Recently, there has been an increased excitement around the cryptocurrency. And this is no accident. It is caused by the popularity of the most popular and recognizable cryptocurrency - Bitcoin. Many consider it to be a full-fledged payment instrument. But is it really so? In addition, for many years in a row, there have been disputes over who became the creator of Bitcoin. According to the official version, it was Satoshi Nakamoto. To understand what kind of virtual currency it is, it is worth delving into the history of its creation, and it is really interesting and very stormy.

About the Bitcoin project

Bitcoin is a digital currency. It has no physical counterpart. But there are special registers that take into account how many and who has such coins. The name of such magazines is blockchains. You can make a comparison and make an analogue with a regular bank, or rather, non-cash payments. When you pay by card, you do not give physical money to anyone, just your operation is registered in the banks register.

However, the main feature of Bitcoin is that it is not stored centrally, like currency in banks, but decentralized, being simultaneously located on all computers occupied by Bitcoins. At the same time, anyone at any time can freely view the history of all transactions related to the transfer of Bitcoins.

Yes, such registries are protected by cryptography. It is impossible to fake it for everyone, just as it is impossible to rewrite the data of the blocks, stating that from now on you are a millionaire. In this sense, Bitcoins are very secure. However, attacks and fraudulent attempts have appeared recently.

How is Bitcoin created?

Everyone knows that a specific state is engaged in the issue of a specific currency. The crypt is not related to any particular state. Bitcoin coins appear as computers serve the needs of the payment network.

The mining process (crypt production) is a separate big topic. In order to mine, you need to have special equipment (farm) available, which is very expensive. At the same time, no one can guarantee the high efficiency of this process. And the competition in this matter is very high.

Bitcoin opportunities

Quiet times Bitcoin can only dream about. Today the crypt is going through one of the most turbulent stages of its development, given the trends, the storms will not subside for a very long time. Since its inception, cryptocurrency has experienced ups and downs. To understand why this is happening, you need to study the history of the coin from the very beginning, and these are the distant 90s.

1982-1997

It was in the 1980s that the concept of electronic money was introduced by computer scientist David Chaum. At this time, the scientist was interested in such global issues as online and digital privacy. He even published his work, which presented the latest approach in cryptography. According to Chaums theory, it was quite possible to develop a payment system in which the data would not be visible to a third party. He even created a secure online currency (Bitcoin prototype). But she was never able to "shoot". David went bankrupt, but his developments laid the foundation for innovative ideas.

1998 year

The year was very important and fruitful. It was at this time that two of the most important ideas for cryptocurrency emerged. At the end of the year, Wei Dai published an article describing b-money, a crypt whose storage mechanism is very similar to blockchains. Around the same time, another project appeared - Bit Gold.

The projects were breakthroughs, but in the end, both failed.

2008 r.

It was in this year that Bitcoin was created in the form in which we are used to it. Two whole decades of silence after unsuccessful projects, and now the whole world was shocked by another news about the creation of the worlds first cryptocurrency.

2009 year

A couple of days before this year, the first Bitcoin block was mined. Soon, the first-ever program was released that ensured the operation of electronic money. The first transaction was made on January 12. By the end of the year, a course for a young crypt was published.

2010–2019

Already in 2010, something tangible was bought for electronic money. And a year later, the Bitcoin rate equaled the dollar rate. Over the next few years, fluctuations in the exchange rate were observed: it either increased or fell again.

2017 turned out to be important for the events.An active growth in the number of miners began, the rate rose again and reached $ 3000. Commissions and block processing period were gradually increasing. And in August, an extremely significant event took place - a hard fork, as a result of which Bitcoin Cash was created. Since then, this cryptocurrency has been ranked fifth in the world in terms of capitalization.

Today this crypt is very promising. Many are pinning their hopes on it. At the same time, after the unprecedented success of Bitcoin, new counterparts began to appear in the electronic world. But none of them have managed to surpass Bitcoin so far.

Is Bitcoin Infinite?

The popularity of Bitcoin is growing every day, it is constantly covered in the media, and all media actively and often discuss this cryptocurrency. There are even popular documentaries that explain what it is.

There are currently many online and offline retailers that accept Bitcoin as payment currency. Unfortunately, this cryptocurrency is not endless, but it will not be developed in the next 10 years. Bobby Lee, co-founder of one of the largest Chinese exchanges, made a forecast according to which the so-called Bitcoin halving will happen at the beginning of the year. Simply put, the mining process will become more complicated, and the mining rewards will be halved. As a result, the issue will take longer.

