely on a third-party vendor (i.e. a bank). There is no guarantee that the seller won't get greedy with our money and make risky investments, like what happened in the 2008 Financial Crisis. By empowering users to directly remove the need for third party intermediaries, Bitcoin has eliminated Negotiate with each other.

You simply need to build a Bitcoin account (called a Bitcoin Wallet) on your computer or your smartphone to store your Bitcoins. This wallet is more like your actual wallet and behaves less like a vault. In this situation, you are your own banker and, as our conventional banks do, the wallet does not take decisions on its own. Since the wallets are owned by different companies.Negotiate with each other.The code used in their design is made available to everyone who wants to study it and open to them. This ensures clients that their deposits will remain safe.

The same idea I have before when I wasn't fully convinced to put my time in Bitcoin and cryptocurrency, that is Bitcoin has a limited supply of 21 million. Over time, I understood that the scarcity of Bitcoin's supply is what makes it profitable and could induce more mass adoption. In the first place, you don't need to acquire an exact amount of 1 BTC and above to consider yourself a bitcoin user. That is why we have many denominations for Bitcoin. There we have satoshi which allows us to count faster. Refer to this image:


The scarcity of Bitcoin is what makes it possible for people to race up to acquire the largest amount of Bitcoin they could, as they know that in the future, acquiring 1 BTC will be so hard but it doesn't take the opportunity for them to be restricted in using BTC.

What about the transaction fees?

The upgrade of Bitcoin to Segwit when you are using a ledger nano, or try to look in a block explorer, states that we can save more transaction fees with Segwit. This means that the Bitcoin network can still be improved to decrease the fees and make it more convenient for us to use Bitcoin in the future.

Omg!!! You either right or wrong but to the best of my knowledge bitcoin is a digital currency meaning it’s an internet money. It’s also a store for value and can be used for different purposes, can be used to purchase things and can also be converted to other currency (fiat) but it’s doesn’t change it idea. Don’t forget bitcoin is a currency and What makes it a currency is the ability to be converted to other currencies to make life easier and meaningful. Lol

Yes, for the under developed countries it’s always big charm to get into crypto currencies due to their undervalued currency. Niara is not only currency which is like this but many more are there and those people can enjoy the royalty of holding bitcoin but obviously limited to their country only. If they want to spend over Internet then they will need to spend huge Amount of money since they will consider it as local transaction and highly priced one.

Moreover there is no issue with the bitcoin transaction even it becomes 100k or more in the future because of it divisible unit as stated earlier by some users. The fees would be overcome by increased rewards for mining I guess. In anyway developers will surely have way out for this one.

A currency can't solve poverty problems.A currency is just a tool.The crypto industry that was created around that currency might solve some poverty problems by creating jobs and letting the poor people to earn,save and invest coins.
The world is truly globalized and Bitcoin is a true global currency.However,the main reason for Satoshi to create Bitcoin was to create a currency,which is free from the control of central bankers and politicians,and therefore-free from inflation and wrong monetary policies.

Unfortunately, the traditional ideas of bitcoin are going away with the appearance of more and more people in the industry. But the main idea is freedom.

Bitcoin is created because Satoshi Nakamoto saw loopholes in the "third-party" payment method which introduced the problem of "double-spending". But this simple solution happened to be the facade of Bitcoin as it also gives way to blockchain technology. With these, the idea of bitcoin becomes the voice in the financial sectors. Looking at the federal reserve minting new paper bills to circulate the supply of money and stabilized the economy, creates mass concern. What if this inflation would continue to rise? What happened if they minted a lot of paper bills? What then? A lot of whats makes people in the bitcoin community wary and as simple as that - bitcoin becomes financial freedom - which is decentralized and trustless, with no third-parties involved (government, banks, institutions, etc.), having little inflation rate, a scarce supply of 21Million but almost unlimited due to its characterization of being "divisible" by 8 decimals. That is what Bitcoin becomes popular today, not just by merely an investment but because of people`s interest.

To make it short, the idea behind it is to get away from the banknote manipulation where paper money is controlling the world. With the creation of Bitcoin, we can get back to where we're before when we were using gold and silver. No one can manipulate our economy using those paper money in the other words, we can get away from the power of those people who manipulated the world market. Bitcoin can free us from that because we don't need them anymore when the whole world accepted Bitcoin as one of their own currencies.

For me the main idea of bitcoin simply just to widening the idea of currency in line with the innovation of technology. Satoshi founded the bitcoin because he saw some progress towards it. And even it is decentralized and unstable, he still go for it and believe that bitcoin will be a thing in the future. The unsure idea of Satoshi makes a lot of innovations and have a good impact in todays market and online cryptocurrency. I think ths simple idea behind bitcoin makes  it more progressive and attain ityet it is not finish and will continually aim for the best for the following years.

