1.1 What is bitcoin?
Bitcoin is a peer-to-peer digital currency that keeps track of transactions and generates new currency units by solving mathematical problems. It’s completely decentralized and doesn’t require a central bank to operate.
This means, in contrast to the traditional banking system, Bitcoin is transferred from one digital wallet to another. In contrast to coins or paper money, Bitcoin is purely a computer-based medium of exchange.
Photos like the one above are probably familiar to you. When Bitcoin is shown as a physical coin, they are sometimes called a token or a piece of currency; as a result, the two terms are frequently used interchangeably.
This is purely cosmetic. Simply put, people prefer to make choices based on visual cues when making choices. Website owners like to have attractive images on their sites. So, in essence, those coins are just physical representations of a digital asset.
1.2 How does bitcoin work?
You don’t need to understand the technical details to get started with Bitcoin as a new user. Installing a Bitcoin wallet on your computer or mobile phone will generate your first Bitcoin address, and you can create more as often as you want. So that your friends can pay you, or vice versa. Bitcoin addresses should only be used once, which is similar to how email works.
The entire Bitcoin network relies on a blockchain, which is a shared public ledger. The blockchain contains all confirmed transactions. So that new transactions can be verified and ensured to be owned by the spender, it lets Bitcoin wallets calculate their spendable balance. Cryptography secures the blockchain’s integrity and chronological order.
1.3 What is bitcoin mining?
Adding transaction records to Bitcoin’s public ledger of past transactions (blockchain) is known as bitcoin mining. Miners confirm transactions by adding them to the blockchain using a distributed consensus system.
Chronological order is enforced, neutrality is protected, and different computers can agree on the system’s status. For transactions to be confirmed, they must be bundled into a block that complies with stringent cryptographic rules that the blockchain will verify. Modifying previous blocks is prohibited because doing so would invalidate all subsequent blocks; according to these rules, Miners are forced to compete to add new blocks to the blockchain, which prevents anyone from quickly adding new blocks to the blockchain.
1.4 History of bitcoin
Who invented bitcoin and when?
In 2008, “Satoshi Nakamoto” created the cryptocurrency named bitcoin. According to Nakamoto, Bitcoin code development began in 2007. They registered bitcoin.org on August 18, 2008, and set up a website at that address. As part of the cryptography mailing list at metzdowd.com, Nakamoto published a white paper on October 31 entitled “Bitcoin: A Peer-to-Peer Electronic Cash System.”
A code was released in early 2009 after the company was registered in 2008, enabling the first Bitcoin marketplace. A 20-year-old prediction has been made that the market’s value will reach $21 billion in 20 years.
1.5 Who is “Satoshi Nakamoto”?
“Satoshi Nakamoto” is a pseudonym used by an unknown author. Using a piece of code and a digital currency design that Nakamoto and others had developed together, someone “mined” the first bitcoin, the most popular of all cryptocurrencies, in 2009. Bitcoin can be credited to a specific person, but who was that? No one is aware of it. Millionaire Satoshi Nakamoto is the subject of a lot of intrigues. Until he provides his name and email address, no one knows who he is.
However, he has provided commentary on banking and fractional-reserve banking on occasion. A 37-year-old Japanese man, Nakamoto, claimed to be on his P2P Foundation profile as of 2012. However, some speculated that he was not a native Japanese speaker because of his native-level English use.
It’s been speculated that Nakamoto could be a group of people, including It, is possible that Nakamoto is either a “team of people” or a “genius,” according to security researcher Dan Kaminsky.
But for now, Bitcoin’s origins remain a mystery. What we do know is that interest, demand, and appeal for the currency are increasing on a national level and that this needs to be addressed.
1.6 The evolution of bitcoin
Bitcoin has been active since early 2014, reaching a high of $1250, and has only recently begun to evolve. 2017 started with $5,000, dropped to $3600, and then soared to $17,500.
Both Tesla’s and Coinbase’s Bitcoin purchases in February and April of 2021 resulted in Bitcoin’s value exceeding 60,000 USD. This is due to Tesla’s purchase of 1.5 billion U.S. dollars’ worth of cryptocurrency, as well as Coinbase’s initial public offering.
In response to the arrival of Bitcoin on the market, governments have passed laws to regulate its use. According to the IRS, bitcoin must be treated as property for tax purposes in 2014.
The growth of bitcoin has drawn the attention of governments worldwide, despite its humble, anonymous beginnings.
Bitcoin – Wikipedia
Bitcoin price history 2013-2021 | Statista
Tesla buys $1.5 billion in bitcoin, plans to accept it as payment (cnbc.com)
Satoshi Nakamoto – Bing