Anticipation builds as the Bitcoin halving event draws near, with only 67 days left. Will history repeat, sparking another rally?
Learn more about Bitcoin
Table of Content
Bitcoin (BTC) price has increased today.
Bitcoin (BTC) is priced at $63,955.66 today, with a 24-hour trading volume of $17,588,001,274.31. It is reflecting a 1.56% increase over the last 24 hours and a 1.89% decline over the past 7 days. With a circulating supply of 19.69 Million BTC, Bitcoin’s current market cap is at $1,259,360,488,940.19.
Understanding Bitcoin (BTC)
An anonymous person or group known as Satoshi Nakamoto published a whitepaper and introduced Bitcoin, the pioneering decentralized cryptocurrency, in January 2009.
It operates as a peer-to-peer online currency, allowing direct transactions between network participants without intermediaries like banks. Bitcoin is considered the first-ever cryptocurrency to be used practically, although similar concepts had been proposed earlier.
Who is the Founder of Bitcoin?
Satoshi Nakamoto remains the original inventor of Bitcoin, but their true identity remains a mystery. Nakamoto published Bitcoin’s whitepaper in October 2008, outlining a decentralized ledger system called the blockchain, which secures transactions using cryptographic algorithms.
In January 2009, Nakamoto successfully mined Bitcoin’s first genesis block, marking the launch of the world’s initial cryptocurrency.
Notably, programmer Laszlo Hanyecz conducted the first-known commercial transaction using Bitcoin, exchanging 10,000 BTC for two pizzas on May 22, 2010, and this event is now known as “Bitcoin Pizza Day.”
Bitcoin’s Uniqueness
Bitcoin was the first cryptocurrency and has helped shape the worldwide crypto community. It has sparked enthusiasm, with many people creating, investing in, and using Bitcoin and other cryptocurrencies every day.
The arrival of Bitcoin has also led to the creation of many other crypto projects, helping the cryptocurrency market grow to be worth over $2 trillion.
Even with lots of competition, Bitcoin stays the biggest cryptocurrency, having a market value of $500 billion.
This is partly due to institutional interest and the availability of various platforms for Bitcoin use, such as wallets, exchanges, payment services, and online games.
Bitcoin’s Circulation
The Bitcoin algorithm caps Bitcoin’s total supply at 21,000,000 coins. Miners generate new coins by bundling transactions into blocks and securing them through cryptographic calculations.
Miners receive a specified number of Bitcoin per block as a reward for their computational resources. The block reward undergoes halving approximately every four years:
- The first halving was in 2012, reducing the block reward to 25 BTC from 50 BTC.
- In 2016, it was reduced to 12.5 BTC per block. 2020 was the latest, with the current reward set at 6.25 BTC.
- The next halving is calculated to be in April 2024, with a mining reward of 3.125 BTC.
Early participants, including Satoshi Nakamoto, believed to have over a million Bitcoins, accumulated significant amounts of Bitcoin through mining, even though no one pre-mined it.
Security of the Network
The Bitcoin network is secured using the SHA-256 algorithm, which Bitcoin Cash and other cryptocurrencies also utilize.
Store of Value
People often see Bitcoin as a digital version of gold and a way to save money for the future. Although originally created to be a kind of online money, many now view it more as a long-term investment than something to spend day-to-day.
The smallest part of a Bitcoin, called a “Satoshi” or “SAT,” still has worth even though it’s such a tiny amount of Bitcoin.
So, instead of spending Bitcoin, many people buy and keep it, similar to how they might buy and keep gold.
Upgrading Bitcoin’s Technology
Bitcoin’s technology can be upgraded through hard forks and soft forks.
- A hard fork introduces radical changes to the protocol, making previously invalid blocks/transactions valid. All users must upgrade before the new blockchain activates.
- Soft forks, on the other hand, only make previously valid blocks/transactions invalid and require a majority of miners to enforce the new rules.
Prominent examples of hard forks include the creation of Bitcoin Cash and Ethereum Classic.
Introducing Taproot
Taproot is a soft fork comprising several improvements to enhance the scalability, efficiency, and privacy of the Bitcoin blockchain. It introduces the Merkelized Abstract Syntax Tree (MAST) and Schnorr Signatures.
