The incredible increase in bitcoin prices has been a big financial tale in the past few years. This cryptocurrency was intended to transform the peer-to-peer business deals. It does not need a medium like a credit card or banking system or exchange of personal information or payment of transaction fees.
Still, many people are not aware of what a Bitcoin Australia dealer is and how the cryptocurrency works. Confusion still exists on how Bitcoin reached where it is at the moment! It is indeed a technological innovation, which has shaken the core of the financial world.
Introduction to Bitcoin
Blockchain technology is the pillar of Bitcoin, which records all the transactions. It is a public distributed ledger that records every Bitcoin transaction conducted on a block. The moment a specific block’s memory gets filled it is added to the blockchain. The ledger on a bitcoin network validates the transactions and stores it in the blockchain, then relays the transaction to the nodes [Other network computers].
As the database is not stored on one server, but on a computer, grid stealing or hacking of Bitcoin data is almost impossible for potential cyber attackers. There will be a need to break into multiple nodes simultaneously, which seems impossible!
Only a predetermined number of Bitcoins get generated. It means there is no possibility of the currency getting devalued in the future [inflation] like the Government experiences due to over-issuance of cash. The factor that has increased speedily than the Bitcoin enthusiast number is the coin rate. In 2018, the price of a single Bitcoin was around $3,732 but today as I write the price is $ 9,158.41.
Mysterious birth of Bitcoin
Financial status was crushing in late 2008 when the world’s 4th largest investment bank called Lehman Brothers Holding filed for Ch.11 Bankruptcy. Due to the financial infrastructure crumble a domain called bitcoin.org got registered. A person named Satoshi Nakamoto published a white paper and called it Bitcoin. He even explained how this peer-to-peer ECS works and even described the blockchain network functionality.
In 2009, Satoshi mined the first Bitcoin, which is popular as ‘Genesis Block’. In the first Bitcoin, a text that refers to the date of the headline published in ‘The Times’ a British newspaper is embedded. It is evidence associated with the date first Bitcoin got mined. People believe Bitcoin to be a new method that emerged due to the modern world’s crumbling financial infrastructure. The 1st Bitcoin transaction was soon followed, where Nakamoto sent bitcoin to an expert cryptography enthusiast called Hal Finney.
The identity of Satoshi Nakamoto still remains a mystery. Is it a group of programmers or a single person is debatable till today? The only personal information Nakamoto shared with the world is a claim that he resides in Japan and was born on 5th April 1975. He urged other cryptographers to help with the coding and stepped away in 2011. He has never been seen or heard in public, ever since.
How did Bitcoin Pizza Day emerge?
Laszlo Hanyecz, a Florida programmer offered 10,000 BTCs in exchange for a pizza. His offer was accepted by a British enthusiast, who ordered two pizzas from a pizza shop near Laszlo’s residence. The credit card was used for the pizza payment, which Laszlo reimbursed with 10,000 Bitcoins.
The first time Bitcoin was used and to make this day memorable Bitcoin Pizza Day is celebrated on 22nd May every year. This transaction is made memorable at the remarkable coin price used for the purchase of the two pizzas. Their approximate value of today is $91,580,000!