Here at PDAX, our goal is to make financial literacy, education, and inclusion a norm in the Philippines. We believe that proper financial and crypto education is a step towards that reality, so we want to start with you.
We want to empower you with the knowledge and services that will enable you to take control over your financial journey.
Now that you have taken the first step in the world of cryptocurrencies, we want to introduce you to the one that started it all: Bitcoin.
What is Bitcoin?
Bitcoin is a cryptocurrency that was created in 2008 by an anonymous individual or group of people (no one knows) named Satoshi Nakamoto. It was created with the intention of providing an alternative to the existing, and arguably inefficient system.
Bitcoin functions as digital money. Unlike traditional fiat currencies that are controlled by governments (such as the ₱20-bill in your wallet), Bitcoin is a currency without a government. It is a decentralized form of currency that has no central authority controlling it.
The transactions within the Bitcoin blockchain are peer-to-peer. Bitcoin was the first time we were able to digitally transfer value without the need of trusted third parties. Because of this, there is no more need for an intermediary or middleman to complete the transaction. This allows bitcoin trades to be irreversible, pseudonymous, fast, global and secure.
Why does Bitcoin have value?
A common question people ask is why Bitcoin has any value at all. To answer this, Bitcoin only has a limited quantity of 21-million coins (21,000,000) that will ever be mined. This is one of the selling points of Bitcoin—there is a finite supply. Like gold, it is valuable because it is scarce. Millions of individual and institutional investors regard Bitcoin as digital gold or a store of value and seek to own the cryptocurrency.
In the next article, we'll be talking about the revolutionary technology that powers Bitcoin: Blockchain Technology.