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My Bitcoin Matrix

My Bitcoin Matrix

What is Bitcoin

Bitcoin is a form of digital currency, created and held electronically, created in 2009, based mainly on a self-published paper by Satoshi Nakamoto. Bitcoin enables rapid payments(and micropayments) at very low cost, and avoids the need for central authorities and issuers.

BitCoin Wallets

Bitcoin transactions are sent from and to electronic bitcoin wallets, and are digitally signed for security. Everyone on the network knows about a transaction, and the history of a transaction can be traced back to the point where the bitcoins were produced.

Who prints Bitcoins

Bitcoins have no physical form, they are created and distributed digitally, by a people who dig them up. Mining, in this case, refers to computing power. Everyone can dig up Bitcoins using their computer. All you need is just a computer with proper software programs that follow a mathematical formula to produce Bitcoins. However, digging became harder for solo miners since people started to create whole companies that involves a lot of servers to produce more and more currency.

Transaction fees

It became more popular thanks to low transaction fees, for example if you want to transfer your money through bank transfer, your bank will charge you for some amount, while transferring bitcoins is always free. Next advantage is quickness of transaction. When you send your money somewhere it will arrive minutes later, as soon as payment will be processed by bitcoin network.

Anonymity with Bitcoins

With us you are able to trade anonymously with Bitcoins. You don't need to verify your account by showing your ID or giving your address information. You do not need any kind of hard currency. Just deposit your Bitcoins and start trading without any further verification! Everything you need to do is to spare a minute to create an account and deposit your Bitcoins. Shortly after that, you are free to trade, simple as that!

How To Use Bitcoin Digital Wallet Software

Bitcoin Digital Wallet SoftwareWondering how to use Bitcoin and what Bitcoin is? The world today is getting introduced to a new method of transaction. Instead of operations where physical money is involved, people are now using virtual money. It will sound a bit complicated at first, but once you get the concept, it is simple.

Bitcoin is a technology where users use virtual money or in other words, let’s say internet money. It is a peer-to-peer payment method based on an open network. This means it doesn’t have any authority at all. This might sound alarming but pay closer attention.

Bitcoins are made cryptographically and can only run with a complete consensus among users. While one might think it as an insecure way but there lies the catch. No central authority means anyone has access to the codes and can be checked and verified by anyone in real time. So if you are in doubt then just log in and look at the algorithm. It is that simple and very transparent.

For those who are still unfamiliar with the concept of Bitcoin, the idea behind having a digital currency wallet might be equally confusing. This article will help explain what a Bitcoin is, why it has become so popular so fast, and how to get the most out of using your Bitcoin digital wallet. How to use Bitcoin is very simple.

A Currency Powered By An Algorithm

The computer network that solves these equations is peer-to-peer in nature meaning that it is a collection of interconnected computers from all over the world. There is a very large file that some digital wallets will require you to download called the blockchain, which is the total of every Bitcoin transaction that has ever occurred. One of the implications of the block chain as part of the Bitcoin algorithm is that every single transaction is recorded permanently as a matter of public record, meaning that Bitcoin is not anonymous and can be used to identify the people behind certain operations.

Purchasing And Paying In Bitcoins

If you want to own or purchase bitcoins, then the first step that you need to take is to download the free digital wallet software to either your computer or your smartphone. Many people choose to make use of the smartphone version of the digital wallet because it allows them to carry their bitcoins with them as well as make purchases in person by paying with bitcoins. The way that you can pay using bitcoins in person instead of just on the internet is that the merchant can use their smartphone to generate an invoice that has a QR code, which is a square shaped black and white box that you can capture with your smartphone to complete the transaction.

Protect And Secure Your Digital Wallet

Because the new Bitcoin cryptocurrency is entirely digital, it is important to be extremely cautious when it comes to protecting your digital wallet to make sure that your money is not compromised in any way. It is crucial to keep your private password safe so that you never forget it and so nobody else has access to it, and it is also a bad idea to ever post your Bitcoin address on the internet. By learning more about Bitcoin and how to use the digital wallet software you can decide whether you want to convert some of your money into Bitcoins to take advantage of the new decentralized cryptocurrency. now you have got know how to use Bitcoin .Good luck!.

