What Is Bitcoin (BTC)?

Updated on Nov 16, 2019 at 1:52 pm UTC by Vijaya Bharti · 6 min read
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Photo: QuoteInspector
Photo: QuoteInspector

There are many positive influences of Bitcoin – a smart currency which dispenses with the need for banks, disposes of charge card expenses, lessens the entire requirement for attorneys, etc. Here are the basics of Bitcoin. Have a look!

No one can dissent from the fact that development follows the footsteps of demands and demands bring drastic changes. One such demand is the skyrocketing introduction of Cryptocurrency or Bitcoin, which is all set to hit the global markets like a pro in the monetary field.

A Brief Profile of Bitcoin

Basically, by definition, a cryptocurrency is digital currency made and put away electronically. In contrast to financial money, the supply of digital currency isn’t controlled by any national bank or expert, and the system is completely decentralized. As the currency uses the technology of cryptography to control the transfer and creation of money, so it is known as cryptocurrency.

Bitcoin is a peer-to-peer payment system and digital currency introduced as open source software in 2009. It can be generally defined as a computer file that is reserved in digital wallets from which you can send bitcoins to other people. All transaction regarding the bitcoins is largely dependent on the blockchain. The blockchain keeps account of every single transaction which makes it difficult or you can say impossible on the part of people to spend coins that they don\t own.

How Are New Bitcoins created?

Bitcoins are elementally made through the process of mining that only sporadically rewarding because of its complex framework and painstaking procedure. The process is so difficult and hefty that if you start mining now, it could be years before that you earn a single Bitcoin. In spite of this difficulty in making, Bitcoins have become a major part of the economy of Asia, and people in parts of Asia are adapting to the new currency form as well.

How Do People Get Bitcoins?

In the blockchain that is a shared public ledger Bitcoins are specific entries that are transferrable with a private key, or you can say a password. The best way of getting Bitcoins is purchasing them from the individuals who already have them. You can buy Bitcoins using real money unless you create them with the computer or you can sell things to people and let them pay you using Bitcoins.

Users send and receive Bitcoins using wallet software on a personal computer, mobile device, or a web application. Bitcoins can be obtained by mining or in exchange for products, services, or other currencies.

Why Do People Want Bitcoins?

Can you even believe that the Aztecs used the Cocoa beans as money? You can now not raise an eyebrow about why bitcoin is a must-have source of money. The best part about Bitcoins is that although each of the transactions is recorded in the blockchain, nobody can find out what is your account number unless and until you tell them. Isn’t that amazing?

Things You Should Be Aware Of

Bitcoin has been a subject of scrutiny amid concerns that it can be used for illegal activities. Bitcoins can be stolen and chargebacks are impossible.

Commercial use of Bitcoin, illicit or otherwise, is currently small compared to its use by speculators, which has fueled price volatility.

Bitcoin as a form of payment for products and services has seen growth, however, and merchants have an incentive to accept the currency because transaction fees are lower than the 2–3% typically imposed by credit card processors.

Most Popular Questions about Bitcoin from Google Search

Here’re the answers to the most relevant (as per Google search queries) questions about Bitcoin (BTC):

  • How Many Bitcoins Are There Now in Circulation?

There are currently 17,385,437.5 Bitcoins in existence. This number changes about every 10 minutes when new blocks are mined. Right now, each new block adds 12.5 Bitcoins into circulation.

  • What is the Total Number of Bitcoins?

The maximum and total amount of bitcoins that can ever exist is 21 million.

  • How Many Bitcoins Are Left to Be Mined?

There are 3,614,562.5 bitcoins left to be mined.

  • How Many Bitcoins Are Lost?

There’s no exact answer. One recent estimate guess that about 3-4 million bitcoins are lost forever.

  • How Many Bitcoins Are Mined Everyday?

144 blocks per day are mined on average, and there are 12.5 bitcoins per block. 144 x 12.5 is 1,800, so that’s the average amount of new bitcoins mined per day.

Because many miners are adding new hashpower, over the last few years blocks have often been found at 9.5 minute intervals rather than 10. This creates new bitcoins faster, so on most days there are actually more than 1,800 new bitcoins created.

  • How Many Bitcoins Have Been Mined Already?

Since bitcoins can only be created by being mined, all the bitcoins in existence are all bitcoins that have been mined. The total is 17,385,437.5 BTC.

  • How Many Bitcoin Blocks Are There Today?

There have been 550,835 blocks mined.

  • How Many Bitcoins Does Satoshi Nakamoto Have?

Some analytics estimate Satoshi Nakamoto has around 900,000 bitcoins (BTC). This number is heavily debated, though, as some claim he has around 300,000 BTC.

  • How Many Bitcoin Have Been Stolen?

It’s unclear exactly how many bitcoins have been stolen. 850,000 BTC were stolen in the Mt. Gox hack, which was the largest Bitcoin hack ever. Another 120,000 BTC were stolen from Bitfinex in 2016. Together, that adds up to about 970,000 BTC. Stolen BTC, however, does mean lost BTC. It’s likely these stolen coins are still circulating, and may not even be in the hands of the original thieves.

  • How Many Bitcoins Does Satoshi Have?

There are estimates that Satoshi has around 1 million bitcoins. Many debate this number and claim that Satoshi only has 300,000 bitcoins. It’s impossible to know though.

  • What Happens When All 21 Million Bitcoins Are Mined?

Right now, miners earn most of their income via the block reward. When all 21 million bitcoins are mined, there won’t be a block reward to pay to miners. When a Bitcoin user sends a BTC transaction, a small fee is attached. These fees go to miners and this is what will be used to pay miners instead of the block reward.

How Many Bitcoins Will Be Mined Before the Next Halving?

There are 989,562.5 BTC left to be mined until the next block reward halving.

How Many Bitcoin Billionaire Are There?

With Bitcoin prices hitting $6,200, there may not be any Bitcoin billionaires. The Winklevoss twins were Bitcoin billionaires while the price was above $10,000, since they own more than 100,000 BTC.

How Many Coins Copied Bitcoin?

Most coins are exact copies of Bitcoin’s source code. Bcash is a fork of Bitcoin with a few things taken out. Litecoin is also a fork of Bitcoin with the block time and mining algorithm changed.

Conclusion

The physical changes that currency has undergone since time immemorial, anticipating positive changes on the economic liquidity of the globe is truly commendable. Cryptocurrency, especially Bitcoin, is one such reform that is revolutionizing and challenging the ways in which people are leading their lives. And will continue to as per the recent reports.

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