Notes

What is bitcoin popular cryptocurrency - find out
What Is Bitcoin?

Bitcoin is an open source digital currency, created during the month of January. It follows the principles laid by a white note by the unknown undisguised Satoshi Nakamoto.12 It is not known who was the person or persons responsible for the creation of the technology is still unidentified. Bitcoin can be described as having lesser transaction fees than traditional online payment mechanisms do in comparison to government-issued currencies, Bitcoin is operated by a decentralized authority.

Bitcoin is recognized as a type of cryptocurrency since it employs cryptography to make it secure. There are no tangible bitcoins. Instead, balances are that are kept in a ledger that everyone has transparent access to (although every record is secured). Every one of Bitcoin transactions are checked by an enormous amount of computing power in a process known as "mining." Bitcoin isn't authorized or backed by banks or governments, nor is an individual bitcoin worth anything as a commodity. Even though it is not legal for use in all parts throughout the world Bitcoin is very popular which has led to the development hundreds of other cryptocurrencies and is collectively referred to as altcoins. Bitcoin is often abbreviated as BTC when trading.

KEY TAKEAWAYS

It was first introduced in 2009. Bitcoin is currently the largest cryptocurrency by market capitalization.


* Unlike fiat currency, Bitcoin is developed with the intention of being distributed, traded and maintained by way of a decentralized ledger system, that is known as a blockchain.

* Bitcoin's history as a value-added store has been turbulent. It has experienced several periods of booms and busts over its rather short life span.

* As the initial virtual currency to achieve widespread acceptance and gain popularity, Bitcoin has inspired a array of other cryptocurrencies following to follow.


What is Bitcoin

Understanding Bitcoin

The Bitcoin system is made up of a number of computers (also referred to as "nodes" as well as "miners") that utilize Bitcoin's code and its cryptocurrency. As a metaphor, a bitcoin could be considered a collection of blocks. In every block, there is an array of transactions. Since all the bitcoin-related computers are running the same set of blocks along with transactions, and have the ability to be aware of these blocks as they're filled with new Bitcoin transactions, nobody can evade the system.

Everyone, regardless of whether they are an Bitcoin "node" and not, can be aware of these transactions taking place in real time. To achieve a nefarious act one would require 51% of the computational power that powers Bitcoin. Bitcoin contains around 13,768 active nodes, from mid-November 2021 which is constantly growing which makes an attack quite unlikely.3

However, if there were an attack, Bitcoin miners--the people who participate in the Bitcoin network with their computers likely segregate to a new blockchain, rendering any effort the attacker has put into executing this attack ineffective.


Cash balances on Bitcoin tokens can be kept with public and private "keys," which are long strings of letters and numbers that are linked by the mathematical encryption algorithm that generates them. This key, known as the public (comparable to the number that banks use to open accounts) is used to identify the address made public to the world and allows other users to send Bitcoin.

The key that is private (comparable for an ATM PIN) is intended to be secure and can only be used to signify Bitcoin transmissions. Bitcoin keys do not need to be confused a Bitcoin wallet it is a physical and digital gadget that allows Bitcoin's trading Bitcoin and allows users to verify ownership of coins. The word "wallet" can be confusing since Bitcoin's nature of being decentralized means that it's not stored "in" an account in a wallet but rather , distributed over the blockchain.


Peer-to-Peer Technology


Bitcoin is one of the very first currencies that make use of peer-to peer (P2P) technology that allows rapid payments. The private individuals and businesses who hold the governing computing capacity and participate in the Bitcoin network -- Bitcoin "miners"--are responsible for taking care of transactions on the blockchain. They are motivated by reward (the release of a new Bitcoin) and fee for transactions paid in Bitcoin.


They can be considered to be the decentralized authority enforcing the credibility for the Bitcoin network. Bitcoins are released to miners on a regular and periodically decreasing rate. There are just 21 million bitcoins which can be mined in total. At the time of writing, there's more than 18.875 million Bitcoin in existence and less than 2.125 millions Bitcoin in the remaining mine.4


In this manner, Bitcoin and other cryptocurrency work differently from fiat currencies. in central banking systems, the currency is released at a speed equal to the rate of growth in the economy. This is designed to guarantee the stability of prices. A decentralized platform, like Bitcoin allows the rate of release ahead of time and according to an algorithm.


Bitcoin Mining


Bitcoin mining involves the process in which Bitcoin gets released into circulation. Generally, mining requires solving complicated and computationally challenging puzzles in order to uncover an entirely new block. Once witcher 3 make money early is discovered, it is then added onto the Bitcoin blockchain.


