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What is http://cqms.skku.edu/b/lecture/816979 ?Bitcoin is a digital currency that was created decentralised at the beginning of January in 2009. It is based upon the ideas laid in a paper by the unknown and pseudonymous Satoshi Nakamoto.12 While the identity of the person or individuals who developed the technology remains unknown. Bitcoin promises lesser transaction fees than traditional online payment methods in comparison to government-issued currencies the Bitcoin system is run by a decentralized authority.Bitcoin is known as a type of cryptocurrency since it uses cryptography in order to keep it safe. There are no physical bitcoins. Only balances which are stored in a public ledger that all have access to (although each record is protected). Every one of Bitcoin transactions are verified by a massive amount of computing power via a process called "mining." Bitcoin isn't authorized and is not backed by any banks or government however, neither is an individual Bitcoin a valuable commodity. Despite not being legal tender in most parts across the globe Bitcoin becomes very well known and has spurred the development several other cryptocurrencies also known collectively as altcoins. Bitcoin is usually abbreviated to BTC when it is traded.Key TAKEAWAYSThis was the first cryptocurrency to be launched in 2009. Bitcoin is the world's most valuable cryptocurrency in terms of market capitalization.The difference between Bitcoin and fiat currency is that Bitcoin is created as a currency that is distributed, traded and stored as part of an uncentralized ledger system known as a Blockchain.The history of Bitcoin as a currency store has been turbulent. It has experienced several periods of boom and bust in its relatively short lifespan.* As the first online currency to enjoy widespread acceptance and gain popularity, Bitcoin has inspired a number of other cryptocurrencies that have followed as a result.<img width="344" src="">What Is BitcoinUnderstanding? BitcoinThe? Bitcoin system is a network of computers (also known as "nodes" as well as "miners") which all have Bitcoin's source code and its cryptocurrency. As a metaphor, a bitcoin could be considered a set of blocks. In every block, there is the result of a series of transactions. Because all of the devices running the blockchain are running the exact same list of blocks as well as transactions and are able to look at these blocks to see if they're filled with the latest Bitcoin transactions, no one will be able to bribe the system.Everyone, whether they manage an Bitcoin "node" and not--can witness these transactions happening in real-time. To commit a criminal act someone will require operating 51 percent of the computing power that comprises Bitcoin. Bitcoin has around 13,768 full nodes, from mid-November 2021 and that number is rising which makes an attack quite unlikely.3If the attack did occur, Bitcoin miners--the people who are part of the Bitcoin network by using their computers likely be split into a new blockchain, rendering all the efforts the perpetrator has put into executing this attack ineffective.Funds in Bitcoin tokens will be maintained with the public and private "keys," which are long strings of letters and numbers connected by the mathematical algorithm that creates them. The key that is public (comparable to a bank account number) is used to identify the account number that is publicized to the world and is the address to which other people can transfer Bitcoin.This private secret (comparable to an ATM PIN) is designed to be secure and can only be used for authorization of Bitcoin transmissions. Bitcoin keys should not be confused the Bitcoin wallet that is a physical computer that allows trade of Bitcoin and allows users to identify ownership of coins. The word "wallet" can be incorrect since Bitcoin's centralized nature means that it's not kept "in" in a wallet however, it is instead distributed on a blockchain.Peer-to-Peer TechnologyBitcoin? is among one of the first crypto currencies that utilize peer-to-peer (P2P) technology to enable fast payments. The independent individuals and companies who have the authority over computing power and take part in the Bitcoin network--Bitcoin "miners"--are responsible for processing transactions on the blockchain. They are motivated by rewards (the launch of the new Bitcoin) and transaction fees that are paid in Bitcoin.Miners can be considered as the decentralized authority enforcing the credibility that is the Bitcoin network. New bitcoins are released into miners at fixed but constantly decreasing rate. There are just 21 million bitcoins available to be mined in total. At the time of writing, there's over 18.875 million Bitcoin on the market and not more than 2.125 millions Bitcoin remains to mine.4This is how Bitcoin as well as other cryptocurrency works differently from fiat currency; with centralized banking systems the currency is released at a speed similar to the expansion of economy. This system is designed to ensure the stability of prices. A decentralized system, similar to Bitcoin allows the release rate prior to time , and based on an algorithm.Bitcoin MiningBitcoin? mining is the process in which Bitcoin is released into circulation. The majority of mining tasks involve solving complex computational puzzles to find an undiscovered block that is added onto the Bitcoin blockchain.Bitcoin mining improves the security of transactions across the network. Miners earn Bitcoin The reward is decreased by half every 210,000 blocks. In 2009, the block rewards was fifty new bitcoins as of 2009. On May 11, 2020, the third halving occurred, bringing the price for each discovery reduced to 6.25 bitcoins.5Many different types of hardware can be used to create Bitcoin. However, some hardware yield greater payouts than other types of hardware. Certain computer chips, known as applications-specific integrated circuits (ASICs) along with more advanced processing units, like graphics processing units (GPUs) can earn more rewards. These elaborate mining processors are known as "mining rigs."One bitcoin is divided to one eighth decimal (100 millionths of a bitcoin), and this lowest unit is commonly referred to as Satoshi. Satoshi.6 If required and the participating miners are willing to accept the change, Bitcoin could be made divisible by even more decimal places.The Early Timeline of BitcoinAug?. 