Personal Finance Essentials
Why the Bitcoin Blockchain Requires Bitcoin
- Back to Crypto
- The Past: The History of Money
- What Motivated Satoshi to Invent Bitcoin?
- How Satoshi Invented Bitcoin
- How Bitcoin Works
- Why the Bitcoin Blockchain Requires Bitcoin
- Bitcoin Pizza Day: The First Commercial Use of Bitcoin
- How Blockchains Work
- The Problem of Double Presentment
- Two Ways to Authenticate Data on a Blockchain
- How Do We Know that Data on the Nodes are Authentic?
- Bitcoin was the First Digital Asset. Why Do We Need Any Other Coins?
- The Present: Blockchains Today
- Public and Private Keys
- Types of Crypto Wallets
- The Commercial Uses of Blockchain Technology
- The Future: Tokenization and the Future of Money
- The Risks of Digital Assets
The Coin Powers the Chain:
Understanding Bitcoin’s Two-Part System
If you want to place data onto the Bitcoin blockchain, you need a means of conveyance. Satoshi called this bitcoin. The bitcoin is to the Bitcoin network what chips are to a casino: If you want to play poker, you must convert your dollars into chips. The chips are your means of conveyance – you use them to play the games, and when you’re done, you convert your chips back into dollars.
Ditto for the Bitcoin blockchain: if you want to put blocks of data onto the chain, you must use the coin that is native to the system. Satoshi invented them and instead of calling them dollars, pennies, chips, tokens or shares, Satoshi called them bitcoin.
So, if you want to engage with Satoshi’s blockchain, you must use bitcoin. It has its own ticker symbol (BTC) just like publicly traded stocks.
