What is bitcoin?
Today in this article we will know about what is bitcoin and its precisely .This currency has made a roar in market from around 2-3 years and many many people are getting into it day by day.
This article will be a great exposure for the people who are involved in bitcoin or willing to get involved and learn about it.So,without any further delay lets go and hover on the bitcoin
Bitcoin is a digital currency (Also called crypto-currency ) and a digital payment system invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto It is not backed by any country’s central bank or government. it was published the invention on 31 October 2008 to a cryptography mailing list in a research paper called “Bitcoin: it is a electronic currency there is no physical form of bitcoin.It do not exist physically like Dollars or Euros or Pounds. It was released as open-source software in 2009.The Bitcoin network is designed to mathematically. Bitcoins can be traded for goods or services with vendors who accept Bitcoins as payment.
In January 2009, the bitcoin network came into existence with the release of the first open source code bitcoin client and the issuance of the first bitcoins,The identity of Nakamoto remains unknown, though many have claimed to know it. Satoshi Nakamoto mining the first block of bitcoins ever (known as the genesis block), which had a reward of 50 bitcoins
They are produced – transferred by one user to another with the help of electronic software. Bitcoin is the first cryptocurrency ever introduced in the world.
- Created –
The history of Bitcoin marks from the year 2009. Bitcoin was created by a Software Developer – Satoshi Nakamoto. The main motive behind it was to create a payment system that works between sender and receiver with no middle man/company and transaction to be instant with very low fees.
To be more precise no one has seen Satoshi Nakamoto nor anyone knows who he/she is,from where he/she is. To know more about the creator. In the early days, Nakamoto is estimated to have mined 1 million bitcoins. Before disappearing from any involvement in bitcoin, Nakamoto in a sense handed over the reins to developer Gavin Andresen, who then became the bitcoin lead developer at the Bitcoin Foundation, the ‘anarchic’ bitcoin community’s closest thing to an official public face.
- How many Bitcoins are in the world ?
As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin. generate no more than 21 million Bitcoins can be mined and till now 14 Million are already mined and the network is set up to regulate itself to deal with inflation. Bitcoins can be spent by initiating a transfer request from a Bitcoin address in the customer’s wallet to a Bitcoin address in the vendor’s wallet. As of this writing, one Bitcoin (also called a BTC) is worth $2750 — but just as with stocks, the value of Bitcoins can fluctuate quickly. So its not that there are infinite number of bitcoins.The Numbers are confined to 21 Million in total.
- Mines/creates new bitcoin
In the early days, Nakamoto is estimated to have mined 1 million bitcoins. Before disappearing from any involvement in bitcoin, Nakamoto in a sense handed over the reins to developer Gavin Andresen, who then became the bitcoin lead developer at the BitcoinFoundation, the ‘anarchic’ bitcoin community’s closest thing to an official public face As I said bitcoin is not physical money like Dollars/euros which are printed by central authorities. They are electronic currency which anyone can mine.They are mined by Computing power in a distributed blockchain network.
In short anyone can mine bitcoins anywhere anytime.Only thing thats needed is the hardware that can solve the mathematical problems to be mined.When Bitcoin is transferred from one user to another this transaction needs to be confirmed in blockchain which are confirmed by solving special maths problems by miners(with the help of mining equipment’s) and and on doing so i.e. confirming each and every transaction a small amount of bitcoin is produced. in this way You can use your cpu/gpu/graphic cards/processors etc to mine or also buy specially designed miners(according to capacity) and start mining
- decentralized currency .
A Peer-to-Peer Electronic Cash System” The system is peer-to-peer, and transactions take place between users directly, without an intermediary: These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain. Since the system works without a central repository or single administrator, bitcoin is called the first decentralized digital currency. No one has controlled over it.There is no central authority to control bitcoin.Every machine that mines bitcoin are the part of blockchain network and they all share common and equal rights and these all machines that mines bitcoins work together .Besides being created as a reward for mining, bitcoin can be exchanged for other currencies, products, and services in legal or black markets.
As example if you put your money in banks/paypal etc then the banks or paypal is having control over your money but if you keep your money in the form of bitcoin,no one is having control over your bitcoin.
- Easy to use
For the use of bitcoin there is no any procedure to fill up the forms or do any agreements and submit like in banks.You can open your bitcoin account in a few minutes and start using bitcoin. and also no need of any setup fees to setup account.
Because of this convenient use bitcoins is where it is now
In the United States, Bitcoins are controversial because they can be used to anonymously transfer illicit funds or hide unreported income from the Internal Revenue Service (IRS). Bitcoin policy now requires transactions that involve traditional, government-backed currencies to be attached to an identity
Well you can call it as a feature or a demerit, it depends upon your use and thinking but I will say these are the features not the cons of bitcoins.
Transparent – As I said for every transaction blockchain needs to confirmed it and on doing so blockchain records the each and every transaction precisely in the form of Ledger so called Blockchain Network.You can witness Blockchain here here
So, it means you will be able to find how much a person actually owns bitcoin in his account without getting known by him on the basis of this ledger as his every transactions are recorded by blockchain and anyone can view it.You can see the example here
Anonymous – Well this is one of best/worst feature that bitcoin has. What this feature actually means that users can have as many as address which are not linked to any personal details or address.
Well,to get you more about it everyone know the “Wannacry virus” attack recently.As far as you know they inject virus into your PCand ask some money to reopen you pc from that virus and if you take a note they were accepting money only from bitcoin.Why? – Well,because bitcoin in anonymous. When someone sends bitcoin to someone address, everyone will see the transaction,from where to where sent but no one will be able to see the details of sender and receiver. If the attacker had used other payment syste
- Wallet and service
One of the first supporters, adopters, contributor to bitcoin and receiver of the first bitcoin transaction was programmer Hal Finney. Finney downloaded the bitcoin software the day it was released, and received 10 bitcoins from Nakamoto in the world’s first bitcoin transaction. Other early supporters were Wei Dai, creator of bitcoin predecessor b-money, and Nick Szabo, creator of bitcoin predecessor bit gold. click here for wallet sign up
Bitcoin-to-Bitcoin transactions are made by digitally exchanging anonymous, heavily encrypted hash codes across a peer-to-peer (P2P) network. The P2P network monitors and verifies the transfer of Bitcoins between users. Each user’s Bitcoins are stored in a program called a digital wallet, which also holds each address the user sends and receives Bitcoins from, as well as a private key known only to the user. Well this is also a great boost on bitcoin.Bitcoin transaction are confirmed in a time of minutes .Sender can send instantly with very low fees and receiver receives in a time of seconds or minutes after transaction being confirmed in Blockchain with no middle person/organization involved.
The value of the first bitcoin transactions were negotiated by individuals on the bitcointalk forums with one notable transaction of 10,000 BTC used to indirectly purchase two pizzas delivered by Papa John’s