Notes

What is bitcoin popular cryptocurrency - that everyone loves it
What Is make money 13 year old ?

Bitcoin is a decentralized digital coin that was developed at the beginning of January in 2009. It follows the principles laid out in a white paper by the obscure undisguised Satoshi Nakamoto.12 However, who is this individual or those who invented the technology is still unknown. Bitcoin offers the promise of lower transaction fees than conventional digital payment systems do in comparison to government-issued currencies that are controlled with a decentralized government agency.

Bitcoin is referred to as a kind of cryptocurrency due to the fact that it uses cryptography to keep it safe. There are no physical bitcoins, just balances maintained on a ledger that anyone can have access to (although each record is protected). All Bitcoin transactions are verified by a massive amount of computing power in a process known as "mining." Bitcoin isn't authorized or backed by any banks or governments in any way, nor is an individual bitcoin a valuable commodity. Despite the fact that it isn't legal currency in the majority across the globe Bitcoin enjoys a huge following and has triggered the creation more than a hundred other cryptocurrency also known collectively as altcoins. Bitcoin is typically abbreviated BTC when trading.

KEY TAKEAWAYS

It was first introduced in 2009. Bitcoin is the biggest cryptocurrency in terms of market capitalization.


It is a different currency to fiat currencies. Bitcoin is created by trading, distribution, and stored using the help of a decentralized ledger system, often referred to a blockchain.

The history of Bitcoin as a valuable store has been turbulent; it is through a variety of cycles between boom and bust throughout its short period of existence.

* Being the first digital currency to meet widespread popularity and gain popularity, Bitcoin has inspired a variety of other cryptocurrency that follow.


What exactly is Bitcoin

Understanding Bitcoin

The Bitcoin system is a set of computers (also called "nodes" as well as "miners") that all have Bitcoin's source code and its cryptocurrency. As a metaphor, a bitcoin can be seen as an accumulation of blocks. In each block , you will find the result of a series of transactions. Since all the computer systems running the blockchain have the same block list in addition to transactions, and identify these new blocks because they're stuffed with new Bitcoin transactions, nobody could evade the system.

Anyone, regardless of whether they operate a Bitcoin "node" and not, can track these transactions in real-time. To carry out a devious act someone could require 51 percent of the computational power that powers Bitcoin. Bitcoin has about 13,768 full nodes, by mid-November of 2021 and this number is on the rise so that an attack extremely unlikely.3

But if an attack occurred, Bitcoin miners--the people who are part of the Bitcoin network through computers likely be split and transferred to a new blockchain, making all the efforts the perpetrator made to carry out the attack futile.


In the case of balances, Bitcoin tokens are kept in both private and public "keys," which are long strings of letters and numbers connected by the mathematical encryption algorithm that makes the keys. Keys that are public (comparable to a bank account number) is used to identify the address made public to the world and to which others may send Bitcoin.

It is the private number (comparable as an ATM PIN) is designed to function as an encrypted secret that is only used to authorize Bitcoin transmissions. Bitcoin keys should not be confused the Bitcoin wallet it is a physical electronic device which allows dealing with Bitcoin and allows users to verify ownership of coins. The phrase "wallet" is somewhat off-base since Bitcoin's distributed nature ensures that it's never kept "in" such a device, but rather , distributed over a blockchain.


Peer-to-Peer Technology


Bitcoin is one of most of the first digital currencies to employ peer-to-peer (P2P) technology to enable immediate payments. The companies and individuals who control the central computing capacity and participate in the Bitcoin network -- the Bitcoin "miners"--are in charge of making transactions available on the blockchain and are motivated by rewards (the release of new Bitcoin) and the fees for transactions in Bitcoin.


These miners may be considered as the decentralized authority that enforces the legitimacy of the Bitcoin network. Bitcoins are released to miners at a predetermined but constantly decreasing rate. There are just 21 million bitcoins to be mined in total. In November 2021, there's over 18.875 million Bitcoin still in existence, with just 2.125 millions Bitcoin remains to mine.4


This is how Bitcoin and other digital currencies operate differently from fiat currencies. in centralized banking systems, the currency is released at a speed that is proportional to the expansion of the economy. This system is designed to guarantee price stability. A decentralized model, like Bitcoin allows the rate of release ahead of the clock and according to an algorithm.


Bitcoin Mining


Bitcoin mining describes the process in which Bitcoin circulates. Usually, mining involves solving complicated computational problems to identify the newest block. This block is added to the bitcoin blockchain.


