Bitcoin, The First Cryptocurrency In The World
According to Wikipedia, Bitcoin is the first decentralized digital currency in the world, as the system works without a central bank or single Administration. Bitcoin was invented by Satoshi Nakamoto in 2009 as an open source software. Until now, there is no clue about the real identity of Satoshi Nakamoto.
In 2011, the price of Bitcoin was only USD 0.3 and started to rose to hundred of dollars in 2013, then to thousand of dollars in 2017. The question is why the price is very expensive? Some people said that Bitcoin is the largest bubble in the history, but let's analyze the reason behind the price.
1.Bitcoin Total Supply is Fixed
Bitcoin total supply is only 21 Million and that's fixed. It means, there will be no Bitcoin created after the last satoshi mined (1 Bitcoin equals to 100 Million Satoshi).
2. The Target Market
The other reason is the market of bitcoin is the whole world. Everybody can buy bitcoin in the cryptocurrency exchange or mine it using mining equipments like ASIC miner. Some online store like Namcheap also receive bitcoin as a payment option instead of credit card.
3. The Feature
Bitcoin used technology called Blockchain, a public ledger that records bitcoin transactions. Blockchain is a distributed database where the network secured by cryptography.
Bitcoin Wallet
To store Bitcoin, you must have a wallet. A wallet contains of public key and private key. The public key is the address that you give to people and the private key is the value that you must store. So public key is like your bank account number and the private key is the pin for access it. For now, there are so many block explorer that can helps to track Bitcoin transaction. We can know the detail of a transaction like the sender address, receiver address, amount, block, transaction time, and the status of a transaction.
Bitcoin Mining
The first bitcoin was created through mining process called Proof Of Work (POW). The higher your hashing power, then the more bitcoin you could get. For now , People doesn't do a solo mining. Normally, they mine in a mining pool like pool.bitcoin.com because it's getting harder to mine a block and needs more computing power.
Bitcoin Halving
Bitcoin Halving is when the mining reward divided by 2. It happens approximately every 4 years. What's the impact to the coin price? In 28th of November 2012, the first bitcoin halving has been occured and 4 months later the price rally from about USD 10 to about USD 250.
Crime and Terrorism Funding
Some rumors said that Bitcoin used for terrorism funding because its anonymity feature. A few ransomware also asks payment in bitcoin too because its anonymity feature. Even if the block explorer can track every single transaction, but we don't know the owner of every bitcoin address in that transaction.
In 2011, the price of Bitcoin was only USD 0.3 and started to rose to hundred of dollars in 2013, then to thousand of dollars in 2017. The question is why the price is very expensive? Some people said that Bitcoin is the largest bubble in the history, but let's analyze the reason behind the price.
1.Bitcoin Total Supply is Fixed
Bitcoin total supply is only 21 Million and that's fixed. It means, there will be no Bitcoin created after the last satoshi mined (1 Bitcoin equals to 100 Million Satoshi).
2. The Target Market
The other reason is the market of bitcoin is the whole world. Everybody can buy bitcoin in the cryptocurrency exchange or mine it using mining equipments like ASIC miner. Some online store like Namcheap also receive bitcoin as a payment option instead of credit card.
3. The Feature
Bitcoin used technology called Blockchain, a public ledger that records bitcoin transactions. Blockchain is a distributed database where the network secured by cryptography.
Bitcoin Wallet
To store Bitcoin, you must have a wallet. A wallet contains of public key and private key. The public key is the address that you give to people and the private key is the value that you must store. So public key is like your bank account number and the private key is the pin for access it. For now, there are so many block explorer that can helps to track Bitcoin transaction. We can know the detail of a transaction like the sender address, receiver address, amount, block, transaction time, and the status of a transaction.
Bitcoin Mining
The first bitcoin was created through mining process called Proof Of Work (POW). The higher your hashing power, then the more bitcoin you could get. For now , People doesn't do a solo mining. Normally, they mine in a mining pool like pool.bitcoin.com because it's getting harder to mine a block and needs more computing power.
Bitcoin Halving
Bitcoin Halving is when the mining reward divided by 2. It happens approximately every 4 years. What's the impact to the coin price? In 28th of November 2012, the first bitcoin halving has been occured and 4 months later the price rally from about USD 10 to about USD 250.
Crime and Terrorism Funding
Some rumors said that Bitcoin used for terrorism funding because its anonymity feature. A few ransomware also asks payment in bitcoin too because its anonymity feature. Even if the block explorer can track every single transaction, but we don't know the owner of every bitcoin address in that transaction.
Comments
Post a Comment