Described as the ‘most disruptive financial technology of the last 100 years’, Bitcoin is quickly evolving the way we view money and our sovereignty over our own financial destiny. Enjoy our guide and welcome to the future of decentralised universal currency.
What is Bitcoin in NZ?
Bitcoin is a groundbreaking decentralised digital payment system that allows individuals to transfer value directly to one another without the need for a central authority or bank.
Bitcoin is free to use, accessible to anyone with an internet connection and device, and has no comprehension of international borders; acting as the universal internet currency.
This decentralized network is unique in that it operates using a public ledger called the blockchain. This ledger (meaning a record keeping system) is maintained by thousands of computers around the world, ensuring the accuracy and security of all BTC transactions.
History of Bitcoin
Crypto has been a hot topic for over a decade, but the complexity of this expanding market can be overwhelming due to the continuous news surrounding it. However, understanding the history of Bitcoin, the worlds first and most widely traded crypto, can simplify this task.
The inception of Bitcoin begun with a paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System“, which was posted to a cryptography mailing list on October 31st, 2008 – with “Satoshi Nakamoto” as the author. Satoshi’s true identity is still a mystery to this very day.
The Bitcoin network was deployed in 2009, released as open-source software when Nakamoto mined the first block of the blockchain (also known as the Genesis Block) .
This bundle of transactions contained the first 50 Bitcoins ever created. From there, other early contributors mined BTC until 2010, when programmer Laszlo Hanyecz made the first known commercial transaction – he used 10,000 BTC to buy two pizzas from Papa John’s.
Interesting fact: As of this writing, that amount of Bitcoin is worth over $300 million.
Since then, Bitcoin has been traded over 800 million times, with the earliest significant transactions taking place in darknet markets. The largest of these markets was Silk Road, created by “Dread Pirate Roberts”, aka Ross Ulbricht, which traded almost 10 million Bitcoins throughout its existence. Ross is currently serving a life sentence as we speak.
How Does Bitcoin Work in NZ?
Bitcoin's Blockchain
The Bitcoin blockchain is a digital ledger that records all transactions made with Bitcoin. It is a decentralised system that operates independently of traditional banks or financial institutions, making it a popular alternative for secure and transparent financial activity.
Note: This is where the acronym “DeFi” comes from, meaning ‘Decentralized Finance’.
Each transaction made with Bitcoin is verified and recorded on the blockchain, which is maintained by a network of users around the world in an autonomous, trustless fashion.
This decentralised system ensures the security, censorship resistance, and accuracy of Bitcoin transactions, while also making it difficult for fraud or hacking attempts to occur.
The blockchain also ensures BTC can not be counterfeited, making it’s scarcity absolute.
The use of the blockchain has many potential applications beyond Bitcoin, including in areas such as supply chain management, voting systems, and identity verification. However Bitcoin’s blockchain is the first to ever exist, crediting Satoshi’s work with prestige far beyond creating a universal, censorship resistant, borderless internet cash.
The blockchain industry and its adoption is quickly evolving in New Zealand and around the world, as more industries explore the benefits of this innovative and open technology.
How to Store Bitcoin in NZ
Bitcoin are stored in Bitcoin wallets – which are free to set up, use and operate – except for the BTC transaction fees, which are paid to miners to incentivize processing transactions.
Until today, you would’ve been accustomed to accessing your various online accounts and services by using your email address and password. In the world of crypto, wallet access and ownership is instead represented by something called a public and private key pair.
Private Keys and Public Keys
Acting as your digital identity and signature, every cryptocurrency wallet is distinct by having its own unique public and private key – with each unique key pair being freshly generated whenever a new cryptocurrency wallet is created.
- Private Key: Private keys is the password to your crypto bank account, and it’s required to sign off outbound transactions from your wallet. Never share your private key with anyone, and the security of your wallet rides on how safely you store your private key.
- Public Key: Bitcoin public keys are like your crypto bank account number – an address others can use to send you Bitcoin. You can safely send your public key to anyone, knowing they can’t change or open your wallet, but rather use it to send you Bitcoin.
What is Bitcoin Mining in NZ?
Bitcoin mining refers to the computational process of validating and adding transactions to Bitcoin’s Blockchain. Miners use specialized hardware to solve complex mathematical equations and compete with each other to add a block of transactions to the blockchain.
Upon successfully adding a block, the miner is awarded newly created bitcoins along with transaction fees from the transactions incorporated in the block. This process is known as proof-of-work and is essential to ensuring the security and reliability of the BTC network.
Is there a Bitcoin Community in NZ?
New Zealand boasts a thriving community of Bitcoin and crypto enthusiasts, many of whom gather on popular social platforms like Facebook, Telegram, Reddit and Discord.
These online communities are an excellent source of information for locals.
Check out our comprehensive list of Bitcoin and Crypto communities in New Zealand:
- Cryptocurrency NZ Facebook Group – (Highly recommend)
- Cryptocurrency NZ Monthly Meetups – (Last Wednesday of every month)
- NZ Bitcoin / Crypto Miners Facebook Group
- Cryptocurrency NZ Discord Group
- r/NZBitcoin – (New Zealand’s Bitcoin and Cryptocurrency Reddit group)
- NZ P2P Crypto Marketplace – (NZ’s Largest Cryptocurrency P2P marketplace)
Have a community for us to list? Please reach out to us!
How can I Buy Bitcoin in NZ?
To buy Bitcoin or any other cryptocurrency in New Zealand, you can use one of the NZ Bitcoin platforms listed below. You can buy BTC in minutes depending on the platform.
Cryptocurrency exchanges: Online platforms that allow you to buy and sell Bitcoin using New Zealand dollars or other cryptocurrencies, like through Binance NZ.
Crypto Retailers: Online platforms like Easy Crypto NZ that source Bitcoin and other cryptocurrencies at the cheapest rates from various exchanges, where you can purchase cryptocurrency through a much easier interface than through an exchange.
Peer-to-peer Bitcoin marketplaces: Platforms that connect buyers and sellers directly, allowing for more flexibility in payment methods. (Such as NZ’s own P2P marketplace)
Bitcoin ATMs: Machines that allow you to buy Bitcoin using cash or credit/debit cards.
Brokers: Brokers refers to a business or individual who accepts Bitcoin.
Bitcoin debit cards: Crypto cards that allow you to spend your Bitcoin at merchants that accept debit card payments without converting to New Zealand dollars first.
Is Bitcoin a Good Investment in NZ?
At Cryptocurrency NZ we believe Bitcoin is more than a investment. Bitcoin is unique due to its fundamental characteristics that distinguish it from traditional finance. Bitcoin’s value proposition lies in its ability to provide security, privacy, decentralization, freedom, censorship resistance and offers a beacon of freedom in a world controlled by banks.
Stay humble and stack sats.