A Complete Beginner’s Guide: What is Bitcoin?  

What is Bitcoin

First of all, let’s talk about what is bitcoin after all? Bitcoin is a type of cryptocurrency like fiat currency that has different currencies, such as euro, dollar, pound and rupee etc. In the same way, there are many types of cryptocurrencies in crypto, one of which is also bitcoin. Bitcoin was the first cryptocurrency to be announced in a white paper on 31st October 2008. And in 2009 bitcoin was launched, Bitcoin is also called BTC in short. One name that all of you must have heard at one time or another is that of Satoshi Nakamoto. Now you must be thinking that who is this, whether it is the name of a person or a group or a company, no one knows it. If you’re interested in knowing more virtual currencies visit this link.

Now, who invented bitcoin is also a mystery, now people believe that this name is of Japanese origin. But some people also believe that those who made the white paper public were written in English. The mystery as to who it is is not known to anyone, but if seen, this bitcoin opened the way to a decentralized economy and Nakamoto handed over this source code of bitcoin to the developers and disappeared.

This insurance that no individual or organization controls. Well, another new word has come into the market, so let’s understand it too, so let’s talk about bitcoin white paper. What was this white paper and after all, what has Santoshi Nakamoto said in it? So this white paper is that long and wide document where the peer to peer electronic cash system was talked about for the first time. It explains how bitcoin or crypto works, how it is secure, how all transactions will be done based on blockchain technology, and how cryptocurrency will be decentralized. This white paper had all the information related to dealing in cryptocurrency a to z.

What is Mining? 

Mining is the process in which new coins are introduced into the circulation pool of bitcoin. By circulation I mean making bitcoins available to users, they can buy, sell or hold these bitcoins. Every transaction of cryptocurrency is verified using the mining process and it is updated in the blockchain ledger. All these miners have created all the bitcoins in circulation today, instead, they get bitcoins as a reward, but they have to meet two conditions to get the reward. First of all these miners have to verify bitcoin transactions equal to 1MB, miners do this by solving complex mathematical problems and when they are solved then a 64 digit code as an answer comes out, this 1MB of transaction data block is called. And the 64 digit answer that comes out is the hash.

Now the second requirement

The miner who can extract this hash, i.e. the correct answer first, only gets this bitcoin as a reward. It is also called proof-of-work. And because of this, no one can do fake bitcoin transactions. This was the process of mining bitcoins.

Bitcoin supply and market cap

So, you should understand the meaning of circulating supply in such a way that whatever currency coins and tokens are available for public dealing at this time and which can be circulated by doing transactions, they come in circulating supply. There is a circulating supply of bitcoin that increases as an example, over time, the supply of bitcoin will gradually increase until it reaches 21 million coins. As I told you, the circulating supply of bitcoin is constantly increasing due to mining processing, in the same way, the circulating supply of cryptocurrency is used to decide its market capitalization i.e., market value.

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