Bitcoin

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Quick Explanation:

Longer Explanation:

Expert Explanation:

Hacks and Security

There have been several instances where centralized Bitcoin exchanges and wallets have been hacked, resulting in the loss of Bitcoins for the affected users. It is important for users to take steps to protect their Bitcoin and keep their wallets secure and not trust centralized exchanges.
However, it is important to note that the Bitcoin network itself has never been hacked. The decentralized nature of the Bitcoin network, which is secured by cryptographic techniques, makes it extremely difficult to hack.
It is important for users to be aware of the potential risks and to take steps to secure their Bitcoin, such as using strong passwords and keeping their software up to date. It is also important to use reputable and secure wallets and to be cautious when interacting with centralized exchanges.

Features

The features of Bitcoin are: The features Central Banks (CBDC) and organizations want:
Open Source Closed Source
Global Local
Immutable permanent ledger Editable ledger (for correcting slipups)
Permission-less (anyone can join) Permission (Only for verified customers)
Censorship resistant Censored (think about sending value to WikiLeaks)
Decentralized / Flat structure Centralized / Hierarchical structure
Pseudonymous Control Identity / KYC
Proof of work consensus Proof of Stake / PoAuthority / PoState
Innovate without permission Controlled team of innovators
This is Bitcoin. This is not Bitcoin
 
The Internet of money or IoM like IoT (Internet of things), a currency / value token that can buy gods and services globally using the Internet.
The value token network that runs on the Internet with sets or blocks of transaction data packaged and blocks are built on top of each other to locked them in sequential order.
Digital assets / money that is programmable and can be self regulated.
 
 

