Bitcoin is a fixed supply of Non-Fungible Token (NFT) data that is initially extracted from a network computer program, & is then used as a method of payment for uploading digital data back on to the network that the Bitcoin data was initially extracted from. The cost of up loading data on to the Bitcoin network is measured in divided units of a Bitcoin referred to as Satoshi’s per byte of data/memory/storage “sat’s per byte”.
Bitcoin (NFT data) is extracted from the Bitcoin network/program through a process referred to as “mining”, because computational power/energy is required to be put into the program, to solve a cryptographic puzzle, in order to extract Bitcoin out.
The Bitcoin network is globally distributed, economically competitive & all users are held accountable for their own action on the network by a chain of digital signatures. The network is therefore without any central point of authority or control. Those operations that contribute towards sustaining the network are economically incentivised to do so by being rewarded in Bitcoin for the processing of uploads on to the network, referred to as transaction processing.
The reason for uploading digital information to the Bitcoin network is for the purpose of data integrity & security. The network does not have any central point of failure & there is no central point of control or authority that can delete the data either. Because the uploading of data goes through the process of blockchain technology (where each bit of information is cryptographically linked, via hash numbers, to the previous bit of data), there is no way for the data to be cracked, hacked, altered, changed or deleted, meaning that the network is not susceptible to either cyber security hacks or computer virus software. This also means that whoever uploads the data, owns the data because each upload has a digital signature attached to it & the system itself is without any central point of control.
The Bitcoin protocol is often referred to as Internet Protocol version 6 (IPv6) because it allows for digital payments & data sovereignty where content creators can now own & economically benefit from their own content creation rather than having to surrender its sovereignty to a corporate server.
Bitcoin is the world’s first commercial internet & until an alternative energy source is discovered that is faster & more efficient than light, Bitcoin is likely to remain the most valuable commodity & network on earth.
“Bitcoin is the foundation layer of all future digital technologies, secured & underpinned by economic principles.” — SirToshi
Bitcoin is classified as a commodity because it remains ‘common’ to everyone in 6 aspects…
1) A common starting point that provided an equal opportunity for anyone & everyone to start the network themselves.
2) Economic competition providing a common entry & exit to the sustaining of the network.
3) A chain of digital signatures providing common accountability amongst the network users.
4) A locked protocol that remains common to everyone so no one can change it & no one controls it.
5) Unbounded scale that remains common to everyone so limitations & restrictions cannot be manufactured & the network not be manipulated.
6) Fixed token supply that remains common to everyone so no one can change it & no one controls it.
The Bitcoin network is given more credibility as a commodity classification because the network has grown organically without any central point of influence. The release of the white paper & start of the network were done pseudonymously under the name of ‘Satoshi Nakamoto’.
There are a number of Bitcoin’s out there. How can I tell if I have a genuine Bitcoin?
A template to the original & genuine Bitcoin protocol is the legacy wallet addresses used. A wallet address is a cryptographically generated random line of letters & numbers, but each & every genuine Bitcoin legacy address starts with the number 1.
Bitcoin started out on the 3rd January 2009 being recognised by the ticker symbol (BTC). Each BTC legacy address started with the no.1. An alternative protocol was proposed & created from the Bitcoin protocol on the 1st August 2017 called “SegWit”. This fundamental change to the protocol, by a centrally controlled company called Blockstream, resulted in the Blockstream developers having to create alternative legacy addresses for their new & alternative protocol. The alternative protocol that they still referred to as Bitcoin (BTC) had addresses starting with the letters ‘bc’ or the number ‘3’.
The original protocol & genuine Bitcoin legacy addresses were rebranded & renamed Bitcoin Cash (BCH), but this protocol was altered once again on 15th November 2018 & wallet address for Bitcoin Cash (BCH) started to begin with the letters ‘p’ or ‘q’.
On 15th November 2018 the original protocol & genuine Bitcoin legacy addresses were rebranded & renamed Bitcoin Satoshi Vision (BSV). If you are not storing in, or, transferring Bitcoin to a legacy wallet address that starts with a no.1 you are not storing or transferring Bitcoin.