Top Facts about Bitcoin on its 11th Anniversary.

It’s 31 October 2019 and today marks exactly 11 years since the release of Bitcoin’s whitepaper by Satoshi Nakamoto. On this day in 2008 the first cryptocurrency was conceived and it created a monumental shift in the way we perceive the future of money and provided a revolutionary new direction for resisting censorship from the corrupt central banking system that has been ruling over our lives for over a century.

Indeed, censorship resistant ownership of one’s capital is a giant leap for anyone who’s ever been a victim of unfair seizure of their funds by the authorities and there are many an example of such abuses of power throughout the years across the world and even though most people today see Bitcoin and other cryptocurrencies mainly as means to become rich quick, the true essence of this new asset class lies in the fact that it provided a real opportunity to combat the dangers of  having one’s capital taken away from them.

I don’t want to undermine the fact that Bitcoin did create hundreds of millionaires throughout the past decade and continues to do so, nor do I try to oppose the concept of shifting power and capital from the centralised banking system back to the common folk. This was all very beneficial to everyone who was bright enough to enter this space in the early years and especially to those risk-takers who believed in the power of the digital currency from the early days when it was in its infancy and the rest of world was completely dismissive of it (myself included in those sceptics), so let’s take a moment and reflect on what we have achieved in the past 11 years.

Here are just a handful of examples of what Bitcoin managed to bring to the world and why this (still hugely volatile) digital currency is so important to the world and everyone who is involved in its network.

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  • Blockchain – possibly the biggest and most widely recognised invention that Bitcoin brought to the world is the creation of a decentralised, independently shared and publicly accessible and verifiable record of data that is immutable and resistant to censorship or control from any one entity.
    There have been many nay-sayers and sceptics of Bitcoin but even the hardest opposition to crypto, such as the central banking system, admits that Blockchain technology is the future and recognise it as one of the greatest innovations of our time.

 

  • The first Bitcoin transaction in the real world was for 2 pizzas on May 22 2009 which became known as Bitcoin Pizza Day. The guy who wanted to be known as the first person to buy something with Bitcoin paid 10 000 bitcoins for the pizzas which today comes to about 93 million US dollars.

 

  • Bitcoin has created more millionaires than any other asset in the past decade. The exact number is not recorded but it’s a fact that there are even a handful of billionaires created by investments in Bitcoin.

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  • Over the past decade we managed to mine more than 85% of the total bitcoin supply which is capped at 21 million coins. Today the circulating supply amounts to 18,022,262 coins produced by 601,794 blocks according to coinmarketcap.

 

  • Bitcoin’s network consists of thousands of computers worldwide is more powerful than the world’s top 5 supercomputers combined. It has never been hacked and is fully decentralised.

 

  • It took 4 years for bitcoin to go from $0 to $1000 and less than 1 year to jump from $1000 to $20 000 (back in 2017). Since then the price has corrected and we experienced a downtrend in 2018 but things picked up again and the $20k price tag is once again within reach in the foreseeable future.

 

  • Bitcoin’s produce is halved every 4 years and although we have already mined the majority of it, it will take us another 100+ years until we mine the last satoshi.

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  • In its decade of existence bitcoin has outperformed every other stock or asset in the world in terms of price appreciation, surpassing even the value of Gold and Silver and bringing in much higher Return of Investment to its hodlers.

 

  • The term HODL was born by a simple mistake in a drunken post on a Bitcoin forum and it became a worldwide acronym used by everyone, even mainstream media.

 

  • The smallest spendable denomination of Bitcoin is called a “satoshi” in reference to its creator and this month the term was added to the Oxford English Dictionary. The term “bitcoin” was already added to the dictionary back in 2014 and was defined as: “a digital currency in which transactions can be performed without the need for a central bank.”

 

  • Bitcoin gave birth to a whole new industry called cryptocurrencies and today there are more than 2000 of them, many of which are trying to add new use cases and go beyond the monetary use of bitcoin.

 

  • There are currently 9255 public nodes running on the Bitcoin network. (at the time of writing, but this number is changing daily.)

 

  • The price of Bitcoin is by far the biggest catalyst in its popularity amongst the retail investor and to date it’s price appreciation comes to a whopping +292,635.11% since its conception.

 

If you liked this article, consider following this blog and leave a comment below. I would like to hear your thoughts on Bitcoin and whether you are a fan or a sceptic.
I also run a YouTube channel where I post various content related to cryptocurrencies and blockchain technology.