Bitcoin FAQ

  • The lowest denomination of bitcoin, for now, is 1 Satoshi. There are 100 million Satoshis to every bitcoin. That is 8 numbers behind the coma, (1 Satoshi = 0,00000001 Bitcoin).
  • Only 21 million or fewer bitcoins will ever exist. The 32 rounds of halving accumulate to 21 000 000 If we do not decide to go sub-Satoshi or change the rules of Bitcoin. Also, the miners can choose the reward up to the current reward level and not necessarily take the full reward.
  • The consensus algorithm is Proof of Work [SHA256] (Secure Hash Algorithm 256).
  • Bitcoin is run decentralized on a flat structure as opposed to a centralized hierarchical structure.
  • Bitcoin is designed to be the sender's “push transaction” and no entity like banks, governments, or 3rd parties can stop a sender from pushing transactions to be executed. In effect, the sender is the ultimate authority and decides to who he or she pays the value.
  • The Bitcoin code has never been successfully hacked, but we have seen many examples of centralized wallets that have been broken into (Hacked).
  • The software is open source and the code is available on GitHub.
  • The difficulty parameter, which is built into the software, is adjusted every 2016 block to change to try and keep a 10-minute block time on average based on the blockchain performance of the last 2016 blocks.
  • Hashing is a brute-forced mechanism by the miners (supercomputers with ASIC CPUs (Application Specific Integrated Circuits Central Processing Units)) guessing the right combination.
  • An executed SHA256 hash is one try to guess the right combination on the complex lock holding the blocks together.
    • Side note:
Hash Equals = Nonce guesses Power per sec
1 Hash 1 ~ 0,0000000000000101054966863659 Wh
1024 Hashes 1 KiloHash 1024 ~ 0,0000000000103480286068387 Wh
1024 KiloHashes 1 MegaHash 1 048 576 ~ 0,0000000105963812934028 Wh
1024 MegaHashes 1 GigaHash 1 073 741 824 ~ 0,0000108506944444444 Wh
1024 GigaHashes 1 TeraHash 1 099 511 627 776 ~ 0,0111111111111111 Wh
1024 TeraHashes 1 PetaHash 1 125 899 906 842 620 ~ 11,3777777777778 Wh
1024 PetaHashes 1 ExaHash 1 152 921 504 606 850 000 ~ 11 650,8444444444 Wh = 11,37 KWh
  • As of 15th of April 2024 the blockchain is running at approximately 605 ExaHashes per second or 697 448 197 120 307 000 000 (~697 Quintillion) guesses per second.
  • The miners get rewarded for the blocks that they solve and broadcast to the rest of the network first.
  • Every 210.000 blocks the miner reward gets halved.
  • The current bitcoin software, Bitcoin Core ver. 0.25
    • Many new software proposals with larger block sizes have been set on the network backward compatible with Bitcoin Core.
    • To change the current software (Hard fork) 75% of miners need to be mining onto the new software. When 75% is reached, there will be a "Grace period" of 1,209,600 seconds (two weeks) before the new features will be in effect and the Hard fork is completed. This according to BIP0101.
  • Ten Quattuorvigintillion is the number of unique wallets in the Bitcoin wallet system.
    • Side note:
Number Equals = Equals = Equals =
1 One
10 10^1 Ten
100 10^2 Hundred
1 000 10^3 Thousand
1 000 000 10^6 Million
1 000 000 000 10^9 Billion One billion seconds is about 32 years, also if you have this many US Dollars you are in the ",,, club" (3 comma club).
100 000 000 000 10^11 Hundred Billion Elon Musk has this range amount of US Dollars.
1 000 000 000 000 10^12 Trillion Elon Musk has this range amount of Thai Baht if he converted his US Dollars.
10 000 000 000 000 10^13 Ten Trillion As of Nov. 2022 the world's money supply (M1) is said to be about 48,9 Trillion and (M2) 82,6 Trillion if all was converted to US dollars.
1 000 000 000 000 000 10^15 Quadrillion
10 000 000 000 000 000 10^16 Ten Quadrillion The estimated number of ants on Earth.
1 000 000 000 000 000 000 10^18 Quintillion You can make 43,252 Quintillion differnt combinations with a 3x3x3 Rubix Cube
1 000 000 000 000 000 000 000 10^21 Sextillion The estimated number of bacteria that exist on Earth. It is also estimated that there are 7,5 Sextillion grains of sand on Earth.
1 000 000 000 000 000 000 000 000 10^24 Septillion
100 000 000 000 000 000 000 000 000 10^26 Hundred Septillion The estimated number of stars in the observable universe
1 000 000 000 000 000 000 000 000 000 10^27 Octillion
You get the point :) 10^30 Nonillion
10^33 Decillion
10^36 Undecillion
10^39 Duodecillion
10^42 Tredecillion
10^45 Quattuordecillion
10^48 Quindecillion
10^51 Sedecillion
10^54 Septendecillion
10^57 Octodecillion
10^60 Novendecillion
10^63 Vigintillion
10^66 Unvigintillion
10^69 Duovigintillion
10^72 Tresvigintillion
10^75 Quattuorvigintillion
10^76 Ten Quattuorvigintillion Number of unique wallets
10^78 Quinvigintillion The estimated number of atoms in the observable universe
10^81 Sesvigintillion
10^84 Septemvigintillion
10^87 Octovigintillion
10^90 Novemvigintillion
10^93 Trigintillion
10^96 Untrigintillion
10^99 Duotrigintillion
10^100 Ten Duotrigintillion One Googol
10^102 Trestrigintillion
10^105 Quattuortrigintillion
10^108 Quinquatrigintillion
10^111 Sestrigintillion
10^114 Septentrigintillion
10^117 Octotrigintillion
10^120 Noventrigintillion
10^123 Quadragintillion
10^153 Quinquagintillion
10^183 Sexagintillion
10^213 Septuagintillion
10^243 Octogintillion
10^273 Nonagintillion
10^303 Centillion
10^333 Decicentillion
10^603 Ducentillion
10^903 Trecentillion
10^1203 Quadringentillion
10^1503 Quingentillion
10^1803 Sesgentillion
10^2103 Septingentillion
10^2403 Octingentillion
10^2703 Nongentillion
10^3003 Millinillion
10^10^100 Googolplex 10^Googol = One Googolplex
infinit 10^Googol + ∞ = is still ∞
 

Bitcoin History; Why decentralization is the key to Bitcoin's success

David Chaum, an American computer scientist and cryptographer, is widely recognized as the inventor of digital cash and a pioneer in cryptography and privacy-preserving technologies. The history of cryptocurrency traces its roots back to Chaum's invention of an encrypted system of money called eCash in 1982, which he later followed up with the development of an additional secure transaction system named DigiCash twelve years later in 1995.

