Introduction to bitcoin

Since the beginning of the internet, people have attempted to transfer value over the network in a secure, safe and easy way. Several early projects tried to achieve this but failed because of one major issue: the double spend problem.

What is the double spend problem?

In the real world, you cannot spend a single bill more than once (e.g. photocopying a bill will not work.) However, in the digital world, copying data is easy, which creates the challenge of preventing someone from spending the same digital currency twice.

Bitcoin: A game changer

In 2010, a person or a group by the name of Satoshi Nakamoto published a paper detailing a peer to peer electronic cash system that also solves the double spend problem. 

Bitcoin works through a decentralized network of computers (nodes) that keep a public record of all transactions (the blockchain) to ensure that once a Bitcoin is spent, it cannot be reused.

Why Bitcoin Matters

Bitcoin offers:

• Fast and cheap transactions worldwide, 24/7.

• No intermediaries like banks. Users control their funds directly.

• Limited supply (21 million) making it resistant to inflation.

• Global accessibility especially for the unbanked population.

It allows people to exchange value quickly and at a low cost, regardless of borders or financial institutions. Bitcoin is often compared to digital gold because it acts as a store of value and a hedge against inflation. You can think of bitcoin as the easiest way to exchange value at a very low cost. You can find more information here.

Bitcoin is just the beginning. With education and the right tools, you can explore the opportunities that the crypto industry offers.

At Rain, it is our responsibility to educate our customers on what is happening in the cryptocurrency industry. If you have any questions, please get in touch with us here.