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When Was Bitcoin Made?

The Person Who Created Bitcoin Remains Amystery

The Person Who Created Bitcoin Remains Amystery

Miami penthouse on sale for 33 bitcoin cash not accepted Bitcoin was created by Satoshi Nakamoto from Japan. Or, some say, he or she might be a Finnish sociologist or a mathematician from Israel. Some think Nakamoto is the pseudonym of software developer Gavin Andresen, others believe its Tesla creator Elon Musk. (Both have denied the claim.) Whoever it is, the person behind bitcoin has never given an interview. In 2008, Nakamoto published online an open-source paper, introducing a new form of digital currency: designed to be used without the need for a central bank. As offered up by Nakamotos code, new bitcoins are created by solving complex calculations, embedded throughout the Internet, via extremely powerful computers. People who do this are known as miners. The number of bitcoins in circulation will top out after a finite 21 million are mined unlike traditional currency, which can be endlessly minted. Aswath Damodaran, professor of finance at New York University, said, [Nakamotos] on his way to being a billionaire now. He kept more than 10,000 bitcoins. And hes not surprised by the creators low profile: Bitcoin was designed by paranoid geeks for paranoid geeks. Continue reading >>

What Are Bitcoins And How Do They Work?

What Are Bitcoins And How Do They Work?

Bitcoin the initial virtual banking currencyof the internet has existed for several years now and many people have questions about them. Where do they come from? Are they legal? Where can you get them? Why did they split into Bitcoin and Bitcoin Cash ? Here are the basics you need to know. Cryptocurrencies are just lines of computer code that hold monetary value. Those lines of code are created by electricity and high-performance computers. Cryptocurrency is also known as digital currency. Either way, it is a form of digital public money that is created by painstaking mathematical computations and policed by millions of computer users called 'miners'. Physically, there is nothing to hold. 'Crypto' comes from the word cryptography, the security process used to protect transactions that send the lines of code out for purchases. Cryptography also controls thecreation of new 'coins', the term used to describe specific amounts of code. Governments have no control over the creation of cryptocurrencies, which is what initially made them so popular. Most cryptocurrencies begin with a market cap in mind, which means that their production will decrease over time thus, ideally, making any particular coin more valuable in the future. Bitcoin wasthe first cryptocoin currency ever invented. No one knows exactly who created it cryptocurrencies are designed for maximum anonymity but bitcoins first appeared in 2009 from a developer supposedly named Satoshi Nakamoto. He has since disappeared and left behind a Bitcoin fortune. Because Bitcoin was the first cryptocurrency to exist, all digital currencies created since then are called Altcoins, or alternative coins. Litecoin , Peercoin , Feathercoin , Ethereum and hundreds of other coins are all Altcoins because they are not Bitcoin. One o Continue reading >>

What Is Bitcoin? - Cnnmoney

What Is Bitcoin? - Cnnmoney

Bitcoin is a new currency that was created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures. Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees. Some people just buy bitcoins as an investment, hoping that they’ll go up in value. Several marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies. Mt. Gox is the largest bitcoin exchange. People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally. People compete to “mine” bitcoins using computers to solve complex math puzzles. This is how bitcoins are created. Currently, a winner is rewarded with 25 bitcoins roughly every 10 minutes. Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the FDIC. Wallet in cloud: Servers have been hacked. Companies have fled with clients’ Bitcoins. Wallet on computer: You can accidentally delete them. Viruses could destroy them. Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. While that keeps bitcoin users’ transactions Continue reading >>

Elon Musk Is Now Linked To The Mystery Of Who Invented Bitcoin

Elon Musk Is Now Linked To The Mystery Of Who Invented Bitcoin

Elon Musk Is Now Linked to the Mystery of Who Invented Bitcoin Bitcoin has taken investors for a ride in 2017, its price rising astronomically from less than a $1000 per coin earlier in the year to peaking at $20,000 by its end. It has its share of detractors and a recent price drop of 27% of its value underscores the unknowns and the volatility inherenttothis 21-st century currency. Regardless, one person who probably benefited tremendously from the cryptocurrency's booming popularity is its inventor, becoming the world's 44th richest person on account of owning around a million bitcoins. The only problem is, we dont know who that person is, or if they even exist at all. The mystery surrounding the creation of Bitcoin is one of its unique characteristics. In 2008, someone named Satoshi Nakamoto published a paper online titled Bitcoin: A Peer-to-Peer Electronic Cash System. The paper, posted to a cryptography mailing list, described how the digital currency would work. In 2009, Nakamoto released software for the currency, which utilized the concept of a blockchain as its core design component. The invention of the blockchain is an influential achievement in its own right as this technology, that uses a distributed ledger to record transactions between two parties in a verifiable and permanent way, has been adopted by other cryptocurrencies and is now even powering governments. A man looks at ATM machines (L and R) for digital currency Bitcoin in Hong Kong on December 18, 2017. (Photo credit: ANTHONY WALLACE/AFP/Getty Images) While he was so instrumental to the existence of bitcoin, also creating bitcoin.org in 2010, who Satoshi Nakamoto really was never became clear as all communication with him was online. In his profile, he claimed to be a Japanese man born in 1975, Continue reading >>