Bitcoin mining improves the security of transactions on the network. Miners receive Bitcoin The reward is divided by 210,000 blocks. In 2009, the block rewards was fifty new bitcoins in 2009. On May 11 in 2020, the third halves took place, bringing the reward for each block discovery down to 6.25 bitcoins.5


A variety of equipment can be employed when mining Bitcoin. Some, however, earn greater payouts over other types of hardware. Certain computer chips, commonly referred to applications-specific integrated circuits (ASICs), and more advanced processing units, like graphic processing units (GPUs) may earn greater reward. These sophisticated mining processors are commonly referred to as "mining drilling rigs."


One bitcoin is divided to one eighth decimal (100 millionths of a bitcoin) This the smallest unit is often referred to as the Satoshi.6 If required and if participating miners are willing to accept the change, Bitcoin could be made divisible to a greater number of decimal places.


The first timeline for Bitcoin


Aug. 18, 2008


The Domain Name Bitcoin.org is registered.7 Today, at least this domain has been WhoisGuard Protected, meaning the identity of the person who registered the domain cannot be made public.


Oct. 31, 2008



A group or individual using an initials Satoshi Nakamoto, makes an announcement on the Cryptography Mailing List at metzdowd.com: "I've been working on a new electronic cash system that's 100% peer-to–peer, with no third-party trusted." The now famous white paper was published on Bitcoin.org, entitled "Bitcoin: A Peer To Peer Electronic Cash System," was to become"the Magna Carta for the way that Bitcoin operates today.1


Jan. 3, 2009


It is the first Bitcoin block is mined - Block 0. It is also referred to as the "genesis block" with the text: "The Times 03/Jan/2009 Chancellor is on the verge of a second bailout for banks" may be to show that the block was mined on or later than that date, and possibly also as a relevant political commentary.8


Jan. 8, 2009


The initial release of the Bitcoin software has been announced through people on the Cryptography Mailing List.


Jan. 9, 2009


Block 1 is mined, and Bitcoin mining commences.


Who is Satoshi Nakamoto?


Nobody knows who came up with Bitcoin in the first place, or at least , not definitively. Satoshi Nakamoto is the name for the individual or group of people who released the first Bitcoin white paper , which was published in 2008 and worked on the original Bitcoin software that was made available in 2009.1 In the years since when, numerous individuals have either claimed to be or have been believed to be the real people behind the pseudonym. However, at the time of writing, November 20, 2021, the name (or people's identities) that are associated with Satoshi Nakamoto remains obscured.


Although it's tempting believe that the media's story of Satoshi Nakamoto is an ephemeral brilliant, quixotic genius who invented Bitcoin out of thin air. But such innovation does not happen in a vacuum. Any major breakthrough in science, however improbable and improbable, were built upon prior research.


There are a few precursors to Bitcoin Adam Back's Hashcash founded in 1997, followed by Wei Dai's money, Nick Szabo's bit gold, and Hal Finney's Reusable proof of Work. In the Bitcoin white paper itself is an homage to Hashcash and b-money as and other work that spans various research fields. It is not surprising that many of the individuals behind the other project mentioned above have also been considered to also have some involvement in the creation of Bitcoin.


There are several possible reasons that Bitcoin's developer might want to hide their identity. One reason is privacy: Since Bitcoin has grown in popularity--and is becoming something of a worldwide phenomenon--Satoshi Nakamoto is likely to attract plenty of interest from the media and from the governments. Another reason is the possibility for Bitcoin to cause a huge change in the banks and monetary systems. If Bitcoin was to gain widespread acceptance, the system may surpass nations' sovereign fiat currencies. The threat to the currency of today could prompt governments to pursue legal action against the Bitcoin's creator.


Another reason is safety. If we look at 2009 as an example, 32,490 blocks have been mined. at a rate that is 50 Bitcoin every block. total payout for 2009 was 1 624,500 Bitcoin.9 One can conclude that only Satoshi and possibly other people were mining through 2009 and possess the majority of Bitcoin.


Anyone who has that many Bitcoin could end up becoming a person of interest to criminals given that Bitcoin is less like stocks and more akin to cash and the private keys needed for authorizing spending could be printed out and literally hidden in a mattress.


Although it's possible that the creator of Bitcoin will have the foresight to make any transactions involving extortion possible to trace, keeping the transaction anonymous is a good strategy for Satoshi Nakamoto to limit exposure.


Special Beacons


Bitcoin as a way of payment


Bitcoin can be used to pay for products sold or services supplied. Brick-and-mortar retailers can put up the words "Bitcoin is accepted at this location"; the transactions can be handled with the requisite hardware device or wallet address with QR codes and touchscreen apps. Online businesses are able to accept Bitcoin by adding this payment option to its other payment options online including credit cards, PayPal or other similar payment methods.


El Salvador became the first nation to adopt Bitcoin as a legal currency in June 2021.10


Bitcoin employment opportunities


Self-employed workers can be paid for the work tied to Bitcoin. There are numerous methods to achieve this by establishing an online service and putting in to it your Bitcoin bank account details to the website as a method of payment. There are a variety of jobs boards and websites specifically designed for digital currencies:


* Jobs4Bitcoins is a part of Reddit.com.


