15 Interesting Facts You Should Know About Bitcoin
There will only ever be 21 million bitcoin.
Bitcoins Exist As Records of Transactions
bitcoins exist only as records of transactions because there is no bitcoin anywhere. Is this funny and hard to wrap your mind around? I hope not. bitcoin is not like your regular currency in your bank account, where you just have to go queue up at the ATM to withdraw, or where you write cheques because you want to make a transaction and when things are seeming blurry to you and you smell foul, you call your account manager to write you a statement if you do not want to look it up yourself. There is no bitcoin anywhere. There only are records of transactions between different addresses which have balances that are always on the increase or on the decrease. A bitcoin wallet does not contain any bitcoins but only the private-public key pairs as mechanisms that allow you to access your funds. Every information that a user needs about the balance of any bitcoin address is on the blockchain. All a user has to do is enter their bitcoin address in the blockchain and study its history.
What you should know about bitcoin
- Bitcoin creator, Satoshi Nakamoto is still a mystery figure
- The first bitcoin was transferred to Hal Finney by Satoshi Nakamoto on 01-12-2009 at 3:30:25.
- Bitcoin system is based on decentralized trust and it heavily relies on cryptography
- A bitcoin transfer is irreversible.
- The most expensive pizza was bought in 2010 with 10, 000 units of bitcoin.
- bitcoins are limited in number. There will only ever be 21 million bitcoins.
- Japan was the first to categorize bitcoin as legal tender in 2017.
- Bitcoin is run over a peer-to-peer network of computers called nodes.
- Nodes are responsible for processing transactions and maintaining all records of ownership.
- Anyone can download the free open source Bitcoin software and become a node.
- All nodes are treated equally, and no single node is trusted. However, the system is based on the assumption that the majority of computing power will come from honest nodes.
- A bitcoin transaction is a record informing the network about a transfer of bitcoins from one owner to another owner.
- Ownership of bitcoin is established through digital keys, bitcoin addresses, and digital signatures.
- Bitcoin transactions are stored in blocks which make up the blockchain.
- Bitcoin relies on digital signatures to verify transactions in the network.
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