Definition of Bitcoin
Bitcoin is one of the most well-known and traded decentralized cryptocurrencies, the Bitcoin (bit coin) process is powered by Blockchain technology. Bitcoin is the first cryptocurrency to emerge globally, with the highest price of all cryptocurrencies and the highest market share.
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| What do you know about the most popular digital currency "Bitcoin" |
The evolution of Bitcoin
In October
2008, an anonymous figure, Satoshi Nakamoto, published a paper on Bitcoin,
entitled "A Peer-to-Peer Electronic Cash". In this paper published by
this person, he explained the way the new Bitcoin works as well as ways to
protect it from hacking.
He also
explained the type, form, and nature of transactions that could be made by
Bitcoin. According to this paper, Bitcoin was officially launched in January
2009.
Years later,
Bitcoin went back and forth, with little value, and was initially limited to
people who were only collectors of digital currencies and interested in
technology, after which Bitcoin gradually began to achieve and gain high value.
Bitcoin Working Mechanism
Like the rest of the existing cryptocurrencies, Bitcoin operates
using a well-known technology called Blockchain. This technology had already
been explained, designed, and described the mechanism of its work in papers
that preceded the launch of Bitcoin.
The compendium of blockchain technology used by cryptocurrencies is
that customers' data is stored on all network member devices rather than stored
on central services such as traditional bank balances.
Bitcoin Types and Branches
As in the case of most of the widespread cryptocurrencies, bitcoin
has gone through stages during which its core network has branched out,
creating new cryptocurrencies that are branched and derived from bitcoin, the
most important of which are:
First: Wrapped Bitcoin and symbolized by WBTC
It is a version of Bitcoin, launched in 2019 in the Ethereum
network ERC-20 allowing it to be traded in Ethereum's blockchains that host
many decentralized finance currencies (DeFi).
Bitcoin Rabid price is set at 1:1 per bitcoin. Therefore, the price
of Bitcoin Rabid changes depending on the price of Bitcoin and not according to
the supply and demand of this currency itself.
Second: Bitcoin Vault, symbolized by BTCV
Launched in
2019 and with the same basic Bitcoin features, it features an important
addition that provides more transparency and security and provides users with
greater freedom, including the possibility of using three keys designed by the
curved elliptical digital signature algorithm and encoded by ECDSA.
This feature
allows the user to cancel transfers or change the transfer details after making
them. It also helps protect the user's money from sacrifice in the event of
loss of their portfolio data and inability to manage their money.
Third: Bitcoin Cash, symbolized by BCH
This currency
was established in 2017 and was initially created to address some of the
problems and disadvantages of Bitcoin. These include the long periods taken by
certain financial transactions, as well as the relative rise in the wages of
implementing remittances and various transactions. The maximum volume in this
currency was raised to 8 MB and in October 2021 the block size was also updated
to 32 MB.
Bitcoin's Future
No one doubts that bitcoin today has become an integral part of the global financial system with an estimated market value of hundreds of billions of dollars.
It has
become part of the global investment portfolio of several investment entities
around the world such as the Global Indicators Fund (Procheser Bitcoin Strategic
- NASDAQ BITO), which invests in Bitcoin futures.
The Griskill Bitcoin Trust - Nasdaq GBTC Fund, which invests in Bitcoin directly. As well as the Valkyrie Bitcoin Minzer-Nasdaq WGMI fund, which invests in bitcoin mining. Bitcoin, bit coin, investments are expected to grow further in the coming years as its market share continues to grow.
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