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What is Bitcoin?Bitcoin is a decentralized digital money that was first created during the month of January. It was conceived as a follow-up to the ideas laid by a white note by the unknown and pseudonymous Satoshi Nakamoto.12 While the identity of the individual or persons responsible for the creation of the technology is still a mystery. Bitcoin offers the promise of less transaction costs than other online payment mechanisms do and, unlike currencies issued by the government, Bitcoin is operated by a decentralized authority.Bitcoin is commonly referred to as type of cryptocurrency because it utilizes cryptography to keep it safe. There aren't any tangible bitcoins. Instead, balances are that are kept in a ledger which anyone has access to (although every record is encrypted). All Bitcoin transactions are validated by an enormous amount of computing power through a procedure called "mining." Bitcoin isn't endorsed or backed by any bank or governments either, nor is any individual bitcoin considered a commodity. Although it's not legally common law in the majority that the planet, Bitcoin is very popular and has triggered the creation more than a hundred other cryptocurrency that are collectively called altcoins. Bitcoin is often abbreviated as BTC when it is traded.Key TAKEAWAYSIt was first introduced in 2009. Bitcoin is the biggest cryptocurrency by market capitalization.It is a different currency to fiat currencies. Bitcoin is developed through trading, distribution, and stored with the use of a system of ledgers that is not centralized, which is also known as a blockchain.The history of Bitcoin as a value-added store has been turbulent; it has gone through several cycles of boom and bust in its relatively short span of time.* As the initial virtual currency to gain widespread acceptance and gain popularity, Bitcoin has inspired a numerous other cryptocurrency types as a result.What Is BitcoinUnderstanding? BitcoinThe? Bitcoin system is made up of a number of computers (also referred to as "nodes" or "miners") which all operate Bitcoin's program and maintain its blockchain. Figuratively speaking, a blockchain can be described as a collection of blocks. Every block is it's a set of transactions. Since all the devices running the blockchain are running the same block list that they've made transactions on and be aware of these blocks as they are filled with fresh Bitcoin transactions, no one could cheat the system.Anyone--whether they run a Bitcoin "node" and not, will see these transactions occurring in real-time. In order to commit a crime criminal is required to use 51 percent of the processing power in Bitcoin. Bitcoin has an estimated 13,768 fully functional nodes from mid-November 2021 as well as this number continues to grow and makes an attack highly unlikely.3If such an attack happened, Bitcoin miners--the people who take part in the Bitcoin network by using their computers likely segregate to a new blockchain, rendering what the perpetrator used to launch an attack pointless.Cash balances on Bitcoin tokens are maintained using the public and private "keys," which are long strings of letters and numbers which are connected using the mathematical encryption algorithm that generates them. Public keys (comparable to an account number at a bank) is the address available to the entire world and allows other users to transfer Bitcoin.The private key (comparable for an ATM PIN) is designed to be protected and only used to allow Bitcoin transmissions. Bitcoin keys are not to be confused with a Bitcoin wallet which is a tangible and digital gadget that facilitates the trading of Bitcoin and lets users determine the ownership status of coins. The term "wallet" is somewhat inaccurate since Bitcoin's nature is decentralized. means that it's never stored "in" any wallet, but rather , distributed over the blockchain.Peer-to-Peer TechnologyBitcoin? is among its first digital currency to use peer-to-peer (P2P) technology to enable instant payments. The individuals and corporations who have the authority over computing power and share in the Bitcoin network -- the Bitcoin "miners"--are responsible for processing transactions on the blockchain and are motivated by rewards (the release of a new Bitcoin) and transaction fees that are paid in Bitcoin.These miners can be considered as the decentralized authority responsible for ensuring the integrity in the Bitcoin network. New bitcoins are released into miners at fixed and periodically decreasing rate. There are only 21 million bitcoins available to be mined. As of November 2021, there's over 18.875 million Bitcoin remaining and not more than 2.125 million Bitcoin available to mine.4In this manner, Bitcoin and other cryptocurrency work differently from fiat currencies. within centralized banking systems, the currency is created at a frequency according to the progress of the economy. This system is designed to guarantee the stability of prices. A system that is decentralized, as in Bitcoin will set the release rate ahead of time and in accordance to an algorithm.Bitcoin MiningBitcoin? mining refers to the method by which Bitcoin gets released into circulation. Mining generally requires solving complicated computational problems to identify an entirely new block. Once it is discovered, it is added in the chain.Bitcoin mining increases and confirms record of transactions across the internet. Miners are awarded Bitcoin and the amount is divided by 210,000 blocks. The block reward was 50 bitcoins in 2009. On May 11 on the 11th of May, 2020, the three halves took place, bringing the reward for every block that is discovered reduced to 6.25 bitcoins.5Many different types of hardware can be used as a mining device to extract Bitcoin. But, certain hardware earns higher reward over others. Certain computer chips, referred to as Application-specific integrated circuits (ASICs) and more advanced processing units, like graphic processing units (GPUs) can earn higher rewards. These elaborate mining processors are called "mining drilling rigs."One bitcoin can be divided into the eight decimal place (100 millionths of one bitcoin) This smallest unit is referred to as the Satoshi.6 If it is necessary in the event that the participating miners accept the new format, Bitcoin can be eventually made divisible to even more decimal places.First Timeline of BitcoinAug?. 