In the words of anonymous creator Satoshi Nakamoto, Bitcoin is a "cash equivalent power system". The purpose of Bitcoin creation was to create a "untrustworthy electronic transaction system." Technically brave enough to accomplish this task.
It's hard to imagine a world without Bitcoin. Today, the world's most successful digital currency is a household name. Countless television programs, tribute songs, artwork and books dedicated to this revolutionary invention.
Despite a lot of attention, but most people in the world still don't know how a protocol works, what it's worth, and why so many people love it. Basically, Bitcoin is easier, you can say it's beautiful. This revolutionary plan is based on decades of development in the field of virtual currencies, aiming to create a decentralized currency that can resist censorship.
What problems does Bitcoin (BTC) solve?
Bitcoin is not just a random opportunity to enter the market. Established directly in response to some of the most pressing problems facing humanity, Bitcoin's core is fundamentals. It allows the Security Council to separate the country from its monetary policy. The secret message within the code of the Bitcoin Genesis block clearly states the goal of the project.
Bitcoin creators believe that bad monetary policy will lead the world to disaster. Perhaps this is why Bitcoin uses only reasonable financial principles to ensure its value and use.
Inflation
Poor monetary policy often leads to inflation. When a country suffers from inflation, its currency will drop sharply. Inflation destroys local economies and divides citizens. On days when inflation is beyond control, all savings will be eliminated. When the amount of money in the market exceeds demand, inflation occurs.
Fiat currency has the highest quotations. The government and the Federal Reserve can meet and set up new funds as needed. The problem with this approach is, as we all know, governments can get printers to pay for infrastructure and war costs.
Bitcoin cannot escape as its supply of 21 million coins is limited. This limited supply is often brought to the market in this way, Bitcoin provides the world with a more predictable global reserve currency than any other existing system.
Censorship
Censorship is another major issue directly addressed by Bitcoin. In the past, decentralized networks were difficult to censor. For example, consider your favorite video streaming platform. This is another form of a decentralized network. Whatever it is, it makes online dating and transaction information possible.
Bitcoin is similar in many ways, everyone can meet and exchange value.All Bitcoin transactions are handled in a direct process of cooperation. As there are no brokers, regulators, or others involved, no one will verify your eligibility for the cryptocurrency you choose.
Transparency
Bitcoin operates on the main transparency protocol. Public blockchain allows everyone in the network to view all transactions in real time. Without the ability to keep track of people, a single bitcoin would not pass through the network. This transparency makes Bitcoin stand out from the rest of the world market. Bitcoin was the first decentralized market truly defined by supply and demand.
Privacy
Although Bitcoin provides more transparency. But it can also provide more privacy.Bitcoin deletes the account name and uses two keys instead. The first key is the public key. This is the key to sending people bitcoins, the second key is the private key. So you can send bitcoins, don't give this key to anyone. If they do so they will be able to use all your bitcoins and you will be powerless.
How does Bitcoin (BTC) work?
With the introduction of blockchain technology, Bitcoin has grown when the previous virtual currency failed. Blockchain is a decentralized computer network. Computer networks use all the computing power of the network to ensure its security.
Bitcoin transactions are grouped.These are the blocks that form the blockchain-currency transaction chain. Blockchain has entered a timestamp into the fixed equation. This timestamp is how Satoshi Nakamoto overcame the ancient problem of consuming virtual currency pairs.
Double spend Quagmire
The previous crypto attempt is very close but failed due to the redundant spending problem. The problem with double spending is how to keep hackers from losing cryptocurrency twice during the transaction In the material world, this is not a problem. Someone gave you money, but you didn't.
In the digital world, hackers are able to resend virtual currencies and resubmit similar transactions while processing them before the system recognizes them as duplicates.Nakamoto smartly added a timestamp to each transaction block. This timestamp is used in the next encryption code block.
Bitcoin (BTC) mining
Bitcoin chain transactions are approved by the node. Also known as after the transaction block is approved, it is added to the transaction chain to create the blockchain. For miners, getting rewards to protect their networks is very important.