18, 2008A domain named Bitcoin.org is registered.7 Today, at least, this website is WhoisGuard? Protected, meaning the identity of the person who registered the domain isn't public information.Oct. 31, 2008An individual or group under the name Satoshi Nakamoto issues an announcement in the Cryptography Mailing List at metzdowd.com: "I've been working on the creation of a new electronic money system which is 100% peer-to -peer, with no trusted third party." The now famous white paper was published on Bitcoin.org with the title "Bitcoin: A Peer To Peer Electronic Cash System," would eventually become The Magna Carta for the way that Bitcoin operates today.1Jan. 3, 2009First Bitcoin block is mined - Block 0. It's also referred as"the "genesis block" and includes the words: "The Times 03/Jan/2009 Chancellor at the brink of another bailout of banks," possibly to prove that blocks were mined on or shortly after this date, and perhaps as a relevant political commentary.8Jan. 8, 2009The initial release of the Bitcoin software is announced via people on the Cryptography Mailing List.Jan. 9, 2009Block 1 is mined and Bitcoin mining gets underway.Who Is Satoshi Nakamoto?There is no consensus on who invented Bitcoin and Bitcoin, at least not in a definitive way. Satoshi Nakamoto is the name associated with the man or group of individuals who published the initial Bitcoin white paper , which was published in 2008, and who worked on the original Bitcoin software that was made available in 2009.1 In the years since then, many individuals have either claimed to be or have been believed to be true to the pseudonym. However, as of the end of November in 2021 the actual persona (or people's identities) for Satoshi Nakamoto remains obscured.It's tempting think that Satoshi Nakamoto is only a single creative genius, who created Bitcoin out from the air, such innovations aren't typically created in the vacuum of. All major discoveries in science, regardless of how unique the idea was built on established research.There are precursors to Bitcoin Adam Back's Hashcash developed at the time of 1997, then Wei Dai's B-money, Nick Szabo's bit gold, as well as Hal Finney's Reusable Proof of Works. Its Bitcoin white paper in itself references Hashcash and b money as well alongside other works from different research fields. Most likely, those behind the various project mentioned above have also been considered to also have some involvement in the creation of Bitcoin.There are a few possible motives for Bitcoin's Inventor to protect their identity. One reason could be privacy: As Bitcoin continues to gain popularity and becoming something of a global phenomenon, Satoshi Nakamoto is sure to draw significant focus from the media, and from the government. Another reason could be the possibility for Bitcoin in the future to trigger a major disruption to the current financial and banking system. If Bitcoin were to gain mass acceptance, it would surpass the nation's sovereign fiat currencies. This threat to existing currencies could lead governments to initiate legal steps against Bitcoin's creator.Another reason is the security. In 2009 alone, there were 32,490 block mined. in the case of a reward rate in the range of 50 Bitcoin to each block payout in 2009 was 1 624,500 Bitcoin.9 It is possible to conclude that only Satoshi and maybe a few other people were mining in 2009 and possess a majority of that stash of Bitcoin.Anyone who has this massive amount Bitcoin could end up becoming a potential target for criminals, particularly considering that Bitcoin is less like stocks and more like cash in which the private codes needed for approving spending can be printed out and literally hidden in a mattress.Though it's likely the inventor of Bitcoin will have the foresight to make any transfers involving extortion identifiable, keeping your identity private is a great way for Satoshi Nakamoto to limit exposure.Special BeaconsBitcoin? as a form of paymentBitcoin is accepted as a means of payment for the sale of products or services that are offered. Brick-and-mortar retailers can put up an advertisement that reads "Bitcoin is accepted at this location"; the transactions can be processed using a hardware terminal , or wallet addresses via QR codes or touchscreen applications. An online business can easily accept Bitcoin by adding this payment option to its other payment options online like credit cards, PayPal? or other similar payment methods.El Salvador became the first nation to adopt Bitcoin as a legal tender in June 2021.10Jobs in the field of BitcoinIndividuals? who work for themselves can be compensated for their work connected to Bitcoin. There are a variety of ways to get this done which includes creating any online service and then adding you Bitcoin payment address on the site to be used as a means of payment. There are numerous jobs boards and websites which are dedicated to digital currencies.