18, 2008The domain name Bitcoin.org is registered.7 As of today, at minimum, this domain's domain name is WhoisGuard? Protected, meaning the identity of the person who registered the domain does not become public knowledge.Oct. 31, 2008A person or group with the name Satoshi Nakamoto makes an announcement for the Cryptography Mailing List at metzdowd.com: "I've been working on a new electronic cash system that's completely peer-to.peer, and no third-party trusted." This now-famous whitepaper, published on Bitcoin.org called "Bitcoin: A Peer to Peer Electronic Cash System" was to become The Magna Carta for the way that Bitcoin operates today.1Jan. 3, 2009In the beginning, the first Bitcoin block is mined--Block 0. It is also referred to as the "genesis block" as it contains the text: "The Times 03/Jan/2009 Chancellor on the brink of a second bailout for banks," possibly to prove that Bitcoin was mined before or on or after the date, and may also be a political commentary.8Jan. 8, 2009The first version Bitcoin software is made public at this list, the Cryptography Mailing List.Jan. 9, 2009Block 1 is made available for mining, and Bitcoin mining begins.<img width="334" src="">Who Is Satoshi Nakamoto?There is no one who can say who invented Bitcoin, or at minimum, they cannot prove it. Satoshi Nakamoto is the name of the person or group of people who released the initial Bitcoin white paper on the subject in 2008. and developed the initial Bitcoin software which was launched in 2009.1 In the time since when, numerous individuals have either claimed to be or are believed to be authentically the people behind this pseudonym. However, at the time of writing, November 20, 2021, the identity (or details) that are associated with Satoshi Nakamoto remains obscured.Although it's tempting think that Satoshi Nakamoto's a singular clever, quixotic genius who conceived Bitcoin out of thin air, these inventions don't usually happen in an isolated space. Each of the major scientific breakthroughs, regardless of whether they appear to be original have been based on completed research.There are a few precursors to Bitcoin: Adam Back's Hashcash invention in 1997. Later, it was Wei Dai's Bitcoin, Nick Szabo's Bit Gold, and Hal Finney's Reusable proof of Work. Its Bitcoin white paper itself refers to Hashcash and bmoney as well many other pieces of work that span diverse research areas. Most likely, the people behind the other projects mentioned earlier have been suspected of having had involved in creating Bitcoin.There are a few possible reasons that Bitcoin's developer might want to hide their identity. One of these is privacy. Bitcoin continues to gain popularity and becoming something of a worldwide phenomenon--Satoshi Nakamoto will likely attract significant attention from the media and from governments. Another reason could be the possibility for Bitcoin in the future to trigger a major disruption in the current banks and monetary systems. If Bitcoin is able to gain mass adoption, the currency could outstrip sovereign currencies. This threat to existing currency might prompt governments to initiate legal action against the creator of Bitcoin.Another reason is the security. Looking at 2009 alone, 32,490 blocks were mined; at the rate in the range of 50 Bitcoin every block. total payout for 2009 was 1 624,500 Bitcoin.9 One could conclude that it was only Satoshi or perhaps a few other people were mining in 2009 and that they possess the bulk of that amount of Bitcoin.A person with that massive amount Bitcoin could end up becoming a target of criminals, especially considering that Bitcoin isn't as popular as stocks and more like cash in which the keys that are private for approving spending can be printed and placed under a mattress.Although it's possible that the creator of Bitcoin will have the foresight to make any extortion-induced transfers easily traceable, remaining anonymous is an effective way for Satoshi Nakamoto to limit exposure.Special AspectsBitcoin? as a form of paymentBitcoin is accepted as payment on services or goods that are provided. Brick-and-mortar shops can have an announcement that reads "Bitcoin is accepted at this location" In addition, transactions can be conducted using a hardware device or wallet address with QR codes or touchscreen applications. Online businesses are able to accept Bitcoin by including this payment option in the other payment options available online for example credit cards PayPal? as well as other payment options like PayPal?.El Salvador became the first country to officially accept Bitcoin as a legal tender in June 2021.10Bitcoin employment opportunitiesPeople who are self-employed may receive compensation for jobs which is related to Bitcoin. There are a number of methods to achieve this for yourself, including setting up an website and then adding to it your Bitcoin money account on that site in order to make it a way to pay. There are numerous jobs boards and websites that focus on digital currencies:* Jobs4Bitcoins, a subsidiary of Reddit.com.