Faq - Bitcoin

Faq - Bitcoin

Find answers to recurring questions and myths about Bitcoin. Bitcoin is a consensus network that enables a new payment system and a completely digital money. It is the first decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen. From a user perspective, Bitcoin is pretty much like cash for the Internet. Bitcoin can also be seen as the most prominent triple entry bookkeeping system in existence. Bitcoin is the first implementation of a concept called "cryptocurrency", which was first described in 1998 by Wei Dai on the cypherpunks mailing list, suggesting the idea of a new form of money that uses cryptography to control its creation and transactions, rather than a central authority. The first Bitcoin specification and proof of concept was published in 2009 in a cryptography mailing list by Satoshi Nakamoto. Satoshi left the project in late 2010 without revealing much about himself. The community has since grown exponentially with many developers working on Bitcoin. Satoshi's anonymity often raised unjustified concerns, many of which are linked to misunderstanding of the open-source nature of Bitcoin. The Bitcoin protocol and software are published openly and any developer around the world can review the code or make their own modified version of the Bitcoin software. Just like current developers, Satoshi's influence was limited to the changes he made being adopted by others and therefore he did not control Bitcoin. As such, the identity of Bitcoin's inventor is probably as relevant today as the identity of the person who invented paper. Nobody owns the Bitcoin network much like no one owns the technology behind email. Bitcoin is controlled by all Bitcoin users around the world. While developers are improving the s Continue reading >>

Everything You Need To Know About Bitcoin, Its Mysterious Origins, And The Many Alleged Identities Of Its Creator

Everything You Need To Know About Bitcoin, Its Mysterious Origins, And The Many Alleged Identities Of Its Creator

On January 3, 2009, 30,000 lines of code spell out the beginning of Bitcoin. A copy of bitcoin standing on PC motherboard is seen in this illustration picture Bitcoin runs through an autonomous software program that is 'mined' by people seeking bitcoin in a lottery-based system. Over the course of the next 20 years, a total of 21 million coins will be released. But Satoshi Nakamoto didn't work entirely alone. Among Bitcoin's earliest enthusiasts was Hal Finney, a console game developer and an early member of the "cypherpunk movement" who discovered Nakamoto's proposal for Bitcoin through the cryptocurrency mailing list.  In a blog post from 2013, Finney says he was fascinated by the idea of a decentralized online currency. When Nakamoto announced the software's release, Finney offered to mine the first coins — 10 original bitcoins from block 70, which Satoshi sent over as a test. Of his interactions with Nakamoto, Finney says, "I thought I was dealing with a young man of Japanese ancestry who was very smart and sincere. I've had the good fortune to know many brilliant people over the course of my life, so I recognize the signs." Finney has flatly denied any claims that he was the inventor of Bitcoin and has always maintained his involvement in the currency was only ever secondary.  In 2014, Finney died of the neuro-degenerative disease ALS. In one of his final posts on a Bitcoin forum , he said Satoshi Nakamoto's true identity still remained a mystery to him. Finney says he was proud of his legacy involving Bitcoin, and that his cache of bitcoins were stored in an offline wallet, left as part of an inheritance to his family.  "Hopefully, they'll be worth something to my heirs," he wrote. As of today, one bitcoin is worth more than $10,000.   Nearly a year lat Continue reading >>

Why Were Bitcoins Created?

Why Were Bitcoins Created?

