In this article we want to discuss “Learn more about Bitcoin” and find our answers and doubts about this well-known Cryptocurrency.
What is Bitcoin?
learn more about Bitcoin is important due to that Bitcoin defined as both a digital currency that exists electronically and the world’s first cryptocurrency.
also The fact that no authority and political institution controls the amount of bitcoin in circulation makes it decentralized.
A peer-to-peer network is what enables Bitcoin holders to transfer bitcoin and then “blockchain” which commonly called as a giant ledger tracks these transfers.
Each “block” in the blockchain built up of a data structure based on encrypted Merkle Trees. due to this it can used to detect fraud or corrupted files.
17 million Bitcoins currently exist in circulation.Supply controls by design since no central regulatory agency or government controls the supply of bitcoins. The total supply to ever created capped at 21 bitcoins.
There is this common belief that bitcoin designe to become a deflationary currency to combat the government’s use of inflation as a hidden taxation in order to redistribute earned wealth. also,Many people praise Bitcoin for empowering the people by overthrowing the currency printing powers of transient politicians.
A brief history of Bitcoin
And also,Learn more about the history of Bitcoin
(1998-2009) The pre-Bitcoin years:
this era belongs to the time where other attempt were made at creating online currencies with ledgers secured by encryption like B-Money and Bit Gold which were never fully developed.
(2008) The Mysterious Mr Nakamoto:
someone called Satoshi Nakamato post a paper called bitcoin to a mailing list discussion on cryptography.
(2009) Bitcoin Begins:
The Bitcoin software is made available to the public for the first time and mining – the process through which new Bitcoins are created and transactions are recorded and verified on the blockchain – begins.
(2010) Bitcoin valued for the first time:
In 2010, someone decided to sell theirs for the first time – swapping 10,000 of them for two pizzas. If the buyer had hung onto those Bitcoins, at today’s prices they would be worth more than $100 million.
(2011) Rival Cryptocurrencies emerge:
As popularity of bitcoin increases, the first alternative cryptocurrencies appear, sometimes known as altcoin. Among the first to emerge were Namecoin and Litecoin. Currently there are over 1,000 cryptocurrencies in circulation with new ones frequently appearing.
(2013) Bitcoin price crashes:
when the price of one Bitcoin reaches $1,000, the price quickly begins to decline.
(2014) Scams and theft:
Bitcoin has proven to be an attractive and lucrative target for criminals due to anonymity and lack of control in mind. In January 2014, the world’s largest Bitcoin exchange Mt.Gox went offline, and the owners of 850,000Bitcoins never saw them again.
(2016) Ethereum and ICOs:
Ethereum platform uses cryptocurrency known as Ether to facilitate blockchain-based smart contracts and apps. Ethereum’s arrival marked by the emergence of Initial Coin Offerings (ICOs).
(2017) Bitcoin reaches $10,000:
Gradually as more uses emerged, it became clear that more money was flowing into the Bitcoin ecosystem. During this period the market cap of all cryptocoins rose from $11bn to its current height of over $300bn.
Why do we use it?
to Learn more about Bitcoin ,Future of the monetary world depends largely on Bitcoin. Those who view politicians and government with suspicion are in favor of Bitcoin and are actively building, buying and working in cryptocurrency world since the whole system decentralize and brings power back to people.also Freedom, security and low transaction fees are other key advantages of using Bitcoin.
How does Bitcoin work?
The verification process of bitcoin minimizes the risks of fraud since the decentralizing, volunteers—referred to as “miners”.
which due to this fact,it constantly verify and update the blockchain.
verification of small amount of transactions, another block add to the blockchain and business continues.
But what is mining?
Mining is when everyone on the network verified each transaction. Miners give a complicated math problem and the first one to solve the math problem adds the verified block of transactions to the ledger.
also The calculations based on a Proof of Work (POW), or the proof that a minimum amount of energy spent to get a correct answer.
hardware used to perform Bitcoin mining. Bitcoin’s reward system gives successful miners a chunk of bitcoins. The reward changes over time per Bitcoin’s programming, and the block reward halves about every four years.
also,The current reward for each new block of verified transactions is about 12.5 bitcoins. ASICS–Application-Specific Integrated Circuits and hardware systems similar to CPU computers built for sole reason of mining bitcoins which made it the most popular method.
You need a great amount of effort and power for handling mining operations and the amount of competition does not let newcomers enter and profit easily.
Having only the adequate computing power and the knowledge to use it to outcompete the competition is not enough.
extensive amount of capital is vital for funding the operations.