* BitGigs describes itself as "a Bitcoin job board."


* Bitwage gives you the option for you to choose a certain percentage of your work paycheck to be converted to Bitcoin and sent to the Bitcoin address.


The idea of investing in Bitcoin
























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How to Purchase Bitcoin





Many Bitcoin users believe that digital currency is the future of. Many who support Bitcoin believe that it offers a much faster, low-fee settlement system for transactions throughout the globe. Though it's unsupported by any central or government banks, Bitcoin can be exchanged for traditional currencies. In fact, its exchange rate against dollars attracts potential trader and investors keen on playing with currencies. Indeed, one key factor behind the increase in digital currencies such as Bitcoin is that they are able to be used to replace fiat money from the nation and traditional items like gold.





In March 2014 In March 2014 IRS stated that all virtual currencies which includes Bitcoin, would be taxed as property rather than currency. Profits and losses from Bitcoin used as capital will be recorded as capital gains as well as losses, whereas Bitcoin stored as inventory can incur ordinary gains or losses. The selling of Bitcoin you mined or purchased by a third-party, or using Bitcoin to pay for items or services, are examples of transactions which are taxed.11





Like all other assets, the principle of purchasing low and selling at a high price applies to Bitcoin. The most popular method for accumulating the currency is purchasing through the Bitcoin exchange, but there are numerous other ways to earn and own Bitcoin.





Risks Involved With Bitcoin Investing


It is believed that investors from the speculative market have been attracted to Bitcoin because of its rapid price increase in recent times. Bitcoin has a price of $7,167.52 at the time of December. 31, 2019 and just one year later, its value had risen over 300% to $28,984.98. The price continued to rise in the first quarter of 2021and reached an all-time high in excess of $68,000 as of the beginning of 2021.12





Many people therefore purchase Bitcoin for its investment value rather than its ability to serve as a tool of exchange. However, the absence of any guarantee of value or its digital nature means its purchase and usage carry a number of inherent risks. Numerous investor warnings have been given by Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) and the Consumer Financial Protection Bureau (CFPB) and various other agencies.





The concept of a digital currency is a relatively new idea and is a far cry from traditional investments, Bitcoin doesn't have much of a track record or any evidence of credibility to support it. Because of its popularity, Bitcoin tends to become less experimental each day, but with only a decade to go, all digital currencies are in a developing phase. "It is by far the highest risk, highest return investment that you are able to make," says Barry Silbert President of Digital Currency Group, which is a company that invests and creates Bitcoin and blockchain companies.13





Regulatory risk


Affording money through any or all of the Bitcoin's many possibilities does not suit those who are wary of risk. Bitcoin is a rival to the state-owned currency and could be used in underground market transactions that involve money laundering or other illegal practices, or tax evasion. Therefore, governments could try to regulate, limit, or prohibit the use and sale of Bitcoin (and many already have). Other are attempting to come up with various regulations.





In 2015, for instance, The New York State Department of Financial Services approved regulations that will require businesses that deal with transactions involving the purchase, sale or storage of Bitcoin to register the identities of their customers, employ one who is a compliance officer and maintain capital reserves. Any transactions worth $10,000 or more will have to be recorded and reported.14





The absence of uniform rules concerning Bitcoin (and any other virtual currencies) raises questions about their long-term viability, liquidity and the generality of their use.





Security Risk


A majority of people who have and use Bitcoin do not have their tokens from mining operations. Rather, they buy and sell Bitcoin as well as other digital currencies through any of the most popular online marketplaces called Bitcoin marketplaces. They also have cryptocurrency exchanges.





Bitcoin exchanges are entirely digital , and like any other virtual system--are susceptible to hacking attacks, malware, as well as operational errors. If an intruder is able to access a Bitcoin owner's hard drive on their computer and steals their encryption key private and proceeds to transfer funds from the stolen Bitcoin to another account. (Users could avoid this by ensuring that their Bitcoin is kept in a computer unconnected to internet access, or else choose to keep Paper wallets and printing out Bitcoin private keys and addresses and not keeping them on computers at all.)





Hackers could also make an attack on Bitcoin exchanges, getting Zugriff to millions of accounts and digital wallets where Bitcoin are stored. One especially notorious hacking incident took place in 2014, in which Mt. Gox is a Bitcoin exchange in Japan was forced shut down following the theft of millions of dollars ' worth Bitcoin disappeared.





This is particularly problematic given that all Bitcoin transactions are permanent and irreversible. It's the same as dealing with cash in that any transaction performed using Bitcoin cannot be reversed by the person who taken them back reimburses the money. There is no third-party or payment processor as when using credit or debit cards. This means there is no, no source of protection or appeal if there is a problem.