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🏆Exchanges I use for trading crypto:

Binance
Kucoin 
Bittrex
Bitfinex
HitBtc 

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Where I buy crypto:

BitPanda (Europe)
Cex (Global)
Coinmama (Global)
Changelly (good for instant coins swaps)(Global)
Payeer (Europe, Asia, alternative to paypal)
Bitfinex 
Coinbase (USA, EU, Africa) Get $10 worth of Bitcoin on your first $100 crypto purchase with this link: http://bit.do/coinbase_join

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Where I store my crypto

  • Ledger Nano – the best hardware wallet (offline storage)
  • Trezor – also one of the best wallets out there.
  • Exodus – desktop wallet
  • Coinomi – mobile phone wallet with instant coin swap feature
  • Crypto.com – mobile wallet and exchange

Ledger Nano X - The secure hardware wallet

 

KuCoin Exchange – The Basics

Kucoin is one of the many new cryptocurrency exchanges available for those in search of a modern and secure platform to trade on.

It was launched in September 2017 by a group who had already built strong reputations at industry giants, such as GF Securities, Ant Financial, Youling, Jianbang Communication and iBOX PAY.

Kucoin has a very clean and modern layout throughout the website and this extends to the markets overview screen where you can see the available trading pairs and can choose to trade alt coins against BTC, ETH, KCS, NEO & USDT. There isn’t a fiat currency option currently, so users have to use the USDT (Tether) which is the digital token supposedly backed by USD (yet to be proved, so I don’t take long term trades in USDT). Soon it is expected that a fiat trading pair will be supported, possibly USD for a start with more to follow.

Kucoin is among the most straightforward exchanges to use, even for those who are new to the cryptocurrency world and is famous for being an early adopter of new, low-cap coins. This is one of a few reasons to love Kucoin. Another huge incentive is the relatively high withdrawal allowance without KYC verification (you can withdraw up to 2BTC per day without having to send your ID/Passport scans or other sensitive data).

Once you log into your Kucoin account, you can adjust the various settings, keep track of your assets, or manage your rewards, such as invitation bonuses and Kucoin bonuses. As a member of the exchange you are also provided with an affiliate link to share with friends and help grow their community. For this you are rewarded on a commission-based system and paid in KCS (their native coin).

Staking KCS (buy+hold) would also provide you with dividends (daily) from the fees collected by the company on their members trading activities. These are shared across all members in accordance with their staked KCS amounts. In my previous post I discussed the details of the staking benefits.

I highly recommend that you enable 2 factor authentication (2FA) to add an extra layer of security to your account. Any emails and confirmations for deposits or your register email should also be kept for your own record. Customer service is quite responsive on their web-based online chat or via a support ticket.

Opening an account is easy and intuitive, use this link to register for free : https://www.kucoin.com/#/?r=7H327K

Kucoin social media accounts:  Twitter |  Telegram

Here is my complete Beginners Guide Tutorial to get you started :

And lastly, here is my top choice for safe storage of my top cryptocurrencies, check out the Ledger Nano S, it can store a large selection of coins, it is a definite MUST HAVE.Ledger Nano S - The secure hardware wallet

 

What is Bitcoin?

Let’s talk Bitcoin, shall we.

I first heard of the thing a few years back from an article in The Independent (newspaper). I got interested, excited even. But that excitement evaporated soon when I found out that it was costing more than 100 dollars and theway to obtain it seemed complicated and risky.

I accepted that I had missed the momentum and that it can’t get any more expensive than that and decided not to bother with Bitcoin at all. Fast forward 4 years and here I am, buying BTC faster than I can count.
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I only properly got into bitcoin recently when I needed to deposit money into an investment programme online which was set up with Bitcoin only, so it was a matter of necessity rather than choice really.
I researched the popular Bitcoin ewallets and signed up with Coinbase which is one of the biggest and most reliable bitcoin wallet providers and it has its own inner exchange platform, so you are able to buy and sell your bitcoin currency and switch it to dollars or euros or pounds. Very convenient and simplified.
I also have the option to buy using my credit card, so in these times when the price is shooting straight up, I’m not confined by the restriction of my ever-thin bank account. My money is spread really thin at the moment, so this is a really important feature for me.
Still, let me explain why am I turning all my available funds into BTC right now.
I started monitoring bitcoin quite late,  it wasn’t until March this year (2016) that I started to buy and use Bitcoin for my online business.
In March I bought BTC at the rate of $430-450 (the rates were fluctuating between these numbers),  sometimes going up to $460 but nothing too crazy.
Then in May I noticed that the price started climbing. Slowly at first ( I mean, 10-20 dollars a day seems slow but in Stock-Market exchange terms this is still a massive jump). By the end of May the price for one BTC had passed the $550 mark and kept climbing up.
June was a great time for speculators and big investors and from what I understand the government of China was buying massive amounts, thus forcing a rapid and unexpected jump of over $280 from the previous month. By the 19th June one BTC reached $775 – something that forecasts were predicting would happen close to the middle of July when the next halving will occur.

