|Original author (s)||Satoshi Nakamoto|
|White paper||“Bitcoin: a peer-to-peer electronic cash system”|
|Implementation (s)||Bitcoin Core|
|Initial release||0.1.0 / Jan 9, 2009|
|Beginning of the ledger||January 3, 2009|
|Time stamp scheme||Proof of work (partial hash inversion)|
|Issue schedule||Decentralized (block reward)|
Initially ₿50 per block, halved every 210,000 blocks
|Block time||10 minutes|
|Block explorer||Many implementations|
|Circulating supply||₿18,660,000 (as of March 20, 2021)|
|Supply limit||21.000.000 ₿|
Bitcoin, known as the currency of the new technology age, has provoked much discussion and controversy. Here’s some background information about what it is and how it works.
Bitcoin is a new technology, the first one that has the potential to do real things. It’s a new kind of money that emerged from the ashes of the financial crisis. For centuries we have thought of money as being government issued and centrally controlled, but now there is an alternative. Bitcoin is digital money that can be freely exchanged all over the world.
Bitcoin is the first currency without a central bank or single administrator that can be transferred electronically in the space of minutes to anywhere in the world. It’s the first Truly global currency – it can show up at your doorstep as fast as an email.
Bitcoin is a digital currency. It’s just a way of passing money from one person to another through the Internet.
Bitcoin was created by an anonymous programmer, or possibly group of programmers, by the name of Satoshi Nakamoto. It has all the attributes of a real currency, but no physical form. Bitcoins aren’t printed, like dollars or euros, they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems.
The name Bitcoin wasn’t chosen arbitrarily. In 2009, Satoshi Nakamoto released a whitepaper to the world outlining the concept and goals of Bitcoin. Since then, thousands of users have mined new blocks adding new Bitcoins to the network. .
Bitcoin is unique in that it is both digital and decentralized. This makes it the most revolutionary form of money ever created. Instead of using a centralized financial system such as a bank or government agency, Bitcoin uses specialized computers to verify and record transactions in a transparent way. It does this behind a secure network that protects against spam and theft.
Bitcoin offers a secure and efficient way to make payments without relying on banks or credit cards; because Bitcoin transactions are unalterable once made, they are more resistant to currency wars and other financial crises.
Bitcoin is a digital currency that enables instant payments to anyone anywhere in the world.
Some people criticize Bitcoin for being dangerous and unpredictable. Others say it is a bubble that will burst soon and destroy the value of all current Bitcoin holdings.
One of the criticisms of cryptocurrency such as Bitcoin, compared to other cryptocurrencies, is that the original purpose for the decentralized currency was simply to create a working currency to avoid the use of centralized fiat currency.
Other critics say it’s a bubble waiting to burst, that it’s a risky investment with little reward, and that government regulators will ban it if it’s not classified as a currency.
Other critics say that Bitcoin lacks practical applications and that its value is primarily based on speculation.
Bitcoin is an online cryptocurrency that allows people to function without a need to have a physical form of money. It’s generated through an electronic system made up of computers solving complex mathematical problems. As a result of its decentralized and public nature, it creates no intermediaries between users and the services they want. This makes Bitcoin highly desirable for people who want to keep their privacy and financial information safe from prying eyes.
The basic idea behind bitcoin is that a public ledger of all transactions ever made in peer-to-peer networks allows anyone to verify that a given asset was actually sold at a specific time and place. Essentially, it provides a permanent record of where your money is and who owns it. In theory, this gives people worldwide the power to audit the integrity of any financial institution.
There is a finite supply of Bitcoins, which means that there is a limit to the amount of bitcoins that will ever be created. A total of 21 million bitcoins can ever be mined, and there are presently 18 million bitcoins in existence. Like all free markets that vary in response to supply and demand, an increase in demand for an item that is in limited supply will result in an increase in the unit price of the item.
Because of Bitcoin’s public blockchain, every transaction is visible to anybody with internet connection, and each transaction is associated with the Bitcoin addresses of the people that participated in it.
A Bitcoin address, on the other hand, is a protected alphanumeric string formed from the public key of an asymmetric key pair produced by a Bitcoin user and stored in a secure location. Every user has the ability to store several key pairs (and addresses) in their wallet, and it is recommended that they use a different address for each transaction in order to maximize the degree of anonymity.
Consequently, although Bitcoin trade is visible, Bitcoin owners have the option to maintain their anonymity. Because of this, it continues to be a favorite ransomware payment method among hackers.
The value of Bitcoins is not decided by the stock market or currency dealers; rather, it is determined by supply and demand in a free and decentralized market environment.
Physical money is subject to the laws of physics, but bitcoin exists independently of those laws. As a cyber currency, it offers the same freedom from governmental interference as cash does. Physically, you can’t lose a bitcoin — they are divisible and trackable: once mined, they are forever.