InfoByte | Bitcoin (BTC)

“The Gold Standard” of Cryptos

 

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The white whale tasks me; he heaps me. Yet he is but a mask. ‘Tis the thing behind the mask I chiefly hate; the malignant thing that has plagued mankind since time began; the thing that maws and mutilates our race, not killing us outright but letting us live on, with half a heart and half a lung.” 
– Captain Ahab

 

Information + Resources

 

Official Site
Bitcoin.org

 

Whitepaper
Bitcoin Whitepaper

 

Development Roadmap
Bitcoin Core

 

Wiki
Bitcoin

 

Beginner’s Guides
Getting started with Bitcoin
bitcoinmining.com

 

News sources 
Bitcoin News
Crypto Coins News
Coindesk
Coinspeaker
Cointelegraph
Bitcoin Magazine
News BTC

 

Social Media
Twitter
Facebook
Subreddit

 

Wallets
Official Recommendations
Jaxx

 


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Description

The granddaddy of the now 700 or so cryptocurrencies, Bitcoin (BTC) represents the original vision of cryptocurrencies. Invented by an anonymous programmer or group of programmers known only as Satoshi Nakamoto (thus why people say 0.00000001 BTC = 1 satoshi), Bitcoin is an open-source peer-to-peer (direct) digital payment system. These transactions are verified via a public ledger known as the “blockchain” and relayed through network nodes like a wallet on your personal computer. 

Bitcoins are generated by “mining” the blockchain, or processing raw data produced by an algorithm. This algorithm is designed to simulate supply/demand and regulate inflation while value is exchanged from other currencies like Dollars or Euros into Bitcoin. Bitcoin is capped at 21 million tokens, while about 2/3 of the tokens are actually circulating. This makes it more difficult to capture large amounts of supply and keeps value fluid and distributing, though bitcoin still has some very large holders. Most every cryptocurrency uses a similar model with tweaked values like overall supply, inflation rates, and central holdings (ex: Ripple holds 60% of the overall supply of 100 billion XRP tokens and intends to put $14bn of it in cold storage to protect the long-term value of the platform, while increasing public supply by 1 billion tokens per month).

Bitcoin’s system was the first decentralized digital currency. As such it is used by the most merchants and holds the most value. As of 2015 (when the value was under $800 USD), over 100,000 merchants accepted Bitcoin. Today popular banks and credit unions are starting to pick it up and offering to exchange it. Venezuelans, Japanese, and Chinese use it regularly in every-day . It it globally recognized and is only projected to increase in value, quite dramatically in fact. The CEO of Paypal recently said Bitcoin could reach $1 million USD in value in 5-10 years. While that may be a stretch, current projections are upward with the platform receiving upgrades and more support throughout this year. The value could easily touch $3,000 or more this year, and that’s low according to some.

You will always want to watch the price of Bitcoin while trading. Always be prepared for the volatility of the market as part of a natural growth process of an emerging economy. And remember, don’t panic when those price drops happen! It’s a bumpy road!

As of summer 2017, Bitcoin has scaling issues which should be resolved by the end of August, this is what’s causing hiccups in the price during the week of May 28, ’17. It also caused the upcoming app Yours Network to switch to Litecoin for their May 30th launch. Bitcoin has many projects under it now to bring it into the next generation, including OmniLayer, FactomStratis, Counterparty, and Rootstock. There are always interesting things like this happening nowadays. The industry is moving fast so be sure to keep up-to-date on the projects you’re betting on. You want to know about the many recent evolutions of blockchain technology like Ethereum, Ripple, New Economy Movement, IOTA and many more you can find out about on this site!

Other interesting developments include Singapore and Russia looking into digital currencies as well as India, Japan, and China. Definitely watch news for regulations, as currently there are basically none and there are lots of political incentives to make that not the case. Recently, Nevada state legislature blocked an attempt to introduce taxation on cryptocurrencies.

Recently, Burger King announced its Russia chain will accept bitcoin due to increasing popularity. That’s a sign if I ever saw one.

Future: Major growth? | Hedge funds?

bitcoin-perfecthue


// Originally written May 29, ’17. Price at the time: $2100/BTC

// Edited June 15, ’17. Price at the time: $2450 / BTC

// Edited June 19, ’17. Price at the time: $2600 / BTC

// Edited June 28, ’17. Price at the time: $2560 / BTC

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