Bitcoin is still at an early stage and it has more room for development. Even though at such an early stage bitcoin has gained so much value.
It is now being treated as a multi-valued currency where some people use it as a currency, some use it as an asset and others use it as a store of value.
We can't really blame it though since it is us who use it for different purposes. It is decentralized and nobody controls it which is why it is going in a direction where majority of the people find it valuable to use it as a store of value. Developments are taking place already as the lightning network is starting to gain attention and I think many such developments in future, "might" make it usable as a currency too for majority of the people.

I think the main idea behind the Bitcoin creation was introducing an alternative form of money, omitting all the known disadvantages of it.
That is why Bitcoin assumes trust, transparency, traceability and involvement of every user in the process.

yes Bitcoin is limited to 21M but it is divisible into Satoshi.  If there is mass adoption of BTC in future people will have have a fraction of it like 0.00000001. check this out btc unit in image.

It was all about Satoshi taking power away  from the banks and returning it to the people. Bitcoin to be the first workable form of digital money that could be sent between individuals without the need to involve a trusted third party financial institution.

The goal and main purpose of Satoshi was to eliminate banks and other financial intermediaries from needing to be at the Centre of every financial transaction, and he achieved it with bitcoin.

Based on a philosophical standpoint bitcoin is what people think about it. @OP makes his point of view and standpoint about what is Bitcoin cause in reality - Bitcoin hasn`t changed yet the perspective and issues underlying fiat problems and its vision (based on whitepaper) being a "peer to peer" payment system. In fact, people with little to no understanding of what is Bitcoin would think this way... Think again, institutions are not meant to control this system - it's for the people, right?

The cap is indeed 21 million, and it is indeed one of the things that show how the price wouldn't go past the certain limit, but if you were talking about how the limited supply would hinder its usage, Bitcoin itself can be divided infinitely, without affecting the original value. From Bitcoin to Satoshi, and if needed, well, something smaller than that. And honestly enough, most are attracted to Bitcoin since it doesn't require a third party to be trusted to actually transact, and you can be guaranteed that the value and supply of it would stay as it is shown in public. It's a trustless but trusted currency.

Great comment. Even when 1 bitcoin would be equal to 1 million USD there would still be ways to distribute it and made it usable for smaller transactions. A possible problem would be slow transactions. But as newer technology comes this will be no problem. Another problem would be its user friendly-ness. I myself don't know how to use the lightning network. It's not because I will not understand it. It's the hassle of doing something like that for a 1-time transaction.

Bitcoin was created as an alternate to the traditional economic system where the control is with third party banking network. With the existence and usage of bitcoin this can be overcome, because we control our own funds. Bitcoin getting within the limit is the good with bitcoin. The limited supply helps in overcoming inflation which most of the currencies experience at present due to improper management and printing currencies in excess.

People can always use Satoshi, as most people do, so anyone who is interested can have a share of Bitcoin. 


It's not like development has stopped or anything. In fact, there's going to be a major update on Bitcoin which is the Taproot and Schnorr (though I don't know when). We also have Lightning Network which has the potential to solve transaction speed and fees. As you can see, we'll have the solution in that with time.

Yes, Bitcoin is somehow created to create a currency within the Internet. At the start, it was already used as a means of payment and I believe Bitcoin successfully reached that goal. Right now Bitcoin can still be used as a mode of payment and its also another form of investment that really involves a lot of time watching its value. Its also another thing that we can just leave and let it grow through time.

Regrettably, we have read your very words many times already. Please find below the best answer and live with it.

"The root problem with conventional currency is all the trust that's required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust. Banks must be trusted to hold our money and transfer it electronically, but they lend it out in waves of credit bubbles with barely a fraction in reserve. We have to trust them with our privacy, trust them not to let identity thieves drain our accounts. Their massive overhead costs make micropayments impossible.

A generation ago, multi-user time-sharing computer systems had a similar problem. Before strong encryption, users had to rely on password protection to secure their files, placing trust in the system administrator to keep their information private. Privacy could always be overridden by the admin based on his judgment call weighing the principle of privacy against other concerns, or at the behest of his superiors. Then strong encryption became available to the masses, and trust was no longer required. Data could be secured in a way that was physically impossible for others to access, no matter for what reason, no matter how good the excuse, no matter what.

It's time we had the same thing for money. With e-currency based on cryptographic proof, without the need to trust a third party middleman, money can be secure and transactions effortless.

One of the fundamental building blocks for such a system is digital signatures. A digital coin contains the public key of its owner. To transfer it, the owner signs the coin together with the public key of the next owner. Anyone can check the signatures to verify the chain of ownership. It works well to secure ownership, but leaves one big problem unsolved: double-spending. Any owner could try to re-spend an already spent coin by signing it again to another owner. The usual solution is for a trusted company with a central database to check for double-spending, but that just gets back to the trust model. In its central position, the company can override the users, and the fees needed to support the company make micropayments impractical.

