Assalamu Alaikum, how are you all? Hope everyone is well. As you know I often do various analytical tunes. The tunes highlight the pros and cons of different companies or issues, their internal decisions, opportunity barriers, etc. So today I appeared with such a tune.
BitCoins and Fun Facts
Before going to the main discussion, let's know two facts, when the first Bitcoin took off in 2009, a man named James Howells was mining Bitcoin. By the time he stopped mining for some reason, he had accumulated 7500 bitcoins. At that time the value of Bitcoin was not what it is today. He then dropped his hard drive as well. The current value of those 7500 bitcoins at that time would be 400 million USD. The man still regrets it because he can't get that hard drive back.
In 2010, a man named Laszlo Hanieh bought two pizzas with 10,000 bitcoins at a family event. This is said to be the first Bitcoin transaction. The funny thing is that the current value of those two pizzas would be about half a billion dollars.
The great thing is that even though Bitcoin was not so popular in the beginning, it is becoming more and more attractive as time goes by. Now big tech companies are adopting it which is increasing the value of each bitcoin.
Bitcoin is basically a form of cryptocurrency, today's Bitcoin has a long history. The question may come to your mind, where did this Bitcoin come from? Who invented this mysterious Bitcoin? And to answer all your questions, I have brought you this tune today.
Acceptance of Cryptocurrencies
Bitcoin or cryptocurrency, however, has not yet become a universal medium of exchange. Everything Bitcoin-related is illegal in different countries including our country, be it Bitcoin transactions or mining. You may even go to jail for such acts. Many people still consider it a fraud or an illegal thing because the name Bitcoin always comes up in various hacking and illegal activities. But many people don't clearly know that hackers use this Bitcoin to hide their identity.
Many big names discourage trading in Bitcoin due to the lack of any kind of barrier to money transactions. Their claim can be any kind of illegal activity through transactions that have no evidence. As a matter of fact, if there is a transaction in Bitcoin, even if there is transaction information, there is no evidence of who or who is doing the transaction because the individual's information is kept completely private. Many economists even said that Bitcoin has no future because it is illegal.
The future of Bitcoin
BitCoin is moving very fast, leaving behind all the negative sentiments. People now want a new economic system In the current financial system where money is constantly being printed, prices of daily necessities are increasing, and inflation is on the rise, people are dreaming of something new.
Friedrich Hayek, winner of the Nobel Prize in Economics in 1974, said in a speech in 1994, "I don't believe we will ever have a good financial system because everything is now in the hands of the government. We can create things that the government can never stop." Cryptocurrency is the financial system that Friedrich Hayek envisioned, that no one would have the power to stop or control.
Bitcoin may not be perfect yet, but this financial system is not controlled by anyone, it is a decentralized system structure that is controlled by its users.
Concept of BitCoin
Hopefully from some idea of how BitCoin came about. We deposit money in the bank, and the bank people verify whether the real person is giving or receiving the money. At the same time, how much money we have deposited and how much money we have withdrawn is also on record. That record is updated when transactions are made. And for doing this, the bank gets a commission of some money.
Now if you want a system where there is no corruption and no tampering of information, then you may need to deal with people you can trust. You may not trust one person, but when the transaction is in front of thousands of people? Then of course it will be more believable. And from this idea originally came Bitcoin.
Your transactions will be saved in a blockchain system in Bitcoin. After a transaction in a bank where that information would only reside in the bank, in cryptocurrency that transaction would reside with every crypto user. After your transaction, the transaction will be completed based on the approval of the users and that is why the transaction in this system is much more secure than any other system. Moreover, if you put money in a bank, that bank may go bankrupt, but the record saved in cryptocurrency will never be erased.
So it can be said that this cryptocurrency is a concept where transaction records will not be stored in a central medium, they will be transferred between all users around the world. When a transaction occurs everyone will check and approve it and update their respective records. And the work of updating this record is called bitcoin mining.
