154020Who is the creator of Bitcoin? What is Bitcoin?

154020

Who is the creator of Bitcoin? What is Bitcoin?

What is Bitcoin? Everything you need to know before entering the new financial world.

Today, ‘Bitcoin’ has become a topic of discussion and is gaining more and more attention not only in the cryptocurrency and blockchain circles, but also among those interested in studying it. A new world of finance and digital assets because it is considered as a starting point to extend to more specialized issues

This article will bring you to know what Bitcoin really is and how it happened and how much is the role in the financial world today?

What is Bitcoin?

Bitcoin is a cryptocurrency or crypto-currency that operates on a computer system. In fact, Bitcoin is just like any other currency, whether it’s dollars or baht. that can be used to pay for general goods and services as usual both in general stores or an online store

The main difference between Bitcoin and other cryptocurrencies is that Bitcoin is a digital currency work on computer system Therefore, we can’t touch Bitcoin like we count baht with banknotes or coins.

When it comes to meaning, Bitcoin is a kind of cryptocurrency, is it a decentralized currency? decentralized. The name of the bitcoin originally appeared in a 2008 whitepaper owned by a person or group under the pseudonym Satoshi Nakamoto before it was released in January 2009.

in general Bitcoin adopts Peer-to-Peer innovation, that is, users with this currency can make transactions with transparency, clarity, direct and universally verifiable for everyone across the network. without having to go through an intermediary or intermediary to control

meanwhile Bitcoin is also an open source network designed to be public. without control or ownership by any one person All users can participate in the development. Bitcoin is also known as a practical cryptocurrency.

Who is the creator of Bitcoin?

The creator of the bitcoins is a person or group of people using the pseudonym Satoshi Nakamoto, although their identity has not yet been confirmed or disclosed. But let’s open the source of this pseudonym and get to know bitcoin buyers. Let’s get together first.

More importantly, what’s even more interesting is that Satoshi Nakamoto’s Bitcoin journey back in October 2008 Nakamoto published a whitepaper detailing the Peer-to-Peer innovation with the intention of introducing a decentralized, encrypted, secure and decentralized account transaction method. secret (Cryptographic) to become a Blockchain system

Nakamoto then started mining the first blockchain on the Bitcoin network blockchain in January 2009 and launched the world’s first cryptocurrency. It was priced at $0 at the time, and most of them required high-powered software equipment to mine the coins.
Known as the creator of Bitcoin, Nakamoto handed the Alert key and control over the code to Gavin Anderson, Lead developer at the Bitcoin Foundation, with users modifying and enhancing the software. of this currency from around the world.

Bitcoin and Blockchain

Bitcoin or other cryptocurrencies are part of the energy-intensive Blockchain technology. Blockchain is a transaction account that is created as a database of transactions. It consists of a chain of blocks that contain information. The chains are arranged in chronological order of transactions. Those data include emails, contact information, land titles, marriage certificates, bonds, and many other recordable documents.

The information is saved in a blog and is open to all users to access and verify the information. It is also encrypted for security. Not to be attacked by people outside the network.

in general Bitcoin uses the SHA-256 hash algorithm to encrypt and store data on the Blockchain. Blockchain’s working principle begins when a transaction occurs. The system will copy the data from the previous block to another block with the new information included. Then enter the data code and validate the validator. This process is called Mining. It will open a new block and generate bitcoins back as a reward for the reviewer or miner of that block.

What is the fundamental value of Bitcoin?

When it comes to basic values One of the key functions of Bitcoin is It is used as a decentralized store of value, that is, bitcoin holders have the same ownership rights as normal assets. In addition, bitcoin is equivalent to a unit of account.

Even so, when it comes to bitcoin as a measure of value, It is controversial enough. Many Bitcoin enthusiasts and economists agree that If bitcoin is used more or more widely. Everyone may be stepping into a new financial world where sub-measures play a greater role and influence transactions.

In general The smallest unit of measure for bitcoin is called Satoshis or Sats (value equal to 0.00000001 BTC). Currently, 1 Satoshi is worth approximately $0.00048. Instead of being used as a medium to pay the debt is the main Because people buy bitcoin and hold it for a long time, it is called HODL , rather than using it to trade things.

