Bitcoin

Bitcoin

Bitcoin (₿) is a cryptocurrency that was invented in 2008 by an anonymous person or group known as Satoshi Nakamoto. The currency began to be used in 2009 when its application was released as open source software.

Bitcoin is the first decentralized digital currency, without a central bank,

that can be sent from one person to another through the Bitcoin network in a peer-to-peer manner without the need for a third party (intermediary such as banks). Network transfers are verified using encryption and recorded in a distributed ledger called block chain. Bitcoin is created as a reward for a process known as mining. It can be exchanged for other currencies, products and services. Research

produced by the University of Cambridge estimates that in 2017, there are between 2.9 to 5.8 million users using a cryptocurrency wallet, most of whom use Bitcoin.

Some economists have described it as a “speculative bubble”.

The Bitcoin network has been operating since 2009 and

has not stopped since then, and because of the consensus system in the currency, no one has been able to hack

the Bitcoin block chain, and most of the hacks that take place are due to human errors in wallet management and not due to design flaws.

History

Nakamoto

first put forward the idea of ​​Bitcoin in a research paper in 2008,

describing it as an electronic cash system that relies on peer-to-peer financial transactions, a technical term

that means direct interaction between one user and another without the presence of an intermediary ( as torrent). Bitcoin, which was first introduced in 2009, says the goal is to change the global economy in the same way that the Web has changed publishing methods.

The first purchase with Bitcoin

The first purchase made with , was for two pizzas, when a programmer named Laszlo Hanich posted a discussion on a forum asking to buy two large

pizzas for 10,000 on May 18, 2010, 11 years after that deal exceeded The value of the 10,000 bitcoins paid for the two pizzas is $318,000,000.

The identity of Satoshi

Design

Unit of Account

The unit of account in the system is the currency. The trading symbol used to represent Bitcoin is BTC and XTC and the Unicode symbol used is ₿. Alternate units for small amounts of bitcoin are millibitcoin (mBTC) and satoshi (sat).

A milli-bitcoin is equal to 1/1000 Bitcoin; One thousandth of a bitcoin or 100,000 satoshis.

Blockchain

Main article:

To ensure the correctness of transfers, the Bitcoin system maintains a

ledger of all actions on the network, called the blockchain.

The block chain contains all the actions done with Bitcoin, which enables us to know the balance that each address has on this network. his concept is called the chain

description of the interconnection that exists between the blocks, where each block contains the hash of the block that precedes it, and the matter continues until the first block is reached, which is

called the “genesis block”. Configuring the string in this way makes the task

of changing any block after a certain period of time has passed since its creation very difficult, as changing any block requires changing all the following blocks due to the need to recalculate the hash of each

block to update the hash value of the previous block in it. This characteristic is what makes the problem of repeated spending of the same coins so difficult for , and even the blockchain can be considered the backbone without which cannot stand.

Cryptocurrency

All current cryptocurrencies are based on

the principle of itself, except for

Ripple, and since is open source, it is possible to clone it, make some modifications to it, and then launch a new currency.

Decentralization

. Both privacy advocates, or sellers of illegal goods (such as drugs) online alike.

is based on financial transactions and uses a peer-to-peer network, electronic signature and encryption between two people directly without an intermediary body regulating these transactions. Any banks or any intermediary bodies of any kind.

The currency is available globally and you don’t need complicated requirements or things to use it.

Mining

means mining is extracting and mining it. To simplify the concept, the process is similar to extracting gold. Extracting it from the ground requires specific equipment dedicated to that purpose and great effort. It is similar to Bitcoin mining. Bitcoin on high-performance computers that can withstand the very high pressure of these programs, as for cloud mining, which is simply that companies specialized in the field called the pool (in English: Pool), which is to gather

a group of people with the same goal, each paying a percentage of the money is an investment And when making a profit, he takes the money according to the percentage he set.

Privacy

has a high level of secrecy. In principle it is true, as all you need to send some bitcoins to someone else is only their address.

If someone explicitly declares that they own certain addresses, then you will be able to find out what addresses sent to them and to which addresses they sent . Disclosure of your address is not unlikely, as you will need to give it to others in case you need them to send you some money.

Currently, Bitcoin owners do not have many options to spend their money with, which is causing some of them to exchange them for traditional currencies. . It seems that if governments want to know the identities of some account holders, they should only legalize

transfers instead of preventing them, as it will be possible to know the name of each account holder as soon as he wants to exchange what he has in exchange for traditional currencies, which represents a starting point for tracking stolen money.

Bitcoin

wallet is like a secret and secure personal bank account and varies

according to the bank, but the goal is one, which is to preserve the personal balance of the Bitcoin currency. The wallet address consists of an encrypted set of letters and numbers in order to receive the Bitcoin when purchasing this currency.

