Notes

What is bitcoin the most popular cryptocurrency - learn here
What Is Bitcoin?

Bitcoin is an open source digital currency, created on January 1, 2009. It is based on the concepts laid out in a white document by the unknown or pseudonymous Satoshi Nakamoto.12 In the absence of a name, the individual or people behind the invention of the technology remains unknown. Bitcoin offers the promise of lower transaction fees than conventional online payment platforms as well as, unlike other currencies issued by governments it is managed by a decentralized governing authority.

Bitcoin is commonly referred to as type of cryptocurrency since it makes use of cryptography to keep it secure. There are no tangible bitcoins. Instead, balances are that are kept in a ledger which anyone has access to (although every record is secured). Every one of Bitcoin transactions are checked by a massive amount of computing power through a process known as "mining." Bitcoin isn't issued or backed or maintained by any banks or government but neither is a person's bitcoin valuable as a product. Although it is not legal tender in most parts around the globe, Bitcoin is extremely popular and has triggered the launch of a variety of other cryptocurrencies that are collectively called altcoins. Bitcoin is often abbreviated as BTC when trading.

Key TAKEAWAYS

* It was created in 2009 Bitcoin is the largest cryptocurrency in terms of market capitalization.


* Unlike fiat currency, Bitcoin is developed in a distributed, tradeable, and stored through the use of an uncentralized ledger system which is also known as a blockchain.

The history of Bitcoin as a store of value has been turbulent; it is through a variety of cycles of booms and busts over its rather short life span.

* As the very first digital currency to be able to attain widespread acceptance and gain traction, Bitcoin has inspired a number of other cryptocurrencies that have followed after it.


What is Bitcoin

Understanding Bitcoin

The Bitcoin system is an array of computers (also known as "nodes" and "miners") that all have Bitcoin's source code and its digital currency. It is a concept that can be thought of as an accumulation of blocks. Each block is made up of transaction. Because all of the bitcoin-related computers are running the exact same list of blocks and transactions , they are able to look at these blocks to see if they're filled with the latest Bitcoin transactions, nobody could evade the system.

Anyone, regardless of whether they operate an Bitcoin "node" and not--can see these transactions occurring in real time. For an egregious crime such as this, the criminal would require 51% of the computing power of Bitcoin. Bitcoin has approximately 13,768 full nodes from mid-November 2021 and this number is on the rise so that an attack highly unlikely.3

However, if an attack was to occur, Bitcoin miners--the people who take part in the Bitcoin network by using their computers likely separate to form a new blockchain, making what the perpetrator has put into executing this attack ineffective.


In make money 8 ball pool miniclip of balances, Bitcoin tokens are managed using public and private "keys," which are long strings of numbers and letters connected through the mathematical encryption algorithm that makes them. The key that is public (comparable to a bank account number) functions as the address which is available to the public and can be used by others to transfer Bitcoin.

The private key (comparable that of an ATM PIN) is intended to serve as an encrypted secret that is only used for authorization of Bitcoin transmissions. Bitcoin keys are not to be confused with a Bitcoin wallet it is a physical computer that facilitates trade of Bitcoin and allows users to track ownership of coins. The phrase "wallet" is somewhat misleading because Bitcoin's decentralized nature signifies that it is not stored "in" a wallet, but rather , distributed over the blockchain.


Peer-to-Peer Technology


Bitcoin is one of many of the first digital currencies that use peer-to -peer (P2P) technology to facilitate immediate payment. Independent individuals and companies who own the governing computing power and who participate in the Bitcoin network -- the Bitcoin "miners"--are in charge of processing the transactions on the blockchain. They are motivated by rewards (the release of a new Bitcoin) and transactions fees that are paid in Bitcoin.


Miners can be seen as the decentralized authority enforcing the credibility and credibility of the Bitcoin network. New bitcoins are released for miners at a certain but constantly decreasing rate. There are just 21 million bitcoins which can be mined. As of November 2021, there were 18.875 million Bitcoin remaining and under 2.125 millions Bitcoin remain to mine.4


This is how Bitcoin and other cryptocurrencies function differently from fiat currencies. In centralized banking, the currency is released at a speed matching the growth of the economy. The system is designed to ensure price stability. make money 1 acre land that is decentralized, as in Bitcoin is able to set the release rate prior to time , and based on an algorithm.


Bitcoin Mining


Bitcoin mining describes the method whereby Bitcoin is released into circulation. Typically, mining requires solving difficult and complex computations to find an additional block, which is added into the cryptocurrency blockchain.


