Who and why invented bitcoin
It all started in the midst of the financial crisis of 2008 ...
That year a group of enthusiasts decided to create a universal payment solution that would not depend on politics.
October 31, 2008 on one of the sites for programmers an article appeared in which a promising electronic calculation system was described by certain bitcoins. The article was titled Bitcoin: A Peer-to-Peer Electronic Cash System.
On January 9, 2009, the first version of the bitcoin wallet was released and the first bitcoins appeared. In fact, the first crypto-money.
For a long time, it was believed that the creator of bitcoin is Japanese Satoshi Nakamoto
Within a few months there were some refinements of this system. There are a number of different settings and support for the popular linux operating system.
At that moment, bitcoin was still known only to a group of its developers and testers. Therefore, the system developers decided to somehow attract the attention of the public.
In November 2009, a forum was opened about bitcoin calculations. People became interested. The popularity of bitcoins began to grow. In addition, new ideas for improving the first cryptocurrency were born in the discussions.
For 2010, developers have found and eliminated several cryptocurrency vulnerabilities. Security has been increased and bitcoin sending speed has been increased. After that, the number of bitcoin wallets began to grow rapidly.
Already in May 2010, the first exchange of bitcoins for real goods took place. Then, American Laszlo Khanech traded 10,000 bitcoins for two pizzas for fun. In fact, it was the first use of bitcoin as money.
In fact, it turned out to be the most expensive pizza in history. After all, now for 10,000 bitcoins you can get almost a hundred million dollars!
Gavin Andersen is the curator of the bitcoin project. Starting in 2012, the Bitcoin Foundation is in charge of bitcoin’s development. The main developer of this company is Gavin Andresen. That it is now possible to consider the project manager.
In recent years, the popularity of bitcoins has increased dramatically. Hundreds of thousands of people buy them to earn on the growth rate.
Further development of cryptocurrency
Bitcoin spread in just one and a half years. Having noticed such a success, many developers started creating new cryptocurrencies. Most of them, in fact, copy bitcoin technology and only slightly modify it. However, there are really interesting cryptocurrencies, the use of which is thought even by the governments of many countries.
To date, it is known about the existence of more than 250 different cryptocurrencies. Venezuela has its own cryptocurrency, Belarus will soon be there.
How does the cryptocurrency
Where does cryptocurrency come from? Obviously, this is not ordinary money. They are not issued by central banks. They do not depend on the monetary policy of a state.
The release of new cryptocurrency takes place in digital form. Anyone can literally mine cryptocurrency.
The production process of a new cryptocurrency is called mining. In order to engage in mining using the computing power of the computer.
What is cryptocurrency mining
The word "mining" came to us from English. Literally translated as "mining". Only the extraction of cryptocurrency is made not in the mine, but at the computer.Now there are different types of mining: simple, cloud and so on. Now, so popular is iq mining legit and different variations of this.
Download a special program, configure it and the computer itself will produce a new cryptocurrency. True, computers need powerful ones for this, otherwise we will get one conditional bitcoin for years.
Any cryptocurrency, in fact, is a sequence of unique encrypted blocks of information. Simply put - a specific sequence of characters.
To get a cryptocurrency you need to calculate a new unique sequence of blocks. As soon as we start the program for mining, the computer begins to calculate a new sequence.
As soon as the computer finishes the calculations, information about this is transferred to a specialized data storage. And while you get one unit of cryptocurrency. For example, one new bitcoin.
If we talk specifically about bitcoins, then there is a special limitation on their production. The fact is that the more bitcoins already mined, the more difficult it will be to get (calculate) new ones. In addition, the release of new bitcoins is limited. That is, at some point, new bitcoins will no longer be extracted. You can only buy existing ones. And, it will happen by 2031.
Separately, I note that the mining of cryptocurrency requires a large number of independent calculations. Technically, graphics processors (video cards) do the best job with this task. For this reason, the rise in popularity of cryptocurrency has caused a rush demand for powerful graphics cards in 2017. The most "clever" models have risen in price twice as people bought them for mining in large quantities. Now, fortunately, the situation has become calmer. The hype around the video cards is gone.
How can you earn on cryptocurrency
There are three proven ways to make money on cryptocurrencies:
Mining That is, the production of new cryptocurrency, with a view to its subsequent sale;
Investment in cryptocurrency. That is, the purchase for a period of one month or more with a view to subsequent resale, when the course grows.
Trading That is, the speculative cryptocurrency trade.
Top comments (1)
I liked your article because it is an excellent and well-explained article. No doubt today, cryptocurrency markets are getting attention as compared to other financial markets. People are investing in Bitcoin and the other cryptocurrencies because of the higher gains. In the past, the Bitcoin reached a value of 20,000$. Currently, the Bitcoin is trading at 9164$ (source btctousd.net/). And the predictions are there that in 2027 it will reach 1 Million$. There is a wise saying, the higher the risk, the higher the return. So, a new market is emerging, and people are giving importance and investing in Bitcoin.