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What is Bitcoin, what is it good for, and what can it be used for?

In today’s online world and the Internet Probably no one has heard of the word Bitcoin (Bitcoin), but many of you may not understand what Bitcoin is. Where did you come from? who created it What are the benefits? What can I use it for? How to get it and many more hundreds of questions Today we will be peeling the Bitcoin shell for everyone to know in detail…

What is Bitcoin

Bitcoin is a cryptocurrency with the most market cap and the most popular today. Can be used to buy goods and services around the world Transfers between holders are faster and with lower fees than bank transfers. In other words, Bitcoin is a new currency. But it’s digital money or electronic money. There isn’t the type of coin or paper money that we are used to. Must pay through computing devices such as computers, mobile phones and tablets only.

Bitcoin is a financial system that no one owns. no center (Decentralize) No agency can intervene, direct or direct the direction. The Bitcoin system is designed to be owned by everyone. Can check each other, be transparent, can check every transaction at all times And with the Blockchain technology used to store Bitcoin transactions, it is very strong and secure. Therefore, no one can hack or hack the Bitcoin system.

The history of Bitcoin Bitcoin

was created by an anonymous genius under the pseudonym Satoshi Nakamoto, who until now no one knows who the real creatorAnd after the bitcoins are successfully deployed and working properly. He retired and disappeared in 2010, and with the creation of Bitcoin, he was nominated for the Nobel Prize in Economics. But he himself refused to accept the award. (Where are you going Indy?

Bitcoin itself was created and released to the public in 2009 as open source software. It will be money or digital assets that can be used for real. Can be sent to and around the world freely in a peer-to-peer manner, with no government agencies or banks involved. There is a fast transfer. Can easily shop for everyday life And there is a transfer fee lower than using a bank service.

Satoshi Nakamoto has designed Bitcoin to run on robust technology. Known as Blockchain technology, it collects all the transactions of the migration and the balance of all accounts. (Bitcoin account, we call it a Bitcoin address) and he designed that all the bitcoins that will be generated in the world are only 21 million units. no more Currently, about 16.8 million bitcoins have been created or mined, with an additional 4.2 million will be mined around the year 2140.

And with the limited number and rapidly increasing popularity. This caused the unit price of bitcoin to increase rapidly. From a few cents at the start, to over $13,000 per bitcoin today.

Blockchain Technology

Blockchain is the technology behindevery digital currency. including bitcoin Blockchain is a technology that collects bitcoin transactions in groups or boxes when a certain amount of transactions is reached and those transactions are confirmed to be valid. The boxes are then closed and put together in the Blockchain chain, so no one can go back and edit them. The transactions or subsequent boxes that have been confirmed are then placed one after another and this is where the term Blockchain comes from.

In every transaction storage box (Block) that is stored continuously. It also keeps a record of past continuous transactions. And it is stored on every computer running a Bitcoin node (Copy). When someone attempts to modify the data in the Blockchain, the other machines in the system will immediately recognize it and reject the modification. together Therefore, to hack the system or hack the Bitcoin system. The data in every blockchain has to be edited (because the data is continuous) and the data in every Bitcoin node must be edited at the same time. which is not yet possible with current technology. (Many people say that any day Quantum Computer arrives, that day might be able to which will have to wait and see).

Blockchain technology is now widely used, not only with CryptoCurrency, but also in other areas such as the United Nations data collection. bank transfer system Manufacturing industry, transportation sector, insurance industry Patient information collection and collecting election data, etc.

How good is Bitcoin?

1. No centralized, no owner, everyone is jointly owned
2. It is not controlled by any government or entity
3. It can be transferred worldwide. (via the Internet) freely and quickly Plus, there are very low fees.
4. It has been accepted by many government sandshops around the world.
5. Can be accessed by all types of Computing devices, including computers, mobile phones and tablets.
6. The price goes up and down according to the principle. Demand/Supply No one can set a price or guide it.
7. It’s a growing asset. And the opportunity to profit from holding is very high (just the first 11 months of 2017, the price of bitcoin has increased by 1100%)
8. Can have an anonymous bitcoin account
9. Can exchange back It’s easy to come into baht. There are many exchange websites.
10. It is easy to deposit and withdraw in local currency via Bitcoin ATMs which are rapidly being installed.

Where can Bitcoin be used?

Bitcoin can now be used to buy goods and services all over the world. since the plane ticket Book hotels, accommodation, restaurants,buy goods and services on the Internet. And buy products at department stores, etc. Bitcoin can also be exchanged for cash around the world. In almost all currencies You can also deposit/withdraw cash via Bitcoin ATMs.

Where can we get Bitcoin?

