Bitcoin was the first and most important cryptocurrency. It was created by Satoshi Nakamoto in 2008, a person or group that later disappeared from the stage. There's only going to ever be a maximum of 21M bitcoins in circulation. Currently there are a bit over 11M. More bitcoins are created through a process called mining.
Bitcoins’s rule-based monetary policy was set at its creation and its independence is secured by the distributed nature of the underlying network. This non-discretionary monetary policy can best be described as asymptotic money supply targeting (AMST).
In today’s society, there are many things that we still have no idea what they are. One of those things is the cryptocurrency. By definition, cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Judging by the definition, this could be the fuel to the economy in the upcoming years. But, the main problem is that the banks receive 0% of all transfers of cryptocurrency, meaning that they do have higher value rather than the money themselves. There are many cryptocurrencies available out there but the most prominent one that you have probably heard about a lot in the past several months or year is Bitcoin. So, what exactly is this Bitcoin and how can you get one?
First decentralized digital currency
Bitcoin is the leading cryptocurrency in the world (it has the highest value of all the cryptocurrencies). It is the first decentralized digital currency, as the system works without having a central bank or administrator as presenter for the third party. Bitcoin has been invented in 2009 from an little-known group known to the world as Satoshi Nakamoto from Japan as a open-source software. Little did they know that their product will reach the skies like it did these years. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies (money as well), products and other supplying things. Recently, Japan has brought a law that makes it possible for their citizens to buy cars with bitcoins (without taking extra tax out of it- the original price counts). The bitcoin is kept in a special type of wallet also known as cryptocurrency wallet, and the transactions are followed by a specific procedure who uses cryptography, with recording the transactions to a public distribute ledger known as blockchain.
- “Bitcoin was created to serve a highly political intent, a free and uncensored network where all can participate with equal access.”
- – Amir Taaki
The rise and rise of Bitcoin
So, when did Bitcoin become so popular and famous? It was all spontaneous, but the rise of Bitcoin has started around 2010. Ever since then, the price has only continued to grow and lots of other sources started to mine it and to advertise it, making its price only go higher and higher! Eventually, it became what it is today, at a current price of $14.991.6 as of 07th of January, and the highest price that it ever recorded was something over $16.000. This means that cryptocurrency is something that shouldn’t be taken for granted, and having enough information about any cryptocurrency that is potentially set for another BOOM in financial world could make you millionaire! This is why you need to pay attention and to take notes when it comes to these questions! Bitcoin was first, make sure you don’t miss the second boom on the market! Of course that there are many another available cryptocurrencies, but not every one of them is set to be the highest next one! Bitcoin recently took a slight fall, which means that these prices don’t just go up- be careful if you try to invest in it! This isn’t a 100% sure business and it may as well lead you to a hole if you do not invest smart. It is same like gambling, the difference is that you don’t see the money (cryptocurrencies), you just own them on paper and on the internet!
- “I do think Bitcoin is the first [encrypted money] that has the potential to do something like change the world.”
- – Peter Thiel, Co-Founder of Paypal