 

 

Four Major Reasons Why People Should Buy Bitcoin

Why Buy BitcoinWhy buy Bitcoin? This is a question many people have been asking themselves since this relatively new form of currency began to hit the mainstream. However, many people don’t understand why they should invest in Bitcoin. Here are four good reasons why it’s worth to buy this virtual currency.

1. Their Prices Are More Stable Than Currency

In the last couple of years, Bitcoin has demonstrated unparalleled stability as a financial option. The stability has created and increased trust in this virtual currency. In fact, in the recent years, there have been times when Bitcoin has been more stable than gold, Japanese Yen, and even US stock index. The financial stability that has been totally unparalleled is a strong indicator that Bitcoin is increasingly growing as a virtual currency and is the next big thing in the financial market.

2. Instability Nature Of Global Economy

Despite the global economic situation being very unstable, Bitcoin value has remained relatively stable as it isn’t strongly correlated to neither the national currencies nor the stock market. Bitcoin may, in fact, be the biggest beneficiary if the traditional economy goes on to deepen which means that it can be a better and smarter option to diversify some investment into buying Bitcoins.

The worse the situation of the traditional economy gets, the better it is for the Bitcoin. So, why buy Bitcoin? How does the situation of traditional economy relate to Bitcoin? Well, Bitcoin currency is similar to gold, it can’t be created from nothing and is scarce. However, unlike physical currency, Bitcoins can be moved effortlessly to any economy in the world. The growth of Bitcoin system trading volume is high in countries such as Latin America, China, and South Africa. Due to the weak valuation of the local currencies, many people are opting to exchange part of the traditional currency into Bitcoin.

This is why it makes much sense for people to diversify their investment portfolio by buying Bitcoins.

3. Bitcoin Usage Is On The Rise Globally

The trading volumes of Bitcoin is increasing rapidly all over the word as more goods and services are bought using Bitcoin every day. In South America and South Africa, the growth volumes of Bitcoin usage are quite impressive. It is predicted that the usage of Bitcoin will continue to rise because of the stability the virtual currency is displaying at the moment.

The increasing use of Bitcoin all over the world is a strong indicator that it will only get better and bigger. Bitcoin is the first currency to be accepted universally and this reality is dawning each day.

4. Plans To Do Away With Cash Are Underway

At least in various parts of Europe, there seems to be an increasing debate to get rid of the physical cash. The trend is increasingly becoming popular in many developed countries where the rates of adopting digital payment methods are high. Even if, cash cannot be overly ignored, the perspective of adopting digital payment method to cover for most of the transactions leaves a lot to be desired.

Bitcoin is a digital cash and any attempts to reduce cash transaction will increase the demand for Bitcoin. The digital revolution of money is a good thing to Bitcoin as it serves as an alternative option that retains most of the features of cash. Therefore, Bitcoin might be the major beneficiary in this era of digital revolution.

THE BOTTOM LINE

I hope that the above four major points have answered the question; Why buy Bitcoin? Invest in Bitcoin for a better and stable investment.

 

 

Bitcoin News-All you need to know

bitcoin newsThe world of business has greatly been revolutionized with respect to digital technology. Business transactions are easily conducted using tel-conferencing, emails and social media platforms. In addition digital currency has become common in business. A good example of digital currency is Bitcoin. In this article, key focus will be to demystify the concept of Bitcoin, how it operates, frequently asked questions (FAQ) and most significantly how it has transformed online marketing and shopping.

The concept of Bitcoin

Bitcoin is a form of digital money. This means that it neither involves the use notes nor coins. Bitcoin system was developed by a number of individuals but the idea is mostly credited to a person known as Satoshi Nakamoto who is alleged to be a Japan citizen though the Bitcoin software could not be found in this country.