However, the journey towards digital cash and privacy-preserving technologies began with Chaum's paper "Blind Signatures for Untraceable Payments," which was first published in 1982. The paper laid the groundwork for research into encrypted communication over the internet, which eventually led to privacy-preserving technologies like Tor the dark net browser. Chaum's paper introduced the concept of blind signatures, a cryptographic technique that allowed a user to sign a message without revealing its content. This technique was the basis of Chaum's eCash, a system that allowed users to make payments over the internet without revealing their identity.

Chaum's eCash system was based on a combination of public-key cryptography and blind signatures, and it provided users with a high degree of anonymity and privacy. The system used digital tokens that could be exchanged between users and merchants, and the tokens were designed to be untraceable. However, despite the potential of eCash, the system failed to gain widespread adoption due to the lack of infrastructure and the difficulty of implementing the system.

The concept of digital cash continued to evolve over the next two decades, with various attempts to develop systems that would provide users with privacy and anonymity. One notable example is the development of Bitcoin, which was first introduced on January 3, 2009. Bitcoin was designed to provide users with a decentralized, peer-to-peer payment system that allowed for anonymous transactions without the need for a trusted intermediary.

The significance of decentralization in the digital cash attempts before Bitcoin lies in the fact that earlier attempts traded decentralization for simplicity, relying on centralized servers to prevent double-spending, making them susceptible to censorship and seizure. However, Bitcoin, created by the pseudonymous Satoshi Nakamoto in 2009, achieved full decentralization, allowing for censorship resistance, and immunity to seizure, while providing a push system for fast and easy transactions.

The concept of digital cash was not new, with early attempts made in the late 1980s in the Netherlands and developments in the 1990s by computer scientists such as David Chaum, Nick Szabo, Wei Dai, and Adam Back. However, these attempts were not fully decentralized, and it was not until the advent of blockchain technology and the creation of Bitcoin that a viable, trustless, and fully decentralized digital currency was made possible.

Bitcoin's success can be attributed to its unique combination of full decentralization, immutability, transparency, and limited supply, which has led to widespread adoption, use as an alternative store of value, and investment asset. While the China ban on Bitcoin mining in 2021 caused a temporary drop in price, the network recovered its hashrate in record time and gained in decentralization. Bitcoin's adoption as legal tender in El Salvador in 2021 and its consideration by Panama further demonstrate the growing acceptance of cryptocurrencies worldwide.

Mr. Bitcoin Norge

In conclusion, Bitcoin's success can be attributed to its full decentralization, which allows for censorship resistance, and immunity to seizure, as well as its unique combination of immutability, transparency, and limited supply. Earlier attempts at digital cash traded decentralization for simplicity, making them susceptible to censorship and seizure. While the concept of digital cash was not new, it was not until the advent of blockchain technology and the creation of Bitcoin that a viable, trustless, and fully decentralized digital currency was made possible.

