What is a Bitcoin – The First Ever Centralized Cryptocurrency in World

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What is a Bitcoin? Here we are taking our discussion further to the next level with throwing some light on Bitcoin. As I promised to come up with detailed information on Bitcoin, so I am here with “What is Bitcoin”. For many of us, who are tech-savvy must have gone throw this term “Bitcoin” at any moment of time, some are still unaware of the word. So, here we go:

What is a Bitcoin?

Bitcoin, is the first Cryptocurrency in the world, as invented by Satoshi Nakamoto (still this is not verified) in 2008. It is the first centralized payment system, which works on blockchain and is a sort of replacement of the existing physical currency. It works without any banking system and thus is free from any administrator.

How are Bitcoins generated?

Bitcoins are generated based on the process of mining. For those who are unaware of the word “Mining”, it’s the record-keeping service which is completed through the use of computer processing power. The more is the powerful computer, the more Satoshis can be generated. So, just you read a new term, “Satoshis”. In fact, Satoshis is the subunit of Bitcoin and each Bitcoin contains 100,000,000 units. The miners involved in the process of mining get rewarded with the newly created bitcoins and are also rewarded with the transaction fees upon finding the new block.

Complexity of the Mining Process of Bitcoin
If you really care about the complexity of the mining process of Bitcoin, stay tuned with me; I will surely bring in an article over this process in recent future.

How many Bitcoins are there?

bitcoin

In fact, there are around 21 million Bitcoins, which can be mined ever. As of now, around 16.8 million Bitcoins have been mined, thus totaling to around 80% of them. But for the people, who are really thinking of diving into the mining of bitcoins, they would be really happy to read that the complexity of the mining becomes tougher as the count progresses ahead. Also, a survey stats that we cannot reach to the total cap of 21 million before 2040.  So, you are still left with 22 years from now.

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How will the restricted amount of Bitcoins affect the price?

Since, there is only a limit of total Bitcoins, which can ever be generated, it’s pretty much a surety that the price of Bitcoins is going to increase in the future. However, don’t acknowledge with the increase in the price with easy passing day from today onwards. What I am talking about is the prices after 2 years and so on.

What is the use of Bitcoins?

Bitcoins, which were created as an alternative for the physical currency, are a digital currency, which have the needed muscle to replace the existing currency system around the world. These Bitcoins can be used as a exchange for other currencies, products and services. They just serve the same purpose just like all other physical currency, except with the fact that, they can’t be held in your hand. They are a digital form of currency and will remain so.

Value of Bitcoin

As of now, just at the time of writing, the price of 1 bitcoin is around 8000 dollars. While the price of Bitcoin is changing with each moment, who knows by the time you are reading this article, it has already climbed to 10k levels. Since, there are many exchanges all over the world with the slightest variation in the pricing, the exact price can’t be mentioned here. There are thousands of such exchanges, like Zebpay, Koinex, Unocoin in India to the Bittrex, Binance, Coindesk and many others in the USA.

Did You Know?
Did you know a fact that the Bitcoin registered the highest pricing of around 20k USD?

What are yout thoughts on this article; does this article serve  providing you the sufficient information on ‘What is a Bitcoin?Don’t you want to know more about Bitcoin pricing, historical stats, exchanges and many related facts, mind bobbling facts & Altcoins? Stay Tuned!

READ  9 Bitcoin Fun Facts

Rashid Hassan

Rashid Hassan is a Founder of TechnoMusk, a Technology Blog. A Digital Marketing Expert having more than 6 years of Experience and working in a Private Firm dreams of quitting 10 to 7 job and making TechnoMusk as a Brand Website in the Future! Dream Big, Achieve Bigger!