No third party is needed here, the blockchain network system will constantly update the data and complete the transactions Since every transaction is done based on the approval of the larger community, an individual cannot make any kind of changes to it even if he wants to. So there will be no bans, limits, additional charges, and obstacles like banks.
What is BitCoin Mining?
Let's have a brief discussion about Bitcoin mining. Mining in very simple terms is basically for updating the data records of the blockchain. After creating Bitcoin, its father Satoshi Nakamoto was faced with the question of who would update Bitcoin transactions and how the process would continue. Satoshi Nakamoto selects miners for this task. The job of miners is to monitor each transaction, verify them, and provide updates on each transaction.
Now you may ask how a person will verify so many transactions, if the matter is, no person needs to do this work if the computer is powered it will do all the work. This process is BitCoin Mining.
When you send bitcoins to someone there are a lot of complicated math problems. Only if this issue is resolved will the transaction take place. And the miners' computers will work to solve this mathematical problem. Adding a computer to mining will solve this problem and send it to the server.
Mathematical logic matching means getting transaction approval from each user. The matter is not as simple as it seems. A computer's GPU works to solve mathematical problems. Thus miners are paid a small Bitcoin commission for their contribution to keep the transactions going on in the blocks.
There are 21 million bitcoins in the world. Bitcoins are exposed to the block after each transaction is made. And it probably goes without saying that this exposure is done by bitcoin miners. The Bengali meaning of mining is extracting something valuable from the mine, and it is called bitcoin mining to match it.
Is BitCoin Mining Profitable Now?
I know that after learning about Bitcoin mining, you will also be interested in mining, it is natural. Let's find out whether mining bitcoins is profitable for you right now.
Initially, Bitcoin mining was done by Satoshi Nakamoto himself and one of his associates but when the volume of transactions increased it became impossible for them to do so. Since then miners have been involved in this work. In 2012, the method of Bitcoin mining with computer GPU came to the fore. But after a few days, there was a shortage of GPUs in the market and the prices increased several times.
When it was no longer possible with a GPU, separate mining machines came into the market to mine bitcoins. The machines are known as ASIC miners. ASIC miner machines are quite power full and can do more mining with less cost.
Since long ago, various firms are working for mining Bit Coins where machines are used. And every four years the mining commission also decreases. Now think for yourself, how profitable will mining be for you personally?
Satoshi Nakamoto, the inventor of Bitcoin, limited Bitcoin to 21 million. It is said that it will take until the year 2140 for the last Bitcoin to be mined. Why is Bitcoin so valuable? The answer to this question could be that people want it, people want freedom in financial transactions.
How BitCoins are Maintained
Bitcoin is an open-source system so anyone can code it or edit its code. It would be wrong to say that it has been running on the same coding for the past ten years Moreover, coding is definitely needed for everything to run properly. But to change any code one has to go through a process. This is called a Bitcoin Improvement Proposal or BIP. BIP is essentially a document proposing changes to the core code of the Bitcoin system. If you want to edit any code, you must submit a detailed proposal according to the rules, and you can only do so if the community approves. You have to remember that getting the approval of this huge community is not easy, and you have to prove that you are really worthy of it.
Introduction to Bitcoin
On January 3, 2009, the first block was mined for the first time. This block had a special message, "Chancellor on brink of second bailout of banks". This may have hinted that Bitcoin will eventually disrupt the current financial system. However, only on the ninth day after the first block was mined, the first bitcoin transaction was completed. The transaction took place with Bitcoin creator Satoshi Nakamoto and Finney, another Bitcoin enthusiast. The amount of bitcoins traded between them was only 10 bitcoins.
Satoshi Nakamoto first announced his invented new economic system on July 9, 2009. In the beginning, Finney and Satoshi worked together to fix various bugs of Bitcoin.
The origin of the cryptocurrency concept
You should know this Bitcoin but had no idea in 2009. This was a very old idea, you have to go back to 1983 for the details.
