“Has anyone heard about digital immutability before bitcoin? Introducing the trustless concept, any information added to the bitcoin’s blockchain stays there forever, so goodbye financial fraud. Any new block added carries information from the previous block, so to change a new block, we would have to change all the others behind….”
Coin Name: Bitcoin
Birth of project: 2009
Project Status: Complete
Circulating Supply: 16,876,187 BTC
Official website: https://bitcoin.org/en/
Official Wallet: https://bitcoin.org/en/bitcoin-core/
Introduction to Bitcoin (BTC)
Back in January 2009, Bitcoin was pure abstraction in terms of value, or if we want to put it in another terms, it had zero value. We could buy nothing with it, and the value that it was given to it by the early adopters was totally subjective.
Quickly people realized that Bitcoin was something more than an experiment, as the blockchain proved to be a reliable facilitator of money transfer over the internet. E-commerce and other businesses started to gain interest, and when other use cases kept on appearing, also did the speculation on the value of Bitcoin.
The Bitcoin creator Satoshi Nakamoto presented Bitcoin with an issuance model that rewarded each miner with 50 Bitcoin. It was almost nothing 10 years ago, and some of us might have heard about it and neglected it, but now it is worth a fortune.
The job of the miner is called proof-of-work, and in its first year of existence – every hour – 300 bitcoins were produced, summing up 2.6 million at the end of the year. Satoshi also programmed Bitcoin with block rewarding halving, which means that after 210.000 blocks mined (number achieved after 4 years), the bitcoins mined per hour dropped to half.
This scarcity created a notion of bigger value for bitcoin, and on November 2012 the 50 bitcoin reward was cut down to, and on July 2016 dropped to 12.5.
Apart from these technical aspects, bitcoin kept presenting itself as the very first decentralized currency with real adoption, but given the magnitude of the innovation, there were, and still are, issues. One of these is the 10 minutes a bitcoin block took to appear in the blockchain, what meant a merchant had to wait that time before knowing if he was paid or not for the service or property he wanted to sell.
These can be considered minor and temporary details given what bitcoin offers. Has anyone heard about digital immutability before bitcoin? Introducing the trustless concept, any information added to the bitcoin’s blockchain stays there forever, so goodbye financial fraud. Any new block added carries information from the previous block, so to change a new block, we would have to change all the others behind.
Let’s talk about price. We have seen it worth nothing, rising to 20k, dropping to 7k, up it goes again now, but does the price really matter? The reality is that the developers just keep on working and improving the protocol and everything built on it, not matter what the price is.
One major concern about bitcoin is scalability. Bitcoin is slow transacting, but – again – solutions are being developed, namely off-chain transactions. This is a necessity to keep this blockchain layer lighter, and the lightning network and the creation of payment channels are the way to solve this problem.
Of course, that this is no easy task, and it will take time to solve this question, but waiting for proper development is certainly something worth doing. More, Bitcoin has already left a legacy with its open source code, which allowed several developers to create similar software under the name of the numerous Altcoins.
This is a brief introduction to Bitcoin, but if you want to know more about the coin, what people are saying about it, technical details, jump right in any of the links we present below. They are well worth reading before investing!
Feb 19, 2018: $10,552.60
Jan 19, 2018: $11,429.80
Dec 19, 2017: $19,118.30
Nov 19, 2017: $7,766.03
- Bitcoin Declared Dead 140+ Times and Counting
- The Most Mind-Blowing Feature of Cryptocurrency
- Satoshi Nakamoto Institute
- The Reason Behind Resistance To SegWit
- Bitcoin Civil War
- Segwit vs Bitcoin Unlimited Debate Escalates
- A simple explanation for Bitcoin’s revolutionary technology
- Gold or Garbage: Is Bitcoin Worthless?
Bitcoin History (old news)