Economy

Bitcoin Spending

In addition to purchasing products, the user can exchange their existing bitcoins for other real currencies. This exchange takes place between the same users who want to sell

Bitcoin and buy real currencies against it or vice versa. As a result, Bitcoin has its own exchange rate,

and this price is heading to rise, reaching $ 30,000 today, after it was equivalent to only a few dollars a few years ago.

Bitcoin

Price The price of Bitcoin is unstable and it is very likely that you have

heard the news that Bitcoin has crossed the $58,000 barrier, up or down.

We can know exactly what miners earn from the operations they perform, as

there are sites that publish these statistics ready-made, but this can be verified by analyzing the Bitcoin account history as well. At this writing, miners have made $3,925,863 in the past 24 hours. This may seem

like a huge amount, but doing those mining operations required 11,388,578 Gh/s, which is also a very large number and requires a huge amount of electricity to do so. It is not easy to know how much it will cost but some calculations can be done that will give you a rough understanding of the situation.

The Radeon 5870 can do 402MB/s and costs about $1.2 per day if used on a

machine with two cards of the same type in the US, where the electricity price is relatively cheap. To reach the aforementioned result, we need to use 14,164,898 devices at a cost of

$16,997,877, which represents a loss of $13,072,014 per day for prospectors.

Most of the miners do not use graphics cards, but mining devices, but these

devices will need to provide many times the results of the graphics cards in order for this mining profession to be profitable.

It is worth noting that some sites were previously publishing an estimate of

the amount of loss / profit recorded by prospectors, but it seems that they stopped doing so for reasons that we do not know.

From the perspective of miners, the current price of Bitcoin is much lower than

it should be, which is why you will find that they have no desire to sell the coins in their possession

at low prices because they have used huge amounts of electricity to produce it, in addition to investing in special equipment to do so.

The bitcoin currency crossed the $40,675 barrier on January 8, 2021, achieving a record high.

to the first ATM

The Espresso Café in Vancouver, British Columbia, Canada, hosted the world’s first automated teller machine (ATM) for bitcoin on 10/30/2013.

Bitcoin Applications Bitcoin

applications, sometimes called a Bitcoin client, allow users to interact with the Bitcoin network. In its basic form, the application allows the generation and preservation of user private

keys and connection to the currency’s peer-to-peer network. T

There are also currently several applications that act as servers that

confirm the actions taken on the network and add them to a block of relays.

Legal status

Germany is the only country that has officially recognized Bitcoin as a type of

electronic money, and thus the German government has considered that it can tax the profits made by companies that deal with “Bitcoin”, while individual financial transactions remain tax-exempt.

A federal judge in the United States recently ruled that Bitcoin is a currency

and a type of cash, and can be subject to government regulation, but the United States has not yet officially recognized the currency.

Some believe that the official recognition has a positive aspect

, which is to give the currency more legitimacy, while others believe that this may open the door to more r

egulation of the currency and link it to governments, and this contradicts one of the advantages of Bitcoin as a currency that is not subject to any party.

Bitcoin in the Arab world

As for the electronic currency in the Arab media scene, news segments have recently started talking about it, even if slightly.

Alternative Digital Currencies

Bitcoin is not the only virtual currency currently in the virtual markets. Thanks to the successes of Bitcoin, a variety of so-called “altcoins” or alternative virtual currencies

have emerged with good value in the markets.

cryptocurrencies: Litecoin: If Bitcoin is gold, then Litecoin is silver, as everyone says. Litecoin has seen an increase in popularity in the recent period.

Dogecoin: It means the electronic dog currency and contains the image

of a dog in its logo, and one of its most important features is the speed of currency production.

Novacoin is a digital cryptocurrency based on open source code and peer-to-peer IP. It differs from most of the alternative digital currencies to the Bitcoin in that it integrates

protection programs within the core of the currency, which deters abuse by the

Nemcoin mining groups: one million is the sum of the Nemcoin currency and this means that the Nemcoin will be relatively rare, exactly the same level as the rarity of the Bitcoin. Namecoin helps create an uncensored internet, denying government control.

Bircoin: Another currency from the principle of a digital encrypted virtual currency. Like Bitcoin, Bircoin is based on a peer-to-peer Internet protocol. Bircoin offers an increase in mining

efficiency, as well as in improved security and safeguards to avoid abuse by the mining group. Bitcoin has a market capitalization that is the fourth among the alternative virtual currencies.

VisaCoin: It is also an encrypted digital virtual currency, like Litecoin, which often adjusts the difficulty of mining.

According to the statements of those in charge of the Cardano project,

the goal of the Cardano project is to launch the first scientific-based blockchain platform.

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