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Bitcoin – Crypto currency

Bitcoin is the most popular and trending currency used by many individuals in the present times. But it is legal in some countries and illegal in some countries. It is a crypto Currency.

Crypto currency:

A Crypto currency is a digital asset designed to utilize as medium of exchange also individual coin ownership records are reserve in ledger in a form of computerized database using strong cryptography to secure transaction records to control creation of additional coins.

Bitcoin currency:

Bitcoin is a crypto currency established in the year 2008 the name Satoshi Nakamoto and it was started in the year 2009 when its implementation was released as open-source software. it has Currency category and value proposition is Digital Gold.

Every bitcoin is computer file storing digital wallet app on smartphones and computer. Individual can share bitcoin to digital wallet and also to other people. Every transaction is recorded in public list called Blockchain.

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Price of Bitcoin:

The price of bitcoin in USD is $ 18,469.84. Its market cap is $ 342.07B. In 24 hours 0.53% change is observe in Bitcoin. The volume in 24 hours is $ 32.18B.

History of Bitcoin:

Bitcoin is a peer-to-peer Electronic Cash System. Nakamoto implement bitcoin software as open source code and release in January 2009. On 3rd January 2009, bitcoin network was created when Nakamoto mined the starting block of chain. It was identifying as genesis block.

The user of first bitcoin transaction was cypherpunk Hal Finney. He creates first reusable proof of work system (RPoW) in the year 2004. Finney download bitcoin software on the release date.

On January 12, 2009 Finney received 10 bitcoins. Wei Dai and Nick Szabo are the creator of b-money and creator of bit coin respectively. In the year 2010, Commercial transaction use bitcoin occurring programmer Laszlo Hanyecz bought 2 Papa John’s Pizzas for 10,000 bitcoins.

Blockchain estimate Nakamoto mine about one million bitcoins before disappearing in the year 2010, when he gave the network alert key and control to Gavin Andresen. Then Andresen become lead developer at Bitcoin Foundation.

Because of Decentralize control opportunity for controversy increase to develop future development path of Bitcoin, in opposition perceive authority of Nakamoto’s contributions.

In the year 2011 the black marketing of the bitcoins started and also the price was raising and in the year 2012 the price of bitcoins crashed and then after some period of time it risen and then again it fell down.

In the year 2020, according to coin metrics and Forbes bitcoins were sell by owners holding them for 30 days. This laid dormant for a year or more indicating vast majority of bitcoin volatility on days from recent buyers.

On 11 March 2020 because of COVID 19 pandemic, cryptocurrency exchange kraken experience an 83% increase in amount of account signups over the week of bitcoin’s price collapse, so its result was buyers were looking to capitalize on low price.

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Features of Bitcoin:

Bitcoin include transaction verification engine and connect to bitcoin network as full node. Moreover, cryptocurrency wallet which can use transfer funds is include by default.

Wallet allow for sending and receiving of bitcoins. It does not facilitate buying or selling of bitcoin. It allows user to generate QR Code to receive payment.

Software validates entire blockchain including all bitcoin transactions ever. Distributed ledger has reached more than 235 gigabytes in size.

Checkpoints have hard code into client only to prevent denial of service attacks against nodes are initially syncing the chain. Because of it checkpoints include are only as of several years ago.

Bitcoin includes a scripting language inspire by forth that define transactions base on set of future conditions. Scripting is use to meet conditions or a transaction. Bitcoin Core uses Open Timestamps to timestamp merge commits.

Privacy in Bitcoin:

Owners of bitcoin addresses are not explicitly identifying, but all transactions on the blockchain are public. Transaction are link to individual and companies through idioms of use and corroborating public transaction data with information on owner of certain addresses.

Bitcoin exchange traditional currencies it may require by law to collect personal information. Because to heighten financial privacy, a new bitcoin address can be in generating for each transaction.

Bitcoin is unprotected because of theft through accessing, scamming and hacking. On December 2017 around 980,000 bitcoins have stolen from cryptocurrency exchanges.

Legal Status of Bitcoin:

Bitcoin is decentralizing in nature and is trading on online exchange situate in many countries regulation on bitcoin are difficult. The use of bitcoin is also proven to be criminalize and shutting down exchange in some countries would constitute a de facto ban. Legality of bitcoin differs from country to country and still it is undefined or changing in many of them.

The Crypto currencies are ban in nine countries Algeria, Bolivia, Egypt, Iraq, Morocco, Nepal, Pakistan, Vietnam, and the United Arab Emirates. 15 other countries apply implicit ban on bitcoins. It includes Bahrain, Bangladesh, China, Colombia, Dominican Republic, Indonesia, Kuwait, Lesotho, Lithuania, Macau, Oman, Qatar, Saudi Arabia and Taiwan.

On October 2020, Islamic Republic News Agency announce pending regulation require bitcoin miners in Iran to sell bitcoin to Central Bank of Iran, and Central Bank use it for imports.

On October 2020 Iran issue over 1,000 bitcoin mining licenses. Iranian government initially took stance against crypto currency but later change it after seeing digital currency could be use to circumvent sanctions.

US Office of Foreign Assets Control list 2 Iranians and their bitcoin address under part of Specially Designated Nationals and blocked Persons List for role in 2018 Atlanta Cyberattack whose reclaim was paid in bitcoin.

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Administrative Warnings on Bitcoin Currency:

U.S. Commodity Futures Trading Commission issue 4 Customer Advisories for bitcoin and investments. July 2018 warning emphasis trading in any crypto currency is often speculative and also there is risk of Hacking and fraud.

In May 2014 U.S. Securities and Exchange Commission warn investments involving bitcoin because it might have high rate of frauds and investors might solicit on social media sites.

European Banking Authority issue warning in the year 2013 because of focusing on lack of regulation on bitcoin currency, the chance that exchange would be hack, irregularity of bitcoin’s price, and fraud. Because of that FINRA and North American Securities Administrators Association both issue investor alert about bitcoin.

Bitcoin currency in popular culture:

Literature:

Charles Stross’ 2013 science fictional novel Neptune’s Brood, Universal interstellar payment system was name of bitcoin and operate using crypto graphy. Later Stross blog that the reference was intentional.

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Film:

In the year 2014 documentary The Rise and Rise of Bitcoin currency portrays diversity of motives behind use of bitcoin currency by interviewing people. These include a computer programmer and drug dealer.

In 2016 documentary Banking on bitcoin is an introduction to the beginning of bitcoin and the ideas behind crypto currency today.

Academia:

September 2015, establishment of peer review academic journal Ledger was announcing. It also cover studies of crypto currencies and related technologies and is publish by University of Pittsburgh.

Journal encourage author to digitally sign a file hash of submitted papers. It will then timestamp into its blockchain. Authors also ask to include personal coin address in first page of their paper.

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