Bitcoin History Facts

Mr. Bitcoin Norge
YEAR: MONTH: DAY: TIME: WHO: WHAT:
1982 David Chaum Wrote a paper on eCash: "Blind Signatures for Untraceable Payments"
1997 May Adam Back Inventet Hashcash
1998 Nick Szabo Makes Bit Gold
1998 November Wei Dai Outlines B-Money
2004 Hal Finney Makes reusable Proof of Work (PoW)
2008 August 18 01:19:55 PM unknown The domain name "Bitcoin.org" was registered
2008 October 31 02:10:00 PM (EDT) Satoshi Nakamoto The "Bitcoin: A Peer-To-Peer Electronic Cash System" white paper surfaced
2008 November 9 Satoshi Nakamoto The Bitcoin project was registered at the open-source-projects community resource, "SourceForge.net"
2009 January 3 06:15:05 PM Satoshi Nakamoto The Bitcoin blockchain started with the Genesis Block "��EThe Times 03/Jan/2009 Chancellor on brink of second bailout for banks"
2009 January 9 02:54:25 AM Satoshi Nakamoto The Second Block, "Block #1" was added to the Bitcoin Blockchain
2009 January 9 Satoshi Nakamoto Releases the Bitcoin Core v0,1 software for download on "bitcoin.org"
2009 January 11 04:33:00 PM Hal Finney Tweeted "Running bitcoin" which was the first-ever Bitcoin-related tweet
2009 January 12 03:30:25 AM Satoshi Nakamoto The first Bitcoin transaction happened, other than mining, in "Block #170" for 10 Bitcoins to Hal Finney
2009 December 30 06:11:04 AM unknown The first Blockchain difficulty change happened in "Block #32256". This happened after 15 potential difficulty changes. The actually change from 1 to 1.18, indicating that there were quite few machines mining before this stage
2009 December 31 11:59:59 PM Bitcoin The Price of Bitcoin was $0.00 USD
2010 February 6 unknown "Bitcoin Market", the first official cryptocurrency exchange, is launched
2010 May 22 Laszlo Hanyecz First online purchase using bitcoin. Laszlo buys Papa John's pizza for 10 000 coins (25 USD – Bitcoin value was 0.0025 cents for 1 Bitcoin)
2010 October 7 Bitcoin Bitcoin exchange rate begins to escalate, after several months stuck at USD $0.06 per Bitcoin
2010 December 13 04:45:41 PM Satoshi Nakamoto Last known public post from Satoshi
2010 December 16 sluch First block generated by mining pool under user sluch
2010 December 29 12:57:43 PM Bitcoin Block #100000 was mined by Unknown
2010 December 31 11:59:59 PM Bitcoin The Price of Bitcoin was $0.30 USD
2011 January unknown The Electronic Frontier Foundation (EEF), a non-profit group, started accepting Bitcoins
2011 March 1 Jed McCaleb Sells mtgox.com to Mark Karpelès (@MagicalTux on Twitter)
2011 March 22 WeUseCoins Releases the viral video "What Is Bitcoin?" which you can view on the top of this page and has 9.5 million views
2011 June Julian Assange WikiLeaks and other organizations began to accept bitcoins for donations
2011 June 2 Bitcoin For 6 days, the Bitcoin value is fixed at $31.91 USD on MtGox
2011 December 31 11:59:59 PM Bitcoin The Price of Bitcoin was $4.60 USD
2012 September 22 12:45:59 PM Bitcoin Block #200000 was mined by Unknown
2012 November WordPress Started accepting bitcoins
2012 November 28 Bitcoin The reward to miners halved to 25 bitcoins in "Block #210 000"
2012 December 31 11:59:59 PM Bitcoin The Price of Bitcoin was $13.62 USD
2013 October Ross William Ulbricht The FBI seized roughly 26 000 BTC from website Silk Road during the arrest of alleged owner Ross Ulbricht
2013 October 31 WAVES Coffee House The World's First Bitcoin ATM (BTM) was open for business at WAVES Coffee House 900 Howe St. #100. Vancouver, BC V6Z 2M4 Canada
