What is Bitcoin (BTC)?

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Bitcoin (BTC) is a type of cryptocurrency, and as of May 2021, it is the cryptocurrency with the highest market capitalization.

Bitcoin (BTC) is only one of cryptocurrency, and there are many other cryptocurrencies (Altcoins).

As of May 2021, about 89% of the BTC has been issued and circulated, and the remaining 11% will be issued gradually through mining.

Name Bitcoin
Symbol BTC
Current price (May 2021) $40,620.60
Market Cap (May 2021) $758,874,147,474
Date of Launch January 2009
Max Supply 21,000,000 BCH
Official Site https://www.bitcoin.org/

Cryptocurrency

Cryptocurrencies are virtual currencies that are primarily intended to be circulated on the Internet.

There is no centralized control by the state or government, and the money is recorded electronically, mostly using blockchain technology.

The History and Beginnings of Bitcoin (BTC)

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When thinking about the history of cryptocurrencies, Bitcoin (BTC) is an essential part of it. Because Bitcoin was the first cryptocurrency to be created.

Satoshi Nakamoto

Bitcoin (BTC) began with a paper published online by Satoshi Nakamoto.

The title of the paper was “Bitcoin: A Peer-to-Peer Electronic Cash System,” and it proposed an unprecedented new property value called Bitcoin (BTC).

However, the paper was published in an anonymous space on the Internet. As a result, the identity of the person who calls himself Satoshi Nakamoto and his nationality have not been revealed.

However, this paper, which proposed a new form of property value of bitcoin (BTC), caused a sensation in various fields at the time.

Bitcoin (BTC) System and Features

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Decentralized Ledger

Traditionally, financial systems have been managed in a centralized manner. For example, a customer’s deposit information is centrally managed in a huge data center, and registration and updating is done based on that data.

A distributed ledger is a system in which the ledger is literally distributed and managed. By distributing the ledger over a network, the ledger is managed in a non-centralized manner.

In contrast to centralized management, distributed ledger is characterized by its resistance to failures, as it can maintain data and systems even if a single server fails.
The problem with centralized management is that if data is damaged, it cannot be restored without backups. However, in the case of a distributed ledger, the same data exists in a distributed manner, so even if one is damaged, the data can be protected.

Blockchain

Blockchain is one of the most common examples of the above distributed ledger.
In the case of blockchain, the blockchain itself, which is a mass of transaction records, is distributed and checked against each other to ensure the integrity of the data. This eliminates the need for centralized management.

Mining

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Mining is an indispensable part of the blockchain.
Simply put, mining is the process of approving and recording transactions through computational processes.

In the case of Bitcoin (BTC), you can get Bitcoin (BTC) as a reward for that computational process.
Since mining requires a huge amount of computational processing, it requires special equipment and energy.

How can you use Bitcoin (BTC)?

In what situations is bitcoin (BTC) actually used?
Unlike the various legal tender currencies issued by governments (such as the dollar and the euro), bitcoin (BTC) is universal and independent of countries, so it is gradually being used as a method of international payment and remittance.

Although it is still limited, its use is gradually expanding, with places where people can buy daily necessities and make donations using bitcoin (BTC).

Pros of Bitcoin (BTC)

Pros and Cons

Remittance without the need for financial institutions

When sending money in legal tender such as US dollars, banks and other financial institutions are required to act as intermediaries. This requires a certain amount of time, depending on the internal processing and business schedule of the financial institution.
Bitcoin (BTC), on the other hand, eliminates the need for financial institutions to act as intermediaries, allowing for direct communication with the other party.

No intermediary fees to be paid to financial institutions, low cost

Eliminating the need for financial institutions to act as intermediaries also means that there is no need to pay commissions to these intermediaries, leading to cost advantages.

Cons of Bitcoin (BTC)

On the other hand, Bitcoin (BTC) also has its disadvantages.
Because bitcoin (BTC) is subject to investment and speculation, it is subject to large price fluctuations.

Also, from the perspective of a means of payment, purchasing activities using bitcoin (BTC) are still limited. It is expected that this will gradually disappear with the spread of bitcoin (BTC), but at present, it is one of its disadvantages.

As is the case not only with bitcoin but also with other currencies, without security measures, there is a risk of theft.

As legislation targeting cryptocurrencies progresses, the situations in which Bitcoin (BTC) can be used safely and securely may increase in the future.

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