Usually, we can own bitcoins in 3 main ways:

1. Bitcoin mining.

Bitcoin mining is a term that you may hear a lot. In fact, Bitcoin mining is the confirmation of a transaction or transfer of Bitcoin. Because the Bitcoin system is not centralized. or a system to confirm transactions like a banking system Therefore, it relies on a group of users called miners to confirm the transaction instead. Every Bitcoin transaction is encrypted with complex mathematical equations. which cannot be decrypted by ordinary people or computers. But it can only be decrypted with a tool capable of decrypting math equations using the SHA-256 algorithm (SHA-256 Algorithm).

Bitcoin Mining

An example of an ASIC (Application-specific integrated circuit) Bitcoin miner.

2. Accepting payments for goods and services with Bitcoin

Today we can accept payments for goods and services with Bitcoin instead of cash and other cash cards easily and at a low cost. The earned bitcoins can also be kept for investment or exchanged for cash. Currently, there are many service providers or applications for accepting bitcoin payments to choose from.

Bitcoin Accept

Bitcoin is another way of accepting payments for goods and services.

3. Buying bitcoins from the trading board

Today, there are many Thai and international websites that offer bitcoin and other crypto-currency trading services, with the ability to exchange baht, dollar and almost any other local currency. which for the general public This will be the easiest way to trade bitcoin for investment. spending or for travel

Bitcoin Trading

Bitcoin Trading Screen Example

Storing Bitcoins

Storing Bitcoins We will store it in a digital wallet or Wallet, with many types of Wallet available to choose from as needed. We can categorize Bitcoin wallets into large groups as follows:

1. Hot wallet

Hot wallet is the storage of bitcoins in a wallet that can be retrieved easily and quickly, but there is also a high risk of hacking or theft. Mobile or App on PC, which we can use to shop easily or store bitcoins on the web that provides trading platforms (Trading platform) is also considered a hot wallet.

Bitcoin Hot Wallet

Bitcoin Hot Wallet Mobile Example

2. Cold wallet

Cold wallet is an offline way of collecting bitcoins without connecting to the internet. So no one can hack our bitcoins. Unless we lose these cold wallets ourselves. Cold wallet or cold storage that is commonly used is Paper wallet, so it is very important to keep this type of wallet in a safe place. (Don’t let the wife know where to keep it… ha ha)

3. Hardware wallet

Hardware wallet is the storage of bitcoins in a small device that can be connected to a computer via USB port, which is considered a very secure device or method of storage. Because we will only connect to the computer when we need money. There is also a code that must be entered on the device every time before use (technically, Bitcoin is stored only on the Blockchain, so this hardware wallet only stores the private key, which is the key to retrieving the latest data and Bitcoin transactions – same as Paper wallet and Software wallet)

4. Software wallet

Software wallet is a type of computer program. that we have to install onto a computer or mobile device With which we can manage the funds in different accounts independently, these programs are often highly encrypted. difficult to hack But we need to keep our private key and seed keys in a safe place. Because if the computer breaks or has to replace a new computer All account data can be restored with the private key or seed keys, but if the private key or seed keys are lost, everything will be lost forever as well.

Risks of Holding Bitcoin Bitcoin is considered a digital currency with many benefits and advantages. But there are risks and precautions for using and maintaining an account as well. many other countries But the Bank ofThailandhas not announced that it is a currency by declaring it a digital asset (Digital Asset) which users or have in their possession must keep well by themselves . Private key / Seed key put in the safest place to prevent theft of money in your account . The police won’t be able to track us down. Because anyone can own a bitcoin account anonymously.

5. As the price of bitcoin continues to increase This makes it a target for criminals who may be disguised in the form of hackers. Ransomware or a claim/solicitation Invest in bitcoins in the form of a chain of exchanges, etc.

Bitcoin ATM

ATMs for Bitcoin deposits/withdrawals are becoming commonplace.