Bitcoin mining is a process that adds transactions on the network. Miners are paid Bitcoin; the reward is halved every 210,000 blocks. Block rewards were 50 bitcoins for 2009. On May 11 of 2020, a third split took place, bringing value of each block discovered in the range of 6.25 bitcoins.5


A range of different hardware options can be used to mine Bitcoin. However, some yield higher payouts over others. Certain computer chips, referred to as application-specific integrated circuits (ASICs), as well as advanced processing units, such as graphics processing units (GPUs) can yield more benefits. These mining processors that are sophisticated are also known as "mining machines."


One bitcoin is divisible by eight decimal places (100 millionths of one bitcoin) This tiny unit is also known as a Satoshi.6 If necessary and the participating miners support the change Bitcoin may eventually become divisible to more decimal places.


The earliest timeline for Bitcoin


Aug. 18, 2008


The name of the domain Bitcoin.org is registered.7 Today, at least this web address is WhoisGuard Protected, meaning the identity of the person who registered it cannot be made public.


Oct. 31, 2008


A person or group of people who go by"Satoshi Nakamoto," a name, or alias. Satoshi Nakamoto makes an announcement in the Cryptography Mailing List at metzdowd.com: "I've been working on an innovative electronic cash system which is 100% peer-to -peer, with no third-party trusted." This now-famous , white paper on Bitcoin.org which is titled "Bitcoin Peer-to-Peer Electronic Cash System," would eventually become The Magna Carta for how Bitcoin operates today.1


Jan. 3, 2009


First Bitcoin block that is mined is Block 0. It's also known as"the "genesis block" and contains the text: "The Times 03/Jan/2009 Chancellor is at the brink for a second bailout to banks," Perhaps as proof it was mined prior to or later than that date, and maybe also as a pertinent political commentary.8


Jan. 8, 2009


The first release of the Bitcoin software is released in members of the Cryptography Mailing List.


Jan. 9, 2009


Block 1 is made available for mining, and Bitcoin mining begins to take off.


Who Is Satoshi Nakamoto?


There is no way to determine who invented Bitcoin The Bitcoin software, at least not in a definitive way. Satoshi Nakamoto is the name for the individual or group of individuals who released the first Bitcoin whitepaper in the year 2008, and who worked on the first version of the Bitcoin software that came out in 2009.1 In the time since when, numerous individuals have either claimed to be or were believed to have been authentically the people behind this pseudonym. However, until November 2021 the real identities (or personas) for Satoshi Nakamoto remains obscured.


It is tempting to think that Satoshi Nakamoto was a singular eccentric genius who came up with Bitcoin out of thin air. But such discoveries are rarely made in a vacuum. All major scientific discoveries, however improbable have been based on conducted research.


There are a few precursors to Bitcoin Adam Back's Hashcash, invented at the time of 1997, then Wei Dai's B-money, Nick Szabo's bit gold, as well as Hal Finney's Reusable Proof of Works. This Bitcoin white paper itself makes reference Hashcash and b-money as well and other work that spans various research fields. Perhaps unsurprisingly, many of these people who work on the different initiatives mentioned above have been theorized to have had involved in creating Bitcoin.


There are many possible reasons for Bitcoin's inventor to protect their identity. Privacy: As Bitcoin has gained popularity, and is becoming something of a global phenomenon, Satoshi Nakamoto could attract a lot of publicity from the media and from governments. Another reason is the potential for Bitcoin to cause a huge change in the money and banking systems. If Bitcoin were to gain mass acceptance, it may outdo nations' sovereign fiat currencies. This threat to existing currency might prompt governments to initiate legal actions against Bitcoin's creator.


The second reason is security. The year 2009 was the most active. there were 32,490 block mined. given the reward rate that is 50 Bitcoin per block. That means the payout for 2009 was 1 624,500 Bitcoin.9 One can conclude that it was only Satoshi and maybe a few other miners were involved in mining during 2009 and have the majority of Bitcoin.


Anyone who has that much Bitcoin may be a victim of criminals, particularly because Bitcoin is less like stocks and more like cash and the private keys needed to authorise spending could be printed and put under a mattress.


Though it's quite likely that the creator of Bitcoin will take steps in order to make any money derived from extortion identifiable, keeping your identity private is a great way for Satoshi Nakamoto to limit exposure.


Special Aspects


Bitcoin as a way of payment


Bitcoin can be used as a method of payment in exchange for goods or services provided. Brick-and-mortar stores can display an ad that reads "Bitcoin accepted here" The transactions can be processed using a hardware terminal or wallet address through QR codes and touchscreen apps. Online businesses are able to accept Bitcoin by adding this payment option to its other payment options online which include credit cards PayPal or other similar payment methods.


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


Employment opportunities for Bitcoin


Individuals who work for themselves can be compensated for their work related to Bitcoin. There are several ways to get this done, such as creating any internet-based application and adding your Bitcoin account to that site to be used as a means of payment. There are numerous jobs boards and websites specifically designed for digital currencies.


