What is Bitcoin? And The Historical!
Not only Bitcoin (BTC) is the first cryptocurrency, but it’s also the best known among the cryptocurrencies in existence today!
We do believe you must hear about “Bitcoin” or Digital Gold rite? Each Bitcoin is a computer code that is stored in a ‘digital wallet’ app on a smartphone or computer. People can send Bitcoin (or part of one) to your digital wallet, and you can send Bitcoin to other people. Every single transaction is recorded in a public list called the blockchain.
When Is Bitcoin Being Invented?
On Oct. 31, 2008, an anonymous individual or group (maybe an institute) who went by the name of Satoshi Nakamoto published a white paper detailing a design for a “peer-to-peer electronic cash system,” a global financial infrastructure based on cryptographic proof instead of trust.
One of the most important elements of Bitcoin is the blockchain, which tracks who owns what, similar to how a bank tracks assets. What sets the Bitcoin blockchain apart from a bank’s ledger is that it is decentralized, meaning anyone can view it and no single entity controls it.
Over a decade later, cryptocurrencies are now being discussed regularly in the context of global economic policy, with some nations even researching and developing their own digital currencies.
Why is Bitcoin being called Digital Gold?
One of the main characteristics of Bitcoin (BTC) is that its coin supply is limited just like the physical gold. Bitcoin inventor the anonymous name Satoshi Nakamoto designed the cryptocurrency essentially as digital gold and capped the Bitcoin maximum supply to mimic the finite quantity of physical gold.
The maximum number of bitcoins that can be issued or mined is 21 million. New bitcoins are added to the Bitcoin supply approximately every 10 minutes, the average amount of time that it takes to create a new block of Bitcoin. By design, the number of bitcoins minted per block is reduced by 50% after every 210,000 blocks, or about once every four years.
- The maximum total supply of Bitcoin is 21 million
- The number of Bitcoins issued will likely never reach 21 million due to the use of rounding operators in the Bitcoin codebase
- When the Bitcoin supply reaches its upper limit, no additional bitcoins will be generated. Bitcoin miners will likely earn income only from transaction fees
Will the number of Bitcoins ever reach 21 Million? What do you think? Comment and tell us. We’ll talk about this in the future update
How Does Bitcoin Mining Work?
Bitcoin mining is the process of adding new transactions to the Bitcoin blockchain. It’s a tough job. People who choose to mine Bitcoin use proof of work, deploying computers in a race to solve mathematical puzzles that verify transactions.
To entice miners to keep racing to solve the puzzles and support the overall system, the Bitcoin code rewards miners with a certain amount of BTC (The amount will be reduced)for each new block.
It was possible for the average person to mine Bitcoin in the early days, but that’s no longer the case. The Bitcoin code is written to make solving its puzzles more and more challenging over time, requiring more and more computing resources. Today, Bitcoin mining requires powerful computers and access to massive amounts of cheap electricity to be successful.
Bitcoin mining also pays less than it used to, making it even harder to recoup the rising computational and electrical costs.
In 2009, when this technology first came out, every time you got a stamp, you got a much larger amount of Bitcoin than you do today, By 2140, it’s estimated all Bitcoins will have entered circulation, meaning mining will release no new coins, and miners may instead have to rely on transaction fees.
Bitcoin Historical Highest Prices Of Each Year
The Famous Historical Events of Bitcoin You Might Want To Know About
In 2008, Bitcoin's (BTC) first price was $0
The founder, known pseudonymously as Satoshi Nakamoto, famously released the Bitcoin white paper to explain how the new technology would work.
Satoshi Nakamoto begins an email exchange with Wei Dai, the creator of b-money, pictured below
Bitcoin’s first transaction
The first-ever transaction in Bitcoin is made between founder Satoshi Nakamoto and cryptographer Hal Finney. This founding father of Bitcoin actually created the first proof of work system even before Bitcoin came to be. Sadly, not long after this historic moment, he was diagnosed with ALS, which would claim his life almost exactly five years later in 2014, at the age of 58.
The first Bitcoin currency exchange is created
And no, it wasn’t Mt. Gox, which would turn out to be the largest Bitcoin exchange in history, but not the first. The first was called the Bitcoin Market, and was created just over a year after Bitcoin was born, on February 6, 2010 by “dwdollar.” The beginning of a real-world market value for the digital currency has begun.
The 1st Pizza Purchase by Bitcoin
The first retail purchase on May 22, 2010 is probably the most famous story in Bitcoin history. Jacksonville, Florida Bitcoin “miner” Laszlo Hanyecz pays 10,000 Bitcoins that he mined himself for two pizzas. At the time, Bitcoin did technically have an exchange rate of a few cents, but who knew that? The purchase price for the pizza was approximate U$25. Selling 10,000 units of unknown computer code for two real pizzas seemed like a great deal at the time.
“It wasn’t like Bitcoins had any value back then, so the idea of trading them for a pizza was incredibly cool,” Mr. Hanyecz told the New York Times.
The year 2010 sees many first for Bitcoin, including the first escrow transaction (October 16), the first mobile transaction (December 8) and the first time Bitcoin’s total value exceeded US$1 million on November 6, with each bitcoin trading for approx. US$0.50. Bitcoin is now a real currency.
WikiLeaks and censorship-resistant money
Founded in 2006 by Julian Assange, the whistleblowing site WikiLeaks developed a tense relationship with governing bodies and abbreviated agencies around the world after leaking classified documents pertaining to shady, clandestine operations of governments and corporations.
On June 14, 2011, WikiLeaks began accepting donations in Bitcoin after PayPal froze the nonprofit’s accounts and Visa and Mastercard suspended payments. It made sense: WikiLeaks sought to be an unwavering example of the Fourth Estate’s commitment to truth amid censorship and pressure by the powers that be, and Bitcoin provided a global, borderless, censorship-resistant accounting system to complement these efforts.
Silk Road Produce The Headline-grabbing For Bitcoin
The Silk Road chapter in Bitcoin history begins in 2011 with the “Dark Web” release of the infamous Silk Road website. Known as the “eBay for drugs,” everything from contract killers to story writers is allegedly marketed here to those who frequent the Internet’s underbelly.
The largest marketplace for Bitcoin use due to its pseudonymous nature, hundreds of millions of dollars of illegal items, services, and bitcoin are traded over its almost 3-year existence. Creator by Ross Ulbricht, Ulbricht operated online under the handle “Dread Pirate Roberts,” but claims he was not in control of the site for most of its lifespan.
In October of 2013, the U.S. authorities shut down Silk Road with the arrest of Ulbricht, and in June of 2015, Ross Ulbricht is given life in prison for multiple offenses while forfeiting US$183 million.
Satoshi Nakamoto is Disappear In Bitcoin Community since 2010
In 2010, Satoshi Nakamoto officially stopped communicating. During this period, the Bitcoins existing on the blockchain ledger, have not been used or spent. It proves how much Satoshi owns.
Having disappeared, Satoshi officially decentralized the network for good. Nakamoto created their last forum post on 12th December and continued occasionally responding to emails for a little longer, staying in touch with BTC developer Gavin Andresen until at least April…
Finally, what kind of cryptocurrency basic knowledge would you like to learn more about? Tell us in the comment, we will go thru every comment!!!
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