How are bitcoins and cryptocurrencies created?
In this article, we will discuss how the first digital currency was created. What is the difference between these currencies and their uses? What future awaits her.
1_ Bitcoin originated
On Halloween night in 2008 AD. A person named "Satoshi Nakamoto" published a research paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System"... At that time the price of Bitcoin was $0.01.
The identity of Satoshi (meaning "enlightened" in Japanese) is still unknown, it may be a group of people, he was communicating with users by e-mail until he disappeared in 2011. Assuming he is working on other things. Today, the price of Bitcoin has exceeded $60,000, with a market value of nearly $1.2 trillion... Satoshi owns one million coins, worth more than $50 billion.
Bitcoin operates through a system called “Blockchain” which is like an electronic network operated by miners where they record every transaction between two people on the network and they get paid for that transaction. To make any change to the system, 51% of miners must agree to it, making the currency decentralized. The Bitcoin blockchain system is very slow (transaction takes 3 hours) and very expensive (high transfer fees).
2_ Other currencies:
Today, there are thousands of digital currencies, each with its own project that distinguishes it... There are those who seek to standardize the blockchain for all currencies, such as (DOT), and there are those who have invented more advanced blockchain technology to conduct transactions at high speed and low cost, such as (SOL), and there are those who use their own blockchain To encrypt boards, games and music in the form of NFT and sell it among people (such as ETH) and there are absolutely worthless currencies (such as DOGE and SHIBA).
3_ The future of digital currencies:
If the Chinese and American government and Satoshi sold the huge amount of bitcoin they own together, they could cut its value by less than half in less than an hour! Also, most bitcoin miners work on thousands of machines in (mining pools), which makes it possible to control 51% of the machines and thus control the currency system where it can be disabled, which will end the bitcoin order and of course it will affect the rest of the currencies.
On the other hand, the world’s orientation towards everything digital is evident, and central banks like the idea of getting rid of cash in exchange for using a central digital currency that they control (meaning creating their own currency different from the current currencies), and the prosperity of the NFT markets will lead to more demand towards Digital currencies... Of course, not all currencies will survive until the end of the decade, and Bitcoin will not remain at the forefront, but it is certain that the popularity of digital currencies will continue to increase, and the areas of their use will expand and the need and demand for them will increase.
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