Initially, it was set to 50 bitcoins, the bonus was halved every 210,000 squares, on average, the process took about 4 years. One happened As a result, miners received 12.5 BTC, the latest half-life is May 11, 2020, and the prize pool is reduced to 6.25 BTC.Analysts predict the final mining reward will occur in 2140.
Why is it so powerful?
I've always heard people complaining that the Bitcoin network is hungry. The reason Bitcoin needs so much power is related to the mining setup in the Proof of Work (PoW) algorithm. Only one miner can add transactions to the blockchain. To determine which node receives this award, each node will compete to solve advanced mathematical formulas. This formula is called the SHA-256 formula.
SHA-256
SHA-256 is a very complex equation and requires a computer to use all the computing power. Because equations are so difficult, computers should guess randomly instead of trying them directly. The first step for correct equation solutions starts with four zeros.This takes about 10 minutes.
Problem solving
The more crowded the Bitcoin network, the more difficult the equation. A mechanism to coordinate this issue helps Bitcoin maintain a projected amount of capital. With the introduction of leading miners such as Application Specific Integrated Circuits (ASICs), the problem of Bitcoin mining has taken to a whole new level.The chip solves SHA-256 equations a thousand times faster than personal computers. Of course, the protocol must use multiple zeros at the beginning of the response. This will increase the difficulty of the equation.
Advantages of Bitcoin (BTC)
Bitcoin is presenting surprising advantages to the market. First of all, Bitcoin is a secure ecosystem. The transaction is completed in the same manner. The less intermediaries, the more cost-effective and the faster the transaction speed. This is why Bitcoin is so much cheaper than foreign fiat currencies.
In just a few minutes, you can send small amounts of the same value to millions of bitcoin fiat currencies.Bitcoin makes international payments easier in ways that were previously impossible.Bitcoin transfer centers are a good example of how. How this cryptocurrency can save the world
Bitcoin is not affiliated with any government, so there are no sanctions or other restrictions that apply to fiat currencies. People can use Bitcoin without thinking about politics. The decentralized nature of the Bitcoin blockchain network prevents government shutdowns.
History of Bitcoin (BTC)
The official history of Bitcoin began on August 18, 2008, at that time anonymous Bitcoin creator Satoshi Nakamoto registered the domain name Bitcoin.org. Two months later, he posted a link to the now famous Bitcoin newspaper. The name on Cypherpunk's email list is "Bitcoin: Peer-to-Peer Electronic Cash System". The Cypherpunk community believes that privacy is important in today's digital environment.
On January 3, 2009, the Bitcoin Genesis block was discovered. This is the beginning of the Bitcoin blockchain Block 0. Also known as this, Satoshi Nakamoto also received 50 bitcoins for mining the first block. In the same month, the first open source Bitcoin customers entered the market via a SourceForge post.
Initial transaction
In the early days of Bitcoin, enthusiasm for the development of the digital currency was limited, in particular, the famous computer programmer Hal Finney was the first to accept Bitcoin's early Bitcoin transactions.Hal remained in close contact with Nakamoto on 12th. In January 2009, he received 10 Bitcoins from Satoshi Nakamoto.
Even today, there are still other project sponsors still working in the field.Wei Dai, the predecessor of Bitcoin b-money, was an integral part of the first day of testing, Nick Szabo, the second predecessor of Bitcoin founder. Bitgold was among the first to participate in this decentralized transaction.
The excavation and disappearance of Satoshi Nakamoto
Satoshi Nakamoto was very active in the early days of Bitcoin, he often spoke with such developers and the rest of the universe. He discusses his ideas in several publications still available today.
Today, he is editing and publishing technical information on the Bitcoin forums, according to expert research, it mined about a million bitcoins and then disappeared without knowing. In the previous article, he discussed the final changes to the "Safe Mode" feature and kept a link to the building.