How Bitcoin system operates

Bitcoin system is very unique in terms of how it operates. It has strongly upheld the principle of confidentiality when conducting money transactions. It enables individuals to conduct or transact unknown money dealings. This is of essential benefit to individuals involved since it information concerning the money dealings is kept confidential as well as the identity of individual paying and receiving the money. More so, the Bitcoin system shields individuals from the risk of dual spending.

Meaning of dual spending, how Bitcoin system has curbed it.

Dual spending is the process of coping digital money and using it more than once. Bitcoin system solves the issue of dual spending by ensuring that all the digital money transactions are displayed in a public list. If an individual conducted a transaction using Bitcoin currency, the legitimacy of the transaction would be confirmed by checking on the public list to verify it that the Bitcoin currency had not been previously used.

How Bitcoins are used in online marketing and shopping

Bitcoins are stored in a digital folder which can be your personal computer or an online website you have created either as as a buyer or a seller or for your own use. One can have as many digital folders as they wish or they fell they are capable of managing as well as Bitcoin addresses. Bitcoin addresses simply enable a person to receive money from other individuals.

Frequently Asked Questions (FAQ)

With regards to Bitcoin, there are numerous questions that individuals pose. Some of them include:

1) Is it a popular and famous form of digital currency?

It is obvious that many individuals who have not used Bitcoin before will want to know if the system is being utilized by others. Yes it is. Since its inception, Bitcoin has attracted many people all over the world. In fact, statistics show that 10.71 million Bitcoins exist. Further, in a single day, Bitcoin system handles about 45,000 transactions involving millions of money. This evidently points out to the fact that Bitcoin system is real and fully operational.

2) How are Bitcoins acquired?

Acquiring Bitcoins is a very easy process. They can be acquired through mining, exchanging them for Euros or Dollars using Bitcoin service lenders or by tendering your services to others in exchange for Bitcoins. When it comes to mining, it involves minting Bitcoins by means of a Bitcoin miner.

In conclusion, Bitcoin is a digital money system which has made the world of business better and made transactions fast. Due to its power to uphold privacy through anonymous digital money it is gaining favor among many individuals.

 

 

5 Greatest Moments in Bitcoin History

Bitcoin was invented by Satoshi Nakomoto who published news about his invention at the end of October, 2008. Bitcoin was implemented three months later as the first digital currency. Bitcoin is a peer to peer’ electronic cash system, popular among the more technologically aware as well as the economically progressive.

Take a look at the 5 greatest moments in Bitcoin history.

1.The beginning of Bitcoin

Everything about money changed with the invention of Bitcoin and financial transactions and banking have not been the same since. With the invention of Bitcoin, one no longer needs a bank account to send money around the world. Anyone, irrespective of age or identification, could access a digital bank. They could be in a mud hut in Africa or on a beach in Hawaii, but as long as they had internet, they had Bitcoin banking. The first transaction was by Nakamoto himself sending 10 BTC to the late Hal Finney on 12 February, 2009.

2.Forgotten Bitcoins worth thousands

In 2009 a Norwegian man named Kristoffer Koch bought just under $27 worth of BTC for 150 krone. He had discovered Bitcoin while learning and researching encryption. He stored his Bitcoins in an encrypted wallet, secured with a private key, and promptly forgot all about them. After wide media coverage in 2013 about the success of Bitcoin, Koch tracked down his password and reclaimed his Bitcoin. He had around $886,000.

3.Pizza

Money is meaningless unless you are able to use it. Bitcoin initially was little more than theoretical and the coins where worth little. But in May 2010, Laszlo Hanyecz made a pizza transaction. He asked someone in the United Kingdom to buy him a pizza from Papa John’s and have it delivered to him. He paid BTC 10,000 for the pizza and delivery. When the pizza arrived, Laszlo photographed it, uploaded it to the net for proof, making it the first real Bitcoin transaction.

4.Police chief paid in Bitcoin

As people around the world became familiar with Bitcoin, more people became keen to try it out. In 2013 a police chief from a small town in Kentucky, Vicco, asked to be paid in Bitcoin. The mayor of the town Johnny Cummings made the transaction, essentially opening a Bitcoin account for the town. The mayor and the police chief looked at this as a long term investment, that the money would rise in value over time. It has been a rocky road; the police chief still has his Bitcoin.

