Today Bitcoin is not only known as the king of cryptocurrencies with a huge market cap of $982 billion, but it is also a revolutionary cryptocurrency that has triggered the rise of the crypto market and other cryptocurrencies, Monero, Ripple, Litecoin, and others. As a lot of people are interested in investing in Bitcoin, it is essential to familiarize yourself with the entire blockchain technology and bitcoin ecosystem. So, in this article, we have chosen some of the important facts that you should know as a crypto newbie.
History of Bitcoin
Satoshi Nakamoto created Bitcoin, a virtual cryptocurrency, in the wake of the financial crisis in 2008. He/She collaborated with crypto enthusiasts and supporters around the world that were skilled programmers and helped in the creation of the blockchain network.
Actually, what a lot of people don’t know is that the only reason why Bitcoin has managed to become such a worldwide success is that the blockchain network is designed to be decentralized and to operate without a central authority.
Also, the blockchain network offers a lot of advantages for its users. The identity of the users remains concealed; the data about the transaction is viewable, though. And, there are negligible transaction fees which make BTC online transactions a great option for international payments. Satoshi explained his/her vision thoroughly in the famous white ‘Bitcoin: A Peer-to-Peer Electronic Cash System’. It’s also important to know that the creator chose to remain anonymous and never revealed any personal information to his supporters, and he completely disappeared in 2011.
Satoshi Nakamoto developed the blockchain network in a way to support the growth of Bitcoin. That being said, Nakamoto programmed an event bitcoin halving to occur after 210,000 BTC are mined in order to control the inflation rate in the system.
The event splits the block reward of the miners, and with that, it makes mining even less profitable. However, mining is still a very crucial part of the blockchain network, and miners have found a way to make it profitable by joining mining farms or mining pools. Today the block reward is 6.25 BTC, and after the next halving, it will drop to 3.125 BTC.
Online Trading Platforms
Consequently, a lot of individual investors, as well as institutional investors, are finding it more convenient to invest in BTC on online exchange sites. For example, when you visit the Bitcoin Champion, you will notice that this is a highly innovative trading platform. It uses both Artificial Intelligence and Machine Learning for its powerful auto-trading system. Actually, you can earn up to $700 when you make a minimal deposit of $250 on the site.
There is a rise in the number of Bitcoin ATMs where you can also exchange your BTC for cash and vice versa. Actually, there are over 2,000 Bitcoin ATMs in the USA and in other countries around the world. The main advantage is that you can easily obtain BTC or trade Bitcoin for cash. This is another proof that Bitcoin is facing mainstream adoption.
Limited Number of BTC
Satoshi Nakamoto restricted the number of BTC to 21 million. So, there is a finite supply of Bitcoin, which is another reason why the price of Bitcoin is surging. As we mentioned earlier, the halving is programmed to happen as long as there are available BTC. So, this means that the supply grows at a slower rate than the demand; therefore, the main outcome is an increased price of Bitcoin.
Another reason why mining is unpopular (for solo miners) is that the blockchain network is programmed to increase the level of the difficulty of mining when the collective computer power rises in the network.