He said nothing However, in a recent article, he reported: "It is good to get people's attention in different contexts, WikiLeaks kicked the wasp's nest and the horde turned to us" after Nakamotocho's disappearance, the developer added. Gavin Andresen played a key role in the Bitcoin Foundation developer.
Pizza festival
On May 22, 2010, a Bitcoin enthusiast named Laszlo Hanyecz bought two Papa John's pizzas for 10,000 BTC. The transaction was carried out on the Bitcoin forum in the announcement Hanyecz gave 10,000 BTC to the people who would receive the pizza pay. Money and send it home Interestingly, he claimed that he needed two slices of pizza for "gna" the next day.
The offer was taken by the British, and the next time Hanyecz eats a delicious pizza, the courier will be left with 10,000 BTC.At that point, 10,000 BTC is only about $ 41.Today, the value of these BTC exceeds 100,000,000.00 USD.
Vulnerability
In early August 2010, Bitcoin's core developers were clearly the attack vector. There was a problem with blocking verification due to a encryption error. Hackers have been able to take advantage of these issues by allowing users to bypass the economic limitations of Bitcoin. Hackers, on the other hand, can generate an unlimited number of bitcoins.
In just a few days, these risks became a reality and 184 billion bitcoins were created in a single transaction. These newly issued coins were transferred to two addresses on the network. Fortunately, the developers are aware of the vulnerability. They decided to cancel the transaction and redirect the Bitcoin blockchain to a newer, safer version.
At that time, the use of Bitcoin was still only available to developers, so today it's not a question to ask. Importantly, this is the only time Bitcoin transactions have been canceled.No other security flaws have occurred since.
Market emergence cryptocurrency
Other cryptocurrencies will be introduced in the next year. This is the official birth of the market. Cryptocurrency companies that have chosen to start accepting Bitcoin as a service payment The very first organization to do this was the Electronic Frontier Foundation. WikiLeaks was one of the first companies to accept Bitcoin donations.
In 2012, Bitcoin first appeared in a state-run TV series. Cryptocurrency It appears in CBS's legal series Good Wife, the Bitcoin Foundation was also established this year. The group's founders are Gavin Andresen, Jon Matonis, Patrick Murck, Charlie Shrem and Peter Wesenis (Peter Wesenis).
Their goal is to increase the speed of taking Bitcoin to new levels. To achieve this goal, developers have been working hard to strengthen standards, protection and promotion of open source protocols in today's market, the Bitcoin Foundation continues to play a key role in Bitcoin's expansion.
Bitpay
In October 2012, BitPay, the popular Bitcoin payment processor, celebrated a milestone. The company has already had 1,000 merchants accepting Bitcoin. In the same year, WordPress, one of the largest hosting platforms in the world, started accepting. Bitcoin payments, the developments next year will bring dramatic results for Bitcoin.
In 2013, Bitcoin made great strides. That year, Coinbase's payment processor reportedly successfully sold 1 million BTC at an average of $ 22 each. This is the first major Bitcoin glitch year, as the Bitcoin community split for about 6 hours, a big deal in March.
Two bitcoins
Two independent Bitcoin chain technology disasters disappeared for hours. Developers have to stop all transactions to resolve this issue. As a result, investors lack confidence in the new project. Bitcoin's value plummets within minutes. When all miners use the new standard to upgrade to version 0.7, developers can stabilize this situation.
Bitcoin (BTC) regulatory issues
This is the year when regulators have started investigating Bitcoin's activities, in particular, the Financial Crime Enforcement Network (FinCEN) released a public statement stating that miners selling BTC in legal tender will Have to face consequences if they are not registered as a money service company This forecast gave the market a slight increase. But it will only decrease in the future.
