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Who is Satoshi Nakamoto?

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Who is Satoshi Nakamoto?

Bitcoin, the virtual currency that’s been making headlines, is indeed not secure. But the truth behind the man credited with creating the system is shrouded in mystery.

That man, who used the pseudonym Satoshi Nakamoto, is a massive source of mystery. His identity has remained unclear ever since the system was launched in 2009. Although Bitcoin evangelists have created sophisticated graphs showing his rumored name origins, there’s no hard evidence to substantiate his real identity.

As the creator of bitcoin, Nakamoto controls more than half of all cryptocurrencies and has won numerous awards and other accolades for his invention.

It’s been quite a rollercoaster ride for the man, whose identity is still unknown.

What is bitcoin?

Although there are multiple versions of the bitcoin system, the most widely used one today has three major components:

Bitcoin software, a program designed to process transactions. Bitcoins are the only currency in the system. They are not printed, but instead are “mined” by computers solving complex math problems in a process called mining. Miners keep a cut of the currency that they produce.

Bitcoin wallets, which store the accounts of those who want to store bitcoin for a fee.

Bitcoin exchanges, where bitcoins can be bought and sold for other currencies and other currencies.

Bitcoins can be sent between individuals, and they can also be bought with fiat currencies, which are legal tender or paper money issued by a government.

What makes bitcoin so valuable?

There are two main reasons why bitcoin is considered valuable. One is that it’s really hard to counterfeit. To replicate one is basically impossible, and to get your hands on them is even more difficult. Bitcoin is made up of what are called “bits.” Each bit represents one Bitcoin, and each Bitcoin can be split into as many “parts” as there are people in the system. (Four bitcoins = $17,000.) When the bitcoin system is trading, each part holders wish to have. But each part can also be divided into parts, creating new bitcoins. When someone wishes to buy or sell Bitcoin, they do so in small denominations called fractions. The limit on how many bitcoins a person can own is 21 million.

Because Bitcoin is designed to be difficult to counterfeit, it’s traded for things like diamonds or currency controlled by governments, which can be used or converted for goods and services.

The currency is also peer-to-peer, meaning that it is sent directly from one person to another without an intermediary. That cuts down on fraud or theft.

Finally, it is not controlled by a single person or organization. Anyone, no matter who they are, can send and receive Bitcoin. But there are a few reasons why many people prefer bitcoin over other currencies, including:

It’s anonymous. You don’t have to provide a name or government ID to buy or sell Bitcoin, making it a viable form of currency for drug dealers, money launderers and the like.

You don’t have to provide a name or government ID to buy or sell Bitcoin, making it a viable form of currency for drug dealers, money launderers and the like. It’s peer-to-peer. A huge advantage of Bitcoin is that it’s not controlled by an outside force. The owner of a specific computer that mines the next block of Bitcoin can continue to do so until the transaction has been completed. And it can be bought and sold without the help of a middleman.

A huge advantage of Bitcoin is that it’s not controlled by an outside force. The owner of a specific computer that mines the next block of Bitcoin can continue to do so until the transaction has been completed. And it can be bought and sold without the help of a middleman. No middleman. When people buy or sell Bitcoin, there is no middleman. That means no waiting for a bank to wire funds or pay a commission to a third-party site. The risk of fraud is minimized, and there’s no chargeback or the process of claiming that someone else bought it.

When people buy or sell Bitcoin, there is no middleman. That means no waiting for a bank to wire funds or pay a commission to a third-party site. The risk of fraud is minimized, and there’s no chargeback or the process of claiming that someone else bought it. No inflation. Bitcoin has been in existence for just over three years, and there’s no plan to eliminate it anytime soon. It will continue to be mined and exchanged for goods and services.

Skepticism of Bitcoin

Because it’s new, bitcoin is seen as vulnerable to scams. The Daily Beast ran a story in 2013 called “The Man Behind the Bitcoin Bitcoin Scam.” But the issue of bitcoin being a scam is overblown because bitcoins are divisible up to 8 decimal places. So it doesn’t take too long to break down the amount of a bitcoin for one dollar to a much smaller number, say, eight dollars. You can’t literally split a bitcoin into eight pieces, but it does take a lot of energy to try.