What is Bitcoin

What is Bitcoin

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What is Bitcoin?

Bitcoin is a type of Cryptocurrency. It is a digital currency or a virtual currency. Bitcoin is a decentralized digital currency which means it is not controlled by any central authority and government. In other words, it is a single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.

Creation of Bitcoin:

The bitcoin network was created when Satoshi Nakamoto mined the first block of the chain. The domain name “bitcoin.org” was registered on 18 August 2008. Satoshi Nakamoto implemented the bitcoin software as open-source code and released it on 3 January 2009. He mined the first block of the chain. It’s like an online version of cash. You can use it to buy products and services, but not many shops accept Bitcoin yet and some countries have banned it altogether.

Bitcoin has been criticized for its use in illegal transactions, its high electricity consumption, price volatility, and thefts from exchanges but research says that more than 3 million users which are more than 50% of all Cryptocurrency users are using Bitcoin.

The receiver of the first bitcoin transaction was Harold Thomas Finney. He downloaded the bitcoin software on its release date, and on 12 January 2009 received ten bitcoins from Nakamoto. In 2010, the first known commercial transaction using bitcoin occurred when programmer Laszlo Hanyecz bought two Papa John’s pizzas for ₿10,000.

Journey of Bitcoin:

  • In 2011, the price started at $0.30 per bitcoin. The price rose to $31.50 on 8 June. Within a month the price fell to $11.00. The next month, it fell to $7.80 and in another month to $4.77. It was closed on $5.27 in December 2011.
  • In 2012, bitcoin prices started at $5.27 growing to $13.30 for the year. By 9 January the price had risen to $7.38, but then crashed by 49% to $3.80 over the next 16 days. The price then rose to $16.41 on 17 August, but fell by 57% to $7.10 over the next three days and closed on $5.27 on year-end.
  • The year 2013 was the golden year of bitcoin. In 2013, prices started at $13.30 rising to $770 by 1 January 2014. In 2014, prices started at $770 and fell to $314 for the year. On 30 July 2014, the Wikimedia Foundation started accepting donations of bitcoin.
  • In 2015, prices started at $314 and rose to $434 for the year. In 2016, prices rose and climbed up to $998 by 1 January 2017.
  • Prices started at $998 in 2017 and rose to $13,412.44 on 1 January 2018 after reaching its all-time high of $19,783.06 on 17 December 2017. Throughout the rest of the first half of 2018, bitcoin’s price fluctuated between $11,480 and $5,848. On 1 July 2018, bitcoin’s price was $6,343. The price on 1 January 2019 was $3,747, down 72% for 2018 and down 81% since the all-time high.
  • The price on 1 January 2019 was $3,747. In September 2019 the Intercontinental Exchange (the owner of the NYSE) began trading of bitcoin futures on its exchange called Bakkt. Bakkt also announced that it would launch options on bitcoin in December 2019. In December 2019, YouTube removed bitcoin and cryptocurrency videos, but later restored the content and they said they “made the wrong call.”
  • In February 2019, Canadian cryptocurrency exchange Quadriga Fintech Solutions failed with approximately $200 million missing.

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