Everything You Need to Know About Bitcoin!

Cryptocurrency is the most trending topic nowadays as everyone is talking about it. There are several cryptocurrencies in the market, but bitcoin is the most popular one. It is a decentralized digital currency based on blockchain technology.

You can visit the bitcoin-champion to learn more about bitcoin trading. Before you start using bitcoins, you must have full knowledge about its past as well as future. There are some important things that you need to know about bitcoins, and they are mentioned in the following paragraphs.

Everything You Need to Know About Bitcoin

Bitcoin’s Origin and History

If we talk about the real origin of bitcoin, it was in the early 1980s when a sample cryptocurrency was created and named Bit Gold. It is considered the predecessor of bitcoin as they both have many features in common.

However, it was never successful as it didn’t gain any attention from the users. Bitcoin is first introduced to the public in the year 2008 when a mysterious person known as Satoshi Nakamoto issues a paper with all the technical information about a new digital currency.

No one has seen or met Satoshi, but some rumors are that it is a group of individuals based in the US. The popularity of bitcoin skyrocketed when Satoshi released the open-source code of bitcoin in the year 2009, which gave complete freedom to the users to mine and trade bitcoins freely.

In the initial years, bitcoin faces many issues in growing as people didn’t trust it. In the year 2010, a mistake in the coding created several un-mined bitcoins, which lead to a massive decline in their value. Since then, bitcoin’s open-source code is reviewed by peers and ensure that no such mistakes occur in the future.

In 2014, bitcoin’s market value rose to $10 billion after introducing bitcoin ATMs in different parts of the world. It allows users to make buy bitcoins using fiat currency. It helped in bitcoin being accepted by people as it made it more accessible to the people who didn’t know about it before.

What is the Smallest Unit of Bitcoin?

Most people want to buy bitcoins, but they don’t because it is too expensive and doesn’t fit into their budget. Most of them don’t know that bitcoin also has a smaller unit known as Satoshi. One bitcoin consists of 100000000 satoshis, so you can buy satoshis according to your budget and requirements.

Buying a satoshi means you are buying a portion of bitcoin, which is a great feature as it enables almost everyone to buy bitcoin with great ease and comfort. If we see the current value of bitcoin, one dollar is equal to 1817 satoshis.

Bitcoin Cannot Be Traced

You need not reveal any financial or personal information to make a bitcoin transaction, so they are impossible to trace. Only the public bitcoin address is shown with the transactions recorded in the blockchain.

So, no one is able to track you based on your bitcoin transactions. If you want to get more privacy, you can also use a VPN while making transactions, as it will enhance security to a great extent. It makes it impossible to trace the transaction, which you don’t get to enjoy with fiat currencies.

The Government Does Not Issue Bitcoin

Most people think that, like traditional currency, bitcoin is also issued by the government in the market, but it is not true. Bitcoins are created through a unique process known as bitcoin mining. It is a process of solving complex mathematical problems using high-power computers and solving blocks.

Bitcoin mining is done on the blockchain network, and people doing it are known as bitcoin miners. If we talk about the current mining power of the bitcoin network, it is way more than 5 of the world’s top supercomputers.

There Are Limited Bitcoins

Bitcoins are created through bitcoin mining, but there are a limited number of bitcoins that can ever be mined. Only 21 million bitcoins can be mined, and 17 million out of them have already been mined.

There Are Limited Bitcoins

According to the experts, 2140 will be the year when the last bitcoin will be mined. After that, no new bitcoin would be issued in the market. It is a unique fact about bitcoin that you must know.