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Know about Bitcoin – A Peer to Peer Key to Financial Freedom

By December 16, 2019 No Comments

Money, known by many names, is and will be one of the strongest languages common to all humans. Physical cash is an expression of what value and worth humans place on things. Limited by the border or domain where it is acceptable, physical cash served as a deteriorating body to the spirit of something that has huge potentials – money. 

Key Take-Homes

  • Governments can simply decide to increase the amount of money in circulation.
  • Bitcoin Transactions remain permanent and unchanged when they have been recorded in the blockchain.
  • With Bitcoin, it is possible to send money to anyone around the world without the need of waiting times or huge transaction fees.
  • Satoshi Nakamoto is the name of the person or group of people who created the Bitcoin whitepaper and the official website- Bitcoin.org. 
  • 1USD was worth 1,309.03BTC when it was first traded in 2009. Today Bitcoin is worth well over $7000.
  • Wunbit‘s WUN tokens are now being sold for $0.10 with an additional 50% discount currently at the private sale,  and its cost could increase in the next few months.

E-Money limitations

Satoshi Nakamoto, the creator of Bitcoin, highlighted some limitations of regular e-money in the Bitcoin white paper released in 2008:

  • Double Spending: Just like it sounds,  it is possible to spend the same money twice especially for hackers. Electronic cash works on balance state, meaning that your money is only the set of numbers that you see on your account. 
  • Intermediary: When you spend your electronic cash, you need a trusted third-party (in this case,  your bank) to witness or confirm that you are sending the money. This way, reversal is possible. The bank has the autonomy to tell you that the money you received last wasn’t yours or wasn’t meant for you. Intermediaries are somewhat all-powerful and have a say on your spending pattern. They determine your transaction fees since they also coordinate arbitration processes.

Another limitation which many experts have identified is Inflation.

  • Governments can simply decide to increase the amount of money in circulation. Manufacturing cash would have elevated costs. But with e-money, they can do that simply by changing the numbers and then worrying about creating the cash later. This decreases the value of the money in circulation thus increasing the prices of things that can be bought. 

Bitcoin and the Bitcoin network

Bitcoin was launched or created to serve as a major solution to the inherent limitations of the electronic cash systems. It was meant to be a peer to peer mode of sending money via the internet without the need of centralized intermediaries. 

Transactions on the Bitcoin network 

Each user’s balances are controlled by their private and public keys. Private and public keys are a long string of numbers and letters that electronically represent a person’s signature. When you send bitcoins from your wallet to another user, you are simply signing a portion of your account balance and transferring its ownership to another person whose public key you have entered. The transaction is witnessed by all computers (miners) on the network. Miners work independently and are scattered all over the world. Transactions are recorded in a public manner according to the time they occurred (time stamped). With this model,  it is impossible to reverse, rewrite, or double-spend any transactions. Transactions remain permanent and unchanged when they have been recorded in the block. 

Beyond borders

For the nature of Bitcoin, it is possible to send money to anyone around the world without the need of waiting times or huge transaction fees which is the characteristic of sending electronic money. 

Consensus

Transactions are confirmed when computers (miners)  perform complex calculations to approve that a transaction is genuine. This is termed as a Proof-of-Work consensus algorithm. 

Miners around the globe carry the responsibility of confirming transactions,thus creating new bitcoins. They can determine what happens to the whole network. Bitcoin was created in such a way that someone or a group of people cannot determine what happens to the whole network. Before a change is effected on the whole network, all or most of the miners must agree or reach a consensus. 

Bitcoin’s notable events according to the time of occurrence 

Aug. 18, 2008: The domain name bitcoin.org is registered. 

Oct. 31, 2008: Satoshi Nakamoto makes an announcement on The Cryptography Mailing list at metzdowd.com about Bitcoin and its whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System.” 

Jan. 3, 2009: The first Bitcoin block (Genesis Block) is mined, Block 0. 

Jan. 8, 2009: The first version of the Bitcoin software was announced on The Cryptography Mailing list.

Jan. 9, 2009: Block 1 is mined, and Bitcoin mining commenced.

The mysterious Satoshi Nakamoto

Satoshi Nakamoto is the name of the person or group of people who created the Bitcoin whitepaper and the official website- Bitcoin.org. The real identity or identities of the creator(s) is/are still unknown. Only speculations have been made. Many others believe it is better that the identity of the creator is hidden, for his own security and privacy.

Bitcoin, Blockchain and Its Prices

The prices of bitcoins after its creation have been astounding, sources say that 1USD was worth 1,309.03BTC when it was first traded in 2009. Today Bitcoin is worth well over $7000. This gave blockchain technology its potential and also the reason why many believe in it. 

WUN Token, Wunbit’s Own Cryptocurrency

Wunbit’s WUN tokens are now being sold for $0.10 with an additional 50% discount currently at the private sale,  who knows what the cost will be in the next few months? Buy your WUN now!

Sources – For further reading 

  1. http://www.bitcoin.org/bitcoin.pdf 
  2. https://en.m.wikipedia.org/wiki/Bitcoin
  3. https://www.investopedia.com/terms/b/bitcoin.asp
  4. https://www.google.com/amp/s/en.bitcoinwiki.org/wiki/Amp/Bitcoin_history
  5. https://www.financemagnates.com/cryptocurrency/a-tale-of-three-coins-the-ongoing-saga-of-btc-bch-and-bsv/

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