* BitGigs? claims to be "a Bitcoin job board."* Bitwage provides the opportunity for you to choose a certain percentage of the salary you earn at work to be converted to Bitcoin and sent in your Bitcoin address.Investing in Bitcoin0 seconds of 4 minutes Volume 75 percent4:24How to Purchase BitcoinMany? Bitcoin users believe that digital currency is the future. Many who believe in Bitcoin believe that it provides the speed of transactions and is a low-cost transaction system that is accessible to transactions all over the world. Though it's not supported by any central or government banking institution, Bitcoin can be exchanged for traditional currencies. In fact, its exchange rate against the dollar draws prospective investors and traders looking to invest in currency plays. Indeed, one of the major reasons behind the rise of digital currencies like Bitcoin is the ability to serve as an alternative to fiat money in the national economy and traditional commodities such as gold.In March 2014 The IRS declared that all virtual currencies, including Bitcoin will be taxed as property rather than currency. Gains or losses made from Bitcoin used as capital will be recorded as capital gains as well as losses, whereas Bitcoin stored as inventory will suffer normal losses or gains. The sale of Bitcoin you purchased or mined from another party, or any use you make of Bitcoin to purchase goods or services, are examples of transactions that can be taxed.11As with all assets, the notion of buying low and selling high can be applied to Bitcoin. The most popular method for earning the currency is purchasing through the Bitcoin exchange, but there are other methods to earn and own Bitcoin.<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>Risques Associated with Bitcoin InvestingSpeculative? investors have been drawn to Bitcoin following its rapid price rise over the last few years. Bitcoin was worth $7,167.52 at the time of December. 31, 2019 the following year, it its value had risen over 300% to $28,984.98. It increased in the first quarter of 2021, reaching a record high of over $78,000 by November 2021.12This is why many people buy Bitcoin for its potential investment value rather than its ability for use as a mode of exchange. Its lack of guaranteed value and its digital nature means that its acquisition and use are accompanied by a variety of risks. Many investor alerts were released by Securities and Exchange Commission (SEC) along with the Financial Industry Regulatory Authority (FINRA), the Consumer Financial Protection Bureau (CFPB) as well as other organizations.The concept of a virtual currency is still new and in comparison to traditional investments, Bitcoin doesn't have much in the way of a proven track record or any evidence of credibility to back it. Because of its popularity, Bitcoin becomes less and less experimental with each passing day. Nevertheless, after only a decade, all digital currencies are in a developing phase. "It is by far the most risky, highest-return investment you can make," says Barry Silbert as CEO of Digital Currency Group, which invests in and builds Bitcoin or blockchain companies.13Risks from regulationInvesting money in any or all of the Bitcoin's many possibilities is not for the risk-averse. Bitcoin is a rival to currency issued by governments and can be used to carry out underground market transactions as well as money laundering, illicit operations, or tax avoidance. Because of this, governments may seek to restrict, regulate, or ban the use and distribution of Bitcoin (and certain have already done so). Other governments are developing different rules.For instance, in 2015, this year, New York State Department of Financial Services came up with regulations that oblige companies involved in the buying, selling or storage of Bitcoin to track the identity of customers, employ a compliance officer, and keep capital reserves. All transactions of $10,000 or more will have to be tracked and reported.14The absence of uniform rules regarding Bitcoin (and different virtual currencies) raises questions about their sustainability, liquidity and universality.Security RiskMany? who own and utilize Bitcoin don't have tokens through mining operations. Instead, they purchase and sell Bitcoin and other digital currencies at any of the popular marketplaces online, known as Bitcoin and cryptocurrency exchanges.Bitcoin exchanges are electronic and, like any other digital computer system--are vulnerable to hackers as well as malware and operational problems. If a hacker gained access to a Bitcoin owner's hard drive on their computer and steals their encryption key private it is possible to transfer this stolen Bitcoin to another account. (Users can stop this from happening when their Bitcoin is saved on a device that is without internet connectivity or by opting for ink-jet printers to print the Bitcoin private addresses and keys and not keeping the details on a computer all.)Hackers are also able to attack Bitcoin exchanges, getting entry to multiple accounts and digital wallets where Bitcoin can be stored. An especially notorious hacking event occurred in 2014 in which Mt. Gox, a Bitcoin exchange located in Japan, was forced to be shut down after millions dollars ' worth Bitcoin thefts.This is particularly challenging given that the majority of Bitcoin transactions are permanent and irreversible. The same applies to cash transactions The only difference is that transactions made using Bitcoin is only reverseable in the event that the person who accepted them is able to refund the