Discover what Bitcoin is, who invented it, how it works, what Bitcoin’s history is, what the technology behind it is, and why it is in the news and on social media. These questions come to your mind when you hear the word Bitcoin. Here we explain the first cryptocurrency.
What is Bitcoin?
Bitcoin is the first cryptocurrency invented in 2009 by a mysterious individual named Satoshi Nakamoto. When it’s first lunch. Bitcoin is an alternative to traditional currency. It is decentralized, no banks, government, or institutions own it.
It works on POW( Proof of concept ), instead of one central authority. Different networks verify the transaction called mining. Nowadays, Bitcoin is considered a store of value and a medium of exchange.
The History of Bitcoin.
Bitcoin was invented in 2008 but officially launched in 2009 by a mysterious identity named Satoshi Nakamoto.
- 2009: The first famous transaction occurred: 2 pizzas for 10,000 bitcoin, today worth 850 million dollars.
- 2011: 1$ threshold was crossed by Bitcoin.
- 2017: 1000$ threshold was crossed, attracting the most investors as a high-return investment. Most believe it’s a scam or bubble. Which will burst anytime.
- 2020: PayPal supports Bitcoin, allowing millions of users to trade.
- 2021: SEC ( Securities and Exchange Commission ) approves first Bitcoin ETF ( Exchange Traded Fund )
- 2024: Trump wins the US election, and the majority cabinet is pro crypto.
Why is Bitcoin Important?
Bitcoin is important and has value in place of fiat currency. Bitcoin has high exchange fees because investors keep buying for investment and hold Bitcoin for the long term, and companies and institutions consider Bitcoin as a reserve currency for the store of value. Also, some qualities make crypto important.
- Limited Supply: There are only 21 million Bitcoins in the world, 19,853,562 have been mined, and 5.6% left to be mined. On the other hand, countries printing unlimited fiat currencies cause inflation.
- Decentralization: Bitcoin is not controlled by any single individual, company, or central authority like traditional currency. All the transactions took place by POW ( proof of work ).
- Censorship resistance: No banks, government, or institutions block or freeze Bitcoin. making bitcoin free from censorship resistance.
- Investment & adoption: Because of a limited supply, a demand surplus causes hype in price surge, attracting investors and adoption on a large scale.
Bitcoin Common Myths.
Adoption is surging day by day. There are some myths people think about bitcoin.
Is Bitcoin illegal?
Bitcoin is legal in some countries, El Salvador is the first country to accept Bitcoin as legal tender. There are some limitations and restrictions in some jurisdictions.
Can it be hacked?
Yes, bitcoin got hacked or lost if your private keys or compromised or lost.
Conclusion:
Bitcoin adoption is surging day by day. Individuals and institutions start to consider Bitcoin as a store of value. The new US administration is pro-crypto and wants to make the US a crypto capital. As the adoption and popularity grow day by day. Limited supply causes a large surge in price, making bitcoin the most attractive and profitable investment for long-term investors. Before starting to invest in crypto, do your research. Are you thinking of investing in Bitcoin? Comment below.