Bitcoin: currency of the future, or scam of the century? Find out everything you need to know about the most famous cryptomoney: history, how it works, dangers, advantages, and above all how to invest in BTC and eventually get rich (we hope you do)…
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The Bitcoin is a digital currency created in January 2009. It is a cryptomoney, also called virtual currency. It is a totally virtual currency.
It could be defined as an “online” version of the money. It can be used to purchase products and services, and more and more businesses are accepting it.
This virtual currency came into being in the wake of the 2008 real estate crisis, in a context of uncertainty and mistrust with respect to traditional monetary systems.
The concept and operation of Bitcoin are presented in a white paper written by the mysterious “Satoshi Nakamoto”……considered to be the creator of this technology and whose true identity is unknown.
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This encryption offers the promise of lower transaction fees than other traditional online payment mechanisms. Its However, its real advantage is its decentralizationThis is in contrast to currencies created by governments.
It there is no physical Bitcoin. This currency is entirely virtual, and is based on balances maintained on a public register accessible to all. Bitcoin is created, distributed, exchanged and stored through this decentralized registry called the Blockchain or chain of blocks.
Similarly, allbitcoin transactions are available for consultation. in a transparent manner. These transactions are verified by a system requiring immense computing power.
Due to its dazzling popularity, Bitcoin has set a real trend. Numerous other cryptomonnages have emerged since then. They are called “altcoins”. However, the “BTC” remains the most important cryptomony in terms of capitalization.
How does Bitcoin work?
To understand how Bitcoin works, it is necessary to understand the different elements on which its operation is based. Here’s the bottom line.
What is the blockchain?
Bitcoin is one of the first digital currencies based on peer-to-peer technology to facilitate instant payments. This currency is based on a set of computers considered as “nodes”.
These computers execute Bitcoin’s code, and store its string of blocks. One blockchain can be defined as a collection of blocks. Each block represents a collection of transactions.
All the computers running this blockchain have the same list of blocks and transactionsand can see new Bitcoin transactions filling the new blocks. It is therefore impossible to cheat this system.
The transactions can be tracked in real time by anyone, without even having to own a “knot”. Transaction history can be tracked, so no one can spend bitcoins they don’t own, make copies or cancel transactions.
What is bitcoin mining?
Individuals and companies owning part of the computing power on which Bitcoin is based, and participating in this network of nodes, are called the “miners”. They provide the power required to process transactions on the blockchain, and are rewarded with new Bitcoin and a percentage of the Bitcoin transaction fee.
Together, the miners form decentralized authority ensuring the security and legitimacy of the Bitcoin network. New Bitcoins are created and paid out to miners over time so that the total number of Bitcoins reaches 21 million. At the end of 2020, approximately 3 million Bitcoins remain to be mined.
Specifically, Bitcoin’s “drilling” consists of exploit the computing power to discover new blocks that can then be added to the blockchain. This is how new bitcoins are created.
In 2009, the discovery of a new block was rewarded with 50 new Bitcoins. However, for every 210,000 blocks, this reward is halved. In 2020, it amounts to 6.25 Bitcoin.
Various types of hardware can be used to mine Bitcoin. Some, however, offer greater rewards. This is the case with ASIC (Application-Specific Integrated Circuits) chips or GPUs (Graphic Processing Units).
A bitcoin can be divided to eight decimal placeswhich is 100 millionths of a bitcoin. The smallest unit is called Satoshi. In the future, if necessary, it may be possible to divide Bitcoins even further.
What is a Bitcoin portfolio?
Bitcoin token balances are kept up to date. using public and private keys. These keys are long series of numbers and letters linked by the encryption algorithms used to create them.
A public key is similar to an account number and serves as an address to which Bitcoin can be sent. The private key is similar to a credit card code, and is used to authorize bitcoin transfers.
Bitcoin owners can store this encryption currency on virtual portfolios. These devices facilitate exchanges and allow users to keep track of their assets.
He’s very easy to send Bitcoin to a wallet. Simply select the amount and enter the address of the portfolio in question. In the same way, you can provide your wallet address to a person to send you Bitcoin.
