Everything to know about Bitcoin

Aug 27, 2021

Introduction

Bitcoin is a cryptocurrency and cryptocurrency is a form of payment that can be exchanged online for goods and services. Bitcoin was created on January 3, 2009 by an unknown person or group of people using the alias Satoshi Nakamoto. Bitcoin is decentralized, meaning that it isn’t controlled by a bank or government. The technology underpinning is called blockchain, a sort of digital ledger.

How can you buy a Bitcoin?

Each bitcoin is a computer file which is stored on a digital wallet, a computer or a smartphone. There are a few different ways to buy bitcoin and other cryptocurrencies, including exchanges and traditional brokers.

You can purchase bitcoin from several cryptocurrency exchanges. Many charge a percentage of the purchase price. Some of the more popular exchanges include:

  1. Coinbase
  2. Binance.US
  3. Gemini
  4. Coinmama

Anyone can use, buy and sell Bitcoin through cryptocurrency exchange platforms and apps. But unless you have tens of thousands of dollars, it is unlikely you will be able to afford to buy even one Bitcoin token. You could buy a share though. Small denominations of Bitcoins exist called Satoshi after the crypto’s founder. One Satoshi is worth 0.00000001 Bitcoin.

Bitcoin Timeline

Year 2007

Satoshi Nakamoto begins developing for what will become Bitcoin.

Year 2008

Satoshi Nakamoto publishes a white paper called “Bitcoin: A Peer-to-Peer Electronic Cash System” to an online cryptography newsletter.

The domain name bitcoin.org is registered.

Year 2009

The Bitcoin network goes live when Satoshi Nakamoto mines Bitcoin block No. 0, known as the “genesis block”.

Year 2011

Bitcoin makes history when it breaks through the $1 mark and keeps climbing all the way up to 28.9 within a three month time frame.

Year 2013

Bitcoin’s potential and its potential for extreme volatility are clear when it starts 2013 trading around 12 and leaps to 1,242 — about the same as an ounce of gold — by November.

Year 2016

After crashing into the low triple-digits, Bitcoin is back approaching 1,000 in 2016.

Year 2017

Bitcoin was hovering around the 1,000 price range at the beginning of that year. After a period of brief decline in the first two months, the price charted a remarkable ascent from 975.70 on March 25 to 19345.5 on December 15.

Year 2018

Prices collapse to sub-10,000 levels again before reaching bedrock in the low 3,000s.

Year 2020

Bitcoin starts the year at 7,200 but roars back into five figures by midsummer as it finds pandemic (COVID-19) power. As the year draws to a close in December, Bitcoin leaps past its 2017 record after trading in the 20,000s for the first time ever.

Year 2021

Bitcoin passes 30,000 at the beginning of January, 50,000 one month later in February, then 60,000 just one month after that in March. As of today Bitcoin is in the 40,000s and rising.

Bitcoin Popularity

Bitcoin market cap reached US$1 trillion in February 2021 and the top five countries with the highest percent of total population owning Bitcoin are as follows:

1. Ukraine

Ukraine has over 44 million of total population and 12.73% of the population owns Bitcoin which is more than 5 million people.

Ukraine is ranked first worldwide for the adoption of cryptocurrencies. Ukraine sent USD 8.2 billion worth of cryptocurrency and received USD 8 billion worth from July 2019 to June 2020.

2. Russia

Russia has a large population of 144 million out of which 11.9% are Bitcoin owners. Cryptocurrency is listed as Russia’s fifth-most popular investment vehicle with a percentage rating of 17%, ahead of gold (16%) as well as stocks and shares (10%).

3. Venezuela

There are approximately 3 million Bitcoin owners in Venezuela which is 10.3% of the total population. Venezuelans are very open to cryptocurrency, with weekly peer-to-peer Bitcoin trading reaching record high volumes in 2020.

4. Kenya

A developing country like Kenya comes at number four on the list with 8.5% of Bitcoin owners which is over 4.5 million people. Kenya is ranked first globally for peer-to-peer cryptocurrency trading volume and fifth worldwide for total cryptocurrency activity. As of January 2018, Kenya’s Bitcoin holding represented over 2% of the country’s Gross Domestic Product (GDP), a substantial percentage given that developed countries have a comparatively higher GDP.

5. USA

With 8.3% of total population, that is over 27 million Bitcoin owners, USA stands fifth on the list. Majority of the Bitcoin owners are in in the 18-44 age group (58%). Whereas the gender ratio is 2:1, that is, out of every three people owning Bitcoin, two are men and one women.

What is the future of Bitcoin?

Currently Bitcoin is being used as a currency, where major companies are accepting Bitcoin as one of the methods of payment. Recently, Amazon released the news regarding their plans of accepting Bitcoin as payment which led to 20% rise in the Bitcoin price. This shows how Bitcoin is news sensitive.

As of today Bitcoin is the hot currency everyone wants to mint. However, no one knows what will happen with Bitcoin in the future, not even Satoshi Nakamoto.