5.A Bitcoin marriage

In July 2013 a young couple from Provo, Utah, decided to get married and live on Bitcoin. Apart from vowing to love and to cherish one another, they vowed to use nothing but Bitcoin for the first three months of wedded bliss. Called ‘Life on Bitcoin’ they made a documentary and have a blog for people to follow. Their true love is not just to one another but to the crypto-currency, Bitcoin.

 

 

Bitcoin Price Jumps to $590 and more, Bull Predictions Coming True

bitcoin price upThe price of bitcoins has been rising rapidly like it’s nobody’s concern! After the sporadic rise and fall in the prices and a disappointing period of being static at $570, the price of bitcoins has jumped to $595 in a couple of hours. Yes. The $25 hike has occurred in the last couple of hours and it is beyond most people’s expectations. Although some analysts are claiming that they already predicted the rise, most of us didn’t really expect this massive rise, particularly when the previous week was flat and disappointing. The price of bitcoins had fallen last week and none of us expected this surprising turnaround.

Last week, an analyst mentioned how flat the overnight action was. He further added that they couldn’t manage to get any positions in the range that they had highlighted. But although the status of bitcoin was static last week, the analyst was hopeful. According to him, just because the price was not really steady last week, there should be a fare share of reactive action in the following week. Well, that’s exactly what happened.

The important point to note here would be, although the prices of bitcoins were static, it was a pretty easy trading week for many. With a couple of intra-range action and scalp breakout entries, there were more profits than losses. Well, things did run smoothly for bitcoin dealers and right now, with this sudden increase in the price, they are surely having the time of their lives.

Most analysts feel that such a major rise in the price was indeed expected. There was a deep-seated sentiment among these analysts that bitcoin was getting itself prepared for a significant bull-run. But no one predicted that it would commence so soon. Bitcoin has definitely surprised us with this rapid hike in the rates. Some of the analysts have also added that they had a gut-feeling that the Bull Run would commence late from the late last week, and now the results are pretty much in their favor.

Analysts and bitcoin dealers are overjoyed with this unexpected action. It has taken almost the end of this week for the fruitful results and this only suggests that they had boring week in the perspective of intranet bitcoin trading. This sudden rise at the end of the week suggests that they will end the week while topping the market charts. Also, while heading the weekend, the dealers are expecting a pretty wider time frame. Most of them have some decent trading moves up their sleeves on the weekend. So this will give them an opportunity to maximize the profits and ensure the sustained volatility of the profits.

One major thing that can be contributing to the present rise of bitcoin is Bitfinex. Right after the dreadful cyber hack that cost the company over $70 millions of USD, Bitfinex has recently given the first round of refunds to the customers who had lost a large part of their money in the attacks. They have also started an online agreement with the investment firm BNKtothefuture for helping them etch out a proper payment plan that ensures that the affected users get their fund in time.

But despite this major rise, one particular source has suggested that this might just be a result of market manipulations. So even now, bitcoin dealers should carry out their deals safely.

 

 

Bitcoin Price Is Looking Up

Bitcoin Price UpThe past few days have seen the price of the world’s most popular cryptocurrency Bitcoin take a bullish pattern. Things became even more forceful during the final hours of the just-concluded week. At one point during the weekend, the value of 1 BTC became as high as $612.

The price analysis published at Bitcoin.com on August 23 suggested that bitcoin charts are indicating an imminent price rise. Saturday, September 3 saw the value of 1 BTC go beyond $570 and reach the $590 mark by afternoon. Later in the day, the value went up to $612.

Buying patterns are appearing pretty strong. So, experts are saying that even after considering possible slowdowns, they feel that the current week will see the value of 1 BTC revolve around $620. Some others believe that the value would reach $675 during the ongoing week.

The factors responsible for last week’s increase include significant rise in the volume of trading activities in every major exchange operating currently.