* Jobs4Bitcoins is an affiliate of Reddit.com.


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


* Bitwage provides the opportunity that you can select a specific percentage of your pay check to be converted to Bitcoin and sent to your Bitcoin address.


The idea of investing in Bitcoin























There are 0 seconds for 4 minutes, 24 secondsVolume 75 75%




















4:24


How do I buy Bitcoin





Many Bitcoin supporters believe that digital currency is the future of. Many who support Bitcoin believe that it provides much more quickly, with a lower cost process for transactions all across the globe. Though it's not supported by any government or central bank, Bitcoin can be exchanged with traditional currencies. In fact, the rate of exchange against the dollar attracts potential investors and traders interested in the currency market. In fact, one of the principal reasons behind the increase in digital currencies like Bitcoin is that they are able to be used as an alternative to fiat money in the national economy and traditional goods like gold.





In make money losing weight stated that all virtual currencies including Bitcoin will be taxed as a property and not a currency. Any gains or losses that result from Bitcoin stored as capital will be recorded as capital gains or losses. Bitcoin is used to store inventory and will produce ordinary losses and gains. The sale of Bitcoin you have mined or bought from a third party, or transactions using Bitcoin to pay for things or services, are instances where transactions can be taxed.11





Like all other assets, the concept of buying low as well as selling quickly applies to Bitcoin. One of the most popular ways of accumulating the currency is purchasing from an Bitcoin exchange, but there are many other ways to earn and own Bitcoin.





Risks Involved With Bitcoin Investing


The investors who speculate have become attracted to Bitcoin because of its rapid rate of appreciation in recent months. Bitcoin was trading at $7,167.52 on Dec. 31, 2019 and just one year later, the value had increased more than 300 percent to $28,984.98. It continued to increase in the first quarter of 2021, achieving an all-time high in excess of $60,000.12 in 2021.12





Thus, many people purchase Bitcoin for its potential investment value rather than for its potential to function as a method of exchange. However, the lack of guaranteed value and its digital nature, its purchase as well as use carry several inherent risks. Many investor alerts were put out by Securities and Exchange Commission (SEC) along with the Financial Industry Regulatory Authority (FINRA) as well as the Consumer Financial Protection Bureau (CFPB), and 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 evidence of long-term success or history of credibility to support it. With its increasing popularity, Bitcoin grows less experimental with each passing day. Nevertheless, after only a decade, all digital currencies remain in a development phase. "It is basically the highest risk, highest return investment possible," says Barry Silbert The CEO of Digital Currency Group, which invests and builds Bitcoin as well as blockchain companies.13





Risks posed by regulation


Investing money in any bitcoin's numerous forms is not a good idea for people who are cautious about risk. Bitcoin is a rival to government currency and may be used to facilitate underground market transactions that involve money laundering or other illegal activities, or tax-evasion. As a result, authorities could attempt to regulate, restrict, or prohibit the use or sale of Bitcoin (and some have already done this). Others are in the process of establishing various rules.





For example, in 2015 The New York State Department of Financial Services approved regulations that oblige companies involved in transactions involving the purchase, sale or storage of Bitcoin to keep track of the identity of their customers, hire A compliance officer, and keep capital reserves. Any transactions of $10,000 and more should be recorded and reported.14





The lack of uniform regulations regarding Bitcoin (and other virtual currencies) poses questions regarding their durability, liquidity and their universality.





Security risk



Many who own and use Bitcoin do not acquire their coins through mining. Instead, they buy and sell Bitcoin and other digital currencies on one of the many popular online markets called Bitcoin trading platforms or exchanges for cryptocurrency.





Bitcoin exchanges are entirely digital and--as with any virtual system--are susceptible to hacking or malware as well as operational problems. If a thief gets access to a Bitcoin owner's computer hard drive and takes their encryption key private or password, they can transfer their stolen Bitcoin to another account. (Users could avoid this when their Bitcoin is kept on a computer that is remote from internet connections, and else by opting for a paper-based wallet and printing out the Bitcoin private key and address, and not storing them on a computer at all.)





Hackers could also be a target for Bitcoin exchanges, and gain the access of thousands of Bitcoin accounts as well as digital wallets that are where Bitcoin has been stored. An especially notorious hacking event was reported in 2014 in which Mt. Gox which is a Bitcoin exchange located in Japan was forced to shut down after millions of dollars in Bitcoin had been stolen.





This is especially difficult considering that all Bitcoin transactions are irrevocable and irreversible. It's like dealing with cash: Any transaction carried out by Bitcoin can only be reversed by the person who received them returns them. There is no third-party or payment processor as with a debit or credit card--hence, no source of protection or appeal if there is a problem.





