Bitcoin is the first form of decentralised digital cryptocurrency that has inspired a host of other cryptocurrencies since its debut. Bitcoin holds the first position above all cryptocurrencies in terms of market capitalisation. It could be traded, distributed and stored within a decentralised ledger as blockchain. It was launched in 2009 and is known as the most popular cryptocurrency. Moreover, its supply is limited, which means only 21 million Bitcoins will ever be mined totally. Interested in investing in Bitcoin? Let's analyse it financially in the following.
As they say, from small beginnings come great things! It's the marvellous story of Bitcoin! The price started with less than $1 in 2011. Time flies, and so does Bitcoin! Now, on Feb 16, 2022, the current price is $44,068.82, with a live market cap of $806 billion. It has a circulating supply of 18 million BTC coins and a max supply of 21,000,000 BTC coins. On Nov 10, 2021, Bitcoin landed on the moon and hit an all-time high in the range of $69,044.77. Bitcoin is on the top of the altcoins and ranks #1 among all crypto projects. Read the full analysis of Bitcoin.
Although Bitcoin has been bringing a lot of profits for investors from its birth up to now, during the previous year, Bitcoin's Return On Investment (ROI) was -%9.9 and much lower than the ROI of similar projects and the market's top 1500 projects.
What was the first legal transaction of Bitcoin? Funnily enough, the first thing that was bought with Bitcoin is a pizza! Yes, pizza! Bitcoin was created as a way for people to send money over the Internet and buy products and services, and get rid of the physical currency. Every transaction with Bitcoin accrued in blocks, and anyone, whether running a Bitcoin on a computer as a node or not, can see these transactions occurring in real-time. The transaction in each block must be validated by the majority of Bitcoin miners through the consensus mechanism and then added to the blockchain.
Learning about the various benefits of Bitcoin, like security and decentralisation, can help you decide if it’s a good investment opportunity for you. Scroll down to find out more.
Bitcoin is a cryptocurrency because it uses cryptography to stay secure. What is cryptography?! Although all transactions are recorded, nobody would know which 'account number' is yours unless you tell them.
Bitcoin is not issued or backed by banks, governments, or central authorities. In other words, it's a kind of decentralised ledger that is not under the control of a third party.
Bitcoin is an open-source system which means a general volume of Bitcoin and its transactions are in a public ledger, and all the transactions are open to everyone, and all the nodes can see them.
To create a new Bitcoin, Bitcoin miners should solve a computational puzzle with a powerful computer and expend lots of energy. The first miner who solves the puzzle will get Bitcoin as a reward. This process is known as Bitcoin mining. With this mining process, all the transactions will be confirmed and trustworthy in the blockchain. The next thing to know is Bitcoin Halving. Read all about Bitcoin Halving with just one click.
Honestly, there isn’t a sure answer to this question, and up to now, no one knows who invented Bitcoin! Yes, you may have heard about Satoshi Nakamoto. This name refers to a person or group of people or organisations who wrote Bitcoin’s whitepaper and released the original Bitcoin whitepaper in 2008. But the identity of the BTC creator is still unknown, and we can't refer to a specific name or person as the inventor of Bitcoin.
The main reason why Bitcoin came into play is that the previous networks suffered from the inherent weaknesses of trust and lack of mechanisms to make payments possible over a communications channel without a trusted party. As mentioned in Bitcoin’s whitepaper, it introduced a digital electronic cash system based on PoW that allows online payments to be sent directly from one party to another without going through a central authority. Bitcoin was the creator of a decentralised system, and after the creation of Bitcoin, the number of cryptocurrencies available on the Internet is rapidly growing.
Time passed, and other cryptocurrencies based on PoW appeared. Litecoin and Namecoin were born in 2011, 2 years after Bitcoin was created, with the PoW system.
One of the reasons why Bitcoin is the most popular currency in the world is the support of Elon Musk, the wealthiest person in the world! In Feb 2020, Musk tweeted, “Bitcoin is a good thing”, and Bitcoin price surged after he and Tesla announced investing in Bitcoin and accepting it as a payment method. Data on Cryptologi.st shows that Bitcoin was very successful in gaining public attention. Its Twitter account saw an increase of 5,449% in the number of followers over last year. Moreover, its Reddit account subscribers also increased by 47% during the same period.
Some experts believe that Bitcoin feels like the Internet before the browser. It should be noted that although Bitcoin doesn't always bring profits for investors, it has proven to be a tree with strong roots that could stand against severe financial storms. Of course, Bitcoin has seen a lot of ups and downs in these ten years. Learning about positive and negative points aids us to consider whether Bitcoin is a good investment!
Being decentralised and unregulated is one of the most positive points of Bitcoin in the world of cryptocurrencies. There is no intermediary, and the users will have complete control over their coins. Also, Bitcoin is an accessible and versatile currency and creates an easy way for exchanging money. Although the transactions could be viewable in this open-source system, which gives you transparency, they’re still kept safe from fraud thanks to blockchain technology.
Transactions done through Bitcoin are irreversible and final, which means if you sent the wrong amount of money to the wrong recipient, nothing could be done to return the money! Despite the benefits of decentralised systems, the lack of regulation can cause some fraud or scams. Also, there is no guarantee for the valuation. If a big group of investors stop applying Bitcoin and or sell it, its value could decrease significantly and affect the users holding a large amount of the cryptocurrency. However, it’s highly unlikely considering the experience of these years.
Bitcoin is our number one player, and PayPal was one of the first exchanges listed Bitcoin. Since ten years ago, hundreds of cryptocurrency exchanges such as Coinbase, Gemini, and Kraken are available and support Bitcoin. So, where to buy is certainly not a problem.
All in all, before investing in Bitcoin or any altcoins, you should consider all the affecting factors. At Cryptologist.st, our primary purpose is to keep you updated with the trending news. Not only on Bitcoin, but also about the top 1500 coins, educational posts, and some other things you should check out personally!
Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation, or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation, and legal advice.
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