What is Bitcoin?

The first and most important cryptocurrency: its history, technology, and significance

History of Bitcoin

Bitcoin was created in 2009 by an anonymous creator (or group of creators) known as Satoshi Nakamoto. On October 31, 2008, Nakamoto published a whitepaper titled "Bitcoin: A Peer-to-Peer Electronic Cash System".

📅 Key dates: • 2008: whitepaper publication • January 3, 2009: genesis block mined (first block) • May 22, 2010: first real-world transaction: 10,000 BTC for 2 pizzas (worth ~1 billion USD today!) • 2011: Bitcoin reaches parity with the dollar ($1 = 1 BTC) • 2017: first boom to $20,000 • 2021: ATH at $69,000 • 2024: Bitcoin ETF approved by the SEC

Proof of Work (PoW)

Bitcoin uses the Proof of Work (PoW) consensus mechanism.

⛏️ How it works? 1. Miners compete to solve a complex mathematical problem 2. The first one to find a solution creates a new block 3. They receive a reward in the form of newly minted BTC 4. The entire network verifies the solution

🔋 Energy consumption: The Bitcoin network consumes more energy than some countries, which is one of the main points of criticism.

Important: Bitcoin Supply

⚠️ Bitcoin's supply is limited to 21 million coins, and that will NEVER change!

Currently, over 19.5 million BTC (~93% of the total supply) have already been mined. The last Bitcoin is expected to be mined around the year 2140.

📉 Halving: approximately every 4 years, the block reward is cut in half: • 2009: 50 BTC per block • 2012: 25 BTC • 2016: 12.5 BTC • 2020: 6.25 BTC • 2024: 3.125 BTC

This controlled deflation makes Bitcoin comparable to "digital gold".

Bitcoin Price: Milestones

Bitcoin has gone through several major bull and bear cycles. Each cycle so far has ended with a higher peak than the previous one.