Here, it must be mentioned that the news surfacing during the past week were not at all significant enough for encouraging such incredible price hike. However, still the price rise has remained a constant phenomenon during this period. There was, however, a positive development that grabbed everyone’s attention during the week. The week saw Bitfinex reimburse its first group of customers. Some are saying that this piece of news might be exciting enough to entice investors for executing their buying tricks and strategies and trigger optimism in the reasonably steady market.

Reports are also talking about advent of new privacy applications in recent times. Freshly launched tumbling platforms like TumbleBit and Shufflepuff have given birth to tremendous enthusiasm among investors due to the advanced privacy techniques they have come equipped with.

There’s another notable incident that made headline during the course of the past week. It was Brave Browser’s announcement that it would be implementing bitcoin micro-payments. Brave’s new version i.e. the 0.11.6 edition of the browser would allow users to reward every website they love visiting. That’s not all; this new version would also ensure that the users don’t get bothered by adware techniques and tracking anymore.

The entire Bitcoin community expressed immense joy when Brave Payments’ beta version finally got unveiled. This reaction of the community seems to have added some more optimism to the trading markets around the globe.

At present, the indicators are suggesting that things will remain like this for some more time; this means we will see the value of 1 BTC increase or remain above $600 for several weeks. Current trends are also indicating that prices between $625 and $650 are attainable within the next few weeks. The long term predictions are even more inspiring; if the current trend lines turn out to be true and this bullish momentum persists we might see the value become $680 or even $700 in some time.

So, what is the prediction for the current week? Anticipation for earlier highs might force the buying rate to remain on the higher side. The trading volume, on the other hand, is also expected to remain pretty heavy. Even if things pull back a bit this week, the value of 1 BTC will probably not drop below $580 in the near future.

 

 

6 Reasons Why you Should Buy Bitcoins

Why-buy-bitcoinsEver wondered why buy bitcoin? Well, bitcoin is a relatively new currency form which has just started to hit the mainstream markets. But even with its many viable advantages, most people don’t prefer using it as they are absolutely clueless about how the thing works. So if you’re still wondering why buy bitcoin, here are some insightful snippets that will tell you how exactly this currency is functional and incredibly useful.

Quick and simple

Well, one of the major benefits of bitcoins is simply the fact that it is incredibly fast. When you intend to transfer a check from a local bank to your preferred bank branch, the transaction will often turn out to be time consuming as the bank holds your money for very many days. International transactions are likely to be tad longer as the bank doesn’t initially trust the fact that such a lump amount of funds are available. However, bitcoin transactions are extremely fast and simple. Some of these transactions can be even conducted instantly if they come with “zero confirmation”. This means that the individual receiving the transaction actually takes the risk of accepting it even if it hasn’t been confirmed or approved by the blockchain of bitcoin. The transactions are equally quick and hardly take ten minutes of your time, if they merchant requires confirmation from the other end. But in any case, it is way faster than the inter-bank transactions.

Cheap Transaction Costs

Right now, most of you must be wondering that your credit and debit card transactions are equally fast. Well, that is definitely true in a sense. But for that, both you and your specific merchant have to pay a particular amount. Some of these merchants will even charge a debit card fee for these transactions as they require a swipe fee to get them completed. Contrary to this, the transaction fees for bitcoins are minimal and in most cases they are also free of charge. This is yet another answer to the question of why buy bitcoin.

Central government doesn’t have any control over your deposits

In March 2013, Cyprus witnessed one of the most difficult and devastating instances, when the Central Bank of the country, wanted control over every deposit amount that was higher than 100,000. This was an attempt from the Government to recapitalize itself and it caused a massive unrest among the total population. It particularly wanted to take a specific percentage of deposits under the mentioned figure. This directly affected a large number of family savings. However, such can never be the case with bitcoin. As the currency is decentralized, you have complete rights over it. No central authority has a control over the money and no bank can take the money away from you. So this can be an excellent alternative for those people who find the concept of traditional banking complex and unsafe.

Zero chargebacks

Once you send the bitcoins, they are gone forever. The person sending the coins can never retrieve it without the consent and confirmation from the recipient’s end. This makes bitcoin free from the very many fraudulent practices that are prevalent with credit cards. Unlike credit cards where people can make any particular purchase and then get in touch with the relevant credit card company for chargebacks, bitcoin will have absolutely no scopes for reversing your transaction. This exactly answers your question of why buy bitcoin.

