Bitcoin is the very first cryptocurrency out there and that is why it's fondly referred to as the mother cryptocurrency. Back in 2008, when the planet saw the most important financial crisis, centralized financial organizations had completely taken control over our money. Mistakes made by these organizations led to major consequences that we all had to pay the worth for. To prevent another such crisis, a Japanese man named Satoshi Nakamoto proposed the thought for Bitcoin and published a journal known as a white book on a cryptography forum. This concept was widely applauded, which eventually resulted in the release of the very first version of Bitcoin.
It is completely decentralized, unlike how traditional financial systems run with a centralized server, it's run on thousands of individual computers around the world. Thanks to this feature, that is why it is simply impossible to shut down Bitcoin completely. It can, however, be transferred between two users anonymously without revealing the identity of the parties involved in the transaction. You might be wondering how it's capable of working without a centralized server. It does this by running on thousands of individual computers that are remotely connected via a blockchain network.
Like any economic system out there, it must also keep track of all the transactions that are made on its network. It makes use of Blockchain technology to serve this purpose, it only tracks the status of the transaction and not the details. Blockchain is an open-source ledger that will store the small print of all transactions that were ever made. To this day, even the very first Bitcoin transaction is presently stored on the blockchain.
What makes blockchain technology so special is that it runs on a distributed network. This means that any transaction that's recorded on the blockchain ledger cannot be changed. Every time you send funds to someone else, the transaction goes into a pool of unverified transactions. Once verified, the record of this transaction gets stored in the open blockchain ledger. Thanks to the transparency of blockchain technology, anyone can view this transaction.
For a transaction to be recorded on the blockchain, it must first be verified. There's no entity controlling the whole Bitcoin network, hence the p2p transaction verification process should happen in an unbiased manner. Verification of each transaction happens through a process called mining -
the process of adding transaction records to Bitcoin's public ledger or blockchain. This process is big and difficult and is solved by thousands of individual computers around the world.
All transactions are secured and encrypted on Bitcoin's ledger, which is known as the Blockchain network. Make the entire Bitcoin network very secure and completely anonymous by nature. It is virtual and all transactions can be carried out remotely online. Every single Bitcoin out there is just a bit of code. To store Bitcoin and use it to form p2p transactions, you would need to store it in a Bitcoin wallet. Unlike a standard physical wallet, a Bitcoin wallet is virtual but real and possesses all the attributes of a physical wallet.
Bitcoin wallets are memory addresses where all of your funds are stored. Every wallet comes with a personal and a public key that is unique to every individual wallet. To send your funds to a lover or maybe pay a merchant, you'll have to enter the general public address of the receiver and send the funds. Once sent, the transaction goes into the transaction pool, gets verified by the method of mining, and is eventually written onto the blockchain to form the transaction immutable. This will make all the parties that are involved in the transactions satisfied, and the miners too get a token fee from the transaction.
Presently Bitcoin is trading at $1 to 350 as at the moment and it depends, it does rise and fall but due to the ongoing pandemic, it has fallen. Bitcoin trades at about 7,500 United States dollars as of now, with little bullish or bearish change in rate. In 2017 alone, the price of Bitcoin rose from a little under $1,000 at the beginning of the year to close to $19,000, ending the year more than 1,400% higher. More recently, the cryptocurrency has reduced in value and more-or-less staged, save for a few periods of relatively lower price figures (the early portion of 2019, when prices hung around $3500) and relatively higher ones (June and July of 2019, when prices briefly peaked at over $13,000). As of October 2019, Bitcoin seems to have found a new price point in the range of $8,000 to $9,000.
Bitcoin's price is quite dependent on the size of its mining network since the larger the network is, the more difficult – and more costly – it is to produce new bitcoins. As a result, the price of bitcoin has to increase as its cost of production also rises. The Bitcoin mining network's aggregate processing power is known as the "hash rate," referring to the number of times per second the network can attempt to complete a hash puzzle necessary before a block can be added to the blockchain. As of October 23, 2019, the network reached a record high of 114 quintillion hashes per second.