Everything starts with a need. There was a need to have a decentralized form of transaction to carry out huge transfers anonymously and tackle the inflation risk! This need for a fast transaction without the influence of a middle man gave birth to Bitcoin!
Although the exact date Bitcoin was first put to use may not be stated, its emergence is brisk globally. The adoption has been massive since its announcement in October 2008. The founder of Bitcoin (Identity unknown) upholds the name Satoshi Nakamoto of Japanese origin. He was valued at about a million Bitcoin 3 years ago.
Bitcoin abbreviated as BTC is the world’s first known electronic or digital currency, free from geographical boundaries and not under the control of any government entity.
The crypto coin operates on blockchain technology which acts as an electronic public ledger. It can be controlled by anyone in the world. All you need is a working internet connection & anonymously you’re in the crypto space. These transactions within the crypto space can be tracked & verified using this ledger. The blockchain is visible to everyone on the blockchain network which affects verification.
In November 2008, Satoshi Nakamoto shared a white paper entitled “Bitcoin: A Peer-to-Peer Electronic Cash System.” He shared this via email to elite cryptographers!
This is what it looked like:
Many people responded to this with sheer criticism and were skeptical about this new form of currency! Few of them however excitedly offered to join hands with Satoshi and help!
A SourceForge account which acted as an open-source code repository was created to start the coding process for the first-ever Bitcoin software. Satoshi mined the first Bitcoin block in January 2009 called the ‘genesis block’. Thus happened the first-ever bitcoin transaction on January 12th! Satoshi did this transaction with Hal Finney, who was among the few people who helped Satoshi in these developments!
Bitcoin termed as BTC, alongside alternative crypto coins like Ethereum (ETH), Litecoin (LTC), Ripple (XRP), etc. are like bits of a single whole. Bitcoins can be mined by programmed hardware on the blockchain network.
It is worthy to note that there are no physical coins (BTC). All the bitcoin balances are stored in a public ledger which is accessible to anyone on the blockchain network.
The blockchain in itself is a collection of blocks which has a collection of transactions. As the processes and algorithms are transparent, in practice it is almost impossible to cheat the system.
Interestingly since the launch of the BTC, it’s fast becoming very usual and replacing the regular FIAT currency. Currently, with the BTC, one can trade, transact, accept, and even store the coin in a wallet. Series of platforms are beginning to accept it as an assured means of payment. Bitcoin casinos started emerging then with great speed. BTC casinos now have become more popular than traditional casinos and people have started enjoying the BTC online games!
Unlike other payment processors like Payoneer, Paypal, or Credit cards, the transaction fees for BTC are comparatively low. The user’s privacy is also not compromised. The system it operates on is seemingly transparent. As a result of this, it is almost impossible to manipulate or lose your coin. Bitcoin circulation is predicted to be 21 million in quantity. It is expected that the last of the coin would be mined by 2050.
As many countries are considering legalising the coin the demand is foreseen to rise.
Unlike the traditional bank accounts which are controlled by financial institutions; BTC is decentralized and not regulated by the federal government of the given country. These institutions demand some sort of paperwork with a whole lot of their personal information submitted. Bitcoin as a decentralized cryptocurrency does not require such paperwork and hence maintains the privacy of the user. All that is needed is a wallet that can be verified with any issued ID. Once that is done every single transaction is carried out in the wallet.
The Bitcoin Investment
Bitcoin can be acquired in wallets by mining, purchasing from other holders of the coin, Airdrops, or exchanges like coin base. It is more of an investment if it is understood and traded. It is however expected to yield profits if there is a rise in its value if alternatively stored in wallets. Bitcoins value is dependent on the law of demand and supply. If the demand is high (adoption) there is a high tendency for the price of the coin to increase as well.
The value of the BTC fluctuates with a number of factors. If we look back we would see that the price of BTC was about $1000 in the beginning of 2014. Now fast-forward to 2020 where it is valued at $11,000. That means anyone who might have invested in the coin then & stored it would have eleven times worth of their investment now in 2020!
Even with the mass adoption, it is yet to be legalised across various nations. The government is so concerned because it has no power over it. However many people daily anticipate & are positive that the digital currencies would be globally accepted for online transactions & e-deals.
The coin is versatile with awesome prospects. However the mainstream is not convinced due to the volatility of the coin and anonymity. They owe their argument to the history of Mt.Gox which later folded and fear that history would replay itself.
Bitcoin is easy to carry. A billion dollars in the Bitcoin can be stored on a memory stick and placed in one’s pocket. It is that easy to transport Bitcoins compared to paper money. The supporters of crypto are positive of its growth as the newer exchanges are monitored by professional venture capitalists.
The concept of crypto currency is still unconventional when we still compare it to the traditional system. However, It is fast evolving and many of the supporters believe it is the future.