BITCOIN,THE GENESIS OF CRYPTOCURRENCY

BITCOIN,THE GENESIS OF CRYPTOCURRENCY

October 8, 2021

In recent times, the global financial atmosphere has been agog with news and rumors all surrounding Bitcoin. But the question on the lips of many begging for answer has been; what is Bitcoin? Many experts have given different explanations as regarding to the meaning of bitcoin. Many described it as the future of digital transactions, while to some it simply means the origin of decentralization.

To clear the pathway of understanding to the common reader, bitcoin is a form of money that is completely paperless and virtual.

The word bitcoin was first defined in a white paper published on October 31, 2008(wall street journal). Bitcoin is a compound of two words bit and coin.

To those who describe bitcoin as the origin of decentralization, they are on point because bitcoin operation is typically based on the elimination of centrality of control. An avid trader understands bitcoin as an open source peer-peer payment system in the decentralized ledger.

The origin of bitcoin is dated back to the year 2008 as a cryptocurrency created by an anonymous person or group of persons under the generic name of Satoshi Nakamoto. History has it that the currency began its use in 2009 when its execution was unconstrained as open-source software.

On the 3rd of January, 2009, its ledger started operating fundamentally on the proof of work (POW). Its issuance schedule was based on decentralized-block reward, and at the end of every block time of 10 minutes, 6.25 bitcoins block reward are distributed, though no one will actually say how many bitcoins are mined or generated at the end of every block time of 10 minutes. Bitcoin has a limit supply of 21,000,000 units.

Bitcoins are generated through mining which is a consensus of all the participating nodes validated simultaneously. The exchange rate of bitcoin is very volatile. To the economist, money serves as a store of value, a medium of exchange and a unit of account. In the same vein, bitcoin has proven to be a medium of exchange through which peer-peer transactions are executed.

 It is the invention of bitcoin that has enthused other applications and blockchains from which other cryptocurrencies are given birth.