Risk of insurance


Certain investments are insured via Certain investments can be insured by Securities Investor Protection Corporation (SIPC). The normal bank accounts are covered through the Federal Deposit Insurance Corporation (FDIC) in a certain sum, depending on the region.





In general, Bitcoin Exchanges as well as Bitcoin accounts are not insured by any type of government or federal program. In 2019, the prime merchant and platform for trading SFOX said it would be able provide Bitcoin users with FDIC insurance, but only for the portion of transactions that involve cash.15





Fraud risk


Even though Bitcoin uses encryption with private keys to confirm owners and record transactions, fraudsters and scammers may try to sell fake Bitcoin. For instance, in the month of July, the SEC began legal action against the operator of the Bitcoin-related Ponzi scheme.16 There have also been instances of Bitcoin price manipulation, another commonly used method of fraud.





Market risk


Just like any investment, Bitcoin values can fluctuate. Indeed, Bitcoin has seen dramatic fluctuations in its short period of existence. Due to the high volume of buying in exchanges and sales Bitcoin has a strong sensitivity to any newsworthy developments. In the words of the CFPB its data, the price for Bitcoin decreased by 61% in the span of a single day in 2013 as well as the one-day record price drop in 2014 was as big as 80%.17





If less and fewer people acknowledge Bitcoin as a currency these digital currencies could go out of value and useless. There was even the possibility there was a possibility this "Bitcoin bubble" had burst after the price fell from its record-breaking highest point during the cryptocurrency rush in the latter half of 2017 and into the beginning of 2018.





There's already plenty competition, and even though Bitcoin has a massive advantage over other digital currencies that have sprouted due to its name recognition and venture capital funding, a technological breakthrough in the form and form of a new virtual currency is always at risk.





$68,990


Bitcoin's all-time high price, it was achieved on Nov. 10th, 2021.12


Separation in the Cryptocurrency Community


Since Bitcoin began its journey, there have many instances of tensions between developers and miners has led to huge divides within the cryptocurrency world. In some of these instances the groups of Bitcoin users and miners have rewritten their protocols for the Bitcoin network.





The process is referred to as "forking," and it is usually the result the new type of Bitcoin with a new name. This split can be a "hard fork" in which a brand new coin shares the history of transactions with Bitcoin until a definitive split stage, where the coin becomes a completely new one. Examples of cryptocurrencies that have been created by hard forks are Bitcoin Cash (created during August of 2017), Bitcoin Gold (created in October 2017) as well as Bitcoin SV (created by November 2018).





"Soft fork" or "soft fork" is a change to the protocol that remains compatible with the old system rules. For example, Bitcoin soft forks have enhanced features, for instance separated witness (SegWit).





Why is Bitcoin Valuable?


The value of Bitcoin's currency has risen exponentially within just a 10 years, from less that $1 in 2011 to over $68,000 in the year 2021 as of November. Its value is derived from multiple sources, including relative shortage, demand from the market, and its marginal value of production. In other words, even though Bitcoin is not tangible, Bitcoin commands a high valuation, with a market capitalization of $1.11 trillion as in November 2021.12




Is Bitcoin Scam? Scam?

While Bitcoin is a digital currency and cannot be changed, it's certainly real. Bitcoin has been around for over 10 years, and the system has proven to be resilient. The software that runs the system, in addition, is open source and is able to be downloaded , and then analyzed by anyone for any bugs or evidence of criminal intent. Of course, fraudsters could try to defraud users to pay for their Bitcoin or hack websites like crypto exchanges However, these are flaws within our behavior as a human or through third-party applications and not Bitcoin itself.





Do you know how many Bitcoins Exist?


The maximum amount of bitcoins to be constructed is 21million and the last bitcoin is expected to be mined in the year 2140. At the time of writing, November 20, 2021, there were more than 18.85 million (almost 90 percent) of bitcoins had been mined.18 Furthermore, researchers estimate that up to 20% of the bitcoins were "lost" due to people forgetting their private key, dying without leaving any access instructions or transferring bitcoins to unusable addresses.19





Should I capitalize the B in Bitcoin?


The standard is to use a capital B when discussing the Bitcoin network or protocol. Make use of a smaller b when talking about bitcoins as an individual unit of worth (for instance, I paid 2 bitcoin).

Where Can I Buy Bitcoin?

There are numerous online exchanges that permit you to purchase Bitcoin. In addition Bitcoin ATMs, kiosks connected to the internet with the ability to buy bitcoins with cash or credit cards -- have been appearing across the globe. Or, if there is someone with bitcoins, they might be willing to offer them to you for cash without any exchange whatsoever.






Website: http://www.benhvienvinhchau.com/Default.aspx?tabid=120&ch=16887