Bitcoin is one of the most talked about cryptocurrencies of all time. If you’ve heard about it, whether from a friend, family member, or a specific platform and are curious to know more, you’re at the right place. We’ll discuss all things Bitcoin, including its history, use cases, some of the most frequently asked questions about it, and more.
Bitcoin is a type of cryptocurrency or virtual currency that can act as a form of payment or money without the third-party involvement, control, or oversight of financial and legal institutions such as banks and the government. Instead, it allows users to directly transact amongst themselves and confirm transactions using a blockchain network.
Bitcoin can be purchased on cryptocurrency exchanges, decentralized exchanges, crypto wallets, and crypto payment apps.
When Did Bitcoin Start? How Long Has Bitcoin Been Around?
Bitcoin is the first-ever cryptocurrency, introduced to the public by a developer or a group of developers under the pseudonym Satoshi Nakamoto in 2009. Bitcoin has become the world’s largest cryptocurrency by market capitalization since then.
How Was Bitcoin Created?
Bitcoin’s inception dates back to the Great Recession in 2008. There was massive distrust toward banks and their role in the financial realm during this time, which inspired the mysterious Satoshi Nakamoto to issue a white paper focused on the centralized control of money and the importance of trust in handling them.
Contrary to the traditional financial system wherein transactions and transaction costs can be controlled by third parties, the concept of Bitcoin was presented as a way to transact without the involvement of a regulating body. It was made possible by using cryptographic proofs, which maintain the integrity of a blockchain network. The Bitcoin blockchain network was launched on January 3, 2009, when the first block was mined.
During the first few months, Bitcoin was only obtainable by miners who validate the Bitcoin blockchain network. They did it mainly for fun as Bitcoin had no real monetary value back then.
How Did Bitcoin Gain Monetary Value?
The first economic transaction took place a year later after the launch of the Bitcoin blockchain. A man from Florida negotiated to have two Papa John’s pizzas delivered to his place for 10,000 BTC, which was then valued at $25, on May 22, 2010. This transaction has given Bitcoin the initial value of 4 BTC per $1.
Negotiations concerning Bitcoin continued in Internet forums as people bartered for goods and services in exchange for the Bitcoins they hold.
What Is Bitcoin Used For?
Bitcoin has various use cases, especially nowadays that several merchants and companies already use it as a form of payment. Some people or organizations use Bitcoin for:
- Buying or paying for certain goods and/or services
- Diversification of assets
- Providing salaries to employees
- Buying or selling tokens
- Swapping tokens
What Is Bitcoin Mining?
Mining is a metaphor for the process of solving complex computational math problems to verify the legitimacy of Bitcoin transactions on the blockchain network. This verification process helps the network prevent double spending or the event wherein a Bitcoin owner spends the same Bitcoin twice.
Meanwhile, it’s called Bitcoin mining because miners, or those who participate in the verification and auditing process, receive Bitcoins as a reward or payment for the work they do, while new Bitcoins also enter the circulating supply.
How to Mine Bitcoin
Mining requires specialized hardware, and thus miners use application-specific integrated circuits (ASICs) and so-called “rigs” to facilitate the verifications. They also use necessary software that connects them to the Bitcoin blockchain network and provides work to miners.
Miners go through trillions of ways to encode data in a standardized manner (a.k.a. a cryptographic hash) every second until they find one that fits into a requirement called “difficulty.” Using this requirement, the system guarantees that Bitcoin miners put in real work and spend resources to hash through possible combinations (hence the inception of the word “proof-of-work”).
Roughly every four years, Bitcoin mining rewards are reduced in half. Mining one block provided 50 BTC in 2009, and it was halved to 25 BTC in 2012. The reward was reduced again to 12.5 BTC in 2016, and 6.25 BTC in 2020.
What Is a Bitcoin Investment?
Because of its price history, trading volume, and market capitalization, some people buy Bitcoin as an alternative investment, just like bonds, stocks, and the like. There must be careful consideration when using Bitcoin for diversifying long-term assets though as the cryptocurrency market is highly volatile, which means its price can fluctuate in a matter of seconds and can reach either an all-time high or an all-time low at any minute.
Where Can I Buy Bitcoin?
Many cryptocurrency exchanges and platforms allow users to buy Bitcoin using just a debit or credit card. One of these is Ka.app, a peer-to-peer crypto payment app. Sign up for an account now.
Remember to invest only what you can afford to lose as the price of Bitcoin fluctuates heavily and may soar or decline significantly in a matter of seconds.
How to Pay Someone in Bitcoin
There are different ways to pay someone in Bitcoin. Some of the most popular ones are through an exchange, a crypto wallet, or a crypto payment app like Ka.app, which enables you to send crypto quickly using just a QR code or a phone number. Here’s the step-by-step guide:
1. Create a Ka.app account by signing up.
2. Finish the Know Your Customer (KYC) verifications for legal compliance.
3. Once you’ve successfully signed up, add Bitcoin to your account by depositing from an external wallet.
4. Start sending Bitcoin to another Ka.app user by clicking the “Send” button.
5. Enter the phone number or Ka.app QR code of the recipient.
6. Confirm the transaction.
More on Ka.app
Aside from Bitcoin, Ka.app also allows you to send, receive, deposit, withdraw, and swap Ethereum (ETH), Tether (USDT), USD Coin (USDC), Binance Coin (BNB), Binance USD (BUSD), Polygon (MATIC), Cardano (ADA), Polkadot (DOT), and the KASTA token.