What are the benefits of Bitcoin?
Bitcoin has several advantages. First of all, it allows confidential and secure transactionswith relatively low costs. Transactions do not contain any personal information, eliminating the risk of data leakage or identity theft.
The other strength of Bitcoin is its huge growth potential. Many investors are holding on to their Bitcoins, betting that their value will rise to new heights when cryptography is truly democratized.
This virtual and decentralized currency also makes it possible to avoid traditional intermediaries such as banks and governments. A major advantage in a context of economic crisis and recession .
The History of Bitcoin
L’Bitcoin’s history begins August 18, 2008when the domain name bitcoin.org is registered. Today, this domain is “WhoisGuard Protected”. This means that the identity of the person who registered this domain name is not made public.
A few months later, on October 31, 2008, a man named Satoshi Nakamoto makes an announcement on The Cryptography Mailing list of the metzdowd.com website. It announces that it has developed “a fully peer-to-peer, third-party free electronic cash system”. This white paper lays the foundation for Bitcoin and cryptography.
January 3, 2009, the first block of Bitcoin is mined.. This is block 0, also known as “genesis block”. This block contains the enigmatic text “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks”. It can be interpreted as a political commentary .
Subsequently, on January 8, 2009, the first version of the Bitcoin software is announced on The Cryptography Mailing list. Block 1 will be mined on January 9, 2009, and the gold rush begins worldwide. The first transaction takes place on January 12, 2009.
In December 2009, version 0.2 of the software was launched. On November 6, 2010, the million-dollar milestone of capitalization is exceeded.
In October 2011, Bitcoin’s first “fork gives birth to the Litecoin. Another key date: on 3 June 2012, block 181919 is created with 1322 transactions and remains the largest block to date.
September 27, 2012, the Bitcoin Foundation is formed. A second fork takes place on August 1, 2017 to form Bitcoin Cash. In September 2017, China bans BTC trading and sows doubt.
Despite this, in December 2017, the Bitcoin phenomenon takes the world by storm and this cryptomony reaches a record high… before the value of the crypto-currency collapses by 80%. in September 2018.
Late 2020, however, Bitcoin beats its value record again and passed the symbolic $20,000 mark. There is every reason to believe that the story has just begun…
Who invented Bitcoin? Who is Satoshi Nakamoto really?
No one really knows who invented Bitcoin. The Satoshi Nakamoto’s name is just a pseudonymand could just as easily point to an individual or a large group behind this cryptomony…
From many individuals have self-proclaimed creators of Bitcoin and claimed to be the real Satoshi Nakamoto. However, to date there is no concrete proof…
Several reasons may explain Satoshi Nakamoto’s desire to remain anonymous. The most obvious seems to be privacy protection. Bitcoin has become a truly global phenomenon, and its inventor would undoubtedly be harassed by the media and the public if he were to come out into the open.
In addition, Bitcoin represents a threat to banking systems and current monetary policy. If this cryptomony manages to surpass national currencies, governments would risk taking legal action against its creator.
Besides, at the moment, this person probably became extremely wealthy thanks to Bitcoin. In 2009, 32,489 blocks were mined with a reward rate of 50 BTC per block for a total of 1,624,500 BTC. By the end of 2020, this amount is equivalent to more than $30 billion.
Logically, Satoshi was one of the first to mine Bitcoin and probably owns most of the Bitcoin in circulation. So by revealing his identity, he would risk being targeted by criminals around the world.
Before Nakamoto, Hashcash was invented in 1997 by Adam Back. Among the precursors of the BTC, we can also mention the b-money of Wei Dai, the bit gold of Nick Szabo, and the Reusable Proof of Work of Hal Finney. The original Bitcoin white paper quotes Hashcash and b-money among other research work from various disciplines .
How do you earn Bitcoins?
Let’s get to the heart of the matter, which is perhaps the main reason for your presence on this page: how to earn Bitcoins. There are several methods.
Becoming a bitcoin miner
As mentioned before, the main technique for winning Bitcoins is mining. To become a miner, you must invest in powerful computers to create a rig.