2013 November University of Nicosia Announced that it would be accepting bitcoin as payment for tuition fees
2013 November 30 Bitcoin A Bitcoin All-Time High was set, was set at $1 156.14 USD
2013 December 31 11:59:59 PM Bitcoin The Price of Bitcoin was $754.01 USD
2014 February Mark Karpelès Mt. Gox had filed for bankruptcy protection in Japan amid reports that 744 000 Bitcoins had been stolen
2014 May 10 08:32:34 AM Bitcoin Block #300000 was mined by GHash.IO
2014 December Bill Gates Microsoft began to accept Bitcoin to buy Xbox games and Windows software
2014 December 31 11:59:59 PM Bitcoin The Price of Bitcoin was $320.19 USD
2015 December 31 Bitcoin The Price of Bitcoin was $430.57 USD
2016 Februar 25 05:24:44 PM Bitcoin Block #400000 was mined by BW.COM
2016 July 10 06:46 PM Bitcoin The reward to miners halved to 12,5 bitcoins in "Block #420 000"
2016 December 31 11:59:59 PM Bitcoin The Price of Bitcoin was $963.74 USD
2017 February 9 Bitcoin The price of one bitcoin is approximately $1070.00 USD (roughly 8900,00 NOK)
2017 February 9 Bitcoin The Bitcoin Blockchain is running at approximately 4 Exahash per second, which is 4 611 686 018 427 390 000 guesses per second
2017 August 1 Bitcoin Cash (BCH) The Bitcoin / Bitcoin Cash Hard fork in "Block #478 558"
2017 December 17 Bitcoin (BTC) The Bitcoin All-Time High, at this moment, was set at $20 089.00 USD
2017 December 18 07:35:25 PM Bitcoin (BTC) Block #500000 was mined by BTC.com
2017 December 31 11:59:59 PM Bitcoin (BTC) The Price of Bitcoin was $14 156.40 USD
2018 December 31 11:59:59 PM Bitcoin (BTC) The Price of Bitcoin was $3 742.70 USD
2019 April 12 Bitcoin (BTC) The Bitcoin Blockchain is running at approximately 47.68 Exahash per second, which is 54 975 581 388 800 000 000 guesses per second
2019 September 18 Bitcoin (BTC) The Bitcoin Blockchain is running at approximately 98.08 Exahash per second, which is 113 083 380 034 552 000 000 guesses per second
2019 October 19 02:04:21 AM Bitcoin (BTC) Block #600000 was mined by BitFury
2019 December 31 11:59:59 PM Bitcoin (BTC) The Price of Bitcoin was $ 7 193.60 USD
2020 March 1 Bitcoin (BTC) The Bitcoin Blockchain is running at approximately 129.95 ExaHash per second, which is 149 824 929 968 664 000 000 guesses per second
2020 May 11 09:23 PM F2Pool A secret message was written into "Block #629 999"; "🐟NYTimes 09/Apr/2020 With $2.3T Injection, Fed's Plan Far Exceeds 2008"
2020 May 11 09:23 PM Bitcoin The reward to miners halved to 6,25 bitcoins in "Block #630 000"
2020 December 31 11:59:59 PM Bitcoin The Price of Bitcoin was $29 001.72 USD
2021 September 11 06:14:32 AM Bitcoin (BTC) Block #700000 was mined by Unknown
2021 November 12 06:15:27 AM Bitcoin (BTC) Taproot activated in Bitcoin block #709632
2021 December 31 11:59:59 PM Bitcoin The Price of Bitcoin was $46 306.45 USD
2022 December 31 11:59:59 PM Bitcoin The Price of Bitcoin was $16 547.50 USD
2023 January Bitcoin (BTC) Developer Casey Rodarmor launched the Ordinals protocol
2023 July 24 05:17:09 AM Bitcoin (BTC) Block #800000 was mined by BTC M4
2023 December 31 11:59:59 PM Bitcoin The Price of Bitcoin was $42 292.50 USD
2024 January 10 SEC The U.S. securities regulator approved the first U.S.-listed exchange traded funds (ETFs) to track bitcoin.
2024 April 20 2024 02:09:27 AM Bitcoin (BTC) The reward to miners halved to 3,125 bitcoins in "Block #840 000" mined by ViaBTC
* 2139 Bitcoin (BTC) In block #6 930 000 all Bitcoins will have been mined and there are no more rewards, however, the transaction fee will be an incentive for the miners to continue