MAST allows the sender and recipient of a transaction to sign off on its settlement together, while Schnorr Signatures enable the aggregation of multiple signatures into one, making complex transactions appear simpler.
Adopting Taproot may lead to the development of a decentralized finance (DeFi) ecosystem on the Bitcoin network.
The Lightning Network
The Lightning Network is an off-chain payment protocol that facilitates high-speed, private, and trustless transactions between parties.
It operates through bidirectional payment channels, allowing for instantaneous transfers with minimal costs.
Largest Corporate Holders of Bitcoin
Many public companies like MicroStrategy, Marathon Digital Holdings, Coinbase, Square Inc., Binance, and Hut 8 Mining Corp. own large amounts of Bitcoin.
MicroStrategy leads them all, holding 153,800 BTC.
See our guide on the Five Largest Bitcoin Addresses.
Bitcoin’s Political Relevance
Bitcoin’s political significance is growing, particularly after El Salvador adopted it as legal tender. This decision by El Salvador’s president, Nayib Bukele, faced criticism from various sectors.
China, on the other hand, has cracked down on Bitcoin mining and trading activities in 2022. Despite this, China still contributes significantly to the global hash rate of Bitcoin.
Bitcoin’s Price
Bitcoin’s price is constantly changing due to its volatility and global nature. Starting at less than a cent per coin, Bitcoin’s price has experienced significant growth.
However, the price of Bitcoin can vary across different countries and exchanges.
Where to Buy Bitcoin?
Using fiat currencies or other cryptocurrencies, you can purchase Bitcoin on numerous crypto exchanges.
Some popular markets for BTC trading include:
Most Used
More details
Binance is a great combination of low fees, deep liquidity and multiple cryptocurrencies and trading pairs. We have tested every aspect of it and it STILL holds its reign as the top exchange in the world. In our view, it is the perfect crypto exchange for both newbies and advanced traders alike.
-
Biggest exchange in the world.
-
Industry's lowest trading fees.
-
Advance trading options like leverage trading.
-
600+ crypto options, 150+ for the US.
-
Lucrative on-site staking options.
-
Hiccups in account verification.
-
Less regulated than some competitors.
-
The corporate structure is not transparently.
More details
Coinbase is one of the largest crypto exchanges in the world and a widely-used platform for buying, selling, and trading over 200 cryptocurrencies. It offers trading solutions for beginner, advanced, and institutional traders alike. Take a look at what makes it an excellent option for individual traders looking to trade in cryptocurrencies and beyond.
-
A wide-selection of coin offerings.
-
Most secure online crypto platforms.
-
Top-rated mobile app.
-
Easy interface and user-friendly.
-
Expensive and complex fee structure for beginners
-
Higher fees as compared to other cryptocurrency exchanges.
-
Slow customer support.
More details
OKX crypto exchange supports over 300 digital assets and over 80 fiat currencies. It is accessible in over 100 countries and territories across the world. It has one of the highest trading volumes in the crypto world and is a fantastic mobile app that offers all services on the go. The trading fees are very low. Its major drawback is its unavailability in certain countries.
-
Supports numerous tokens.
-
Great Mobile app.
-
Extensive educational resources.
-
Provision of multi-lingual services.
-
Geographical limitation.
-
KYC limitations.
Coinweb’s Crypto Wiki can provide educational resources for those new to cryptocurrencies and interested in purchasing Bitcoin.
Satoshi Nakamoto, whose real identity is unknown, introduced Bitcoin in 2009 as the first decentralized cryptocurrency.
The first notable commercial transaction involved Laszlo Hanyecz, who spent 10,000 BTC on two pizzas, an event celebrated as "Bitcoin Pizza Day."
Yes, Bitcoin's total supply is capped at 21 million coins, and miners earn rewards, which decrease through "halvings" approximately every four years.
The Bitcoin network employs the SHA-256 algorithm for its security, protecting transactions and data integrity.
Bitcoin can be bought on various cryptocurrency exchanges, including Binance, Coinbase, and Kraken, using fiat currency or other cryptocurrencies.
Related articles
-
-
Coinbase acquires a MiFID II licensed firm, eyeing EU derivatives. Is this a strategic move for global growth?
-
Are you a fan of Elon Musk's crypto comments? Discover how much influence Elon Musk has on the crypto market.
