Created in 2009 by an individual or individuals under the alias of Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. The anonymous Nakamoto stated it was created to allow online payments to be sent directly from one party to another, without the need for a financial institution or third party.
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. Bitcoin is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment system.
The total supply of BTC is capped at 21 million coins. The creator/creators embedded a restriction on how many coins can be mined, making it a scarce finite asset. This helps to control inflation and ensures a steady flow of liquidity and it is commonly referred to as ‘digital gold’.
Bitcoin is still the largest cryptocurrency by market capitalisation and has paved the way for all other digital currencies that have come after it.
CoinSpot is Australia’s largest cryptocurrency platform that has been operating since 2013 and is trusted by over two million Australians. We make it easy to buy and sell Bitcoin no matter what your trading experience is. Unlike other international and Australian Bitcoin exchanges that require experience and technical knowledge, we make the entire trading process simple for beginners and advanced traders alike.
CoinSpot provides layered security and advanced support systems so you can buy Bitcoin with peace of mind and the comfort knowing support is available everyday to help. There are multiple trading options on our exchange that allow you to conveniently trade Bitcoin how you want to. You will feel familiar with CoinSpot from the beginning and have access to everything you need to buy, sell and manage your cryptocurrency.
Storing on CoinSpot
Due to CoinSpot’s flexible Multicoin Wallet, storing your digital currency is simple. Just by creating your CoinSpot account you will automatically be given your own unique wallet where you can store your Bitcoin for free.
If you are holding Bitcoin as a long term investment, you can utilise a cold storage wallet and send your coins there from your CoinSpot account. A cold wallet is a wallet which is completely offline (not connected to the internet) and is a popular option amongst people who prefer to hold their coins, rather than regularly trade.
The blockchain operates and relies on a shared public ledger that stores all confirmed transactions. It allows Bitcoin to calculate your spendable balance, so new transactions can be verified. Cryptography enforces the integrity and chronological order of these blocks.
The transfer of value between Bitcoin wallets is defined as the transaction of the blockchain. The private key or seed is the secret piece of data stored in Bitcoin wallets that can be used to sign transactions and provide proof they’ve come from the wallet of the owner. The signature also prevents transactions from being altered by anyone. All transactions are broadcast to the network and are generally confirmed within minutes through mining.
Processing or mining is used to confirm pending transactions. By including them in the blockchain, it can enforce chronological order and protect the neutrality of the network, allowing for different computers to agree on the system.
In order to be confirmed, a transaction must be packed in a block that fits the strict cryptographic rules verified by the network. These rules help to prevent modification of previous blocks that would invalidate sequencing. Mining also prevents individuals from creating new blocks to the chain, like a competitive lottery. Groups or individuals can't control what’s included in a block chain or replace parts of it.