Bitcoin – Moose Matrix

Intricacies of Bitcoin

By Moose

Disclaimer, Moose is a proud owner of bitcoin. The question, “What is bitcoin?”, ignites plenty of follow on questions which will lead down a deep rabbit hole of information about the vast technology. It is a fascinating subject to dive into but beware, once the learning process begins surrounding the technologies of cryptocurrencies it may be difficult to keep your interest towards other less interesting investment vehicles.

Bitcoin was established in 2009 as a peer-to-peer digital cash system right at the beginning of the recovery from the 2008 economic crash. Satoshi Nakamoto is widely known as the creator of Bitcoin, funny enough that person is an alias and the true identity of the creator is unknown. The original white paper first describing the concept of bitcoin in 2008 by Satoshi Nakamoto can be found here.

FAQ

what is bitcoin?

Bitcoin is the first cryptocurrency ever created and was made as a peer-to-peer electronic currency with privacy and trust as foundational aspects.

who create bitcoin?

The creator is widely known by a pseudonym of Satoshi Nakamoto.

How much bitcoin is in circulation?

21 Million coins will be the maximum limit and total in circulation but as of this article there are approximately 19 Million that have been mined and are in circulation.

What is a decentralized Market?

Decentralized Markets are a means for investors or consumers in general exchanging goods between each other without a centralized exchange such as a bank or financial institution. The transactions are recorded on something called blockchain technology.

What is bitcoin mining?

Bitcoin mining is where powerful computers solve difficult math problems which do a few key tasks. Miners create new bitcoin through computation, verify transactions thereby securing the transaction ledger, and overall this entire process adds the information to what is called a block which is then finalized and sent to the blockchain which is the finalized record of transactions. The miners who contribute a block are then rewarded with bitcoin with a block reward.

What does it mean to Halve bitcoin?

Miners are rewarded with bitcoin when blocks are added to the blockchain. After 210,000 blocks are added to the chain the bitcoin reward for miners is halved. This event takes place roughly every four years. It started at 50 in 2009 and has been halved 4 times. In May of 2020 the Bitcoin halving event reduced the reward for miners to a mere 6.25 Bitcoin per block. We can expect the next halving event to be sometime in the early months of 2024.

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