Bitcoin – Basics You Need To Know About

Bitcoin – If anyone has not heard of Bitcoin or about any cryptocurrency until today most likely that person must be hiding self in darkness. This coin was developed based on solving an encryption formula that requires extreme amounts of computing power. Bitcoin is flourishing as a subject in top business schools these days and becoming more and more popular as a case study.

 

Bitcoins Taxonomy

Bitcoin is a cryptocurrency running on a solid foundation provided by Blockchain as an underline technology. Bitcoin’s system uses a peer-to-peer network to reduce cost i.e double-spending. Since all transactions are broadcasted thus recorded and updated by all pears nodes, at end validate transactions. No central authority is completely decentralised. Distributed digital ledger, Swarm Intelligence, HyperLedger and SmartContract kind of keywords always emerge whenever we talk about Bitcoin. For now, let’s focus on a few bullet points about this coin only as below.

• On October 31, 2008, just in the middle of the global financial crisis, Satoshi Nakamoto published the Bitcoin white paper names as “Bitcoin: A Peer-to-Peer Electronic Cash System”
• On January 3, 2009, 30,000 lines of code spell out the beginning of Bitcoin.
• It was created on January 9, 2009, by an unknown person/unknown using the alias Satoshi Nakamoto.
• It uses peer-to-peer technology to operate with no central authority or banks.
• It uses a Consensus network algorithm called Proof-of-Work.
• 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 the 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’s 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.

  

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

• Bitcoins are 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 the 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 be offered the same i.e no bank in between.
• There are ATM’s that sell this coin are in 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 the coin is not allowed at these ATM’s
• 90% of buyers are speculators.
• Bitcoin Outlawed in Some Countries.
• Thailand shut down 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.
• A 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.

 

‘Bitcoin inventor’ Craig Wright sued for $10bn by family of man associated with the cryptocurrency’s creation

 

The approach to bitcoin and blockchain technology does not only remain with universities but going out of labs to real-world business to mentor them on how to implement and use the Blockchain technology. The cryptocurrencies are getting to spread in a clear form now and as seen unstoppable. The days are not far when we will say yes, we are living in a digital world.

 

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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