Completely private

Very often, we don’t really want anyone to know what exactly we are purchasing. Bitcoin helps you in this regard as it is a relatively private form of currency. But at the same time, it is also transparent that means, every person is aware of the fact that exactly how much a specific bitcoin can hold during the time of transaction. They will know the source of the transaction and the place where it is sent. However, unlike the conventional banking regimes, no one will ever know who exactly holds a specific bitcoin address.

You have complete control

Bitcoin is not a platform or a system where your account is owned by some company. We can take an instance of PayPal, who holds the authority to freeze your assets and your account, if they find it being misused. You will not be consulted in this regard. Getting your assets cleared after the point of being closed is both time consuming and painstaking. However, with bitcoin there is absolutely no such issue. It gives you your personal key and an alternative public key that is up for a bitcoin address. No one has the authority to control or freeze your account without your consent.

Well, now that you know why buy bitcoins, get started and enjoy hassle free transactions on the go.

 

 

What Are Bitcoins?

what are bitcoinsIf you are wondering what are bitcoins, you are not alone. Bitcoin is a peer-to-peer crypto-currency payment network that operates on a cryptographic protocol. They can be used to buy stuff electronically just like conventional dollars, pounds, euros, or yen. But the thing that makes bitcoin different to conventional cash is that it is not decentralized. With paper money, the government decides when to print cash or distribute them. Bitcoins are produced by people and businesses running computers across the world, using special software that solve complicated mathematical problems. When they solve the complex algorithms, they are rewarded with bitcoins in exchange.

Who is the creator of bitcoins?

The long mystery is yet to be solved. Officially, bitcoins were invented by Satoshi Nakamot, a Japanese programmer who outlined the whole process in an academic paper before vanishing in 2009, months after the first bitcoins were mined. Satoshi Nakamoto’s real identity is far from settled. He is believed to be a pseudonym and given the fact that some of those papers were in English, he is believed to be an American.

Who prints this cryptocurrency?

As stated earlier, bitcoins are not manipulated by a single body. They are sovereign with their unique regulations, and are not printed. They are created digitally by a group of people that anyone can join. Miners across the world use special mining software and computers to solve complicated bitcoin algorithms. They are awarded with transaction fees as well as Bitcoins generated from solving complicated algorithms.

How many bitcoins are in circulation?

Bitcoin is distinctive in that just 21 million bitcoins will ever be produced. Currently, less than 15 million bitcoins are in circulation, meaning that less than 9 million coins are waiting to be discovered. Between 2009 and 2010, the number of bitcoins created skyrocketed. That’s how the system was designed—easy to create in the beginning, and difficult as we approach that 21 millionth limit. At the current rate mining, the final bitcoin will be generated in 2140.

How are transactions made?

Bitcoins transactions are regulated by a public ledger known as Blockchain. This network is basically a network of computers that validates and keeps track of payments, and ensures they are recorded by being listed to an ever-growing database. The database contains about all the bitcoins payments that have ever taken place. This is called a ledger, similar to the one banks use to keep a record of transactions between bank accounts.

Where are bitcoins stored?

Bitcoin are stored in an online “wallet.” This is an account created on a safe third-party website. Without a bitcoin wallet, you cannot spend, receive or store bitcoins. Bitcoin wallets feature secret codes that enable you to use your bitcoins. Bitcoins can be stored in different kinds of online wallets, and different wallets are designed to solve different problems. Some wallets are geared towards security, while others are more focused on privacy.

What are Bitcoins really worth?

Bitcoins is becoming safe-haven asset as gold. The price of the currency has been rising in recent months. The currency traded above $730 per bitcoin earlier this year, levels not seen since 2014. Analysts believe the rise in value has been mainly due to an upcoming change that will see miners make less cash for every block they extract. This is expected to tighten bitcoins supply as less new bitcoins enter the market.

 

 

How are bitcoins obtained?

