What is Bitcoin? (BTC)
In 2009, Bitcoin emerged as the first cryptocurrency. It is characterized by a Blockchain ledger (open and without special permits) and it is based on protocol SHA- 256.
Just as happens with any other cryptocurrency, Bitcoin's value cannot be controlled, thanks to its methods of creation, which led it to occupy a decentralised position in the market that manages traditional cryptocurrencies.
This means that Bitcoin's price variability (that is to say its value) is exclusively determined by the volumes of supply and demand on exchange platforms for cryptocurrencies.
Basic Technical Characteristics:
The maximum amount of bitcoins that can ever exist is 21 million, 18 millions of which are currently in circulation.
Bitcoins are divisible down to 8 decimal places, which are submultiples of a Bitcoin:
- 1 BTC Bitcoin
- 0.001 BTC Millibitcoin (mBTC)
- 0. 000001 BTC Microbitcoin (bits)
- 0.00000001 BTC SATOSHI
This means that it is possible to buy even small fractions of a Bitcoin.
DECENTRALISED MODE OF OPERATION
The operating process of the Blockchain network of Bitcoin is called 'Proof of Work' (PoW). In order to operate, the PoW protocol uses computational power generated by users (called 'miners'), whose performances are automatically rewarded by the network.
Bitcoin's mode of operation proves to be revolutionary, but it is not without its flaws, such as excessive power consumption and slowness in transactions.
For this reasons, after Bitcoin, numerous new blockchains have been created, with different and more performing modes of operation.
WHAT ABOUT BITCOIN'S VALUE?
In 2009, one dollar could buy 1309 BTC. In December 2017, when Bitcoin reached an all-time high, 1309 BTCs were worth about 25 million dollars.
Its current value is:
Knowing that Bitcoins are limited, the question arises: what will Bitcoin be worth when the last existing Bitcoins will be released onto the market?
The opportunities offered by this market are not limited to Bitcoin, but include other exchangeable cryptocurrencies too, which may see a similar exponential growth in value.
Apart from Bitcoins, what other cryptocurrencies are there?
What are the main ones?
How do they work?
After discussing Bitcoins, it is important to discuss ETHEREUM too.
Go to the next guide