money. There isn't a third party or payment processor in the case of credit or debit cards. Hence, no source of protection or recourse if there's the need to appeal.Insurance riskCertain types of investments are covered through some investments are insured through the Securities Investor Protection Corporation (SIPC). Bank accounts that are normally insured by the Federal Deposit Insurance Corporation (FDIC) for a limited amount that is determined by the country of.It is generally accepted that Bitcoin transactions and Bitcoin accounts are not covered by any government or federal program. In 2019, the prime marketer and trading platform SFOX announced it would be able to provide Bitcoin investors with FDIC insurance, however only for transactions involving cash.15Fraud riskEven though Bitcoin uses encryption with private keys to confirm owners and record transactions, fraudsters and scammers may attempt to sell counterfeit Bitcoin. For instance, in July 2013, the SEC has taken legal action against a perpetrator of an associated Bitcoin Ponzi scheme.16 There are also documented instances of Bitcoin price manipulation, a different usual type of fraud.MarketsJust? like any investment, Bitcoin values can fluctuate. In actuality, the currency has experienced wildly fluctuations in price during its brief existence. As a result of the large volume of buying or selling at exchanges, it has a high sensitivity to any newsworthy event. To the CFPB its data, the price for Bitcoin fell by 61% on the span of a single day in 2013 however, the single day price drop record set in 2014 was as large as 80%.17As fewer people become willing to admit to Bitcoin as a currency the digital units might decrease in value, and even become worthless. In fact, there was the possibility it was possible that bitcoin's "Bitcoin bubble" began to pop when the price dropped from its previous peak during the cryptocurrency explosion in the latter half of 2017 and into the early part of 2018.There's already plenty of competition, and although Bitcoin has a huge lead over the hundreds of other digital coins that have popped up due to its brand recognition and venture capital investment as well, a technological breakthrough the form or a better digital currency is always in danger.$68,990Bitcoin's all time high price which was reached on Nov. 10, 2021.12A split in the Cryptocurrency CommunitySince? Bitcoin has been launched, there's been numerous instances in which disagreements between factions of developers and miners triggered massive conflict within the cryptocurrency sector. In https://bbs.pku.edu.cn/v2/jump-to.php?url=https://bvphusanct.com.vn/Default.aspx?tabid=120&ch=20410 of Bitcoin users and miners have changed the rules of the Bitcoin network.This process is known as "forking," and it typically results in the creation or a new version of Bitcoin with a name change. http://pyttkvtphcm.gov.vn/question/how-to-buy-bitcoin-280/ could be called a "hard fork," which means that a new currency shares the transaction history of Bitcoin up until a decisive split date, when it is created a brand new cryptocurrency. Examples of coins that have been created as a result of hard forks include Bitcoin Cash (created from August 17th, 2017), Bitcoin Gold (created in October 2017) and Bitcoin SV (created on November 2018)."Soft fork" or "soft fork" is a revision to this protocol, which is functional with the existing system rules. For example, Bitcoin soft forks have additional features, such as an segregated witness (SegWit?).Why Is Bitcoin Important?The price of Bitcoin has gone up exponentially within a mere 10 years, from less that $1 in 2011 and now more than $68,000 in the year 2021 as of November. Its value stems from multiple sources, including relative abundance, market demand and marginal value of production. This is why, even though it is not tangible, Bitcoin commands a high valuation, with a total market cap of $1.11 trillion as in November 2021.12Is Bitcoin the definition of a Scam?Even though Bitcoin is a digital currency and cannot be touched, it is certainly real. Bitcoin has been in existence for over 10 years, and the system has proven to be sturdy. The code running the system, in addition, is free and can be downloaded and analysed by anyone who wants to look for bugs or evidence of bad intentions. Of course, scammers could attempt to take people for a ride or steal their Bitcoin or hack websites including crypto exchanges however these are weaknesses in the human behaviour or in third-party software and not Bitcoin the system itself.Do you know how many Bitcoins Can You Find?The most bitcoins that will ever be generated is 21 millions and the last bitcoin is expected to be mined approximately in 2140. The year 2021 is the last time over 18.85 million (almost 90 percent) of these bitcoins have been mined.18 Moreover, researchers estimate that up to 20% of those bitcoins were "lost" because of those who have forgotten their key and dying without leaving access instructions, or transferring bitcoins to unusable addresses.19Should I Capitalize the B on Bitcoin?A common practice is to use the capital B when talking about the Bitcoin network the protocol, system, or. Use a small B when discussing bitcoins as an individual unit of value (for instance, I paid two bitcoins).Where can I buy Bitcoin?There are several online exchanges that let you to buy Bitcoin. Additionally Bitcoin ATMs, which are internet-connected kiosks that let you purchase bitcoins using cash or credit card--have been popping up around the world. If you know someone with bitcoins, they might be willing give them away on their own without any exchange or exchange fees at all.