The advent of cryptocurrencies is one of the most interesting and disruptive technosocial phenomena of recent times, with Bitcoin (BTC) being the genesis of it all. Learn where Bitcoin comes from, how it works, how to mine it, and how to buy and sell it.
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On Oct. 31, 2008, an anonymous individual who went by the name of Satoshi Nakamoto published a white paper detailing a design for a “peer-to-peer electronic cash system,” a global financial infrastructure based on cryptographic proof instead of trust. Over a decade later, cryptocurrencies are now being discussed regularly in the context of global economic policy, with some nations even researching and developing their own digital currencies.
The white paper described Bitcoin (BTC) as a “peer-to-peer electronic cash system.” But, where does Bitcoin come from? According to the algorithms, new Bitcoin is generated and given to computer users who solve pre-specified mathematical challenges. The mathematical problems refer to a hash, which is a 64-digit hexadecimal number that is less than or equal to the target hash. So, Bitcoin is simply a number, such as 12345.