What Is The Halving and the Block Reward?

In order to understand what this is, it’s important to first understand how Bitcoin and its database works. The database that keeps track of which addresses have how many bitcoins is stored in the form of a “block chain” (imagine a vast number of servers linked together), which is extended by one block roughly once every ten minutes. Each block contains all of the transactions that have taken place during that time, and when a block is added to the chain, it signifies a consensus among the Bitcoin network that those transactions took place at that time. As time goes on and more blocks are added on top of that block, the consensus solidifies, and after four to six blocks, any attempt to fraudulently change the transaction history to your own benefit becomes impractical because of all the work that has already been done overtop. Blocks can be created by any node on the Bitcoin network, and to regulate the rate of block creation, the network imposes constraints on the form that a valid block can take, with the result that it requires a lot of trial-and-error work to find a block that is valid – so much work that the entire network only manages to find one roughly once every ten minutes. That is a constant; there is an adjustable parameter called the “difficulty” which the network collectively manages to make sure that the actual block creation rate never strays far from that value.

Because creating (or “mining”) blocks is so crucial to the security of the Bitcoin network and yet so hard, the Bitcoin protocol includes a mechanism to encourage people to mine: every time a block is added, the programmer (miner) who found the block is given free BTC as a reward. At first that was 50 BTC and at the time of the first halving that became 25 BTC. This happened in 2013 and we saw a massive and sudden rise of the price back then. This July we will experience another halving where that reward will be down to 12.5 BTC but we’re now seeing the price jump much earlier due to people’s awareness of the event and a lot of speculation too.  The block reward also has another function: it is the only way that new bitcoins come into existence. Any bitcoin that you send or receive was at one point somebody’s block reward.

Why is this happening?
The main reason why this was done is to keep inflation under control. The rate at which new bitcoins are introduced into the system was never intended to stay at 50 BTC per 10 minutes forever. Rather, Bitcoin has a monetary policy that was coded into the system right from the start that reduces the rate over time, until the generation of new bitcoins finally stops entirely at a maximum of 21 million coins in 2140. There will still always be one block coming out every ten minutes, but the number of bitcoins handed out as a reward in each block will come down in sharp steps, cutting in half about once every four years (precisely, once every 210,000 blocks). The event that will happen in July is exactly this.

One of the major faults of traditional, “fiat”, currencies controlled by central banks is that the banks can print as much of the currency as they want, and if they print too much, the laws of supply and demand ensure that the value of the currency starts dropping quickly. Because the only use for money is to exchange it for something else later, a currency that is rapidly decreasing in value becomes even less valuable for that very reason, leading to a hyperinflationary spiral.

Bitcoin, on the other hand, is intended to simulate a commodity, like gold. There is only a limited amount of gold in the world, and with every gram of gold that is mined, the gold that still remains becomes harder and harder to extract. As a result of this limited supply, gold has maintained its value as an international medium of exchange and store of value for over six thousand years, and the hope is that Bitcoin will do the same.

What Will The Economic Effects Be?

The question that most people are focusing on right now is what will happen to the Bitcoin price. Thought on the issue is currently split into two camps. Those in the first camp believe that the decrease in the block reward will cause a “supply shock” in the Bitcoin economy as the number of available bitcoins suddenly goes down, pushing the price up by as much as two times to compensate. This line of thought rests on two key hypotheses. The first is that the supply of bitcoins on the market is largely made up of miners trying to collect a profit, and current major holders play a smaller role. This hypothesis holds increasing weight as mining becomes more and more dominated by professional “mining companies” seeking to earn a profit, and was bolstered further in another way by a recent study by Dorit Ron and Adi Shamir which found that 78% of bitcoins currently in existence are not in active circulation.

The second hypothesis is actually the one attacked more frequently and what those in the second camp argue is that traders anticipating the change have already bought up bitcoins in the months leading up to the event with the intent to sell them after. If they are correct, then even if the supply of bitcoins coming into the market from miners will soon cut in half, the supply from traders will make up for it, and the price will remain roughly the same.

My understanding is that even if that happens, it can only be a short term trend given the ever increasing popularity of Bitcoin and the whole cryptocurrency market in general.
If we listen to the experts, it seems that the potential of Bitcoin to reach a real commodity status, equal to Gold and beyond has already begun.

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