Bitcoin mining adds value and verify record of transactions across the internet. Miners are paid Bitcoin which is half every 210,000 blocks. There was a block-based reward worth fifty new bitcoins at the time of 2009. On May 11 2020, the third cut was made, bringing amount of reward per block discovered at 6.25 bitcoins.5


A variety of equipment can be used as a mining device to extract Bitcoin. However, some offer higher reward than other types of hardware. Certain computer chips, called applications-specific-integrated circuits (ASICs) and more sophisticated processing units, like graphic processing units (GPUs) may earn more benefits. These sophisticated mining processors have come to be classified as "mining rigs."


One bitcoin is divisible up to eight decimal parts (100 millionths of one bitcoin) and this most tiny unit is known as a Satoshi.6 If needed and the participating miners support the change Bitcoin could be made divisible to even greater decimal places.


The earliest timeline for Bitcoin


Aug. 18, 2008


It is registered under the domain Bitcoin.org is registered.7 As of today, at minimum the Domain is WhoisGuard Protected, meaning the identity of the person who registered it does not become public knowledge.


Oct. 31, 2008


Someone or a group of people using an initials Satoshi Nakamoto announces to the Cryptography Mailing List at metzdowd.com: "I've been working on a new electronic cash method that is completely peer-to-peer and has no trusted third party." The now-famous whitepaper was posted on Bitcoin.org called "Bitcoin: A Peer-to Peer Electronic Cash System," is now"the Magna Carta for how Bitcoin operates today.1


Jan. 3, 2009


In the beginning, the first Bitcoin block is mined - Block 0. It's also known as"the "genesis block" with the text: "The Times 03/Jan/2009 Chancellor facing second bailout to banks," or perhaps to show proof that Bitcoin was mined on or on or after the date, and may also be a political commentary.8


Jan. 8, 2009


The initial Version of the Bitcoin software is released in those on the Cryptography Mailing List.


Jan. 9, 2009


Block 1 is extracted, and Bitcoin mining begins.


Who is Satoshi Nakamoto?


No one knows who invented Bitcoin in the first place, or at minimum, they cannot prove it. Satoshi Nakamoto is the name associated with the name of the person or group of people who released the first Bitcoin whitepaper in the year 2008 and created the first version of the Bitcoin software that was launched in 2009.1 In the time since this time, many people have either claimed to be or have been reported to be the real people behind the pseudonym, but as of November 20, the true the identity (or identities) of Satoshi Nakamoto remains obscured.


While it's tempting to believe that the media's story of Satoshi Nakamoto's is a sole creative genius, who created Bitcoin out of thin air, such inventions don't usually happen in a vacuum. The majority of major discoveries in science, regardless of how eerie they are, were based upon conducted research.


There are a few precursors to Bitcoin: Adam Back's Hashcash founded in 1997, and subsequently Wei Dai's b-money, Nick Szabo's Bit Gold, and Hal Finney's Reusable Proof of Work. This Bitcoin white paper is a reference to Hashcash and b money as well alongside other works from many research areas. Unsurprisingly, many of those who are behind the other projects named above have been believed to have played a some involvement in the creation of Bitcoin.


There are a few possible motives for Bitcoin's creator to hide their identity. One of them is privacy. Bitcoin has gained popularity and is now an international phenomenon, the creator, Satoshi Nakamoto would likely garner a lot of interest from the media and from governments. Another reason might be the possibility for Bitcoin to cause major disruption to the existing financial and banking systems. If Bitcoin could gain widespread acceptance, it may outdo nations' sovereign fiat currencies. This threat to existing currencies could prompt governments to take legal actions against Bitcoin's creator.


Another reason is for security. Looking at 2009 alone, there were 32,490 block mined. at the rate at 50 Bitcoin per block. total payout for 2009 was 1,624,500 Bitcoin.9 One could conclude that just Satoshi and maybe a few other people were mining through 2009 . They also have the bulk of that amount of Bitcoin.


Anyone who has this quantity of Bitcoin could become a suspect for criminals in particular in light of the fact that Bitcoin differs from stocks and more like cash, in which the private codes needed to allow spending can be printed and kept under a bed.


While it's highly likely that the person who invented the concept of Bitcoin will have the foresight to ensure that any transfer induced by extortion is be traceable, avoiding being identified is a great way to Satoshi Nakamoto to limit exposure.


Special Notes


Bitcoin as a way of payment


Bitcoin is accepted as a form of payment on services or goods that are provided. Brick and mortar shops may have the sign that reads "Bitcoin will be accepted in this store" This means that transactions can be handled with the requisite hardware device or wallet address with QR codes and touchscreen apps. An online business is able to accept Bitcoin by including this payment option in the other payment options available online like credit cards, PayPal, etc.


El Salvador became the first country to officially recognize Bitcoin as a legal tender in June 2021.10


Employment opportunities for Bitcoin


Self-employed individuals can get paid for a job linked to Bitcoin. There are many ways to get this done which includes creating any web-based service and adding the Bitcoin accounts to the site in order to make it a way to pay. There are a variety of jobs boards and websites which specialize in digital currencies:


* Jobs4Bitcoins forms part of Reddit.com.