Risks of insurance


Certain investments are insured via Securities Investor Protection Corporation (SIPC). Securities Investor Protection Corporation (SIPC). Bank accounts that are normally insured by the Federal Deposit Insurance Corporation (FDIC) to a specified amount based on the location.





In general, Bitcoin trades, as well as Bitcoin accounts aren't insured under any federal or state-sponsored program. In 2019, the prime forex and broker SFOX confirmed that it would soon be able to offer Bitcoin customers with FDIC insurance, but only for the portion of transactions involving cash.15





Fraud risk


Though Bitcoin uses encryption with private keys to authenticate owners and to register transactions, scammers and fraudsters may try to sell fake Bitcoin. For example, in July 2013, the SEC brought legal action against the operator of the Bitcoin-related Ponzi scheme.16 There have also been instances of Bitcoin price manipulation, which is a typical type of fraud.





Market risk


As with all investments, Bitcoin values can fluctuate. In actual fact, the value of Bitcoin has seen dramatic volatility in the price throughout the span of its existence. As a result of the large volume of buying or selling at exchanges Bitcoin is highly sensitive to any newsworthy event. It is reported by the CFPB The price of Bitcoin declined by 61% on only one day of 2013 The one-day record-breaking price drop recorded in 2014 was as large as 80%.17





As fewer people become willing to take Bitcoin as a form of currency, these digital currencies could diminish in value and possibly become useless. There was even the possibility regarding"Bitcoin bubble" was about to burst "Bitcoin bubble" had burst when the prices fell from their all-time maximum during the cryptocurrency boom in late 2017 and early 2018.





There's plenty of competition, and although Bitcoin holds a substantial advantage over other digital currencies that have come up because of its brand-name recognition as well as venture capital cash but a technological breakthrough the form and form of a new virtual currency will always pose the threat.





$68,990


The Bitcoin's price record, it was achieved on Nov. 10th, 2021.12


Discords in the Cryptocurrency Community


In the years since Bitcoin started, there's been numerous instances when conflict between developers and miners resulted in large-scale divergences within the cryptocurrency community. In certain instances, groups of Bitcoin users and miners have altered ways of working of the Bitcoin network.





This is also known for its slang term "forking," and it typically results in the creation of a brand new form of Bitcoin with a different name. The split could be an "hard fork," which means that a new currency shares the transaction history of Bitcoin until a definitive split stage, where the new coin is created. Some examples of cryptocurrency that have been created as a result of hard forks include Bitcoin Cash (created around August, 2017,), Bitcoin Gold (created in October 2017) and Bitcoin SV (created in November 2018).





"Soft Forks "soft fork" is a modification to the protocol but is compliant with the previous system rules. For instance, Bitcoin soft forks have enhanced features, for instance separate witness (SegWit).





What is the reason why Bitcoin So Valuable?


Bitcoin's value has grown exponentially in just the last 10 years, from less that $1 in 2011 and now more than $68,000 in the year 2021 as of November. Its value stems from various sources, including relative supply, demand for it, and its marginal the cost for production. This is why, even though it is intangible, Bitcoin commands a high market value. The total market capitalization of $1.11 trillion as in November 2021.12




Are Bitcoin a Scam?

Even though Bitcoin is a digital currency and cannot be touched, it is definitely real. Bitcoin has been around for over a decade , and the technology has proven to be solid. The software code that runs the system, moreover, is accessible to anyone and can be downloaded and analysed by anyone for any bugs or evidence of an egregious motive. Of witcher 3 make money , fraudsters may try to defraud people by stealing their Bitcoin or hack sites like crypto exchanges, but these are flaws in our behavior as a human or through third-party applications but not in Bitcoin itself.





The number Bitcoins How Many Bitcoins Are Available?


The largest number of bitcoins that will ever be generated is 21 millions and the final bitcoin will be mined at some point at around 2140. As of November 2021, more than 18.85 million (almost 90 percent) of the bitcoins have been mined.18 Researchers estimate that as high as 20% of those bitcoins have been "lost" due to people forgetting their private key and dying without leaving access instructions or even sending bitcoins out to non-useful addresses.19





Should I capitalize the B in Bitcoin?


A common practice is to use the capital B when discussing the Bitcoin network the protocol, system, or. Use a smaller b when talking about the bitcoins themselves as an element of value (for example, I sent 2 bitcoin).

Where can I buy Bitcoin?

There are many online exchanges that permit you to buy Bitcoin. Additionally, Bitcoin ATMs --internet-connected kiosks with the ability to buy bitcoins with cash or credit cards have been popping up around the world. Or, if there is someone who owns bitcoins, they might be willing to offer them to you directly , without exchange in any way.






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