What is the Source of Bitcoin? (The Origin and Current Situation of Bitcoin)

08/17/2023 23:07 • NFT Newsflash • 102 views

Bitcoin’s Source: According to Bitcoinist, Bitcoin was originally proposed by American computer scientist and professor of computer science, Eric Wall, in 2012. He explained what Bitcoin is. Due to the different mining and trading methods of Bitcoin (such as the way miners mine new blocks), it can be divided into two categories: one is peer-to-peer currency (recorded and stored by blockchain technology); the other is encrypted assets (such as Ethereum).

These digital currencies are composed of different algorithms, each Bitcoin has its own code or token type, and they have exactly the same hash function, which allows anyone on the network to participate in this process. However, these encrypted tokens are not real bitcoins. So, what is the source of Bitcoin? First of all, it originates from a cryptographic form invented by Satoshi Nakamoto. When people first used this new electronic cash, they began to believe in Bitcoin. But in fact, the initial use of this method was to avoid vulnerabilities in other unnecessary proof-of-work systems. Later, as time passed, the complexity of this cryptography gradually weakened, and the Lightning Network, which appeared in early 2009, no longer had restrictions on supporting this function. At that time, Bitcoin had already developed on a very large scale. So theoretically, Bitcoin is something more reliable than the US dollar because it is programmable; at the same time, its issuer can also provide a safe haven for those who want to create cryptocurrencies pegged to fiat currencies on a 1:1 basis.

The Origin and Current Situation of Bitcoin

What is the source of Bitcoin? In the past few months, the cryptocurrency field has been discussing how to make Bitcoin a viable store of value.

According to data from CoinMetrics, a cryptocurrency market analysis company, currently, there is over 100 million dollars held through non-exchange addresses, and these users usually have access to their digital assets (including private keys and mnemonic words) without their own bank accounts or personal information. This has led to the growing demand for Bitcoin as a decentralized payment network, as people hope to exchange them with fiat currencies and exchange them for legal tender to generate income.

However, despite this, there are still some people who are unsure what type of product Bitcoin is and whether it will replace traditional commodities such as gold and enter the mainstream world. But the fact has proven that as more and more institutional investors adopt cryptocurrency, and people interested in Bitcoin begin to understand its value proposition, some early participants have realized the importance of this industry: they believe that Bitcoin is the world’s first technology with practical use cases, rather than a speculative asset. Therefore, they are now looking for a new asset class to support their own portfolios or just to join this new market for better profits. However, since most people still don’t know how to use Bitcoin, some questions have arisen:

1. How much is the supply of Bitcoin?

2. Why are there a large number of transactions?

3. How big is the price fluctuation of Bitcoin?

4. Why are there so many transactions?

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What is the Source of Bitcoin? (The Origin and Current Situation of Bitcoin)

The Origin and Current Situation of Bitcoin

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