* Jobs4Bitcoins is an affiliate of Reddit.com.* BitGigs? describes itself as "a Bitcoin job board."* Bitwage allows you to select a portion of the salary you earn at work to be converted to Bitcoin and sent the money to your Bitcoin address.Investing in Bitcoin0 seconds of 4 minutes, 24 secondsVolume 75%4:24How do I buy BitcoinMany? Bitcoin supporters believe that digital currency is the way of the future. Many who advocate Bitcoin believe that it provides the speed of transactions and is a low-cost method of payment for transactions across the world. Though it's unsupported by any government or central banking institution, Bitcoin can be exchanged against traditional currencies. As a matter of fact, the exchange rate against the dollar draws potential investors and traders interested in the currency market. One important reason behind the increase in digital currencies like Bitcoin is that they can provide an alternative to government-issued fiat currency and conventional commodities like gold.In March 2014 the IRS announced that all digital currencies such as Bitcoin are assessed as property instead of currency. Gains or losses made from Bitcoin that is held as capital will be realized as capital gains or losses, and Bitcoin being used as inventory will incur ordinary gains or losses. The sale of Bitcoin that you bought or mined from an outside source, or making use of Bitcoin to pay for goods or services are instances of transactions which are taxed.11Just like any other asset this principle of buying cheap and selling high is applicable to Bitcoin. Most popular means of amassing the currency is through purchasing from a Bitcoin exchange, but there are other methods to earn money and own Bitcoin.The risks associated with Bitcoin InvestingSome? investors, who have become speculative in their investment choices have attracted to Bitcoin because of its rapid rise in price in recent years. Bitcoin reached $7,167.52 on December. 31, 2019 and a year later, had appreciated more than 300 percent to $28,984.98. The value continued to increase during the first half in 2021, and was trading at an all-time record high of 68,000 dollars in 2021.12So, many buy Bitcoin due to its investment value as opposed to its capability to serve as a medium of exchange. But, the lack of any guarantee of value or its digital nature, its purchase as well as utilization carry risks that are inherent to the medium. Numerous investor alerts are published by Securities and Exchange Commission (SEC) along with the Financial Industry Regulatory Authority (FINRA), the Consumer Financial Protection Bureau (CFPB) and other authorities.The idea of a virtual currency is still relatively new as compared to traditional investments, Bitcoin doesn't have much of a long-term track track record or credibility history to support it. As it gains popularity, Bitcoin has become less and less experimental each day. Yet, after only a decade, all digital currencies remain in a stage of development. "It is , in essence, the highest-risk, highest-return investment which you could possibly make," says Barry Silbert President of Digital Currency Group, which builds and invests in Bitcoin as well as blockchain companies.13Risks associated with regulatingIf you are thinking of investing your money in one bitcoin's numerous forms is not for the risk-averse. Bitcoin is a rival for the currency of the nation and can serve as a tool for underground transactions and money laundering, as well as illegal crimes, or tax evasion. Therefore, governments could seek to regulate, limit, or prohibit the use or sale of Bitcoin (and many already have). Others are creating diverse rules.In 2015, for instance there was a change in regulations in 2015. New York State Department of Financial Services finalized regulations that required companies that handle the purchase, sale or storage of Bitcoin to track the identity of their customers, employ an internal compliance officer, as well as maintain capital reserves. All transactions that cost $10,000 or more should be noted and reported.14The lack of uniformity in regulations about Bitcoin (and the other digital currencies) poses questions regarding their durability, liquidity and their universality.Security riskMany who own and use Bitcoin don't have Bitcoin tokens by mining operations. Rather, they buy and sell Bitcoin and different digital currencies on any of the many popular online markets and are also known as Bitcoin marketplaces. They also have cryptocurrency exchanges.Bitcoin exchanges are completely digital . Like any other online system, are vulnerable to hackers infiltration, malware, and operating issues. If a thief gains access to the Bitcoin owner's computer hard drive and steals their encryption key private and the Bitcoin could be transferred from money stolen from Bitcoin to another account. (Users can avoid this when their Bitcoin is stored on a PC that's inaccessible to Internet connectivity, or else by opting for ink-jet printers to print the Bitcoin private address and keys and not keeping them on computers at all.)Hackers could also attack Bitcoin exchanges, and gain entry to multiple accounts as well as digital wallets where Bitcoin could be stored. One especially notorious hacking incident occurred in 2014 when Mt. Gox was a Bitcoin exchange located in Japan was forced to shut down following the theft of millions of dollars worth of Bitcoin have been stolen.This is a particular issue given that all Bitcoin transactions are irrevocable and irreversible. Like cash: Any transaction carried out by Bitcoin is only reverseable after the person who received the Bitcoins refunds the money. There is no