WEBVTT 00:00.000 --> 00:20.400 Bitcoin is the first cryptocurrency with very unique properties. It's a decentralized 00:20.400 --> 00:26.360 digital currency that you can buy, sell, and exchange directly without an intermediary. 00:26.360 --> 00:31.840 Take a bank. While Bitcoin wasn't the first attempt at digital money, it's the implementation 00:31.840 --> 00:37.200 that has worked with the most success so far. Bitcoin was launched in 2009 by its 00:37.200 --> 00:43.520 soon-automist creator using the name Satoshi Nakamoto. A year earlier in 2008, Satoshi 00:43.520 --> 00:49.000 published at the 9 page, Bitcoin White Paper, and later released the original software 00:49.000 --> 00:54.880 as open source code. In the white paper, Satoshi described the need for an electronic 00:54.880 --> 01:00.240 payment system based on cryptographic proof instead of trust, allowing any two willing 01:00.240 --> 01:05.560 parties to transact directly with each other without the need for a trusted third party. 01:05.560 --> 01:11.720 Since then, many other cryptocurrencies have sprung up, but as of 2022, Bitcoin remains 01:11.720 --> 01:17.000 the largest cryptocurrency as measured by total value on the network. 01:17.000 --> 01:22.440 Before we get into more details a bit, coin, you're probably wondering, what is the relationship 01:22.440 --> 01:27.640 between Bitcoin and blockchain? Blockchain is a distributed database where chunks of data 01:27.640 --> 01:33.840 are bundled together into blocks. These blocks are then shamed together to create the blockchain. 01:33.840 --> 01:39.520 As a database, blockchain technology has many use cases, and Bitcoin is but one application 01:39.520 --> 01:46.040 of blockchain technology. How is Bitcoin different from Fiat money then? Fiat money is centralized, 01:46.040 --> 01:50.520 controlled by a government or central bank, has an unlimited supply, and transactions 01:50.520 --> 01:56.720 are largely sensible, meaning bank accounts can be frozen or transactions can be inhibited. 01:56.720 --> 02:00.920 With most central banks around the world planning to move their Fiat money system to completely 02:00.920 --> 02:06.960 digital systems, it'll undoubtedly become even more sensible in the future. However, physical 02:06.960 --> 02:12.160 cash remains a private and anonymous way of transacting in the Fiat system for now. 02:12.160 --> 02:18.800 On the other hand, Bitcoin is decentralized, appear to appear, and censorship resistant. 02:18.800 --> 02:23.760 It's not backed by the government or any institution. Every Bitcoin transaction that's ever 02:23.760 --> 02:28.960 been mined exists on a public ledger. Accessible to everyone. 02:28.960 --> 02:34.000 Moreover, Bitcoin has a limited supply of 21 million coins. These bitcoins are expected 02:34.000 --> 02:39.600 to be mined by the year 2040. Cryptocurrency mining refers to the process of verifying and 02:39.600 --> 02:47.160 validating blockchain transactions. It's also the process that creates a new unit of cryptocurrencies. 02:47.160 --> 02:51.920 Now you can see that Bitcoin has some unique features, but how is it useful? People have 02:51.920 --> 02:56.600 been using Bitcoin, which has been nicknamed Digital Gold, as an alternative investment 02:56.600 --> 03:02.360 to diversify their portfolios. To make purchases and payments, Bitcoin is especially appealing 03:02.360 --> 03:09.120 for international remittance. On May 22nd, 2010, a Bitcoin enthusiast spent 10,000 Bitcoin 03:09.120 --> 03:16.000 to buy two large pizzas. Back then, 10,000 Bitcoin was worth around $40. Today, it would 03:16.000 --> 03:21.080 be worth hundreds of millions of dollars. That day when the first real-world Bitcoin transaction 03:21.080 --> 03:28.200 took place on May 22nd is celebrated as Bitcoin pizza day. As of mid-2022, over 80 million 03:28.200 --> 03:34.120 unique Bitcoin wallets have been created. And there are more than 270,000 confirmed Bitcoin 03:34.120 --> 03:40.160 transactions recorded on the Bitcoin blockchain daily. The fees and transaction times of Bitcoin 03:40.160 --> 03:44.760 are negligible compared to the traditional financial system. This is especially useful 03:44.760 --> 03:50.280 for large transactions. For example, in 2019, the transaction which was then worth about 03:50.280 --> 03:57.960 $1 billion cost the sender only about $650 to send. Bitcoin also has limitations. For 03:57.960 --> 04:03.040 example, during times of increased network activity, transactions may take some time to 04:03.040 --> 04:08.480 get through. The Bitcoin network also requires expensive equipment and lots of energy to 04:08.480 --> 04:14.200 mine. Despite these limitations, Bitcoin remains one of the most disruptive implementations 04:14.200 --> 04:19.680 of blockchain technology. Besides Bitcoin, there are many other different types of cryptocurrencies 04:19.680 --> 04:20.200 out there.