What is Bitcoin?
Bitcoin is the new currency that was found or created in the year of 2008. Bitcoin is the crypto-currency, which is also known as the decentralized digital currency, which doesn’t have a single administrator or even central bank that is the transaction was done without having a middle man. Using the cryptography, the transactions are verified with the help of network nodes. The block chain is a public distributed ledger which records the transaction details. Satoshi Nakamoto invented Bitcoin and started it in 2009.
He authored the white paper bitcoin and created as well as deployed the original reference of bitcoin. The source code of bitcoins was actually open-source software when it was released. The bitcoins were specifically created as a reward of the process that is known as mining and these bitcoins were used instead of every other currency, services as well as products of all countries. Bitcoins are used for many purposes that include shopping for furniture over the Overstock as well as Expedia and the best thing is, one can buy Xbox games, but many of the agencies who were regulatory did issue many investor alerts in the matter of bitcoins. One was able to become rich by trading it and also the prices or values of bitcoins were skyrocketing in the year of 2017. One is able to buy merchandise anonymously, which can be done using bitcoins. The bitcoins are not tied to any of the countries or is not subject to any regulation. The advantage of investing bitcoins is that it is cheap as well as easy for international payments. The use of bitcoins doesn’t charge any fee or money for the use of credit card and that is the reason why small businesses at times preferred it more. Later on, people invested in bitcoins in a large scale thinking that the values or prices of bitcoins will get high. The transactions of bitcoins were actually recorded in a public log that had the ID of the wallets as it never revealed the name of the sellers but did contain the name of the buyer. The transactions were kept private and thus it helps them to sell or buy anything which doesn’t get to trace them back.
At a later stage, bitcoins were criticized too, because of the illegal transactions, price volatility, thefts from the exchange as well as its high electricity consumption. Early on bitcoin was embraced by gray market companies and accepted a legitimate form of payment from adult dating sites and fuck sites which didn’t necessarily help its public relations image at the start. However, as time passed many more well known larger companies began to embrace bitcoin as a legitimate currency. Still, there was and continues to be a lot of skepticism and criticism related to bitcoin. The criticism included many economists that included a lot of Novel Laureates, who characterized bitcoin as a speculative bubble.
The history of bitcoins that will amaze you:
Okay folks, now as you know what are bitcoins and also have a pretty little idea about its usage as well as the name of the inventor or inventors. So now let’s have a look at what is the history of bitcoin and why was it useful.
In the year of 2008, August 18 bit coins were registered with its domain as “bitcoin.org”, then in the same year on 31st October a paper that is linked and was authored by Satoshi Nakamoto (the name of the people or group of people who invented bitcoins) which was titled as “ Bitcoin: A Peer-to-Peer Electronic Cash System” which was posted or uploaded with the help of a cryptography mailing list. In the year of 2009, January Satoshi Nakamoto implemented or invented bitcoin as an open-source code software. The thing that will draw your attention is that the founder or inventor of bitcoins remains hidden or anonymous. Genesis block means the 1st block of the chain that was created or invented by Satoshi Nakamoto over the bitcoin network, in the year of 2009 and the day was 3rd January. The 1st transaction of the bitcoins and the receiver was found to be Cypherpunk Hal Finney that helped in creating the very first proof of work that was reusable and was found in the year of 2004. The Cypherpunk Hal Finney 1st downloaded the software of bitcoins on the day of release and the 1st 10 bitcoins were sent to this on 12th January 2009. The other cypherpunks were actually the creators of the bitcoin predecessors. The analyst of block chain estimated that one million bitcoin was estimated or mined by the Satoshi Nakamoto. The blockchains nearly disappeared in the year 2010. In the year of 2013 and month march, the block chain got split temporarily forming 2 chains that are independent and does have its own new set of rule and the reason behind this was the bug in the version of 0.8 of the bitcoin software.