Bitcoin

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What is Bitcoin:

 
Definition:
“Bitcoin is a non-debt based, irreversible, digital asset, with an intrinsic value in the security and inclusion of the payment system and decentralized governance structure that runs on a global transparent ledger on open networks like the Internet.”
 

  • Non-Debt Based, There is no lone connected, like a piece of Gold. The opposite would be value of paper money, not coins, is a lone paper form the central bank and digital money is a what the bank own or has lent you.
  • Irreversible, Once a transaction is done there is no going back. No one can delete a transaction, just create a new transaction to send the value back.
  • Digital asset, The thing (asset) is bits and bytes on a computer (digital) not physical.
  • Intrinsic, The Origin is a medical term, not a financial. It means you need something to get a function ex. you need a knee to bend your leg. In this case you need security, inclusion and agreed decentralized governance structure to get value.
  • Security, The strength of the system.
  • Inclusion, How many can take part in this system
  • Decentralized, no singe point of failure can stop or hurt the system in anyway.
  • Governance structure, Who is in charge, if anyone and what are the rules (law).
  • Transparent, anyone can see or look up all the information that is available for system.
  • Ledger, a record of all inputs / transactions.
     

Features

The features of Bitcoin are: The features 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

  • Only 20 999 999,99755530 or less bitcoins will ever exist.
  • The consensus algorithm is Proof of Work SHA256 (Secure Hash Algorithm 256).
  • The lowest denomination of bitcoin for now is 1 Satoshi. There are 100 million Satoshi’s to every bitcoin. That is 8 numbers behind the coma, (1 Satoshi = 0,00000001 Bitcoin).
  • Bitcoin is run decentralized on a flat structure as opposed to a centralized hierarchical structure.
  • Bitcoin is design to be the senders “push transaction” and that no entity like banks, governments or 3rd party can stop a sender from pushing transaction to be executed. In effect the sender is the ultimate authority and decides who he or she pays value to.
  • 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 sours and the code is available on GitHub.
  • The difficulty parameter, that is built into the software, is adjusted every 2016 blocks to change to try and keep a 10-minute block time on average based on the blockchain performance the last 2016 blocks.
  • Hashing is a brute-forced mechanism by the miners (supercomputers with ASIC CPU’s (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
1 Hash 1
1024 Hashes 1 KiloHash 1024
1024 KiloHashes 1 MegaHash 1 048 576
1024 MegaHashes 1 GigaHash 1 073 741 824
1024 GigaHashes 1 TeraHash 1 099 511 627 776
1024 TeraHashes 1 PetaHash 1 125 899 906 842 620
1024 PetaHashes 1 ExaHash 1 152 921 504 606 850 000
  • As of 24th of February 2020 the blockchain is running at aproximently 114 ExaHashes.
  • 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.
  • In the current bitcoin software, Bitcoin Core ver. 0.17.1 the block size limit is set to 1 Mbit of transaction data.
    • Many new proposals of software 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 on to the new software. At the time when 75% is reached, there will be an "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.
       

Bitcoin History Facts

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
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 Twitted "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 16 sluch First block generated by mining pool under user sluch
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 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 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 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 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 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"
2024 *May Bitcoin (BTC) The reward to miners halved to 3,125 bitcoins. in "Block #840 000"
* 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 and onwards the block reward will be 0 Bitcoins per block. Estimated from august 2139 on wards
In total, all block rewards will equal 20 999 999,99755530 Bitcoins, almost 21 million

Bold indicates that it has happen.

Halving sequence number: From Block Height: To Block Height: Newly Generated Coins per Block: Total Newly Generated Coins for this period: Estimated start from: Estimated end at:
Genesis 209999 50,00000000 BTC 10 500 000,00000000 BTC 2009-01-03 2012-11-28
1 210000 419999 25,00000000 BTC 5 250 000,00000000 BTC 2012-11-28 2016-07-09
2 420000 629999 12,50000000 BTC 2 625 000,00000000 BTC 2016-07-09 2020-05-11
3 630000 839999 6,25000000 BTC 1 312 500,00000000 BTC 2020-05-11 2024-05-09
4 840000 1049999 3,12500000 BTC 656 250,00000000 BTC 2024-05-09 2028-04
5 1050000 1259999 1,56250000 BTC 328 125,00000000 BTC 2028-04 2032-04
6 1260000 1469999 0,78125000 BTC 164 062,50000000 BTC 2032-04 2036-04
7 1470000 1679999 0,39062500 BTC 82 031,00000000 BTC 2036-04 2040-04
8 1680000 1889999 0,19531250 BTC 41 015,62500000 BTC 2040-04 2044-03
9 1890000 2099999 0,09765625 BTC 20 507,81250000 BTC 2044-03 2048-03
10 2100000 2309999 0,04882813 BTC 10 253,90625000 BTC 2048-03 2052-03
11 2310000 2519999 0,02441406 BTC 5 126,95312500 BTC 2052-03 2056-03
12 2520000 2729999 0,01220703 BTC 2 563,47656250 BTC 2056-03 2060-02
13 2730000 2939999 0,00610352 BTC 1 281,73828125 BTC 2060-02 2064-02
14 2940000 3149999 0,00305176 BTC 640,86914063 BTC 2064-02 2068-02
15 3150000 3359999 0,00152588 BTC 320,43457031 BTC 2068-02 2072-01
16 3360000 3569999 0,00076294 BTC 160,21728516 BTC 2072-01 2076-01
17 3570000 3779999 0,00038147 BTC 80,10864258 BTC 2076-01 2080-01
18 3780000 3989999 0,00019073 BTC 40,05432129 BTC 2080-01 2083-12
19 3990000 4199999 0,00009537 BTC 20,02716064 BTC 2083-12 2087-12
20 4200000 4409999 0,00004768 BTC 10,01358032 BTC 2087-12 2091-12
21 4410000 4619999 0,00002384 BTC 5,00679016 BTC 2091-12 2095-12
22 4620000 4829999 0,00001192 BTC 2,50339508 BTC 2095-12 2099-11
23 4830000 5039999 0,00000596 BTC 1,25169754 BTC 2099-11 2103-11
24 5040000 5249999 0,00000298 BTC 0,62584877 BTC 2103-11 2107-11
25 5250000 5459999 0,00000149 BTC 0,31292439 BTC 2107-11 2111-10
26 5460000 5669999 0,00000075 BTC 0,15646219 BTC 2111-10 2115-10
27 5670000 5879999 0,00000037 BTC 0,07823110 BTC 2115-10 2119-10
28 5880000 6089999 0,00000019 BTC 0,03911555 BTC 2119-10 2123-09
29 6090000 6299999 0,00000009 BTC 0,01955777 BTC 2123-09 2127-09
30 6300000 6509999 0,00000005 BTC 0,00977889 BTC 2127-09 2131-09
31 6510000 6719999 0,00000002 BTC 0,00488944 BTC 2131-09 2135-09
32 6720000 6929999 0,00000001 BTC 0,00244472 BTC 2135-09 2139-08

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

First version of Bitcoin.org

Bitcoin.org ver1.png


Suggestion:

Bitcoin Obituaries
110 Interesting Bitcoin Facts
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