In late 2010, 1 Bitcoin was worth $0.39. But on the 13th April 2021, 1 Bitcoin was worth over $63,000.
What is Bitcoin?
Bitcoin is a digital currency that was created in January 2009. And it is a type of cryptocurrency that has no physical bitcoins, but only balances kept on a public ledger that everyone has transparent access to. Bitcoin is commonly abbreviated as “BTC”.
Bitcoin is created by an individual or a group of individuals under the pseudonym “Satoshi Nakamoto”. But to this date, the person or persons remains anonymous and unidentified. This Satoshi Nakamoto is said to own 1 million bitcoins. Which makes satoshi worth over $62 billion. Theoretically, the price of a single bitcoin should rise to $177,000. If it happens, Nakamoto would be the richest person in the world, if Nakamoto sells those coins.
But Nakamoto is only one part of what makes this ongoing saga fascinating.
How is Bitcoin created?
Under the shadow of the 2008 financial crisis, a whitepaper titled “Bitcoin: A Peer-to-Peer Electronic Cash System” began to circulate on a cryptography mailing list. It is a paper that was written by someone under the pseudonym of Satoshi Nakamoto. This nine-page manifesto was a blueprint for what Nakamoto described as a purely peer-to-peer electronic cash that would allow payments to be sent directly from one party to another without going through a financial institution.
Nakamoto took the technological innovations of former cypherpunks and put them together into what we now call blockchain technology. That means Nakamoto laid out a framework using mathematics, computer science, and cryptography to create a currency that could be used for transactions without needing to trust a central authority.
So trust was the problem bitcoin was set out to solve.
Why is the Bitcoin Price rising?
Simply, Bitcoin prices are primarily affected by its supply, the market demand for its availability, and competing cryptocurrencies. Approximately 88.5% of the total bitcoin supply of 21 million had been mined. Up to this date, around 2 million bitcoins left for mining. That is why a single bitcoin is worth more than $60,000. But the value can be changed. It can go up or down.
Is Bitcoin the world’s greatest scam?
James Jani talks about Bitcoin in-depth in the following video. So take a look at that if you want to know in-depth about bitcoins. He is answering the following questions in this video.
What even is Bitcoin? What is Blockchain? What is “Mining”? What is a cryptocurrency? Why was bitcoin even created? Does bitcoin even have any value? How could this bitcoin be worth tens of thousands of dollars? Is it just a massive scam?
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