What Is Bitcoin?
Bitcoin is the first-ever decentralized global digital currency. Among other things, this means that it is entirely computerized and doesn’t have a physical form.
Bitcoin can be sent quickly and securely from any point in the world to another; the only need is an internet connection. Due to being a decentralized coin, the Bitcoin price is determined in the free market, subject to supply and demand.
Bitcoin is stored in digital addresses that are spread throughout the Internet, it is a cryptographic coin which is based on encrypted technology (blockchain). Because Bitcoin is decentralized, it is a currency that is not controlled by any central authority like a government or bank.
Since Bitcoin is an open-source project, many developers had contributed and continue to develop the code of Bitcoin on a daily basis.
Blockchain & Mining
Let’s Talk Numbers
Total Existing Bitcoins / Max Supply:
Bitcoin’s current price:
Bitcoin transactions (24-hours):
24H Transactions’ value:
Source: CoinGecko and Blockchain.com
Ok, Now What?
After reading the basics, you are welcome to continue to our featured articles that will guide you through the Crypto world:
Bitcoin FAQ For Beginners
Who invented Bitcoin?
In 2008, during the global economic crisis, also known as The Sub-prime, a man or woman nicknamed Satoshi Nakamoto decided that it was the right time for the first digital decentralized currency.
On October 31, 2008, the Bitcoin idea was introduced with the release of a whitepaper titled Bitcoin, A Peer-to-Peer Electronic Cash System, written by Satoshi.
It’s worth noting that Satoshi Nakamoto is believed to be a pseudonym, and the true identity of the Bitcoin inventor remains unknown to this day. Although some people claim to be Satoshi Nakamoto, none of them have provided sufficient evidence.
In its first two years of existence, Bitcoin had almost no monetary value. Nevertheless, it soon created strong and active communities of people who continuously improve the original code.
In 2010, Satoshi left the development of Bitcoin, and their last known communication was an email from April 2011.
In the following years, however, the community became bigger and stronger, as more and more improvements and use cases for Bitcoin started to take shape.
Who controls Bitcoin?
It was once thought that an entity such as a major bank or government must stand behind a currency and ensure the stability of its economy.
Only a few decades ago, however, the Debt Economy started to take shape. It’s the era we’re in today, in which the central bank of a country can print new bills at will without linkage to any tangible asset base (e.g., gold).
This mechanism creates inflation: continued price rises and the erosion of the value of the currency over time. It should be noted that before this era, money was not controlled by governments or central banks.
Bitcoin gives us complete control over the money that we hold.
Behind the Scenes: Bitcoin’s Blockchain
The Bitcoin protocol is built on the blockchain technology. The blockchain represents a digital ledger that includes all of the transactions in Bitcoin’s history and is divided into blocks.
Bitcoin’s blockchain derives its strength from the nodes which are scattered throughout the world. Anyone can create a node and help to preserve the blockchain.
Therefore it’s said that Bitcoin is decentralized – no single entity, be it a bank, a company, or a government, can co-opt the network. Hence, Bitcoin can’t be shut down.
Who is eligible to create a Bitcoin account?
Unlike banks, anyone can create a Bitcoin wallet account on its own, this brings a lot of benefits, perhaps the most important of which is accessibility and censorship-resistance.
Banks create policies to which customers must oblige; if they fail to do so, the banks have the authority to shut down their accounts. Banks can also reverse or freeze transactions and accounts. This can’t happen with Bitcoin because there’s no central authority controlling it.
In terms of accessibility, literally anyone in the world who has access to the Internet can obtain, send, store, and transact with Bitcoin. Anyone can open a ‘Bitcoin account,’ which is basically downloading a digital wallet app.
Sending large amounts of bitcoin is a lot quicker and cheaper than sending fiat currency through traditional bank transfers. When was the last time you sent $300 million for a $1 fee?
Block explorer: Sending 43.6K BTC ($313 Million at that time) for only $1 fee
Bitcoin creation: What is Bitcoin mining?
The process which makes the functioning of the Bitcoin network possible, while also creating new coins, is called mining. It’s the beating heart of the Bitcoin network.
When Joe wants to send Bitcoin to Annie, he creates a transaction and signs it with his private key and then broadcasts it to the network. Here come the miners.
Basically, the miners are the ones who validate and verify transactions, put them into the next blocks, and broadcast them to the public ledger, or the blockchain. This is where the word comes from – it’s essentially a chain of blocks.
When was the first Bitcoin mined?
On January 3rd, 2009, the first Bitcoin was mined to the world. Also known by “block number 0” or the Genesis block. The block carried a reward of 50 Bitcoins for the miners.
What is the miners’ reward?
There are two types of rewards that miners earn – the first is transaction fees for validating transactions, and the second is the block reward.
The miner who manages to solve the aforementioned cryptographic problem receives a block reward, which is the second type of miners’ reward.
As of writing these lines, every block has a reward of 12.5 bitcoins. According to the Bitcoin protocol, every four years there is…