Bitcoin, A-Z on what you need to know about it

   Hay everyone, it’s getting close to the end of the year, so money is going to be discussed a lot. So in the spirit of money talks, especially now Bitcoin market capitalisation is close to $20,000, I decided to write about one of those means of payment that some of us don’t know about or still on the fence about BITCOIN.

  So we at Yo! D101 decided to look into it, because am curious about it too, so let’s begin.

  • What is Bitcoin
   It is a cryptocurrency, and that just means it’s a exists in a binary format. Used as a medium of exchange and can be used anywhere in the world as a means of payment. Its really breaking boarders. Maybe with it some day, we will leave in a world were everyone uses the same type of currency.

   It has no central bank or single administrator, and this about it scares me, it makes me feel like using them would be like being in a car, with no driver. And That doesn’t feel me with confidence about them, but it’s been in operation since 2009 and still around till today, so that as to say something. 

   Another thing about Bitcoin that raise essential red flags to me, is its invented by unknown group of persons or person going by the name Satoshi Nakamoto and released as open-source software. So this means no one owns or control Bitcoin and everyone can be a part of it. It supposedly allows uses that are not covered by any other payment system.

   Peer-to-peer network is what Bitcoin uses, when Users carry out transactions it is always directly through cryptography, without any third party as a middle man. While transactions are verified by nodes and recorded in a public distributed ledger that is called a blockchain.

 Links to get Bitcoin : 

   https://bitcoin.org/en/
                                     
   https://www.bitcoin.com

  • How Bitcoins are made and their units
  Bitcoins are created as rewards for a process called mining. They can be exchanged for other currencies, products and services.

  Mining is just a record keeping service done with computers. You try to find new blocks to acquire the bitcoins and transactions fees.

  Bitcoins are represented by XBT and BTC, smaller units of bitcoin used are  millibitcoin (mBTC) and satoshi (in honor of the creator). A satoshi is 0.00000001 bitcoin, one of the smallest amount in Bitcoin, it is one hundred millionth of a bitcoin. A millibitcoin equals 0.001 bitcoin, it is one thousandth of a bitcoin or 100,000 satoshis.

  • Short History 
  How it all started, some say Bitcoin was started because the creator felt there was instability in factional reserve banks, some think it was started by a loner genius who lives a recluse life, some say the Nakamoto was not the creator but was given the program by someone or something else and there are many stories about who he, she or they are.Till today Nakamoto’s identity remains unknown. 

  But in 2008 the wheels began to turn for Bitcoin. When author Satoshi Nakamoto’s Bitcoin was posted to a cryptography mailing list. It was released it to the world in January 2009, also in that year the network came into existence after Nakamoto mined the first ever block on the chain, for a reward of 50 bitcoins.

  The first supporter, adopter and contributor to Bitcoin, programmer Hal Finney.was the receiver of the first transaction of bitcoins, receiving 10 bitcoins from Nakamoto.

  Nakamoto handed over the network alert key and control of Bitcoin Core code repository in 2010 to Gavin Andresen and so far having no involvement with Bitcoin again. Nakamoto is estimated to have mined a million bitcoins while in control. Andresen then began to decentralise control, so that even without him or anyone controlling Bitcoin, it would still go on. The value of the first bitcoin transactions were negotiated by individuals on the bitcointalk forums. So to me it’s kind of a trade by barter thing, where value of goods are placed solely by individuals, not by any real economic factor. For example I could decide I want to sell by phone for just 10 bitcoins, if I wanted to one person and sell another phone of the same type for 100,000 bitcoins to another person. As long as the person buying it for me was non the wiser.

  Link to learn more about Bitcoin Click here
  Bitcoin may some day rival traditional means of money transfer but for now this are some of the things holding it back ;
  1. Hacking
  2. Regulatory intervention 
  3. Technology updates
  4. Competition from other cryptocurrencies
  Some people use it as a means of investment and monetary security, some people for tax evasion. Some persons have also voiced their concerns of it being a ponzi or pyramid scheme but with no real proof of this. While some say bitcoin are popular, because of it’s ability to be used to purchase illegal products.

   Also if you are a green person, Bitcoin might not be for you, because the amount of electricity used for mining bitcoins should be around 166.7 megawatts according to The Economist as of 2015. So it might be saving us from economic insecurity but it might be bad for the Earth.

  Bitcoin might just be Fool’s gold or actually a system, that is needed. But for now all we can say for sure is, even with all the ups and downs in CMS, bitcoins are still around today, never reaching rock bottom.

  Please share if you like and leave comments 😊😊😊 I want to hear from you. And if you like this article or it wasn’t to your taste check out our other articles, just click the Yo! D101 to get back to our homepage. 


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