Blockchains

The Taxonomy of the Bitcoin

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If any one has not heard of Bitcoin until today most likely that person must be hiding himself/herself in darkness. This coin was developed based on solving an encryption formula which requires extreme amounts of computing power.

Bitcoin as a cryptocurrency running on solid foundation provided by Blockchain as an underline technology. Distributed digital ledger, SwarmIntelligence, CognitiveAI, ArtificialIntelligence, MachineLearning, DeepLearning, UbiquitousAI,  and SmartContract kind of key words always emerge when ever we talk about Bitcoin. For now lets focus on few bullet points about this coin only as below.

  • On January 3, 2009, 30,000 lines of code spell out the beginning of Bitcoin.
  • It was created in 2009 by an unknown person using the alias Satoshi Nakamoto.
  • It uses peer-to-peer technology to operate with no central authority or banks.
  • Managing transactions and the issuing of bitcoins is carried out collectively by the network.
  • It has built in methods of creating smart contracts based on bitcoin transactions
  • Bitcoins are intended to be digital currency (Including my self thinks; its no longer the case).
  • It was a hot topic throughout 2017, when the price for bitcoin skyrocketed into the thousands of us dollars.
  • Most of the people are highly confused (Including my self) about Bitcoin existence; whether its a currency or a trading asset. It has scripting capabilities as well.
  • Speculators who think Bitcoins will be successful, buy as many as they can and hold them for price appreciation.
  • Bitcoin is considered the preeminent cryptocurrency in the world, but there’s still plenty of mystery surrounding its creation.
  • Buyers and sellers eliminate all the middlemen such as credit cards, and ATM etc.
  • Bitcoins is safer than carrying a plastic card.

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    “Bitcoin’s mysterious creator could become world’s first trillionaire.”

  • Bitcoins is an international currency with no exchange transaction fees.
  • Bitcoins are limited to 21 million only
  • On 14th December 2017 @ $20,000 for each coin spells out total value of 420 billion united states dollars.
  • Larger Buyers go to cryptocurrency Exchanges.
  • An Exchange is a website with significant software and funding.
  • Buying small amounts is popular.
  • It is open-source; its design is public, nobody owns or controls Bitcoin and everyone can take part.
  • This coin has many unique, exciting properties and usage
  • Previous payments system could not offered the same i.e no bank in between.
  • Their are ATM’s that sell this coin are in a very few locations.
  • First ATM was in Texas in a gun store.
  • These ATM’s accept only cash to sell Bitcoins.
  • Conversion back to cash from coin is not allowed at these ATM’s
  • 90% of buyers are speculators.
  • Bitcoin Outlawed in Some Countries.
  • Thailand shutdown the Bitcoin exchange in their country.
  • Largest Exchange, Mt Gox in Japan just went bankrupt
    • Hackers were siphoning off their Bitcoins
    • They lost $450 million dollars
    • Account holders are the real losers
  • Since most owners are speculators the true price for owning Bitcoin only to use as a currency is unknown.
  • Because every transaction uses the bitcoins from a prior transaction, and the blockchain is public data, every Bitcoin payment has a traceable history that can be viewed by anyone.
  • Satoshi is the smallest fraction of a Bitcoin that can currently be sent: 0.00000001 BTC, that is, a hundredth of a millionth BTC. In the future, however, the protocol may be updated to allow further subdivisions, should they be needed.

Disclaimer – Please note, the information given here is compiled from open internet based various sources. I neither recommend nor advocate anything for Bitcoin. This entire information is just to read and get clear about this esoteric subject.

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