There is a message in the genesis block (block 0 of the blockchain): The Times 03/Jan/2009 Chancellor on brink of second bailout for banks Its funny how sometimes people ask whether you can convert Bitcoin to real money. All modern money is just numbers in a computer; ultimately, a token of trust - theres no gold standard or anything like that, this stuff doesnt exist anymore. However, Bitcoin cannot be printed in arbitrary amounts (its supply is fixed by the laws of mathematics and computer science), cannot be used for fractional banking, where banks use more money than they actually have, and its users cannot be locked out of their deposits. Now, some of the above might actually be good - but when it comes to what is more real, I think Bitcoin wins! P.S. Yes, I do realize that state-owned currencies are backed by guns. But why use violence when there are decent alternatives in the information age? To summarise Bitcoin in a sentence: A decentralised virtual currency that provides secure global transactions very quickly and does not have any third-party manipulation. Blockchain technology will impact every person and business globally, to give an example I am going to start with how banks operate in our current world and why they are grossly inefficient and fraudulent. First of all, banks use a system called fractional reserving. This system allows them to only partially reserve the deposits that are sent in trust to them. Banks control our monetary supply and have driven the value of our currencies and our real purchasing power to a fraction of what they were 10 years ago. One of the fundamental elements of Blockchain is that the manipulation of monetary supply is not controlled by a trusted third party. We rely on our transactions to be verified by our banks, how thi Continue reading >>

Bitcoin Explained: Here's Everything You Need To Know - Cnet

Bitcoin Explained: Here's Everything You Need To Know - Cnet

What is bitcoin? Here's everything you need to know Blockchains, bubbles and the future of money. Every bitcoin story must include an image of a physical bitcoin. Note: Physical bitcoin coins do not really exist. We're guessing: yes, you have. The first and most famous digital cryptocurrency has been racking up headlines due to a breathtaking rise in value -- cracking the $1,000 threshold for the first time on Jan. 1, 2017 , topping $19,000 in December of that year and then shedding about 50 percent of its value during the first part of 2018. But the Bitcoin story has so much more to it than just headline-grabbing pricing swings. It incorporates technology, currency, math, economics and social dynamics. It's multifaceted, highly technical and still very much evolving. This explainer is meant to clarify some of the fundamental concepts and provide answers to some basic bitcoin questions. Bitcoin was invented in 2009 by a person (or group) who called himself Satoshi Nakamoto. His stated goal was to create "a new electronic cash system" that was "completely decentralized with no server or central authority." After cultivating the concept and technology, in 2011, Nakamoto turned over the source code and domains to others in the bitcoin community, and subsequently vanished. (Check out the New Yorker's great profile of Nakamoto from 2011.) Now Playing: Watch this: Bitcoin: A beginner's guide It's actually a little more complicated than that. Simply put, bitcoin is a digital currency. No bills to print or coins to mint. It's decentralized -- there's no government, institution (like a bank) or other authority that controls it. Owners are anonymous; instead of using names, tax IDs, or social security numbers, bitcoin connects buyers and sellers through encryption keys . And it Continue reading >>

What Is Bitcoin? - Coindesk

What Is Bitcoin? - Coindesk

Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people, and increasingly businesses, running computers all around the world, using software that solves mathematical problems. It’s the first example of a growing category of money known as cryptocurrency. What makes it different from normal currencies? Bitcoin can be used to buy things electronically. In that sense, it’s like conventional dollars, euros, or yen, which are also traded digitally. However, bitcoin’s most important characteristic, and the thing that makes it different to conventional money, is that it is decentralized. No single institution controls the bitcoin network. This puts some people at ease, because it means that a large bank can’t control their money. A software developer called Satoshi Nakamoto proposed bitcoin, which was an electronic payment system based on mathematical proof. The idea was to produce a currency independent of any central authority, transferable electronically, more or less instantly, with very low transaction fees. No one. This currency isn’t physically printed in the shadows by a central bank, unaccountable to the population, and making its own rules. Those banks can simply produce more money to cover the national debt, thus devaluing their currency. Instead, bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are ‘ mined’ , using computing power in a distributed network. This network also processes transactions made with the virtual currency, effectively making bitcoin its own payment network. So you can’t churn out unlimited bitcoins? That’s right. The bitcoin protocol – the rules that make bitcoin work Continue reading >>