What is bitcoin mining?

Actually, Bitcoin mining is a decentralized process of making transactions on the Blockchain, allowing users to make transactions transparently. according to the mechanism of the system without relying on the trust of people known as Trustless system

However, anyone who wants to mine Bitcoin or Mining must have equipment and understand the basics of Bitcoin mining first, or may use a Bitcoin mining website to facilitate mining more efficiently.

How does Bitcoin play?

Bitcoin trading is easy to get started with, not complicated, starting with understanding. Things to know before you start trading bitcoin. Also, a crypto wallet or bitcoin wallet is required. to keep such coins The user is required to identify themselves to open an account. Based on the laws of that country, anyone interested in starting Bitcoin can Sign up for an account and read the terms and conditions and understand them first.

Once you have a trading account started playing bitcoin by going to the website of the trading board to choose Buy or sell bitcoins as you wish, each trading platform has different remittance conditions. It is important to check for reliable service providers. It is also certified by the SEC to ensure that users’ assets are taken care of safely according to standards.

What is the return on bitcoin trading?

must understand that Bitcoin or other crypto prices fluctuate considerably. If compared with stocks, then It has to be admitted that Bitcoin is still more risky because it doesn’t have a circuit breaker or a short-term trading break to rest the market like trading stocks. There is also no agency that clearly controls it.

Even then, the profit potential is also very large. For example, if you invest Bitcoin at the beginning of 2019 and sell it at the end of the year. It could be profitable up to 96.81% within 12 months because the average price in January was $3,706 USD. while the average price for December was $7,293.

However, it is undeniable that being prepared for this market is the most important thing. Because in addition to having the opportunity to make a lot of profits in a short time can risk a large loss Bitcoin players must always manage their risk and diversify their investment portfolios.

*Price information from CoinMarketCap in US dollars

Bitcoin Fund (Bitcoin ETF) is another form of trading.

In addition to the interesting characteristics of Bitcoin, Bitcoin ETFs, or Bitcoin funds, have become a hot topic for those who wish to invest in this cryptocurrency. general stock trading but receive returns based on the market capitalization of bitcoins which divides the investment method into 2 types: investing in bitcoins which is based on real-time prices and invest in futures contracts which is based on the coin price.

What can bitcoins be used for?

Although Bitcoin is not widely accepted. But many organizations, banks or merchants have already started accepting bitcoin payments. More importantly, bitcoin has many advantages compared to conventional currencies. Or the traditional financial system, let’s see what Bitcoin can do.

International Transactions : Bitcoin can be used to transfer money abroad easily and quickly. The destination will be paid in just one hour. With a very low fee of just 0.4% of the transaction amount. The fee may be higher or lower. Varies for each service provider, however,
compared to the traditional method of international transactions which takes several days to receive money Must travel to transfer money at the counter by yourself also have to pay a fee of hundreds of baht Bitcoin can be considered a good alternative.
Buy goods and services: Bitcoin is now used in some countries to pay for goods and services, although not many merchants accept bitcoin payments, such as El Salvador, which has a policy to enforce it. legal money Including building a Bitcoin City model and stepping into the use of crypto in the future The Central African Republic issued a statement recognizing bitcoin as a legal currency at the end of April 2022.
Savings : Bitcoin is another option to store assets. Even Bitcoin prices are very volatile. The same is true for investing in oil, stocks or gold, which fluctuates depending on the current epidemic, war and economic landscape. Even so, some countries with their own currencies are less stable, such as Venezuela, which has Severe inflation means millions can be valued at zero overnight. until people have to carry sacks of money to buy just one dish of rice Bitcoin is still a good way to save money.
Forex Trading : As You Know Bitcoin prices fluctuate all the time. This makes trading bitcoin another profitable option for investors. Trading Bitcoin is no different from trading stocks. which buys low and sells when the bitcoin price goes up. But compared to stocks Bitcoin price changes more frequently. and may have more short-term fluctuations This gives investors the opportunity to make more profits as well.

