What is Bitcoin and what is it for? What are their characteristics. What is a cryptocurrency and what are its advantages. How you can get your first cryptos.
Bitcoin is the first decentralized cryptocurrency, a type of digital money based on an accounting system that works between people, without any bank or state having to validate transactions. For users, trading in Bitcoin is as simple as sending an email: there is a sending address, a receiving address, and a message. In this case, an amount in bitcoins. That is why it became an increasingly used direct payment and shipping system.
Why a cryptocurrency
Because data and transactions circulate on a cryptographically protected network, which makes it very difficult to breach. Bitcoin has no central server: it is literally a network where all computers keep everyone’s accounts, without the need to identify who is behind each action.
Those who send and receive bitcoins operate privately and remain anonymous to the network: only those involved know who they are and the details of their operation. This makes it more stable and resistant to computer attacks, counterfeits and scams.
For all this, Bitcoin has become, since its appearance in 2009, an increasingly important global platform for transferring value between peers in a simple and free way. And, at the same time, it started the crypto revolution.
How to get your first cryptocurrencies
You can buy them from someone, person to person.
Receive them as payment when providing a service or selling a product.
Acquire them on online platforms such as Yagecoin, with cash, transfers or cards.
Charge them for working for the network, in what is known as mining.
Earn them as rewards in video games, or by completing online tasks such as watching advertisements, completing surveys or generating content on a topic.
How Bitcoin started
When was Bitcoin created. What is the philosophy behind this cryptocurrency. When did the first operation occur? What was the first thing that was bought with bitcoins.
The bitcoin.org web domain was registered on August 18, 2008 and was attributed to Satoshi Nakamoto, a name that remains a mystery in the crypto world. Two months later, Nakamoto shared the document Bitcoin: A Peer-to-Peer Electronic Cash System in a crypto email network, explaining the accounting system, network engineering, and its currency.
Bitcoin is an accounting protocol, a way of keeping accounts between people.
It is also a computer network on which value is transferred and necessary calculations and records are made.
And it has a cryptocurrency, a completely digital and valid currency to make those transfers, which can be converted offline to legal tender.
Furthermore, Bitcoin is a community of consensus, development, collaboration and discussion.
How were the first operations in Bitcoin
The network debuted in January 2009, when the first bitcoins were created through the process known as mining and the transaction software client was launched. In the first operation, Nakamoto transferred 10 BTC to American cryptographer Hal Finney, one of the pioneers in supporting the Bitcoin project and getting involved in mining. And the first purchase with bitcoins were two pizzas that miner Laszlo Hanyecz paid for with 10,000 BTC, about $40 at the time, which at its all-time high in November 2021 was equivalent to more than 690 million.
Bitcoin was the work of innovation and digital security enthusiasts who believed in collaborative culture and open source software. Anyone can take the Bitcoin model to “cover” its code or be inspired by it to create cryptocurrencies, decentralized applications and networks with a focus on privacy. Therefore, in addition to everything it is a creative platform and a technological development community.
Already positioned as a tool used by millions of people, institutions and states around the world, Bitcoin spearheads the crypto revolution and generated a new culture.
Satoshi Nakamoto
Who created Bitcoin. What do we know about Satoshi Nakamoto. How many bitcoins do you have. What is the satoshi unit of measurement. Is Nakamoto still working on Bitcoin?
How were the first operations in Bitcoin
The network debuted in January 2009, when the first bitcoins were created through the process known as mining and the transaction software client was launched. In the first operation, Nakamoto transferred 10 BTC to American cryptographer Hal Finney, one of the pioneers in supporting the Bitcoin project and getting involved in mining. And the first purchase with bitcoins were two pizzas that miner Laszlo Hanyecz paid for with 10,000 BTC, about $40 at the time, which at its all-time high in November 2021 was equivalent to more than 690 million.
Bitcoin was the work of innovation and digital security enthusiasts who believed in collaborative culture and open source software. Anyone can take the Bitcoin model to “cover” its code or be inspired by it to create cryptocurrencies, decentralized applications and networks with a focus on privacy. Therefore, in addition to everything it is a creative platform and a technological development community.
Already positioned as a tool used by millions of people, institutions and states around the world, Bitcoin spearheads the crypto revolution and generated a new culture.
Satoshi Nakamoto
Who created Bitcoin. What do we know about Satoshi Nakamoto. How many bitcoins do you have. What is the satoshi unit of measurement. Is Nakamoto still working on Bitcoin?
Who Satoshi Nakamoto is is a mystery. There is little accurate information. It is known that it is the pseudonym that the Bitcoin developer chose when making it known, but his real identity is unknown: his name, his age, his gender, his nationality. In fact, there is speculation that it is a group of programmers.
Anyway, Satoshi Nakamoto appeared in 2008, when he distributed a document explaining what Bitcoin was and how it worked on a cryptography mailing list. In 2009 he introduced the first version of the Bitcoin software client (the first “app”), and for a time he coordinated and spoke on behalf of the project, until in 2011 he declared that he was “on other things” and would step away from Bitcoin. . Although you may still participate in the community under your real name or another pseudonym.
What is known about Satoshi Nakamoto
He created Bitcoin and was the one who mined most of the first blocks.
The minimum unit of bitcoin, the “cent” so to speak, is named satoshi in his honor. It takes 100 million satoshis to make one bitcoin.
His texts demonstrate a “native, rather British English,” according to studies that were done on his writings.
He has skills as a programmer “beyond conventional,” according to what the engineers who participated in the first stage of Bitcoin said.
Wherever he is, Satoshi has a million bitcoins.
Blockchain and mining
How the Bitcoin network works. What information is recorded in each operation. What is blockchain? How bitcoins are mined. What is proof of work.
Bitcoin mining
In each transfer, the system takes note of a series of data in code: amounts and Bitcoin addresses of the sender and the receiver. As it is not necessary, no private information is collected or about the devices from which the operations are carried out. This data is recorded in a cell or block of the accounting chain, along with other operations that are in progress, until that block can no longer be written to.
When a block is full, mining computers use mathematics to try to come up with a key or fingerprint, which is the result of a very complex guess. The mining node that solves it shares its result with others for validation. If it is okay, the code is noted in the block, it is closed and added to the blockchain, which is a decentralized and distributed database and calculations. And for many Bitcoin enthusiasts, it is the most disruptive of the entire development.
The entire process of searching for the “key” to close the block takes about 10 minutes and requires very powerful equipment and special and expensive hardware. But all that effort has its reward: before adding a block to the chain, when the mining node that solved the puzzle inscribes its “digital fingerprint,” in exchange for that, a value in bitcoins is generated in the network that is credited to it. as payment to that miner. This is called proof of work and is the only way to create bitcoins.
The bitcoins
What characteristics and advantages do bitcoins have as a unit of value. How many bitcoins will there be and how many have already been mined. How much do miners earn?
In the traditional monetary system, states print legal tender money whenever they want or need to. In some way, pesos or dollars are “infinite.” Instead, there will be no more than 21 million bitcoins, and more than 19.3 million have already been mined. However, it will take another century to mine the remaining bitcoins.
Why the change of pace? Bitcoin was designed so that the amount miners are paid is halved every four years, through a process called halving. In May 2020, the reward went from 12.5 to 6.25 bitcoins for each block mined; and in 2024 it will go to 3,125 BTC per block. That is why bitcoins are increasingly scarce digital goods, although their supply increases, since with each passing day there are fewer to generate and a greater effort must be made to mine them.