A Short History Of Bitcoin And Crypto Currency Everyone Should Read

A Short History Of Bitcoin And Crypto Currency Everyone Should Read

A Short History Of Bitcoin And Crypto Currency Everyone Should Read {{article.article.images.featured.caption}} Opinions expressed by Forbes Contributors are their own. The author is a Forbes contributor. The opinions expressed are those of the writer. This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe Bitcoin hit news headlines this week as the price of one unit of the cryptocurrency passed $11,500 for the first time. Although it’s often referred to as new, Bitcoin has existed since 2009 and the technology it is built on has roots going back even further. In fact if you had invested just $1,000 in Bitcoin the year it was first publicly available, you would now be richer to the tune of £36.7 million . Those who don’t learn from history are doomed to repeat its mistakes – so here is a brief history of Bitcoin and cryptocurrency. Although Bitcoin was the first established cryptocurrency , there had been previous attempts at creating online currencies with ledgers secured by encryption. Two examples of these were B-Money and Bit Gold, which were formulated but never fully developed. A paper called Bitcoin – A Peer to Peer Electronic Cash System was posted to a mailing list discussion on cryptography. It was posted by someone calling themselves Satoshi Nakamoto, whose real identity remains a mystery to this day. The Bitcoin software is made available to the public for the first time and mining – the process through which new Bitcoins are created and transactions are recorded and verified on the blockchain – begins. 2010 – Bitcoin is valued for the first time As it had never been traded, only mined, it was impossible to assign a monetary value to the units of the emerging cryptocurrency. Continue reading >>

If You Put $1,000 In Bitcoin In 2013, Heres How Much Youd Have Now

If You Put $1,000 In Bitcoin In 2013, Heres How Much Youd Have Now

If you took a chance on bitcoin early on , just a few years ago, your investment could have paid off in a big way. According to digital-currency website CoinDesk whose Bitcoin Price Index tracks prices from digital currency exchanges Bitfinex, Bitstamp, Coinbase and itBit the value of bitcoins was volatile in 2013, particularly toward the end of the year: In December alone, the price per bitcoin hit highs of around $1,000 and lows below $600. If you purchased $1,000 worth of bitcoin back then at a price of $600 per, you'd have a little over 1.6 bitcoins. If you purchased $1,000 worth of bitcoin at a price of $1,000 per, you'd have one bitcoin. The above chart shows CoinDesk's Bitcoin Price Index for Dec. 1, 2013 to Dec. 31, 2013 As of Thursday, bitcoin's value was just above $16,500, according to CoinDesk . Based on that value, one bitcoin would be worth a little over $16,500 and 1.6 bitcoins would be worth more than $26,400 today. This estimate does not include any additional fees or transactional costs. That's a tremendous profit in just a few years. If you were smart, or lucky, enough to invest even earlier, in 2010, you could be in the company of the Winklevoss twins, who are reported to be the first bitcoin billionaires . As bitcoin has gone more mainstream, some of the biggest names in finance are weighing in. Fundstrat's Tom Lee and value investor Bill Miller have embraced the trend. But even with many success stories surrounding bitcoin investments, seasoned investors are voicing caution. Billionaire entrepreneur Mark Cuban and "Oracle of Omaha" Warren Buffett warn of bitcoin's volatility. Legendary investor and index fund mogul Jack Bogle, at a recent Council on Foreign Relations event, told the audience, " Avoid bitcoin like the plague ." "Bitcoin has no unde Continue reading >>

How Are New Bitcoins Created? A Brief Guide To Bitcoin Mining

How Are New Bitcoins Created? A Brief Guide To Bitcoin Mining

How Are New Bitcoins Created? A Brief Guide to Bitcoin Mining Bitcoin mining: what is it, what are its purposes and pitfalls to avoid? Bitcoin is often compared with gold, and one of the chief factors of similarity it the way theyre both obtained. Similarly to gold, new Bitcoins are created via the process called mining. In fact, Bitcoin mining has a two-fold purpose : it allows for the creation of new coins and facilitates the processing of transactions in the network. Another parallel with the precious metal is that theres a limited amount of Bitcoins that can ever be mined: no more than 21 mln coins. As of 2017, nearly 17 mln Bitcoins have already been mined. Mining can be quite a competitive task as new Bitcoins are created at a predictable and fixed rate . Those rates have been defined by Satoshi Nakamoto, the creator of Bitcoin, in the white paper published in 2008. The more miners join the network, the more difficult it becomes to make a profit for each of them. Because of that, miners have to remain highly competitive to keep receiving Bitcoins as a reward for validating the transactions. Bitcoin mining is the process of adding records of a new transaction to the Blockchain - the public ledger of all transactions that have ever taken place in the Bitcoin network. New transactions are added in batches called blocks roughly every 10 minutes, hence the name Blockchain. The ledger is needed for the nodes of the Bitcoin network to always be able to confirm valid transactions. In order to become a Bitcoin miner, a person first needs a computer and mining software - like the GUIMiner . This program uses the computers resources to perform complex mathematical calculations. When any one miner succeeds in solving their math problem, they get to create a new block and rec Continue reading >>

