Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Bitcoin was introduced on October 31st, 2008 to a cryptography mailing list and released as open-source software in 2009. There have been various Bitcoin forks throughout its history. Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond are some of the most popular Bitcoin forks. Bitcoin has a total market capitalization of $138.8 billion as of January 2019.
The Bitcoin network went live on January 3rd, 2009 with 12.5 bitcoins worth about USD$1 million at the time. The first block was mined by Satoshi Nakamoto himself. In 2010, investment firm Winklevoss Capital Management filed a proposal for the creation of an exchange-traded fund (ETF) that would allow investors to trade bitcoin evolution on the stock market. The proposal was rejected in March 2017 by the United States Securities and Exchange Commission (SEC).
The Bitcoin price reached a new all-time high on December 17th, 2017 when it traded at $19,783.21. Bitcoin’s price then fell by more than 50% over the next two months before recovering in April 2018. In November 2018, Bitcoin’s price reached a new low of $3,474.02.
Bitcoin has been criticized for its use in illegal transactions, its high energy consumption, price volatility, thefts from exchanges, and the possibility that it is an economic bubble. Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.
Despite these criticisms, Bitcoin has seen continued adoption and growth. Bitcoin is accepted by major companies such as Microsoft, Dell, and Expedia. The number of Bitcoin ATMs worldwide continues to grow. Bitcoin’s price volatility has decreased in recent years. The number of merchants accepting Bitcoin continues to grow.
Bitcoin has a long history of price volatility. In 2011, the value of a Bitcoin ranged from $0.30 to $32. In 2017, the value of Bitcoin reached its all-time high of $19,783.21. As of January 2019, the value of Bitcoin is $3,474.02. This high degree of volatility presents both opportunities and risks for investors and businesses alike.
Bitcoin’s volatility presents an opportunity for investors to make short-term profits. However, Bitcoin’s volatility also creates risks for investors who hold Bitcoin for long periods of time. Bitcoin’s price volatility can also lead to businesses not accepting Bitcoin as payment.
Despite its volatility, Bitcoin has seen continued adoption and growth. Bitcoin is accepted by major companies such as Microsoft, Dell, and Expedia. The number of Bitcoin ATMs worldwide continues to grow. Bitcoin’s price volatility has decreased in recent years. The number of merchants accepting Bitcoin continues to grow. In November 2018, the Chicago Board Options Exchange (CBOE) announced that it would start offering Bitcoin futures contracts in December 2018. This will allow investors to bet on the future price of Bitcoin.
Benefits of Bitcoin
- Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto.
- Bitcoin is the first implementation of a concept called “cryptocurrency“, which was first described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control its creation and transactions, rather than a central authority.
- Bitcoin is decentralized, meaning that it is not subject to government or financial institution control.
- Bitcoin transactions are irreversible and do not require personal information. This makes Bitcoin useful for purchasing goods and services online.
- Bitcoin has been increasing in value since its inception, making it a sound investment option.
Drawbacks of Bitcoin
- Bitcoin is still a relatively new technology and is subject to change.
- Bitcoin is not backed by any physical assets and its value is based on supply and demand.
- Bitcoin transactions are slow and expensive due to the high number of miners competing to process transactions.
- Bitcoin is not yet accepted by many merchants, making it difficult to use as a form of payment.
Conclusion
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin was created to work as a currency without relying on central authorities.
Bitcoin has seen impressive growth over the past few years, with its value reaching new heights in 2017. This surge in value can be attributed to the increasing popularity of Bitcoin, as well as its usefulness as an investment vehicle. Despite its volatility, Bitcoin remains one of the most popular cryptocurrencies on the market today. As more people begin to adopt Bitcoin, its value is likely to continue to increase.
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