In April, Bitcoin suffered more disaster than ever. The glitch was caused by severe processing delays that were plagued by the world's largest stock exchange, Mt.Gox, and the world's leading Bitcoin payment processor BitInstant. From $ 266 to $ 76
Attacks
This is the first year that government agencies have called for the seizure of bitcoin, in particular, the US Drug Enforcement Administration stated that 11.02 Bitcoin was seized in accordance with an announcement from the US Department of Justice. At the same time, officials said. Several accounts related to the Gox exchange were seized.
Regulatory issues
During this time, Bitcoin faced a number of regulatory issues. Thailand's Ministry of Administration and Exchange Policy has made Bitcoin illegal.U.S. Federal Judge Amos Mazzant of the 5th District of the Eastern District of Texas also made a controversial decision that Bitcoin was a "currency or a form of currency." The German finance ministry finally admitted that. cryptocurrency A financial instrument
Silk road
In October 2013, the FBI seized approximately 26,000 BTC from the "Silk Road" website. This was the largest Bitcoin seizure to date, the man behind the operation, Ross William Ulbricht, was found guilty of drug trafficking and sentenced to jail. Throughout his life for his role in creating this decentralized market. Many people thought the sentence was too harsh and they were accused of traffickers, not market developers.
Bitcoin ATM
Around this time, Bitcoin ATMs began to appear globally, Robocoin and Bitcoiniacs launched the world's first Bitcoin ATM in October 2013. This historic ATM is located in Vancouver, Canada. In the same month, Chinese internet giant Baidu allowed clients of the website's security service to use Bitcoin to pay their bills. BTC China also surpassed Japanese production. In terms of trading volume, Gox is the world's largest Bitcoin exchange.
Last December, the head of the popular online retailer. Overstock.com Announced to accept Bitcoin in the coming weeks. After a while, the market had a huge loss. Part of the reason is that the People's Bank of China banned Chinese financial institutions from using bitcoin.At that time, China controlled most of the volume of Bitcoin transactions.
Bitcoin is coming to Las Vegas
As of 2014, Bitcoin continues to be accepted by institutions.This year, D Las Vegas Casino Hotel and Golden Gate Casino Hotel in downtown Las Vegas announced they would begin accepting. cryptocurrencies This news increases the Bitcoin price, however, the initial time is very short.
In February 2014, Bitcoin released the infamous Mt. Gox Hack.The platform lost 744,000 Bitcoins during the attack. Less than a month later, Bitcoin, the world's largest stock exchange, filed for bankruptcy. After the exposure, the market has lost value.
Important achievements
The market began to recover in September. This was the month when TeraExchange received CFTC approval to provide various Bitcoin-based services.In particular, the company began offering over-the-counter exchange products based on Bitcoin prices as US regulators approved Bitcoin financial products. For the first time, the phenomenon was a huge success for the entire market.
Bitcoin (BTC) stands out
That year was also over for Bitcoin, computer giant Microsoft started accepting user bitcoins in December. Bitcoin allows you to buy Xbox games and Windows software.It also revealed the rise of Bitcoin, a Bitcoin documentary. First story
By 2015, the Bitcoin market began to flourish. In January of the same year, Coinbase raised $ 75 million for seed funding. That year, the popular Bitstamp exchange stopped trading for a week due to an intrusion, according to company documents.The company stole 19,000 bitcoins during the incident. Surprisingly, the platform has reopened and its users are free after a few days.
New heights
In the second year, the Bitcoin network has expanded to a new level. The network had a record network speed of more than 1 exahash / s, in March 2016, the Japan Virtual Currency Cabinet considered it a means of payment. This contributes to the regional market and development value. Unfortunately, in August 2016, another large Bitcoin exchange, Bitfinex, penetrated around 120,000 BTC and made a loss.
Bitcoin is accepted in Japan
In 2017, Japan passed a more Bitcoin-friendly bill. In the process, Bitcoin was officially recognized as a legal auction. This position helped to increase trade volumes, the market also exploded.For example, between January 2017 and May 2017, the Poloniex exchange reported a more than 600% increase in the number of active traders on the platform.