Strengths of Bitcoin

This electronic currency really has many advantages, and its popularity is fully justified. Take, for example, the fact that the blockchain does not provide an opportunity to know the identity of the user. But at the same time, all transactions are recorded, it is similar to the services of a personal accountant who does everything to register financial activity in a special book. But these are not all "pluses". Among them:

Safety. No one is guaranteed to enter an account that is created on the blockchain. Therefore, you can safely make transactions from anywhere in the world. Each transaction is safe, and settlements are much faster than using a regular plastic card.
Investments. The value of a crypt is constantly changing, because Bitcoins are volatile. And this is a great opportunity for investors and traders to make money. As the number of buyers increases, so does the price of coins. It is important to choose the right investment time, in this case you can become a millionaire in a matter of minutes. Tip: before you start trading, carefully study the issue and all its nuances, make sure you know everything.
Confidentiality. Yes, transactions are recorded in a public ledger, but specific information remains unavailable. When carrying out transactions, you do not have to worry that information about you will fall into third hands, it does not matter if it is fraudsters or government officials.
Speed and convenience. Fast transactions are one of the main advantages of Bitcoin. Sending funds is possible anywhere in the world, the main condition is the availability of the Internet.
Elimination of counterfeits. It is quite possible to get coins (mining), but this requires the presence of expensive equipment, as well as high costs for paying for electricity. Mining is a complex process that is constantly getting more complicated, this is another reason for the popularity of the coin. At the same time, it is mining that ensures the security of the network. For completed operations, users receive a reward - Bitcoins. And this process ensures that counterfeits are completely ruled out. This helps in the correct accounting of transactions.
It is not difficult to buy Bitcoin today. To do this, you can use the services of any exchanger or exchange. But it is worth paying attention and choosing only proven sites for this. Otherwise, you can miscalculate or even lose your own savings.

The following can be said about the cost. The price of Bitcoin rises as it is accepted by people or even by the state. So, for example, in Japan, Bitcoins are recognized as a legal tender at the state level. Bitcoins are very similar to traditional money, and in terms of capabilities, they even surpass them in many ways. The value of Bitcoin also largely depends on market sentiment and trends; the laws of supply and demand play an important role.

The functionality of Bitcoin is truly limitless. This electronic money performs the same functions as the regular currency in all states:

Settlement means. For Bitcoins, you can buy the necessary goods, pay for all kinds of services with them. At the same time, payment is made through an electronic wallet, his device is not much more complicated than the usual Yandex.Money or WebMoney.
Savings tool. Any currency can be easily converted into Bitcoins. Having exchanged money, you can expect an increase in the rate and subsequently earn good money on this. Simply put, Bitcoin is a great investment option.
Exchange medium. As noted, converting Bitcoins is very easy. Also, users can freely exchange them.

Bitcoin in TOP currencies

Bitcoin transactions are not particularly complex. In general, the process looks like this: all operations, or rather, information about them, are recorded in special blocks, this is a kind of list of transactions. By adding such blocks into a specific chain, you can easily track the history of these transactions.

The block is a heading and lists. The header contains hash codes (native and previous). The first in the list is a transaction indicating the reward (commission) that the user will receive when creating a new block.

Validation in the Bitcoin blockchain is used to verify the authenticity of transactions. The latter is a distributed database, parts of which are stored on different computers connected to the Bitcoin network. A transaction is considered confirmed after it is added to the list in a block.

It should be noted that after the operation is completed, the account of the recipient and the sender is not updated instantly. Traditional custom applications assume that a transaction can only be confirmed after six blocks are found to prove its validity. By the way, the user conducting the operation has the right to reduce the number of checks. But this can be done only if there are not too many Bitcoins. Fewer checks will speed up and simplify the process. In the event that verification is not passed, the funds will be automatically returned by the system to the senders account.

What about Bitcoins prospects? Based on the current state of affairs, we can make a bold conclusion that this cryptocurrency will continue its active development and will not yield its leadership positions to other, less known and popular cryptocurrencies. As of December 2019, the capitalization of the currency is $ 128,412,621,001, and it continues to grow.

Hope for the best comes from the forecast of Bobby Lee, co-founder of one of the largest Chinese exchanges. So, through his Twitter account, he made a more than optimistic forecast for 2020 regarding Bitcoin. According to Bobby, in the coming years, this crypt will increase significantly in price, its level will reach 60 thousand dollars per coin. At the same time, the level of total capitalization will cross the trillion dollar mark. This will serve to stabilize the exchange rate, increase its liquidity, and contribute to the adoption of the coin all over the world.