What is Bitcoin | Bitcoin

What is Bitcoin | Bitcoin: Bitcoin (what is bitcoin), bitcoin is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries.

Bitcoin Price: Online


How Does Bitcoin Work?

One of Bitcoin’s most appealing features is its ruthless verification process, which greatly minimizes the risk of fraud. Since Bitcoin is decentralized, volunteers—referred to as “miners”—constantly verify and update the blockchain. Once a specific amount of transactions are verified, another block is added to the blockchain and business continues per usual.

  • What is “Mining”?

Instead of a single central server verifying every transaction, essentially every other person on the network verifies each transaction.

Cue the “miners.”

Let me simplify the process so we all understand: Miners are presented with a complicated math problem and the first one to solve the math problem adds the verified block of transactions to the ledger. The calculations are based on a Proof of Work (POW), or the proof that a minimum amount of energy was spent to get a correct answer.

There aren’t actual human beings hunched over computers with scraps of notebook paper and calculators doing pre-calculus homework; hardware is used to perform Bitcoin mining. Bitcoin’s built-in reward system compensates successful miners with a chunk of bitcoins. The reward changes over time per Bitcoin’s programming, and the block reward halves about every four years. The current reward for each new block of verified transactions is about 12.5 bitcoins. The mining processes have become increasingly sophisticated. The most popular method uses ASICS–Application-Specific Integrated Circuits. ASICS are hardware systems similar to CPU computers that are built for the sole reason of mining bitcoins. Bitcoin mining operations take a lot of effort and power, and the sheer amount of competition makes it difficult for newcomers to enter the race and profit. A new miner would not only need to have the adequate computing power and the knowledge to use it to outcompete the competition but would also need the extensive amount of capital necessary to fund the operations.

Key Highlights (Bitcoin)

  • October 31, 2008: Bitcoin whitepaper published.
  • January 3, 2009: The Genesis Block is mined.
  • January 12, 2009: The first Bitcoin transaction.
  • December 16, 2009: Version 0.2 is released.
  • November 6, 2010: Market cap exceeds $1 million USD.
  • October 2011: Bitcoin forks for the first time to create Litecoin.
  • June 3, 2012: Block 181919 created with 1322 transactions. It is the largest block to-date.
  • June 2012: Coinbase launches.
  • September 27, 2012: Bitcoin Foundation is formed.
  • February 7, 2014: Mt. Gox hack.
  • June 2015: BitLicense gets established. This is one of the most significant cryptocurrency regulations.
  • August 1, 2017: Bitcoin forks again to form Bitcoin Cash.
  • August 23, 2017: SegWit gets activated.
  • September 2017: China bans BTC trading.
  • December 2017: First bitcoin futures contracts were launched by CBOE Global Markets (CBOE) and the Chicago Mercantile Exchange (CME).
  • September 2018: Cryptocurrencies collapsed 80% from their peak in January 2018, making the 2018 cryptocurrency crash worse than the Dot-com bubble’s 78% collapse.
  • November 15, 2018: Bitcoin’s market cap fell below $100 billion for the first time since October 2017.
  • October 31, 2018: 10-year anniversary of Bitcoin.

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