Scalability issue
Due to the value of the record, there are more investors coming into the market. All these users are causing huge network congestion. Soon, Bitcoin transactions became more expensive and took longer.As the Bitcoin community demolished the solution, the problem reached a boiling point. Finally, a new digital currency called Bitcoin Cash appears.
In 2018, South Korea took a big step against Bitcoin by banning anonymous transactions.This year, it also had Lightning Network, an off-chain payment solution.The Lightning Network relies on a private payment channel to avoid congestion. In the Bitcoin market
Bitcoin bank
Bitcoin banking solutions will hit the market again this year. This time, the emergence of Bitcoin debit cards and bank accounts became popular. Additionally, as prices drop sharply and more manufacturers enter the field, Bitcoin ATMs are beginning to appear in many regions.
By 2019, Bitcoin has been an alias. cryptocurrencies And thousands of markets are expanding Again, this is when other major crypto projects start talking to regulators, especially Facebook's Libra coin has regulators.
This year, Bitcoin has started to mature. You can do almost anything with Bitcoin today. You can pay taxes, travel expenses, and even food or gift cards. Additionally, expanding the DeFi field, Bitcoin users have more options regarding Bitcoin storage and passive income streams.
Who invented Bitcoin (BTC)?
Although Satoshi Nakamoto is mentioned in the name of the Bitcoin Handbook, no one can prove that they are the real creator of Bitcoin. Although many people claim that this is Satoshi Nakamoto, 1 million BTC started that the developer mined earlier. This was not moving. Conspiracy theories are divided by the lack of clear evidence.
In a special case, the first computer programmer and Bitcoiner Craig Wright came out and claimed to be Satoshi Nakamoto.He even tried to send a copy on behalf of Bitcoin, but when it was necessary to prove that he was Satoshi Nakamoto, he was unable to provide any evidence linking him to. Millions of immovable bitcoins
Perhaps it was mistaken that Satoshi Nakamoto, after incorrectly pointing out that he was the founder of Bitcoin Newsweek, saved his life.Dorian Nakamoto denied that he was involved in the project. Today, his face is a symbol of Satoshi Nakamoto.
How to buy Bitcoin (BTC)
You can earn Bitcoin from any exchange. Binance offers direct Bitcoin Fiat currency pairs, all you have to do is register an account. If your account is valid, you can load it in your fiat currency. Luckily, Binance added an instant account upload feature this month. Sometimes it lasts three days.
When fiat currencies are on the stock market, you can choose and prepare your BTC / USD trading pairs. The whole process takes just 1 minute and is very easy. Binance is the world's largest exchange.
How to save Bitcoin (BTC)
Saving Bitcoin is easy. This token's popularity is an unprecedented choice for Bitcoin investors, the easiest way to store BTC is by using a mobile app. The mobile app is easy to browse and can be downloaded in seconds. The best part is, it's free.
Mobile wallets BTC like JAXX are far from adequate. Wallets today are easy to use and can be stored. Various cryptocurrencies, these platforms make it easier for you to diversify and monitor your investment portfolio.
Desktop
If you want a more secure option than a mobile wallet, you can always use a desktop Bitcoin client.Desktop wallets are more secure as computers are generally more secure than smart. Smartphone Since the desktop wallet was developed by the central developer of the project, we know this is a safer alternative.
For those who plan to plan a lot of Bitcoin in HODL or think security is the main concern of investing, a hardware wallet is the best option. Machine wallet can make your Bitcoin offline and safe. This strategy prevents the removal of digital currencies from hackers and other malicious software.
Hardware wallet
Companies such as ledgers provide bags of machines at reasonable prices. They are small enough to store or carry around. Many have advanced features such as the ability to connect your wallet directly to an exchange.
I recommend the Ledger Nano X or T-shaped safe.
Bitcoin's future
The future of Bitcoin is bright.Now the world is realizing the power of blockchain technology, Bitcoin continues to expand its user base and capability. Analysts agree that it's only a matter of time before Bitcoin becomes the world's major reserve currency.
