Bitcoin is the world’s first and most popular cryptocurrency, which was invented in 2008 and launched in January 2009. The real identity of its creator or creators is still not known. Bitcoins cannot be touched, as they are not banknotes or physical coins. With electronic money on a bank card, bitcoin also has little in common.
Bitcoin is digital money with its own rules for conducting operations that cannot be violated, regardless of anyone’s will, since mathematical laws will not allow this.
The goal of the creator of Bitcoin was to create money that people can use to pay each other directly, without mediators. Money, the credibility of which would be provided not by the economy of a particular country, but by the mathematical rigor of the system. This was just very relevant at a time when another economic crisis flared up in the world, which began with the mortgage crisis in the United States. Then ordinary fiat money depreciated and many people lost their savings.
Bitcoin runs on the blockchain, a system that has been likened to a large ledger containing all the records of what happens to cryptocurrencies. And each bitcoin owner has an independent, but an identical copy of this ledger or its part.
The entries in all the ledger parts are true and the same and no one can change that. Neither banks nor the government, nor the creator of the cryptocurrency can forge these records, as this would require a huge amount of energy and computing resources. In other words, there is no single controller in the blockchain, the system is governed by virtually all participants. Built on mathematical calculations, the system protects the digital currency from counterfeiting or hacking.
Bitcoins are generated by a network of miners, which can be either large companies whose shares are traded on the stock exchange or individuals who mine at home.
If the limit of traditional currencies is infinite, then there can be no more than 21 million bitcoins. Most of the bitcoins have already been generated and are in circulation. Part of the coins is lost forever, or rather, about 30% of the total volume of bitcoin, as the owners of some bitcoin wallets have forgotten their private keys.
Bitcoins are made thanks to miners. Mining is the process of generating cryptocurrency using computing equipment. Miners are rewarded for mining bitcoins.