Essay about Bitcoins

Essay about Bitcoins

Length: 1215 words (3.5 double-spaced pages)

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Introduction
A digital or virtual currency that uses peer-to-peer technology to facilitate instant payments.
Bitcoin is a type of alternative currency known as a cryptocurrency and it uses cryptography for security, making it difficult to counterfeit.
Bitcoin issuance and transactions are carried out collectively by the network, with no central authority.
The total number of Bitcoins that will be issued is capped at 21 million to ensure they are not devalued by limitless supply.
They are divisible to 8 decimal places; Bitcoin fractions are called satoshis.
Users store their Bitcoins in a digital wallet, while transactions are verified by a digital signature known as a public-encryption key.

History
“The term Bitcoin was proposed in a white paper by Satoshi Nakamoto in 2008. On September 18, 2008 the domain bitcoin.org was bought and later registered and published the first Bitcoin client in 2009.
On July 12, 2010 the first transaction was conducted with 10,000 bitcoins for two pizzas and then on July 17, the now-largest Bitcoin exchange MtGox went online. On October 17, 2010 The bitcoin-otc channel was activated on the Freenode IRC to enable global chatting on currency exchange.
On June 11, 2010 the volume of bitcoins was already at US$1 million and on February 9th, 2011 Bitcoin reached parity with $1 U.S. dollars. After an April TIME Magazine feature and an article in early June, the price went up to about $30. In a few days, the price crashed, and several thousands of online accounts and bitcoins were stolen.
In the first four months of 2013, the share price has multiplied and on April 1 of that year Bitcoin broke through the US$100 mark at MtGox. Today, the pizza order is worth more than 1 million euros.


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...rency will take its place in the future.













Conclusion

Facts
The first Bitcoin Transaction was executed on 12/01/2009. It takes 5 years for a single bitcoin to go from $0 to $1,000.20000+ number of computer working at minning new bitcoins. There will be 21 million number of bitcoins that will be available. In 2012, an academic from the Carnegie Mellon CyLab and the Information Networking Institute estimated that 4.5 to 9% of all bitcoins transacted were for purchases of drugs at a single online market. In a separate case, escrow accounts with bitcoins belonging to patrons of a different black market were hacked in early 2014. So it’s up to us, the Bitcoiners of the world, to continue to build, include, educate, develop and create new relationships with each other while using this new amazing technology for the betterment of mankind



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