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


* Bitwage gives you the option to choose a percentage of your earnings from work to be converted to Bitcoin and then sent via the Bitcoin address.


Consider investing in Bitcoin























There are 0 seconds for 4 minutes 24 secondsVolume 75%



















4:24


How to Purchase Bitcoin





Many Bitcoin supporters believe that digital currency is the way of the future. Many people who are in favor of Bitcoin believe it facilitates an accelerated, low-cost process for transactions all across the globe. Though it's unsupported by any central or government bank, Bitcoin can be exchanged to traditional currencies. In fact, its exchange rate against the dollar attracts potential traders and investors interested in trading in currencies. In fact, one important reason behind the growing popularity of digital currencies such as Bitcoin is the fact that they could serve as an alternative to central bank fiat money as well as traditional items like gold.





In March 2014 in March 2014, the IRS declared that all virtual currencies which includes Bitcoin are taxed as a property and not a currency. Earnings and losses from Bitcoin held as capital will be recorded as capital gains as well as losses, whereas Bitcoin used as inventory would be subject to ordinary gains or losses. The sale of Bitcoin you mined or purchased through another source, or the use of Bitcoin to purchase either goods or services, are examples of transactions that are taxed.11





Just like any other asset the idea of buying low and selling at a high price applies to Bitcoin. The most popular method for accumulating the currency is buying on an Bitcoin exchange, but there are many other ways to earn money and own Bitcoin.





The risks associated with Bitcoin Investing


It is believed that investors from the speculative market have been drawn to Bitcoin after its rapid price appreciation in recent years. Bitcoin had a price of $7,167.52 on December. 31st, 2019, the following year, it the value had increased more than 300 percent to $28,984.98. It continued to climb in the first half of 2021and reached the highest level of $68,000 as of the beginning of 2021.12





So, many buy Bitcoin to increase their investment value rather than its ability in the role of a medium of exchange. However, the lack an assured value and its electronic nature makes its purchase and its use can be a risky proposition. Numerous investor alerts have been released by Securities and Exchange Commission (SEC) as well as the Financial Industry Regulatory Authority (FINRA) as well as the Consumer Financial Protection Bureau (CFPB) as well as other organizations.





The concept of a digital currency is still new and relative to traditional investment, Bitcoin doesn't have much of a long-term track record or a solid history to back it. With its increasing popularity, Bitcoin tends to become less innovative each day. However, even after just a decade all digital currencies are in the early stages of development. "It is , in essence, the most risky, highest-return investment possible," says Barry Silbert President of Digital Currency Group, which develops and invests in Bitcoin also known as blockchain companies.13





Risks related to regulation



In any or all of the Bitcoin's many possibilities is not for those who fear risk. Bitcoin is a threat to currency issued by governments and can be used for market transactions or money laundering crimes, or tax evasion. This is why governments might seek to regulate, restrict, or prohibit the use and transaction of Bitcoin (and certain countries already have). Some are currently drafting diverse rules.





In 2015, for instance the New York State Department of Financial Services has finalized rules that would require companies dealing with the buy, sell storage, transfer or storage of Bitcoin to verify the identity of their customers, employ an official who is a compliance person, and maintain reserves for capital. All transactions that cost $10,000 or above will need to documented and reported.14





The lack of uniform regulations about Bitcoin (and various other cryptocurrency) causes questions about their long-term viability, liquidity and the generality of their use.





Security risk


Many who own and utilize Bitcoin are not getting their tokens from mining operations. Instead, make money everyday buy and sell Bitcoin as well as other digital currencies on any of the popular marketplaces online and are also known as Bitcoin exchanges or cryptocurrency exchanges.





Bitcoin exchanges are entirely digital , and like any other virtual system -- are at risk of hackers as well as malware and operational issues. If a thief gets access to a Bitcoin owner's hard drive in their computer and takes their encryption keys and their Bitcoin address, they may be able to transfer Bitcoin stolen Bitcoin to a different account. (Users are able to stop this in the event that their Bitcoin is saved on a machine that is and is not linked to the web, or else through the use of a paper wallet--printing out the Bitcoin private keys and addresses and not storing them on any computer at all.)





Hackers can also target Bitcoin exchanges, getting entry to multiple accounts as well as digital wallets where Bitcoin can be stored. The most well-known hacking incident occurred in 2014 in which Mt. Gox, a Bitcoin exchange in Japan was forced be shut down after millions dollars of Bitcoin have been stolen.





