What is bitcoin? Who Created Bitcoin? How many Bitcoins are left?

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Tarun Gawer
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What is bitcoin? Who Created Bitcoin? How many Bitcoins are left?

What is bitcoin?

Bitcoin is a cryptocurrency or digital currency invented in 2009. Systems named “bitcoin exchanges” allow somebody to buy or sell this digital currency using different currencies.

Bitcoin is a different currency that is a creation of 2009. There is an anonymous personality behind it with the alias Satoshi Nakamoto. Transactions take place with no agents – meaning, no banks! You can use Bitcoin to book hotels on Expedia, buy furniture on Overstock and purchase Xbox games. But the important thing of the hype is about getting rich by trading it. The price of bitcoin increased rapidly into the thousands in 2017.

Who Created Bitcoin? & What’s Interesting about this

Bitcoin’s actual owner is anonymous. The world knows that Satoshi Nakamoto has created the bitcoin. He created bitcoin as a form of alternate currency of public. His creation is a decentralised currency. There is no control of any institution over such currencies. According to the method of Satoshi Nakamoto, new bitcoins can be mined, just like gold. Which further can be used for trade between peoples. According to Satoshi Nakamoto’s method, all the bitcoin transactions are recorded in a public ledger called a Distributed ledger. Since it is a public ledger anyone can access this ledger. In case you have made any transaction using bitcoin, your transaction will be recorded in this ledger. And anyone can check transaction details. But the important thing to notice is, the ledger does not reveal any personal information. Like the information about identities of buyer and sellers.

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Why bitcoin?

One can use Bitcoins to buy merchandise anonymously. In addition, with bitcoin international payments are simple, easy and cheap. The main reason behind this is bitcoins are free from regulation or control of any nation. Small businesses are liking them because here no credit card fees are applicable. Whereas, some people just purchase bitcoins as their investment. They do so in the hope that they’ll move up in value.

How Does It Work?

Each Bitcoin is primarily a computer file. It is collected in a ‘digital wallet’ application on a phone or computer. One can send Bitcoins to anyone’s digital wallet, and you can also send Bitcoins to other people. In Addition, you can also receive bitcoins from people. Your every single transaction becomes a part of a public list termed as blockchain.

How many Bitcoins are left?

Do you know? only 21 million bitcoins can be mined in total. Till now, around 18.5 million bitcoins have been mined. This drops less than 3 million bitcoins that have yet to be entered into circulation. Actually, Satoshi created a method, according to which, only limited bitcoins can be mined. He does this because he wishes that bitcoin’s value should increase with time. For example, Gold, there is a limited quantity of gold on earth. And its value is increasing with time. To make bitcoins more valuable with time, he designed methods differently. Satoshi’s methods make it difficult to mine new bitcoins. As any new bitcoin will be mined, it would be difficult to mine bitcoins further. Means, mining bitcoin is easy today than mining it tomorrow. One more fact about bitcoin is, that the last bitcoin will be mined in 2140.

Negative Side of Bitcoin

The Most negative thing about bitcoin is that its value is very unstable. It can grow rapidly. Where on the other side it can decrease too.  All this depends upon market circumstances. So, we can say Bitcoin is a volatile currency. It is just like any other general investment platforms. If there is a scheme that assures you something. Says that your money or investment will be doubled after some time. Then you have to take the double risk for that scheme. Means, there may be a chance of losing all your investments. Instead of getting double benefits.
As we told in the very beginning, Bitcoin is a cryptocurrency. So let’s understand some important features of cryptocurrency.

Important features of cryptocurrency

1.Blockchain: Each cryptocurrency have its own blockchain. This blockchain is essential for tracking each transaction. When a transaction is encountered successfully it gets added into this blockchain. Due to this concept of blockchain, it is impossible to reverse any transaction.

2.Cryptocurrency Exchange: It is an online platform. It can convert normal currencies to cryptocurrency. And you can also convert your cryptocurrency back to your normal money using such platforms.

3.Miners: All the work of verification of transactions is handled by Miners. They are responsible for checking the accuracy of cryptocurrency. Once they verify any transaction, they add it to the blockchain. Means miners are used for maintaining the security of any blockchain.

4.Wallet: As we all have a wallet to store money into it. There is also a digital wallet to store any cryptocurrency. This wallet is not a physical wallet. It can be into a cloud, your laptop or in any external storage like hard drives or Pendrives.

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Summary

Bitcoin is a version of electronic cash. It allows people to send payments directly from one person to another person. Actually, without going through any financial institution. Means, Cryptocurrency is a digital asset which is not controlled or regulated by central banks or financial institutions. There is one open account in digital form, for all the successful bitcoin transactions. This is called a ‘Distributed ledger’. A replica of this ledger exists on all the systems that are a member of the Bitcoin network. Those that drive this system are termed ‘Miners’. The function of the miners is to confirm transactions. After verification of transactions, a block of transactions gets generated. And hence, the technology is called ‘blockchain’. Bitcoins are not physical. Everything is happening on the computer.

So if you are planning to purchase Bitcoin or any other cryptocurrency. We request you to understand everything and clear all your concept about cryptocurrency. We hope you have enjoyed the article, keep in touch for more updates in future.

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