Today in this article, we want to talk about Bitcoin and the whole world of this digital currency.

Entering the world of cryptocurrencies requires, at the very least, knowledge of the most prominent digital currency in the market, Bitcoin.

It is a currency that all traders and investors of the cryptocurrency market are acquainted with.

Even newbies are looking to get to know the king of cryptocurrencies, Bitcoin digital currency, to start working in the market.

Introduction

we can write a whole book of concepts and explanations to define Bitcoin.

In general, it is called a digital currency, which may not be the correct definition of the first cryptocurrency in the market.

The first cryptocurrency market that entered the financial market to transform the world’s traditional financial system has changed this industry with its stunning performance.

Unlike all common currencies in the world, it does not operate under the supervision of any central institution such as banks or political governments.

Instead, it operates through a fully encrypted peer-to-peer free band protocol.

This feature eliminates the need for a third party to confirm transactions, effectively removing intermediaries and additional fees.

This coin is a cryptocurrency, a currency that does not have an external and tangible existence and is like an online version of cash.

We can say Bitcoin digital currency is the first digital money without the supervision of central institutions.

Bitcoin can be sent to another person regardless of the border and political restrictions and without the need for an intermediary.

Bitcoin: History

After the economic crisis of 2008 and the failure of the traditional financial system due to the economic disturbances of that time, distrust of banks and their role in financial systems became more colorful.

It was here that an unknown person or group of people with the nickname Satoshi Nakamoto stepped in to address this problem and published a white paper to solve this problem in the same year, 2008.

Satoshi Nakamoto introduced the Bitcoin digital currency and its network to the world as a way to conduct transactions without the need for a third party (central institution).

On January 3, 2009, the first Bitcoin block, called the Genesis Block, was mined, and the blockchain started working alongside it.

A week after this launch, someone completed the first transaction using Bitcoin digital currency on a trial basis.

(1998-2009) years before Bitcoin

Although it is the first cryptocurrency created.

Before it, there were attempts to develop online currencies using cryptographically secured ledgers.

We can mention B-Money and Bit Gold as pre-Bitcoin currencies that were never fully developed.

(2008) Nakamoto enters with the idea of Bitcoin

An anonymous person named Satoshi Nakamoto posted an article called “Bitcoin; Peer to Peer Electronic Payment System” in a crypto email group.

Nakamoto sought to decentralize and transform the traditional financial system.

(2009) The beginning of Bitcoin

Bitcoin software was made available to the public for the first time.

The mining mechanism officially started with the registration of the genesis block.

(2011) Emergence of Competitors

With the increasing popularity of Bitcoin and the idea of decentralized and encrypted currencies, other cryptocurrencies were created and marketed as an alternative to Bitcoin.

We can mention Namecoin and Litecoin Litecoin as the first ones.

(2013) Bitcoin’s first crash

Shortly after the value of each unit reached $1,000 for the first time, its price plummeted.

It took nearly two years for people who bought $1,000 worth of bitcoins to recoup their losses.

(2017-till now) market maturity and new price ceilings

With the maturity of this asset and the acceptance of Bitcoin, it reached new price peaks day by day.

For the first time in 2017, Bitcoin reached its price ceiling of $1,400. After three years of low growth, a solid upward trend began in 2020, until in November 2021, Bitcoin reached $68,000 and set a new ceiling for itself.

What is the total number of it?

As you know, Bitcoin digital currency with the BTC symbol is the only currency of the Bitcoin network.

Satoshi Nakamoto programmed the Bitcoin blockchain so that there are only 21 million Bitcoin units.

Each new coin is created and marketed during the mining process.

One of the reasons why it is called an anti-inflationary asset is its limited nature.

The critical thing to note is that about 19 million units of all bitcoins have been mined till now.

The last bitcoin unit will be supposed to be mined in 2140.

But the problem is that the circulating supply will eventually reach about 19, reaching 5 million units.

This amount will be 1.5 million units less than their total supply.

The reason for this is about 1.5 million (1.496 million to be exact) bitcoins that are burned or lost.

Bitcoin: How is it produced?

A proof-of-work consensus mechanism is use to confirm each transaction and create new blocks.

This means that at least 51% of the miners must agree on the data to confirm the transaction and create a new block.

The entire mechanism that causes new bitcoins to be released and released to the market is called mining.

Bitcoin production is not the correct term because nothing is produced. Still, new bitcoins are injected into the network through the process of confirming transactions.

Bitcoin: The future

Bitcoin was introduced to the world more than a decade ago to revolutionize the financial ecosystem. This revolution may not be complete yet.

The last decade was full of ups and downs for it, a decade in which the price of Bitcoin multiplied by millions.

Suppose we don’t look at this coin as just an asset for investing. In that case, we can see this innovation’s future more clearly than anything else.

This coin is somewhat decentralized, and whales and institutional investors with massive holdings control the market to some extent.

The goal of indiscriminately controlling the printing of money with limited supply has given way to taking control of mining farms and network computing power.

Conclusion

Its emergence and invention revolutionized the entire concept of power in financial systems.

it paved the way for creating other cryptocurrencies.

Despite Bitcoin’s problems and disadvantages, it has inspired many functions worldwide since its birth.

A cryptocurrency that wants to replace the traditional financial system after thousands of years has to meet very different criteria and expectations.

Although this is unlikely, there is no doubt that Bitcoin’s success or failure in facing the challenges it faces may determine the fate of other cryptocurrencies in the coming years.

We hope you enjoy this article and would like you to share your thoughts with us in the comments.