Features of Bitcoin

Here are some of the features that make Bitcoin a unique asset class.

Decentralised

Bitcoin's blockchain is distributed. It is stored and maintained on hundreds of thousands of computers around the world, rather than in one centralized location. In other words, decentralization acts as a checks and balances system before blocks are added to the chain. The decentralized bitcoin network is a core feature that makes Bitcoin unique.

Permissionless

Bitcoin doesn't require any third parties and can be sent and received simply via software that's run on any computer, it's incredibly difficult for anyone to ban or stop it. Bitcoin is also trustless because the system was designed so that nobody has to trust anybody else in order for the system to function.

Censorship Resistant

Bitcoin held in self-custody cannot be seized by any Government or Organisation, unlike bank accounts which can be frozen at anytime. To stop a Bitcoin transaction a government effectively has to stop the Internet or go into an individuals home using physical force making it highly resistant to censorship.

Transparent

Bitcoin transactions are recorded on the public ledger blockchain. The transactions are permanently viewable, which gives transparency to the system but they are secure and fraud-resistant at the same time due to blockchain technology.

Divisible

Bitcoin is easily divisible, You can divide one bitcoin into 100 million pieces (100 million sats), whereas 1 US dollar can be broken into 100 pieces (100 cents). This means that the world will never run out of Bitcoin. It can always be divided into smaller and smaller pieces.

Immutable

Every transaction on the Bitcoin network is stored on a block that is linked to a previous block of transactions. This blockchain technology is immutable, which means no entity can erase or alter any information on the network. Transactions on Bitcoin are verified by network nodes through cryptography and recorded in blockchain (which is essentially a public ledger).

Fixed Supply

Bitcoin: ​​Bitcoin's maximum supply of 21 million is also due to the mathematical rules set in the code. This limit is hardcoded into the protocol, meaning it cannot be changed by anyone, including the developers or miners. The maximum supply of 21 million bitcoins will be reached around the year 2140, after which no new bitcoins can be mined.