By using the power of these machines to discover and add new blocks to the blockchain Bitcoin, you will receive a percentage of the new Bitcoins generated over time. However, it is becoming increasingly difficult to get rich from bitcoin mining.
It now takes several years to hope to earn a Bitcoin through mining. In addition, this operation could cost you more in electricity that what it would get you…
Receiving Bitcoin as payment
Bitcoins can nowadays be accepted as payment for many products and services. If you run a shop or store, you can offer your customers to pay in Bitcoins.
All you have to do is invest in a terminal, or simply display a QR code linked to the address from your wallet. Similarly, online businesses can add this option in addition to traditional payment methods such as credit cards or PayPal.
Receive your salary in Bitcoin
If you are a self-employed or freelance, you can be paid in Bitcoins for your work. If you offer an online service, for example, you can simply add the address of your Bitcoin portfolio as a means of payment on your website.
In addition, several platforms specialize in paid employment opportunities in Bitcoin. These include Cryptogrind, Coinality, Jobs4Bitcoins and BitGigs. Similarly, Bitwage offers to convert a percentage of your salary into Bitcoin.
Buying Bitcoin with real money
It is now very easy to buy Bitcoin for real money. All you need to do is create an account on an exchange platform like Coinbase, and to deposit money in euros or any other currency in your wallet.
You can then exchange this money for Bitcoin or any other cryptomony offered on the platform. It is then possible to send these Bitcoins to the recipient of your choice, or to resell them for real money. In some countries, there are also Bitcoin “distributors”.The software is compatible with credit cards.
Investing in Bitcoin
Bitcoin can be used as a means of payment for many products and services. However, to make money, it is it’s also possible to invest in this kind of cryptography. whose value changes over time.
Many people are convinced that this digital currency represents the future of the financial system. It makes it easier, faster and cheaper to pay and therefore has many advantages over traditional currencies.
The exchange rates are often attractive, and the exchange rates are often attractive. Many choose to exchange their savings in euros or dollars, or even raw materials such as gold, for Bitcoins.
Unfortunately, the capital gains realized with Bitcoin are now taxed by the tax authoritiesas in many countries. Despite this, investment in the CTS can still pay off.
As with any asset, the principle of investment is to buy Bitcoin when the price is low to resell them when the price is high. The most common method of buying Bitcoins is through an exchange-type platform. Coinbase, Kraken, eToro are some examples of popular exchange platforms.
However, keep in mind that Bitcoin represents a high-risk investment. Many people have gone broke thinking they could make a fortune, because the price of BTC can rise so dramatically and collapse overnight .
There is also a risk that governments are seeking to regulate or even prohibit the use and purchase of bitcoins. This is already the case in some countries. For good reason, this cryptography is commonly used for money laundering, tax evasion, or illegal transactions, particularly via the Dark Web.
What is Bitcoin worth?
The value of Bitcoin follows the law of supply and demand. Some people covet this currency because it allows them to make anonymous purchases. Others see it as a way to emancipate themselves from the banks.
In any case, for many people it is a resource in which to invest to get rich. That is why the price of this cryptography is extremely volatile..
While its price had reached nearly €17,000 in December 2017, it fell back to less than €3,000 in 2018. Nevertheless, in December 2020, Bitcoin reached a record value of over 18,000 Euros.
Bitcoin: What are the security risks?
To hijack the blockbuster system, a cybercriminal would have need to manage 51% of the computing power alone on which Bitcoin is based. By 2020, Bitcoin is made up of more than 50,000 nodes. It is therefore highly unlikely that a cyber attack on this chain of blocks will ever bear fruit.
The true “risk” associated with Bitcoin is that of lose your wallet or inadvertently delete it. You will then lose your entire fortune irretrievably…
In addition, some websites offering to store Bitcoins have defrauded their users and robbed them of their assets. It is therefore important to use only trusted platforms.
Trading platforms can also be targeted by hackers. In 2014, the Japanese exchange Mt. Gox was hackedand the equivalent of millions of dollars in bitcoin was stolen.