Bitcoin's solution is to use a peer-to-peer network to check for double-spending. In a nutshell, the network works like a distributed timestamp server, stamping the first transaction to spend a coin. It takes advantage of the nature of information being easy to spread but hard to stifle. For details on how it works, see the design paper at http://www.bitcoin.org/bitcoin.pdf "

http://p2pfoundation.ning.com/forum/topics/bitcoin-open-source

Bitcoin and ethereum was for wealth transfer in to blockchain.
Fiat stock all will be gone and new will be crypto
But for this will be used bitcoin and ethereum .

Now everybody knows the bitcoin was created by someone very powerful.
Good brain but high fees

Divisibility doesn't nulify the concept of scarcity, neither does it nulify the limited supply. There is a fixed amount of Bitcoin and that would never be increased; if you were to buy X amount of Bitcoin, 1000BTC for example, that's approximately ~0.005 of the total supply, and regardless of how divisible Bitcoin is, that percentage would always hold.
What divisibility does is reduce the barrier of entry and as such anyone can buy in, with any capital.

You're discussing the second layer of transaction, those who bought from the merchant utilized it properly in the sense of the word. What an outlet does with your fiat after you pay is not really much of your business.
As mentioned, there are also second layer payment platforms like LN which facilitates transactions.

It is indeed capped in 21 million BTC but it is divisible into satoshi.  That way it virtually nullifies the concept of scarcity since people can have a fraction of it.


I don't believe that bitcoin is created to eradicate poverty even in some level of it because its access from the beginning until now is kinda limited to those who have internet, gadgets, and devices.  I think it is some way of disagreeing against the central institution especially the financial institution where they just create money out of thin air that causes inflation and devaluation of fiat.

Don't feel like you are missing out on the opportunity to own bitcoins, there is still enough for you to have even if only! 5 of the current supply is left.

yes, bitcoin is internet money, although there are still many who think that bitcoin is digital gold, and a digital asset that can be exchanged for fiat currencies of each country. regardless, everyone has the right to regard bitcoin as anything as long as it is in a positive context.

Regarding the re-creation of bitcoin, if it is out of mining, I am still not sure of Satoshi's consistency, which is his reference that bitcoin was only created once with a fixed amount of 21 million bitcoins. if in the end bitcoin can be mined again, then automatically the price will be cheap again.

Hello
Never be sorry for your point or what you think , I do think you have to understand the fact that bitcoins is actually something different for everyone. Bitcoins as a whole only have value depending on the person.
For some people it's a form of investments
For some people it's easy money
For some people it's a currency even though you might think that's absurd but many business have started using bitcoins now
For some people it's a way to make transactions happen internationally.
It is indeed a very different form and I do think only Mr. Satoshi can tell why he invented bitcoins but I do think it was to tackle capitalism and to have something other than fiat and stocks to invest it , something which is free from control of the centralized bodies. I think he wanted people to be more in control, more free if I may say.
Plus I do think that it started out simple but it became a moment after that. Bitcoins have been used by many countries to stand against the oppression of the state and the army. Take the case of venezuela. Bitcoin is itself a way to make your own case out of. You can use it in any way that you want. It's that versatile.
It's not just money trust me.
It's way more than that.

You are using wrong assumptions to back your claim.
Since Bitcoin is divisible there is no limit. Think of a Satoshi as a unit. If this was a problem in the future due to a high btc price we can add some more 0's later.
Also transaction volume limit is no problem thanks to solutions like lightning.

So yes, Bitcoin is the money for the internet

Check the Bitcoin white paper https://bitcoin.org/bitcoin.pdf to find out about the idea behind Bitcoin. You're welcome!

Bitcoin is really hitting its ATH, as we can all see at this point in time , well I regret it because I don't have any of it , but I have been lost in thought for a while thinking of these ,
Is bitcoin the money for the internet ?

Yes , business are starting to adopt the use of bitcoin as a means of payment , no doubt about that but at the end of the road they turn it into fiat for proper use.

So if that is the case , I don't see a world were bitcoin would be mass adopted
 Firstly , bitcoin is limited in number (21 million) and the world population is higher than that if not twice , so it can't be mass adopted.
  In my opinion satoshi was trying or is trying to bring the world together through an imaginary currency , in that process trying to eradicate some level of poverty,
 eg:
if you invested in bitcoin at an early stage it would have made you twice richer especially in countries where  there fiat price is lower than USD.  Like Nigeria($32k in naira is over 15M) .
 Bitcoin blockchain is free at the moment because everyone is holding theirs to see it next pump , imagine a point where everyone wants to transact , it makes the blockchain accumulated , high miners fees, and  imagine paying for a good with bitcoin and the seller has to wait for hours or days to receive his payment.
 We could say bitcoin is a great investment but i can't see it as a currency for the future .
 Please it is from my own point of view