What are the advantages and disadvantages of bitcoin?

before deciding whether to play bitcoin or not Let’s compare the properties of Bitcoin. which can be clarified as advantages and disadvantages as follows:

Advantages of Bitcoin

accessible and liquid One of the most noticeable advantages of Bitcoin is that it is a very accessible and versatile currency. Users can use it as a medium of payment for goods and services with merchants that accept bitcoins. Transactions can be made within minutes. It is also easy to trade abroad or exchange with other currencies.
Be transparent and anonymous Bitcoin holders are identified through a numeric code and have a public key, which ensures they are not compromised or otherwise tracked publicly. including keeping the data safe meanwhile Transaction data recorded on the block is only visible and verifiable to users within the network.
independent from the center Bitcoin is known as a decentralized currency, i.e. it is not centrally controlled or enforced by anyone.
Relatively high returns It’s true that the coin price fluctuates quite high, even so, the return is quite small. In addition, the number of users has increased. As a result, investors and businesses from many industries are constantly entering the market, increasing the opportunities and value of cryptocurrencies.

Disadvantages of Bitcoin

It was volatile , initially limited to $21 million, which made it shortage at the time. This leads to being something of value and causing the price to fluctuate. In addition, there are other factors that cause the bitcoin price to always go up and down, such as investment news. Uncertainty of value and use information security, etc.
Lack of centralized supervision as mentioned above Cryptocurrencies are characterized as decentralized which is an advantage meanwhile can be a disadvantage Because playing Bitcoin is not properly regulated. The transaction lacks legal custody. as well as without guaranteed minimum bitcoin value. As a result, its value can drop if large groups of investors stop trading bitcoin and sell it.
have a fixed appearance Bitcoin transactions are completed and irreversible once the data is saved on the block. If an asset is transferred to the wrong person or the wrong amount, it cannot be modified, and there is a risk of losing the asset if you lose your private key that will be used to access your crypto wallet.
Limited use , although some stores and brands already accept bitcoin payments. It must be admitted that crypto spending is not yet widespread and widely accepted. As a result, Fiat money or credit and debit cards are required for most purchases.

Bitcoin Risk

Actually, the ‘risk’ of playing Bitcoin or other cryptocurrencies is multi-dimensional. both in terms of supervision security guarantee market volatility as well as various forms of deception, also known as crypto crime

When it comes to governance and security Bitcoin is a technology that could completely change many industries. This has given rise to resistance to various Bitcoin legislation in many countries. Until the various regulations, including the collection of crypto taxes, are still in the early stages.

As for the issue of cyber threats, there are quite a few. Using bitcoin is not as easy as compared to other payment options. This is an opportunity for ill-wishers to take advantage of those who are not adept at using Bitcoin. Until many people are worried about the image that looks very unsafe. Bitcoin is reported to be the most cybercriminal crypto.

Lastly, market volatility is still a matter for bitcoin players. It is necessary to study and understand the basics thoroughly. as well as follow the news regularly to use as an information to make a decision before buying bitcoins every time

Is Bitcoin Legal?

must admit The current state of bitcoin also varies from country to country. Some countries allow bitcoin trading. Some countries offer bitcoin as a regular currency. is to be able to pay the debt according to the law

Some countries have officially legalized cryptocurrencies, for example, in August 2019, New Zealand declared it legal to pay salaries in bitcoin. In April 2017, Japan legally allowed bitcoin to be used for debt settlement. El Salvador continues to push for bitcoin. Both passed a bill to allow bitcoins to be legally used for payment. And has always stimulated spending in stores, and the Central African Republic, which issued a certification of bitcoin as a legal settlement, is the world’s second country in 2022, for example.

In addition, many countries have direct regulation of bitcoin trading, such as US bitcoin exchange providers. It must be properly licensed under the Bank Secrecy Act. China’s central bank issued its own digital currency, dubbed the ‘digital yuan’, through the bill, which went into effect in 2020, including banning it. All types of crypto transactions in 2021, etc. In Thailand, the SEC has already issued regulations on bitcoin trading. All cryptocurrency trading platform providers must be properly licensed. You can check the list of licensed service providers here.

Warning

The content of this article has been compiled and compiled from various reliable financial sources. To provide preliminary knowledge to the general public only. However, every investment involves risk. Investors should study and understand asset characteristics. Return conditions and the risk of that asset including assessing risks before making investment decisions