Who is the founder of Bitcoin?

 Who is the founder of Bitcoin

Until now, it is not known who is the real creator invented Bitcoin. Is it possible that Satoshi Nakamoto's name is associated with him as a person or as a group of people who released the first Bitcoin white paper in 2008 and worked on the original Bitcoin software released in 2009.

Several people claimed to be the real people behind the pseudonym, but as of writing the article, Satoshi Nakamoto's true identity remains a mystery.

There are the predecessors of Bitcoin: Adam Back's Hashcash, which was created in 1997, that way Wei Dai's b-cash, Nick Szabo's gold coin, and Hal Finney's Reusable Proof of Work. 

The Bitcoin white paper itself refers to Hashcash and b-cash as well as many different works covering areas of research. Perhaps it is clear that a large number of people behind the other projects mentioned above have been speculated to have had a role in the invention of Bitcoin.

What is the risk in Bitcoin investment

What are the possible motives for Bitcoin inventors to keep their identity secret? They are as follows:

Privacy: With Bitcoin gaining global popularity, Satoshi Nakamoto is likely to get a lot of attention from the media and governments.

Bitcoin managed to gain confidence: causing major disruptions in the policies of the current banking and monetary systems, the system may outperform the mandatory sovereign currencies of nations. 

This is threatening existing currencies, prompting governments to take legal action against Bitcoin creators.

The other reason is security: 32,490 bitcoins were mined in 2009, meaning that each block equals 50 bitcoins, with a total payment for the year 2009 of 1624,500 bitcoins. 

And here we conclude that only Satoshi and perhaps a few individuals were mining during 2009 and that they were the ones who own and control the majority of the bitcoin stock.

What Is Bitcoin

Bitcoin is a decentralized system that was created in January 2009, and it charges lower transaction fees than traditional currencies online.

Bitcoin is a type of cryptocurrency to uses encryption to maintain a high level of security. Meaning there are no physical bitcoins, it's about balances kept in a public ledger that everyone can access transparently (although every record is encrypted).

All Bitcoin transactions are verified by an enormous amount of computing power through what is known as the process of “mining”.

Note that Bitcoin is not issued, traded, or backed by any banks or governments, but Bitcoin is very popular and has led to the launch of hundreds of other cryptocurrencies, called altcoins. Or Bitcoin when trading is abbreviated to BTC.

What is bitcoin mining

Bitcoin mining is the process by which bitcoins are traded. In general, the task of mining is to process and solve computationally difficult puzzles to issue a new block to add to the blockchain.

A variety of computers are used for bitcoin mining. However, some of them vary in the mining process.

This enables some computer chips, the so-called application-specific integrated circuits (ASIC), and there are more advanced processing units, such as graphics processing (GPU), which achieve more production of Bitcoin. What is known as "mining rigs".

One bitcoin is divided into eight decimal places (meaning that each bitcoin contains 100 parts of a million), and this unit is called a satoshi. If necessary, miners participate in the change, making bitcoin divisible into more decimal places.

What are the considerations for Bitcoin

Acceptance of Bitcoin as a form of payment for products sold or services provided. Bitcoin has been added as a payment option via websites as easily as credit cards, PayPal, etc.

Bitcoin provides job opportunities for self-employed people and they get paid for a job related to Bitcoin. There are several ways, such as creating an online service and adding a Bitcoin wallet address to the site as a payment method. 

There are many sites that offer the opportunity for jobs dedicated to cryptocurrencies:

  1. Jobs4Bitcoins is important for Reddit.com.
  2. BitGigs describes itself as "a Bitcoin job board."
  3. Bitwage offers a way to choose a percentage of your work paycheck to be converted into Bitcoin and sent to your Bitcoin address.

Note: El Salvador passed a law adopting Bitcoin as the official currency in June 2021.

What is the risk in Bitcoin investment

The concept of virtual currencies is still so murky, compared to traditional currencies and investments, that Bitcoin does not have a historical record of credibility to back it up.

With the increasing demand for it, Bitcoin has become less experienced in the market, and we bear in mind that all digital currencies, including Bitcoin, are the riskiest investments and have the highest returns. 

Therefore, we will shed light on the risks of investing in Bitcoin, as follows:

Regulatory risk: Some invest their money in bitcoin, not in order to avoid risks, so bitcoin is considered a competing currency for governments and can be used in suspicious transactions, such as undisclosed markets, money laundering, tax evasion, or illegal activities. As a result, governments tend to enact laws regulating, restricting, or banning Bitcoin.

There is a lot that raises questions about why there are no regulations and laws for Bitcoin (and other virtual currencies) in terms of longevity, liquidity, and globality.

Security risk: Most of the people who own bitcoin through the mining process do not acquire their crypto tokens. However, they buy and sell bitcoin and other cryptocurrencies through online exchanges.

All Bitcoin exchanges are completely digital - as in any virtual system - exposed to the risks of bugs, malware, and hacking. If the encryption keys of the bitcoin owner's computer hard drive can be stolen, then they can transfer ownership of the stolen bitcoin to another account. 

(The bitcoin owner can prevent this if their bitcoin is stored on offline devices, or by printing Bitcoin keys and addresses for using a paper wallet and not keeping them on computers at all.)

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