Bitcoin - Wikipedia

Bitcoin - Wikipedia

Unspent outputs of transactions denominated in any multiple of satoshis [3] :ch. 5 12.5 bitcoins per block (approximately every ten minutes) until mid 2020, [7] and then afterwards 6.25 bitcoins per block for 4 years until next halving. This halving continues until 2110–40, when 21 million bitcoins will have been issued. ^ The symbol was encoded in Unicode version 10.0 at position U+20BF ₿ BITCOIN SIGN in the Currency Symbols block in June 2017. [2] Bitcoin is a worldwide cryptocurrency and digital payment system [8] :3 called the first decentralized digital currency , as the system works without a central repository or single administrator. [8] :1 [9] It was invented by an unknown person or group of people under the name Satoshi Nakamoto [10] and released as open-source software in 2009. [11] The system is peer-to-peer , and transactions take place between users directly, without an intermediary. [8] :4 These transactions are verified by network nodes and recorded in a public distributed ledger called a blockchain . Bitcoins are created as a reward for a process known as mining . They can be exchanged for other currencies, [12] products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. [13] Bitcoin can also be held as an investment. According to research produced by Cambridge University in 2017, there are 2.9 to 5.8 million unique users using a cryptocurrency wallet, most of them using bitcoin. [14] The word bitcoin first occurred and was defined in the white paper [15] that was published on 31 October 2008. [16] It is a compound of the words bit and coin . [17] The white paper frequently uses the shorter coin. [15] There is no uniform convention for bitcoin capitalization. Some sources use Bitcoin, capitalized, to Continue reading >>

What Is Bitcoin? A Guide For The Confused.

What Is Bitcoin? A Guide For The Confused.

What to know about the crypto-craze before it implodes. Maybe it was those stories you heard Lamborghinis and second mortgages, fortunes made and lost off of something you didnt even really know existed until six months ago. Maybe its those eye-popping charts you keep seeing, the ones that go $5,800 per unit to $19,000 per unit in just one month and the other ones that go in the opposite direction in just one week. Maybe all of your friends are constantly watching their phones, tracking their own investments, celebrating their newfound riches, freaking out about their sudden, sharp losses, and you just hate feeling left out. However you heard about it, it is now clear that this is at least something you should know about whether to invest, or just to inform your Schadenfreude. The problem is, well, what is a bitcoin, exactly? Secretly, you know you dont understand the thing, even though you may pretend to. Isnt it mostly for buying drugs? Where would I even buy one? Why would I want to? And isnt it already too late to be asking these questions, let alone actually investing in it? All right. Seriously. Remind me what a bitcoin is? A bitcoin is one unit of an anonymous digital currency called, yes, bitcoin. Hang on: anonymous digital currency? Thats what it was built to be, at least a theoretically untraceable and unhackable version of PayPal, more or less. But so many people got so excited about buying into the system that a market developed around buying and selling it with bitcoin becoming less important as a currency than as a commodity, like gold. You can still buy things in bitcoin (like you can with gold, sort of), but many more people are now using it as an investment vehicle. So bitcoin is a currency and a commodity? Something like that. Fundamentally, bitcoin i Continue reading >>

Bitcoins Price Spike Is Driving An Extraordinary Surge In Energy Use

Bitcoins Price Spike Is Driving An Extraordinary Surge In Energy Use

Bitcoins price spike is driving an extraordinary surge in energy use Mining Bitcoins uses more electricity than entire countries. The price of a Bitcoin reached a record high of $16,601.77 Thursday morning before falling to $15,500, in what has been a weeklong tear in a price that was $10,000 a month ago and just $1,000 in January. As the value of the digital currency has climbed, so has the amount of energy needed to keep this online economy running, which now exceeds the energy use of 159 individual countries , according to one controversial estimate. Over at Digiconomist , a Bitcoin blog and analysis site, owner Alex de Vries reported that the Bitcoin Energy Consumption Index, an measure of the energy used to mine the digital currency every year, was up to 32.36 terawatt-hours on December 6. Thats on par with the energy use of the entire country of Serbia, more than 19 European countries , and roughly 0.8 percent of total energy demand in the United States, equal to 2.9 million US households. And it still leaves out electricity used by other parts of the Bitcoin pipeline, like ATMs, de Vries told me in an email. A map of countries that use less electricity than Bitcoin mining Thats because producing the online currency requires intense computational processing power, which in turn demands a huge amount of electricity. Mining Bitcoins is like finding solutions to complicated math problems that become progressively more difficult. Coins are awarded to computers that verify transactions with an algorithm that gets more complex over time. In the early days of the currency in 2009 with few computers, few transactions, and a price of $2 per coin this was something you could do on your home computer. Now with a global market cap of more than $167 billion , it requires spec Continue reading >>

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