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Reword to use "seed phrase" instead of privkey, as ordinary users shouldnt be touching privkeys |
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Bitcoin is P2P electronic cash that is valuable over legacy systems because of the monetary autonomy it brings to its users. Bitcoin seeks to address the root problem with conventional currency: all the trust that's required to make it work -- Not that justified trust is a bad thing, but trust makes systems brittle, opaque, and costly to operate. Trust failures result in systemic collapses, trust curation creates inequality and monopoly lock-in, and naturally arising trust choke-points can be abused to deny access to due process. Through the use of cryptographic proof, decentralized networks and open source software Bitcoin minimizes and replaces these trust costs. | |||
* Transactions are | |||
* | * Bitcoin [[Transactions]] are: | ||
** '''Permissionless''' and '''borderless'''. The software can be installed by anybody worldwide. | |||
** '''Anonymous'''. Bitcoin does not require any ID to use making it suitable for the unbanked, the privacy-conscious, computers or people in areas with underdeveloped financial infrastructure. | |||
** '''Private'''. When used with care bitcoin can support [[Privacy|strong financial privacy]]. | |||
** '''Censorship-resistant'''. Nobody is able to block or freeze a transaction of any amount. | |||
** '''Fast'''. Transactions can be made almost as fast as data can travel over the Internet. | |||
** '''Cheap'''. Fees can be [[Lightning Network|very very low]]. | |||
** [[Irreversible Transactions|'''Irreversible''']] once settled, like cash. (but [[Myths#Bitcoin_has_no_built-in_chargeback_mechanism_and_this_is_bad|consumer protection is still possible]].) | |||
** Online and available '''24 hours a day, 365 days per year'''. | |||
Bitcoin can also be a [[Bitcoin as an investment|store of value]], some have said it is a "swiss bank account in your pocket". | |||
* Stored Bitcoins: | |||
** Cannot be printed or debased. '''Only [[Controlled supply|21 million bitcoins]] will ever exist'''. | |||
** Have '''no storage costs'''. They take up no physical space regardless of amount. | |||
** Are '''easy to protect and hide'''. Can be stored on a phone, computer, encrypted on a [[Storing bitcoins|paper backup]] or [[Brainwallet|memorized in your head]]. | |||
** '''No counterparty risk'''. If you keep the [[seed phrase]] of a bitcoin wallet secret and the transaction has enough [[confirmation|confirmations]], then nobody can take them from you no matter for what reason, no matter how good the excuse, no matter what. | |||
** Can be under '''divided possession''' with [[Multisignature]]. For example with a 2-of-3 multisig scheme there would be ''three'' private keys, of which ''any two'' is enough to spend the money. Those three keys can be spread anywhere, perhaps in multiple locations or known by multiple people. No other asset does this, for example you cannot hold gold coins under multisig. | |||
Latest revision as of 15:04, 24 January 2022
Bitcoin is P2P electronic cash that is valuable over legacy systems because of the monetary autonomy it brings to its users. Bitcoin seeks to address the root problem with conventional currency: all the trust that's required to make it work -- Not that justified trust is a bad thing, but trust makes systems brittle, opaque, and costly to operate. Trust failures result in systemic collapses, trust curation creates inequality and monopoly lock-in, and naturally arising trust choke-points can be abused to deny access to due process. Through the use of cryptographic proof, decentralized networks and open source software Bitcoin minimizes and replaces these trust costs.
- Bitcoin Transactions are:
- Permissionless and borderless. The software can be installed by anybody worldwide.
- Anonymous. Bitcoin does not require any ID to use making it suitable for the unbanked, the privacy-conscious, computers or people in areas with underdeveloped financial infrastructure.
- Private. When used with care bitcoin can support strong financial privacy.
- Censorship-resistant. Nobody is able to block or freeze a transaction of any amount.
- Fast. Transactions can be made almost as fast as data can travel over the Internet.
- Cheap. Fees can be very very low.
- Irreversible once settled, like cash. (but consumer protection is still possible.)
- Online and available 24 hours a day, 365 days per year.
Bitcoin can also be a store of value, some have said it is a "swiss bank account in your pocket".
- Stored Bitcoins:
- Cannot be printed or debased. Only 21 million bitcoins will ever exist.
- Have no storage costs. They take up no physical space regardless of amount.
- Are easy to protect and hide. Can be stored on a phone, computer, encrypted on a paper backup or memorized in your head.
- No counterparty risk. If you keep the seed phrase of a bitcoin wallet secret and the transaction has enough confirmations, then nobody can take them from you no matter for what reason, no matter how good the excuse, no matter what.
- Can be under divided possession with Multisignature. For example with a 2-of-3 multisig scheme there would be three private keys, of which any two is enough to spend the money. Those three keys can be spread anywhere, perhaps in multiple locations or known by multiple people. No other asset does this, for example you cannot hold gold coins under multisig.