The term Bitcoin

• Digital currency or CryptoCurrency refers to digital money. It is not paper money or coin money as we are used to
• Blockchain is a technology to collect all kinds of Bitcoin transactions. Including the balance of each account
• Bitcoin Address refers to the Bitcoin account. Which is like a bank account that we are familiar with.
• Mining means mining or helping to verify the authenticity of various transactions such as money transfers, etc.
• Miner refers to the miners or users of Bitcoin, part of which runs the system. It helps to confirm the transaction by receiving a certain amount of Bitcoin as compensation. (Bitcoin is born from here only. No one can create bitcoins floating around, so don’t trust those who say they can generate bitcoins for us!!)
• Seed key means a random code for retrieving data in a Bitcoin account. Contains 12 or 24 English words when the computer is replaced or lost. All account data can be restored with this seed key, so the seed key should be kept in the most secure place and should not be stored on any computer system
• Private key means our account’s private key or key. This is used as part of the encryption when a transaction takes place. And we can also restore our bitcoin account with this private key, thus keeping the private key in the safest place just like the seed key.
• Wallet means Digital wallet for storing our digital money. It may store only one currency or multiple currencies. This wallet is comparable to our wallet. where we can keep only Thai baht or keep other currencies such as dollars or euros as well, etc.
• Decentralize means a centralized system No one owns the system. And is not controlled by any agency, but the system is already programmed to work in a systematic way. And every part of the system itself will verify the correctness of the system itself. be transparent And can be checked at any time
• Block means a data box or a set of verified Bitcoin transaction data. and will be placed successively in the Blockchain line
• Trading platform means a website that provides services for trading cryptocurrency exchanges. It is available for both exchange of bitcoins to baht. And other cryptocurrencies. Want to visit the world’s No. 1 exchange, please click here.

Although Bitcoin is very popular these days. Prices have skyrocketed hundreds of times in a few years. But should study thoroughly before using the service or investing. Because every investment is always risky ^ ^

BITCOIN NEWS UPDATE

August 1, 2017 – A group of Bitcoin users dissatisfied with the Bitcoin BIP 91 update, User Activated Soft Fork (UASF), has hard forked the Bitcoin blockchain. The new one is called Bitcoin Cash (BCC/BCH). Those who hold Bitcoin before August 1, 2017 will receive the same amount of Bitcoin Cash.

August 24, 2017 – Segwit (BIP141) Locked-in and activated The Segwit Bitcoin upgrade successfully locked-in and went into effect. This will result in faster Bitcoin transfers and lower fees. And in preparation to support the Lightning network in the future as well

August 29, 2017 – Bitcoin hits a new high of $4,703.21 per bitcoin.

September 2, 2017 – Bitcoin Price Hits $5000 For First Time

October 20, 2017 – Bitcoin price hits a new record above $6,000 or over 200,000 baht per bitcoin for the first time.

October 24, 2017 – Bitcoin Blockchain hard fork is released, a new coin called Bitcoin Gold (BTG), which bitcoin holders with private keys and/or store bitcoins on certain exchanges can get. Get free Bitcoin Gold equal to the amount of bitcoins held before the hard fork.

November 2, 2017 – Bitcoin Price Hits New Record, Hits $7,000 Per Bitcoin This led investors to sell their Alt Coins to invest in Bitcoin in large numbers. This caused the price of other Alt Coins to fall heavily.

November 17, 207 – Hard fork with Segwit2x failed due to code block computation error, resulting in no block mining, and numerous bugs were detected in the source code.

November 28, 2017 – Bitcoin Hits New Record Price Breaks $10,000 Per Bitcoin For the first time in history in Thailand The trading price is 320,000 baht per bitcoin.

December 6, 2017 – Bitcoin price surpasses $12,000 per Bitcoin, or over 400,000 Thai baht for the first time.

December 8, 2017 – Bitcoin Price Breaks $16,000/BTC or Over 600,000 THB/Bitcoin

December 17, 2017 – Bitcoin price hits a new record, surpassing $20,000/BTC for the first time, the highest trading city at 649,997 baht/BTC.

December 18, 2017 – CBOE (Cboe Global Markets) launches its first Bitcoin futures trading.

December 22, 2017 – Bitcoin price has fallen sharply to below $12,000/BTC after peaking above $20,000/BTC in mid-December. Many parties came out to comment on the price that fell heavily. This was due to the fact that prices were pushed up too quickly and some investors took profits due to the Christmas and New Year holidays.

3 January 2018 – Bitcoin price has regained above $15,000/BTC after a sharp correction earlier in the year.

January 5, 2018 – The price of Ethereum (ETH) is the 2nd largest coin in the world after Bitcoin. Successfully surpassed the $1,000/ETH milestone milestone.

January 10, 2018 – Kodak, a famous camera and film manufacturer. Announcing the launch of bitcoin mining services Along with launching its own crypto coin, KodakCoin, this news has caught the attention of many investors. This caused the company’s stock to immediately jump more than 100%.

January 16, 2018 – There is news that the Chinese authorities will ban all cryptocurrency trading. This caused the price of Bitcoin and other cryptocurrencies to drop severely.

November 2018 – A huge controversy in the Bitcoin Cash community led to the hardfork of a new coin called Bitcoin Cash SV (BSV, Bitcoin Satoshi Vision), resulting in a catastrophic drop in all cryptocurrencies. Bitcoin dropped below $4,000, or 120,000 baht, while all other coins made the new low of 2018.

January 8, 2021 – bitcoin price hits an all time high of $42,000 / $ or more than 1,200,000 baht / bitcoin.