( *=Estimated )Report errors or additions to b(a)mrbitcoin.no

The Bitcoin Halving Process

The halving happens every 210 000 Blocks
From Block 6 930 000 the block reward will be 0 Bitcoins per block, estimated to be August of 2139.
In total, all block rewards will equal 21 000 000,00000000 Bitcoins. (Because of rounding off error in MS Excel this table was previously calculated wrong, Mr Bitcoin is very sorry)

Bold indicates that it has happened.

Halving sequence number: From Block Height: To Block Height: Newly Generated Coins per Block: Total Newly Generated Coins for this period: New supply per day (on average): Estimated start from: Estimated end at:
0 Genesis 209999 50,00000000 BTC 10 500 000,00000000 BTC 7200,00000000 BTC 2009-01-03 2012-11-28
1 210000 419999 25,00000000 BTC 5 250 000,00000000 BTC 3600,00000000 BTC 2012-11-28 2016-07-09
2 420000 629999 12,50000000 BTC 2 625 000,00000000 BTC 1800,00000000 BTC 2016-07-09 2020-05-11
3 630000 839999 6,25000000 BTC 1 312 500,00000000 BTC 900,00000000 BTC 2020-05-11 2024-04-20
4 840000 1049999 3,12500000 BTC 656 250,00000000 BTC 450,00000000 BTC 2024-04-20 2028-04-15
5 1050000 1259999 1,56250000 BTC 328 125,00000000 BTC 225,00000000 BTC 2028-04-15 2032-04-03
6 1260000 1469999 0,78125000 BTC 164 062,50000000 BTC 112,50000000 BTC 2032-04-03 2036-04
7 1470000 1679999 0,39062500 BTC 82 031,25000000 BTC 56,25000000 BTC 2036-04 2040-04
8 1680000 1889999 0,19531250 BTC 41 015,62500000 BTC 28,12500000 BTC 2040-04 2044-03
9 1890000 2099999 0,09765625 BTC 20 507,81250000 BTC 14,06250000 BTC 2044-03 2048-03
10 2100000 2309999 0,04882813 BTC 10 253,90730000 BTC 7,03125072 BTC 2048-03 2052-03
11 2310000 2519999 0,02441406 BTC 5 126,95260000 BTC 3,51562464 BTC 2052-03 2056-03
12 2520000 2729999 0,01220703 BTC 2 563,47630000 BTC 1,75781232 BTC 2056-03 2060-02
13 2730000 2939999 0,00610352 BTC 1 281,73920000 BTC 0,87890688 BTC 2060-02 2064-02
14 2940000 3149999 0,00305176 BTC 640,86960000 BTC 0,43945344 BTC 2064-02 2068-02
15 3150000 3359999 0,00152588 BTC 320,43480000 BTC 0,21972672 BTC 2068-02 2072-01
16 3360000 3569999 0,00076294 BTC 160,21740000 BTC 0,10986336 BTC 2072-01 2076-01
17 3570000 3779999 0,00038147 BTC 80,10870000 BTC 0,05493168 BTC 2076-01 2080-01
18 3780000 3989999 0,00019073 BTC 40,05330000 BTC 0,02746512 BTC 2080-01 2083-12
19 3990000 4199999 0,00009537 BTC 20,02770000 BTC 0,01373328 BTC 2083-12 2087-12
20 4200000 4409999 0,00004768 BTC 10,01280000 BTC 0,00686592 BTC 2087-12 2091-12
21 4410000 4619999 0,00002384 BTC 5,00640000 BTC 0,00343296 BTC 2091-12 2095-12
22 4620000 4829999 0,00001192 BTC 2,50320000 BTC 0,00171648 BTC 2095-12 2099-11
23 4830000 5039999 0,00000596 BTC 1,25160000 BTC 0,00085824 BTC 2099-11 2103-11
24 5040000 5249999 0,00000298 BTC 0,62580000 BTC 0,00042912 BTC 2103-11 2107-11
25 5250000 5459999 0,00000149 BTC 0,31290000 BTC 0,00021456 BTC 2107-11 2111-10
26 5460000 5669999 0,00000075 BTC 0,15750000 BTC 0,00010800 BTC 2111-10 2115-10
27 5670000 5879999 0,00000037 BTC 0,07770000 BTC 0,00005328 BTC 2115-10 2119-10
28 5880000 6089999 0,00000019 BTC 0,03990000 BTC 0,00002736 BTC 2119-10 2123-09
29 6090000 6299999 0,00000009 BTC 0,01890000 BTC 0,00001296 BTC 2123-09 2127-09
30 6300000 6509999 0,00000005 BTC 0,01050000 BTC 0,00000720 BTC 2127-09 2131-09
31 6510000 6719999 0,00000003 BTC 0,00630000 BTC 0,00000432 BTC 2131-09 2135-09
32 6720000 6929999 0,00000001 BTC 0,00210000 BTC 0,00000144 BTC 2135-09 2139-08

Follow the countdown to the next halving here on Bitcoin Block Reward Halving Countdown

Satoshi disappeared on 13 Dec. 2010

Last signe.jpg

First version of Bitcoin.org

Bitcoin.org ver1.jpg


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Bitcoin Obituaries
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