David Chaum is called the grandfather of Bitcoin. In 1983, David Chaum was experimenting with electronic cash systems. He was part of a movement called Cyperpunk. Many people stopped their movement and did not want anything called cryptocurrency. David Chaum developed the Blind Signature Scheme with his own efforts. A blind Signature Scheme is where the other party's signature can be found but then remain completely hidden. This is called the foundation of modern blockchain technology. At the same time, David Chaum continued to develop his ideas for cryptographic electronic money systems.
A company called DigiCash was founded in 1989 by David Chaum. One of the company's employees, Nick Szabo, was a cryptographer. He has contributed to the early crypto space. In 1993, DigiCash first introduced its e-cash system. Through which secure transactions are created on the internet while keeping the identity hidden.
David Chaum's review of DigiCash was excellent, although he noted that credit card transactions are insecure. While DigiCash's e-cash system was working well, customers were discouraged from using credit cards and privacy issues came to the fore. While David Chaum's intentions were good at the time, it was risky because the US government did not take it well at the time. And one of the reasons for not accepting it well was that even if someone committed a crime, there was no system to catch it.
E-Cash was at the center of public interest then, just like Bitcoin is now It was rumored that the hype was so great that even Bill Gates expressed interest in it and wanted to add E-Cash to all copies of Windows 95. David Chaum reportedly received a billion-dollar offer from Bill Gates for this project. Staff said he received more offers but turned them all down. David wanted to stay within his target and believed he would get a better offer.
But due to various reasons, in 1998, the DigiCash company went bankrupt and thus ended the first company that came up with the concept of cryptocurrency, but not the end of the crypto concept.
Cryptocurrencies in the 90s
DigiCash company shut down, but cryptocurrency research didn't stop. Researchers are rethinking this. Without a strong leader at that time, people were dreaming about this new economic idea. According to popular economist Milton Friedman, the new Internet requires an electronic cash system that would reduce government interference. He wanted to say that the money flow or policy should be in the computer where no one can corrupt.
In 1998, a man named Wadeye came up with the idea of BMoney B Money debuted as a concept where the online economy would run without any outside laws. However, although this idea is popular, it remains theoretical and has not become a reality. DigiCash, arguably the father of the modern-day Bitcoin concept and the building block of cryptocurrencies, either never materialized or was a theoretical idea.
However, through various disappointments, these bitcoin enthusiasts or cryptographers remained silent for almost a decade. But in 2008, that idea came before everyone again.
The trajectory of Bitcoin
A domain called Bitcoin.org was purchased in August 2008. A paper on BitCoin was released in October. The paper was posted on the cryptography mailing list, and the paper was signed by Satoshi Nakamoto. Through this paper, Satoshi Nakamoto introduced Bitcoin to the world.
Bitcoin and the present world
Currently, various countries are seeking their own digital currency. Many countries want their people to pay their bills in Bitcoin, and their workers to be paid in Bitcoin. Paypal, MasterCard, and Apple Pay are currently added to Bitcoin. A few days ago, Tesla bought five billion dollars worth of bitcoins, General Motors is considering putting bitcoins on their balance sheet, and other big companies are also researching the future of bitcoins.
It can be said that if Bitcoin becomes effective everywhere, the problem of double spending will be solved. There will be no third party in the money transaction. Customers can transact reliably and securely. Another thing to mention here is that DigiCash had third-party banks which Bitcoin does not have. This bitcoin has been around since 2009 and its value is increasing with trading. It should be noted here that in 2009, there was also a TV drama called “The Good Wife” about Bitcoin.
The Mystery of Satoshi Nakamoto
After such a revolutionary step as Bitcoin, its inventor Satoshi Nakamoto mysteriously disappeared. Since he is completely Anonymous, he is no longer traceable. He has been missing since 2011 via an email. His final message was, "I've moved on to other things. It's good hands with gavin and everyone". Satoshi still owns a million bitcoins that have not yet left his digital wallet. If the price of Bitcoin reaches $197,000, he will be the world's No. 1 richest person.
Why Satoshi Nakamoto disappeared and who he is, remains a mystery.
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