How Are Bitcoins Obtained

There are three ways to acquire bitcoins: mining new ones, accepting them at your business and buying them online. In bitcoin’s earliest years, mining was fairly easy. But as more people come on board with advanced software, the difficulty to mine increases everyday. If you don’t have the resources or the skills to mine, you can accept bitcoins at your business or exchange them for cash. There are a number of websites the link potential bitcoin buyers and sellers.

Conclusion:

Bitcoins have gained acceptance from the public. This is because buyers remain anonymous while shopping online, transactions fees are lower, the public ledger can be accessed by anyone and the supply is capped at only 21 million. Analysts believe that the currency will change business as we know it in the coming years. Many people have been wondering what are bitcoins and whether they are a viable investment. We hope this post has answered all of your questions.

 

 

A Close Look at the History of Bitcoin

The History of BitcoinBefore getting into the history of bitcoin, let’s explain the concept to you. Bitcoin is the most widely used cryptocurrency in the world. For your information, crypto currencies are currencies that are created and managed using cryptography; this feature separates them from the conventional currencies, which rely on central authorities.

The start

There’s a legend, which suggests that the concept is a brainchild of pseudonymous Satoshi Nakamoto. It is believed that Nakamoto created bitcoin based on ideas derived from the famous cypherpunk community. In 2008, the Japanese creator released a paper called “Bitcoin: A Peer to Peer Electronic Cash System”. The paper, which was released to a special cryptography mailing list, talked about a distributed digital currency system in detail. Within a few months of releasing the paper i.e. in January 2009, Nakamoto launched the very first edition of the bitcoin core software. Following the release of this open-source program, the much awaited bitcoin protocol began running. The first 50 BTC were mined by Nakamoto.

By the middle of 2009, a number of other developers besides Satoshi Nakamoto started contributing to this open-source program. The protocol might have been hugely benefited by several innovations preceding it, but it has surely been the most prominent breakthrough in the field of cryptography. That’s the reason why the cypherpunks play such a major role in the history of Bitcoin.

The early years

The path breaking “Bitcoin ecosystem” used to be only a log featuring various bitcoin transactions. It played the role of a collection of online forums where users could communicate with each other and organize transactions. Initially, the concept was not backed by any wallet service. There was also no user interface; the only things users had access to included some raw code and command prompts. As a result of these restrictions, the service only managed to get some highly tech savvy and dedicated people involved. These were people who could organize transactions via online forums and had the ability to use code for initiating those transactions on the block-chain.

The very first commercial transaction using bitcoins occurred in May 2010. It happened when a Florida-based programmer bought a pizza paying 10,000 BTC. This event marked an extremely important step in the history of bitcoin.

Soon, the brains behind Bitcoins started working to come up with a comprehensive market support system. The very first bitcoin exchange started its journey during the first quarter of 2010. The exchange allowed people to get involved in structured trading using bitcoins. Gradually, the currency started becoming popular among a large number of people beyond the expert cryptocurrency crowd. Soon, the user base of the currency started growing rapidly. By the final quarter of 2010, the second bitcoin exchange was also established; it was named Mt. Gox.

The next few years saw Bitcoin becoming more and more mature as a cryptocurrency. The year 2011 saw the initial Bitcoin code undergo some major changes. The entire process took place under the supervision of Nakamoto. However, Satoshi never met or called anyone; he communicated with people through direct messages and on the forums. Later, in April 2011 Nakamoto shifted the charge of this legendary project to Gavin Anderson. Since then, no one has ever heard from Nakamoto or has seen him.

As the popularity of the currency started growing, it became a common target of thieves and hackers. For instance, Mt. Gox got hacked in the same year it was established. However, the authorities in charge of these exchanges and databases managed to solve the hacking issues pretty promptly on most occasions.

The growth

The year 2014 saw bitcoin invade mainstream payment systems. A large number of top retailers accepted the currency. Some of the biggest names in that list are Dell, Microsoft, Overstock, Newegg, Tiger Direct, and so on. That’s not all; by the end of the 2014, a subsidiary of the world’s largest online payment system PayPal announced that they will be working to integrate the cryptocurrency on their own platform.

