The Genius Of Satoshi Nakamto
It was back in 2008 that a whitepaper was posted in a forum by an unknown person or persons who called them self Satoshi Nakamoto. The whitepaper was nine pages of information which detailed a system of cryptocurrency which later took the cryptocurrency world by storm. As nobody even knows who Satoshi Nakomoto is, if it a person, consortium or group, we can only assume that give credit as the ‘creator’ of bitcoin this person or group of people understood that anonymity was an integral and important part of the future success of a de-centralized crytpocurrency and therefor made a conscious choice to remain an anonymous entity. The more you investigate and dig deeper into the fundamentals and structure of Bitcoin and its creator, the more you see the true genius of Satoshi Nakamoto whom ever he, she or they may be.
The First Real Bitcoin Transaction
It was in May 2010 that we recognize the first actual bitcoin transaction happened when bitcoin was already around 1 year old that a computer programmer named Laszlo Hanycez paid another Bitcoin user ten thousand bitcoins in exchange for him to order pizza from Papa Johns!
Of course the value back then of the Bitcoin was mere cents, but at todays BTC rate that equates to around 18 Million dollars or more! More Interesting Bitcoin Facts below…
Bitcoin Will Always Be Rare Like Gold
Where flat bank authority issued currencies can be price controlled and also can be printed according to demand or to give power to the banks and government by control of supply and value, Bitcoin will never go over the 21 million bitcoins limit. In approximately the year 2140 when all 21 million bitcoins have been mined, there will be no more miners fees and no newly created bitcoins, which means bitcoin will always be rare and this is what helps to keep the price increasing. So far nearly 80% of available bitcoins have been mined and it is getting harder and harder to mine bitcoins, however as the price increases so the reward for the difficult task of mining is greater.
In the early days of bitcoin, it was possible to ‘mine’ on a laptop. As things progressed, specialist hardware using dedicated processors took over and now it is only feasible to mine if you have ASIC (application specific integrated circuits) hardware, cooling systems, and access to a cheap supply of electricity. The economics of mining, complex and volatile, is an essential component of the bitcoin ecosystem. This is why now is a perfect time to get involved in bitcoin mining pools, as it is much harder now to be a sole miner and there is still plenty of time to cash in on mining but very few people have the ability to make mining profitable expect for mining pools.
Why Bitcoin Fees Are More Than Expected
For now the transaction fees for sending bitcoin are higher. The fees are separate from the mining rewards and are paid per byte, which is why for small amounts, the fees can seem to be high because they can even outweigh the transaction value!
Another reason for the fees being higher than expected is the popularity and rate at which bitcoin has grown. Transaction blocks (limited to 1MB) are full, so the laws of supply and demand are in effect and only higher value transactions make economic sense.
Currently there are solutions to the scaling issue being researched and much debate in the community about which one to implement first, a more efficient way of processing data, called Segregated Witness, is being rolled out across the network, which should make a higher volume of low-fee transactions possible in the very near future. Still the fees we pay for sending ANY bitcoin transaction across the world don’t even come close the daylight robbery, of bank charges, currency conversion fees and any other fees the banks stack up for our transactions! These are just some of the bitcoin facts you should know.