Bitcoin Open Source Money on Blockchain

What is Bitcoin

Bitcoin technology

Bitcoin is the first decentralized digital currency that was established on January 3, 2009, by Satoshi Nakamoto who is a mystical person or organization, Bitcoin is the currency that has no central management as in banks by the administrator, Bitcoin is based on peer to peer technology, which is every transaction is confirmed without any intermediaries, which of course reduces the costs, network, and verification, Bitcoin works on the principle of nodes connected to each other, it causes everything that remains the saved cannot be changed because the information is stored in hundreds or thousands of nodes and if something else has been changed in one node, the other nodes do not allow this change because the data is inconsistent. Additionally, nodes go through cryptography, i.e. encryption, and save public records the so-called distributed ledger, i.e. records of all transfers and transactions.

Peer to peer, nodes, cryptography, distributed ledger jest to Blockchain, blocks connected with each other, in theory, to change something to Blockchain, you would have to take over 51% of the network, which makes the best and safest database available at the moment developed, also in quantum theory, computers in the future will be able to do this.

Proof of Work Bitcoin

This is the concept of rewarding miners who keep the entire bitcoin ecosystem and put in new blocks in the chain get Bitcoin as part of remuneration, the reward is given every few minutes and every four years there is a so-called halving that reduces the reward by half and is their fore an asset anti-inflationary, the reward is estimated in the so-called hash rate, i.e. the power and speed of the processors mainly graphics GPUs, i.e. so-called miners that consist of many such graphics cards or other specialized devices used to mine Bitcoin.

This can be compared to gold mining and this is probably the best comparison as Bitcoin is digital gold. In order to extract the gold from the ground and smelt it into bars, it took a lot of energy and work of many people and institutions, So I have a similar situation with Bitcoin, which to obtain, we need to invest in the equipment that I need a lot of electricity and of course Internet access.

Circulating and Supply limit of bitcoin

Circulating February 2021 is 18,616,606.00 and max supply is 20,999,999.98 the last Bitcoin will be mined on May 7th, 2140 which makes bitcoin limited, it cannot be reprinted and many wallets have been lost so far, it is estimated that from 20% to 30% of Bitcoin disappeared forever.

White Paper Satoshi Nakamoto

source: Google Wikipedia

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