This is especially difficult considering that the majority of Bitcoin transactions are permanent and irreversible. This is similar to dealing with cash: Any transaction carried out using Bitcoin is only reverseable by the person who received them is able to repay them. There is no third party or payment processor as with credit or debit cards. This means there is no, no source of protection or appeal if there is problems.





Risks of insurance


Certain investments are protected by Certain investments can be insured by Securities Investor Protection Corporation (SIPC). Normal bank accounts are insured by the Federal Deposit Insurance Corporation (FDIC) until a certain amount , which is determined by the location.






As a rule, Bitcoin Exchanges as well as Bitcoin accounts are not insured under any federal or government program. In 2019, prime trader and dealer SFOX announced that they would be able provide Bitcoin users with FDIC insurance, but only for the portion of transactions involving cash.15





Fraud risk


Though Bitcoin makes use of private key encryption for verification of owners and to record transactions, fraudsters and scammers may attempt to sell false Bitcoin. For instance, in the month of July the SEC initiated legal action against the operator of a Bitcoin-related Ponzi scheme.16 There are also documented instances of Bitcoin price manipulation, a different commonly used method of fraud.





Market risk


As with any investment, Bitcoin values can fluctuate. In reality, the currency has seen extreme fluctuations in its short existence. As a result of the large volume of buying transactions on exchanges, Bitcoin has a strong sensitivity to any newsworthy event. According to the CFPB it was reported that the price of Bitcoin fell by 61% on just one day during 2013 however, the single day record price drop in 2014 was even 80%.17





If less people start to recognize Bitcoin as a means of payment, Bitcoin's digital currency could lose value and may eventually become useless. In fact, there was speculation on the fact that this "Bitcoin bubble" had burst after the price dropped from its previous high during the cryptocurrency craze in the latter half of 2017 and into the beginning of 2018.





There's plenty of competitors, and while Bitcoin has an impressive advantage over other digital currencies that are popping up due to its name recognition as well as venture capital money but a technological breakthrough the form of a better virtual currency will always pose in danger.





$68,990


The price of Bitcoin's highest ever, set on November. 10, 2021.12


There are divisions within the Cryptocurrency Community


Since Bitcoin started, there's several instances where conflict between developers and miners led to massive divergences within the cryptocurrency community. In a few of these instances various groups of Bitcoin users and miners have changed how Bitcoin operates. Bitcoin network.





This is also known is referred to as "forking," and it is usually the result for a brand-new type of Bitcoin with a new name. The split could be described as an "hard fork," in which a fresh currency shares the transaction history of Bitcoin until a definitive split date, when it is created a brand new cryptocurrency. Examples of coins that have been generated as a consequence of hard forks are Bitcoin Cash (created at the end of August in 2017), Bitcoin Gold (created in October 2017) as well as Bitcoin SV (created from November of 2018).





A "soft fork" is a modification to the protocol which is functional with the existing system rules. For instance, Bitcoin soft forks have added functions like separated witness (SegWit).





What is the reason why Bitcoin So Valuable?


The value of Bitcoin's currency has risen exponentially within just a 10 years, from less that $1 in 2011 to nearly $68,000 as of the month of November. The reason for its value is various factors, including its relative quantity, market demand and the marginal the cost for production. Thus, even though it is intangible, Bitcoin commands a high valuation. It had a total market cap of $1.11 trillion as in November 2021.12




Does Bitcoin a Scam?

Although Bitcoin is not real and cannot be altered, it's certainly real. Bitcoin has been around for over one decade and has proved itself to be durable. The code running the system, in addition, is free and can be downloaded and analysed by anybody for bugs or evidence of criminal intent. Of course, criminals can try to con people out or steal their Bitcoin or hack websites like cryptocurrency exchanges but these are flaws in human behavior or third-party applications and not in Bitcoin itself.





What is the number of Bitcoins are there?


The maximum number of bitcoins ever manufactured is21 million, and the last bitcoin is expected to be mined in the year 2140. In the month of November, 2021, the more 18.85 million (almost 90%) of these bitcoins have been mined.18 In addition, experts estimate that up to 20% of these bitcoins were "lost" because of users forgetting their secure key or passing away without leaving access instructions and sending bitcoins through unusable addresses.19





Should I Capitalize the B on Bitcoin?


According to convention, use a capital B when talking about the Bitcoin network the protocol, system, or. Make use of a smaller b when talking about Bitcoins as a single unit of value (for example, I transferred two bitcoins).

Where Can I Buy Bitcoin?

There are a variety of online exchanges that let you to buy Bitcoin. Also Bitcoin ATMs --internet-connected machines that are able to purchase bitcoins using cash or credit cards have been appearing in all parts of the world. Or, if you know a friend who owns some bitcoins, they may be willing to offer them for sale directly , with no exchange requirement at all.






Website: https://bvphusanct.com.vn/Default.aspx?tabid=120&ch=23743