Top 10 facts that you should know about bitcoin
It is through electronic Bitcoin wallet that bitcoin transactions are sent and received. They are digitally signed for security. Everyone in a Bitcoin network knows about upcoming and concluded transactions. The history of concluded transactions can be traced all the way back where bitcoin was conducted and produced.
This cryptocurrency has gained exponential rise nowadays, generating massive interest among people for its use. It has gained acceptance, and its use is well known. So, with it great upcoming, below are discussed facts about bitcoin you should know.
- The first ever Bitcoin transaction involved 10 bitcoins
Hel Finney was the first receiver of bitcoin in 3rd Jan 2009. He downloaded bitcoin software on the same day it was launched and received 10 bitcoins from Nakamoto. This was the first block to be mined 8 years ago.
Finney worked with PGP Corporation a well-known organization for providing encrypted products. But he also worked to generate cryptographic digital currencies with Wei Dai and Nick Szabo, who are acknowledged for initiating bitcoin cryptocurrency.
When Nakamoto announced the release of the software, he grabbed that chance right way making Bitcoin to record its first transaction in the real world. Tragically, the first receiver was diagnosed with ALS in the same year.
- Nakamoto identity is yet to be confirmed
Satoshi Nakamoto is the name used by the person/s who generated bitcoin cryptocurrency. This unknown person or persons designed and implemented the original reference of bitcoin. He created the first-ever blockchain database to solve the double-spreading problem for digital currencies.
He is claimed to be a Japanese man born on 5 April 1975 known for inventing bitcoin and implementing its first blockchain as well as deploying the first-ever decentralized cryptocurrency. He is believed to have a scientific career with cryptography, computer science and digital currencies as the major field.
Nakomoto created a website bitcoin.org and collaborated with other developers of bitcoin software up to May 2010. He handled over source code and network alert key to Gavin Andresen.
However, the speculation about the true identity of Nakamoto focuses on some cryptography experts of non-Japanese ascent, living in European countries and the United States.
- Bitcoin is highly volatile becoming the leading cryptocurrency in the world.
Bitcoin has become a booming global digital currency despite negative criticism from its surrounding. Bitcoin may seem unregulated method of payment, but it has managed to penetrate online and offline transactional world in just 8 years of its existence.
As a matter of fact, governments and central bank are worrying about loss of their role to control money demand and supply over investment backs and commercial banks.
Blockchain technology has re-energized and unlocked transactions creating an online sharing economy. Looking at bitcoin widespread commercial rates and interests, bitcoin is here to stay and glow tall
Bitcoin has taken the cryptocurrency market place entirely. It has reached a mark of 900 cryptocurrencies available on their web’s digital currency bazaar. Regarding market capitalization, bitcoin is the largest blockchain network in the world.
- It is impossible to know the sender/receiver details
Bitcoin has created a platform for both sender and receiver to transact anonymously. It provides anonymous and private transactions such that no one knows who you are and if you purchased something online, the amount remains unknown.
Since the details are recorded nowhere in bitcoin protocols, and the holder of s transaction ledger has no limit to the number of bitcoin address, and still balances are brought forward to a new address, there are no loopholes to link any kind of information.
- Pizza was the first item to be purchased using a bitcoin
The pizza was the first ever item to be bought using a bitcoin. Laszlo Hanyecs a developer of bitcoin completed the first ever purchase in 2010. He bought two pizzas worth 10, 000 bitcoin, a cryptocurrency worth $21,000,000 today.
By that time, there was no single business accepting bitcoin as a method of payment. Today, it is used to purchase all kind of items and services. 1 bitcoin can buy you more than 100 pizzas let alone the 10,000 that Laszlo used to buy 2 pizzas in 2010.
- There are no bitcoins physical existences
Bitcoins don’t exist in any form anywhere, not even on a hard drive. Bitcoin is not like other currencies such as dollars and Euros held in banks. When you look at a specific bitcoin address, there is no bitcoin whatsoever held in it. In fact, you cannot point out a physical item or a digital file and say this look like a bitcoin.
However, there exist records of bitcoin transactions between different addresses with increasing and decreasing balances. What happens is that, when a transaction takes place and successfully get closed, its transactions are then stored in a public ledge known as the block chain. That’s it.
- Bitcoin has been set in the outer space
Since its establishment in 2009, bitcoin has come a long way. Recently, Genesis mining, a major company that bitcoin uses for mining has conducted the first P2P financial transaction in the outer space.
Macro Streng, CEO of genesis mining had to say “bitcoin community started using the phrase ‘to the moon’ when the growth of digital currency started growing. We hope its value and the value it returns to the world will continue to grow and we believe firmly that there are no limits to its success.”
Well, with that said, bitcoin believes technology can be used to make our lives better. They have taken another step towards private space enterprise.
- Bitcoin transactions are irreversible
When correctly used, bitcoin transactions on blockchain are irreversible and final. Once bitcoin has been sent to the receiver, it cannot be reversed. There is nothing you can do to reclaim the transaction no matter the excuse. A transaction is enforced using pure mathematics, and it’s not a legal contract in any way. In fact, people are describing it as “digital cash.”
- Supercomputers are less powerful than bitcoin network
Bitcoin network has become more powerful than 500 supercomputers combined. Setting up more than 500 supercomputers together would cost billions of dollars with the massive hardware involved. Bitcoin network is 8 times faster compared to 500 plus supercomputers.
Bitcoin network is the first computer capable of mining quintillion floating point calculations in one second. Bitcoin mining is devoted to solving cryptographic puzzles per every 10 minutes to produces bitcoins.
Bitcoin has brought the fastest supercomputer in the 21st Century but only be used to mine bitcoin.
- No single entity that controls the bitcoin
The general concept of money is that banks and other financial institutions control it. Government is always on the frontline to enforce financial measures through the central bank that will regulate the demand and supply to have reliable and stable currencies. The biggest concern being devalued currencies that can easily ruin the economic status of a country.
Bitcoin does not require regulation of any entity at all. It is regulated by those using it. The unique thing with bitcoin is being mined using a computer program to solve mathematical to verify transactions across the globe. It, therefore, doesn’t need any regulation from a third entity. In fact, it can’t be held physically like money. So, it’s pointless to oversee its transaction activities.