The Bitcoin network was first described by Satoshi Nakamoto (a pseudonym) in October 2008 in a paper called Bitcoin: A Peer-to-Peer Electronic Cash System. Bitcoin was released as open-source software in January 2009. The Bitcoin network came into existence on 3 January 2009 when the first block of Bitcoin – known as the genesis block – was created. Since then, Bitcoin has garnered much attention globally and has grown into an extremely popular form of transaction used by millions of people across the globe every day. Further, you can visit https://bitiqapp.com/.
Bitcoin (BTC) is completely decentralized; it is not issued or controlled by any central bank or authority, nor are individual units of Bitcoin held by banks or backed by any other financial institution like other currencies. The supply of Bitcoin is mathematically limited to 21 million Bitcoin, making Bitcoin different from fiat currencies like the US dollar (controlled by the Federal Reserve) or the Euro (controlled by the European Central bank). Bitcoin’s supply can only be increased if it is “mined” using computational power in a process that is regulated according to strict mathematical rules.
Just like gold or diamonds, Bitcoin has its own natural value built into it called the mining difficulty. It determines how many Bitcoins will be mined and when new Bitcoin are minted – all of these are regulated by the Bitcoin algorithm. Bitcoin itself cannot be manipulated by governments, but its increasing popularity means that demand for it can vary wildly. This increasing demand over time will likely give Bitcoin some measure of inherent value while governments continue to print money in reckless abandon. Bitcoin is also an extremely fast means of transferring funds in comparison to traditional methods, which makes it even more valuable in countries experiencing hyperinflation where the local currency becomes almost useless.
Episodes of high Bitcoin inflation rates have been linked with economic upheavals like the Cypriot financial crisis and never-ending wars that plague many Middle Eastern countries like Syria or Yemen, which are two of the most recent examples of Bitcoin adoption. Bitcoin’s value has at times reached up to $1000 per Bitcoin (BTC) – making Bitcoin literally worth its weight in gold! These price increases make Bitcoin mining very profitable; however, Bitcoin is not for everyone since it requires an ample initial investment if one plans to purchase expensive computing hardware designed especially for Bitcoin mining. Bitcoin can also be divided into 8 decimal places which make Bitcoin mining feasible for everyone – even those who are only able to invest a fraction of Bitcoin called Satoshi. Bitcoin mining became accessible to everyone in 2015 after Bitcoin’s source code was altered by Gavin Andresen
This change allowed Bitcoin miners to use powerful graphics cards at their disposal, giving Bitcoin mining increased popularity among gamers and general PC users. This has given Bitcoin an edge over other forms of cryptocurrency that do not permit this sort of widespread adoption since Bitcoin is the first form of cryptocurrency with such wide public appeal.
On 3 September 2017, Bitcoin split into two derivative digital currencies: the classic Bitcoin (BTC) and the Bitcoin Cash (BCH). This followed one of the most successful Bitcoin hard forks in history which took place in July 2017 when Bitcoin Cash forked off of Bitcoin. Bitcoin Cash is the result of an ideological split within Bitcoin’s user base about how to scale Bitcoin to be able to handle more volume. Those who wanted to increase Bitcoin’s block size limit (limiting the volume of transactions that can be processed by the network) became Bitcoin Cash supporters, while those who didn’t want this sort of change became known as supporters of classic Bitcoin. Both derivatives have their own separate exchange rates but are mutually interchangeable since they both use the same mining algorithm and blockchain technology.
Bitcoin itself was developed with a primary focus on being decentralized, easy to transfer means of transaction between peers without having to rely on third parties or centralized authorities. Bitcoin was designed to operate independently of any central services, which means that Bitcoin can still operate without online exchanges or Bitcoin storage websites since these are third-party services outside the core Bitcoin system. However, this has led to an increasing number of Bitcoin scams, where users have lost their funds by sending them to fraudulent Bitcoin addresses endorsed by scam artists preying on novice Bitcoin users who don’t know better (and who usually disappear after they’ve gathered enough BTC). The most infamous example is the MtGox hack.