Cryptocurrency
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What is Bitcoin (BTC) and how it was Created
What is Bitcoin (BTC)
Most of the people in Cryptocurrency field, as well as the ones who are not in the field, know Bitcoin. Crypto field is started because of this Bitcoin. Because of that the factor of Bitcoin is most important to Crypto as well as it is important to get to know about this Bitcoin for those who are in Crypto field. We are going to talk about basic non-technical information about what this Bitcoin is and how this Bitcoin was created, in this article.
Early Stages
When people became developed and started to deal with each other, they started to use money to ease their transactions in a formal and efficient manner. But when someone uses this money, he or she obliges to follow some small rules and obligations. Because this money is controlled by someone. Most of the time, this is controlled by the central bank of a country. This was not an issue for those who were doing small transactions. But when it comes to International transaction, it caused a huge problem. Because all the information and documents about transaction should be submitted to the bank and it took more time and expense. Because it is necessary to have the support of two or three third-party people/authorities to do this transaction. Though the technology is well developed, still this process costs high. Therefore most people attempted to invent a process that is faster and cheaper than this. A system called hashcash, was developed by Stefan Brands and Adam Back as a result of this attempt. In 2008, before inventing the Bitcoin, Satoshi Nakamoto who has not been still clearly recognized as a person or a team, created a perfect system.
First Bitcoin Transaction (40 million dollars for just two pizza)
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On 03.01.2009, this Bitcoin, which is a substitute for money and can be sent by anyone to anywhere in the world without any third party person and with a very low expense, was released and tested for the first time. People from all over the world began to develop this Bitcoin which was an open source project and to introduce new coins to the Crypto field. Though it was an unfamiliar technology for people, they gradually began to transact using Bitcoin. The first financial bitcoin transaction has occurred at the bitcoin forum when a person bought Two pizzas for 10, 000 bitcoin from the Papa John's Pizza Shop. According to the current value of bitcoin, the price of that one pizza is $20 million. This newly introduced system was begun to be popular all over the world very soon. Secrecy of this bitcoin transaction was the biggest reason for this popularity. Therefore most people began to use this transaction method for weapon and drug deals among countries as an option for money transaction. Though the demand for bitcoin is very high, it cannot be increased the existing amount. Due to this reason, the price of a bitcoin was being increased exceedingly relative to the demand. Initially, the price of a bitcoin was $0.01 and at present, its price is $4000. If this price changes over time is visualized in a line chart, you will see many ups and downs in it. Due to this high value of bitcoin, it is used as an investment opportunity in Today’s world. Apart from that, a very big financial industry has been built up around this bitcoin.
10 years for Bitcoin
The Cryptocurrency field which was started from bitcoin and celebrates its 10th anniversary in this year, has gone a very big journey to now. There can be found a huge amount of coins like bitcoin as well as a huge amount of tokens which are not coins in Today’s Cryptocurrency market. Let’s discuss about the ways of collecting bitcoin and altcoins without investing or not investing in the Cryptocurrency market, technical details about bitcoin and the important information about wallets and Cryptocurrency in upcoming posts.