third-party or payment processor, as for either a credit or debit card. As such, there is that there is no recourse or appeal if there is any issue.Risk of insuranceCertain investments are protected by Securities Investor Protection Corporation (SIPC). Securities Investor Protection Corporation (SIPC). Normal bank accounts are insured through the Federal Deposit Insurance Corporation (FDIC) up to a certain sum, depending on the region.Generally speaking, Bitcoin trading platforms and Bitcoin accounts aren't insured by any federal or government program. In the year 2019, prime trader and dealer SFOX announced that it would be able to provide Bitcoin customers with FDIC insurance, but only for the portion of transactions involving cash.15Fraud riskAlthough Bitcoin uses encryption with private keys in order to verify the identity of its owners and also to register transactions, scammers and fraudsters might try to sell fake Bitcoin. For example, in July, 2013 the SEC filed a lawsuit against an operator of a Bitcoin-related Ponzi scheme.16 There are also cases of Bitcoin price manipulation, which is a well-known type of fraud.Market riskLike any investment, Bitcoin values can fluctuate. In reality, Bitcoin has experienced wild volatility in the price throughout the span of its existence. Affected by high volumes of buying in exchanges and sales it is extremely sensitive to any newsworthy events. It is reported by the CFPB, the price of Bitcoin declined by 61% on only one day of 2013, and the all-day record-breaking price drop recorded in 2014 was as large as 80%.17When fewer people decide to recognize Bitcoin as a currency, Bitcoin's digital currency could decrease in value, and even become useless. There was even the possibility of there was a "Bitcoin bubble" had burst after the price fell from the all-time top during the cryptocurrency surge in late 2017 and early 2018.There's plenty of competition. Even though Bitcoin has an enormous advantage over other digital currencies that have sprung up because of its brand recognition and venture capital funding but a technological breakthrough the form or a better virtual currency will always pose at risk.$68,990Bitcoin's all time high price that was set on Nov. 10, 2021.12A split in the Cryptocurrency CommunitySince? Bitcoin first came out, there's several instances where conflict between developers and miners caused massive divisions within the cryptocurrency community. In a few of these instances there have been instances where groups of Bitcoin users and miners have altered the protocols of the Bitcoin network.This process is known in the industry as "forking," and it generally leads to the creation an entirely new kind of Bitcoin with a name change. It could be described as a "hard fork," in which a new cryptocurrency shares its history of transactions with Bitcoin up until a decisive split time, at which point it is created a brand new cryptocurrency. Some examples of cryptocurrency that have been made as a result of hard forks include Bitcoin Cash (created by August 2017,), Bitcoin Gold (created in October 2017) as well as Bitcoin SV (created around November of 2018).<iframe src="https://www.youtube.com/embed/OfVumcKtpG8" width="560" height="315" frameborder="0" allowfullscreen></iframe>"Soft forks "soft fork" is a change to the protocol that is still compatible with previous system rules. For instance, Bitcoin soft forks have added functionalities such as the segregated witness (SegWit?).Why is Bitcoin Important?Bitcoin's value has grown exponentially within the space of a decade. Its value has increased from under $1 in 2011 to nearly $68,000 in the year 2021 as of November. The value of Bitcoin comes from various sources, including relative lack of supply, the demand for Bitcoin, and its marginal cost of production. As such, even though the currency is intangible, Bitcoin commands a high estimation, with an overall market cap of $1.11 trillion at the time of November 2021.12Do you think Bitcoin a Scam?Although Bitcoin is not real and cannot be touched, it is certainly real. Bitcoin has been around for more than 10 years, and the system has proven to be reliable. The code running the system, in addition, is accessible to anyone and can easily be downloaded for analysis in any way by anyone interested in identifying bugs or evidence of an egregious motive. Of course, fraudsters could attempt to swindle people out of their Bitcoin or hack websites like crypto exchanges however these are issues with user behavior or applications that are third party and not in Bitcoin itself.In what amount of Bitcoins Are There?The highest number of bitcoins to be created is 21, million, and the last bitcoin is expected to be mined at some point near the year 2140. In November 2021, the more 18.85 million (almost 90%) of bitcoins had been mined.18 In addition, the researchers estimate that up to 20% of the bitcoins were "lost" due to people forgetting their private keys or passing away without leaving access instructions, or sending bitcoins via unusable addresses.19Should I Capitalize the B on Bitcoin?By convention, use a capital B when discussing the Bitcoin network the protocol, system, or. Use a smaller B when discussing Bitcoins individually as a currency of value (for instance, I paid 2 bitcoin).Where Can I Buy Bitcoin?There are a number of online exchanges that allow you to purchase Bitcoin. Also Bitcoin ATMs, kiosks connected to the internet where you can purchase bitcoins using cash or credit cards--are popping up around the world. If you've got someone else who has bitcoins, they might be willing be willing to sell them direct, with no exchange requirements whatsoever.