Another major change took place in 2014 when people started looking for other ways of using the technology behind Bitcoin for other purposes. For example, a protocol called Maidsafecoin was formed for enabling distributed file storage. This marks an important stage in the history of bitcoin as it proves the belief of early enthusiasts of the concept true; some proponents of the concept used to claim that the technology of cryptocurrency might form the basis of a new Internet.

The history of Bitcoin has been a truly encouraging journey. Based on the current situation, it can be said that the future is bright for this cryptocurrency.

 

 

The Future of Bitcoin

The Future of Bitcoin

The world is in a constant state of evolution and nothing escapes this change. For example, the world never had a currency in 12000BC when civilization started in the Levant. Then the people living in or near cities and towns started to batter their wares. They would exchange food, livestock, and clothing materials. In 2000BC, the world had its first currencies in form of a receipt and metals. That was in ancient Mesopotamia and Egypt. Other parts of the world used cowrie shells, salt, beads, and ivory among other items as money. Soon the entire world adopted coins as money before moving on to paper money. The modern times, the world relies on fiat money comprised of coins and paper. However, the world is changing once again with invention of Bitcoin, a revolutionary crypto-currency. Here is a comprehensive review of the future of Bitcoin.

 

Why is Bitcoin revolutionary?

The most astonishing fact about this currency is that it is not under the control of any sovereign power. That means that a few individuals cannot manipulate it based on what they want. It also means that big banks and financial institutions cannot monopolize access to funds. This aspect of Bitcoin scares most government agencies and big corporations because they always want to control everything in the economy. A good example of the importance of Bitcoins in contemporary society is that it can support individuals or institutions that are fighting against powerful people. Wikileaks, a whistle-blower website that exposes government corruption, turned to Bitcoins as a source of donations after the big banks refused to transfer money to it.

What is the source of Bitcoins?

Unlike a paper currency today, Bitcoins are the results of mining activities. However, this mining takes place in a computer system as opposed to an underground mine. Experts in this process generate Bitcoins by solving complex algorithms. Generating this crypto-currency is an open source process verified by various network nodes recorded in a public ledger that is easily available. Blockchain is a common term used to refer to this ledger. Some researchers say that the power of this Bitcoin network is almost 7500 times higher than the combined power of 500 of the world’s top supercomputers. That kind of power is not going away anytime soon.

Will Bitcoin Mining Last Forever?

No, it will not. Bitcoins are finite. That means there will be no more Bitcoins to mine at a certain point in future. Remember, only 21 million Bitcoins can exist. Researchers estimate that the mining of the last Bitcoin will take place in 2140 i.e. a hundred and twenty four years from now. This statistics means that people mining and using Bitcoins can rest easy knowing that nothing will disturb their trade for at least 100 years. The question is what will happen when miners mine the last Bitcoin, will the entire system collapse? No, it will not. In fact, the value of a Bitcoin increases as the possibility of mining new ones decreases. That means your Bitcoin today will be of an even higher value tomorrow.

What should you do?

You should get in on the action when Bitcoins are still affordable. Remember, the world is moving towards an information age where everything will be online. Paper money and coins will cease to exist or their use will become negligible. It is time for you to become part of the future. Remember, you can purchase Bitcoins using your national currency and then place these coins in a Bitcoin wallet. You can access this wallet through your smart phone or computer. Bitcoins are also good for business. For example, did you know that the person who used the first Bitcoin used it to purchase pizza? That shows you that the idea behind this digital currency is business as was the idea behind every other currency before it.

What is the future of Bitcoins?

The future of this currency looks bright. First, its value increases with every Bitcoin mined. That means people holding Bitcoins today will be extremely rich in future. This type of currency is also the next step in the evolution of transactions between people. Paper and coins are no longer feasible in this global world. Instead, the world is in need of a digital currency that is free of government control and manipulation. You should start trading with Bitcoin today because as you can now tell, the future of Bitcoin is undeniably bright. [54.156.42.165 - , United States]