What is Bitcoin?
Bitcoin is known as a decentralized digital currency. (Decentralized) without a central bank or even a single operator. There is a Peer-to-Peer (P2P) network or trading that takes place between computer systems of users around the world. By using a software system to transcribe mathematical equations that are directly connected via the Internet. and not through an intermediary
Bitcoin’s origins came in 2008, when the United States suffered an economic crisis due to subprime lending, or lending to unqualified borrowers. Until there is a problem of lack of liquidity and threaten the stability of financial institutions in the United States. Mainly due to the stagnation of the real estate market. which this crisis has resulted in credit “Floating interest” reveals weakness in the financial system. The United States decided to solve the problem by printing large amounts of money without guarantees to hold the economy up until the end. “Inflation” in the country, of course, printing large amounts of money will result in the value of money being cheaper as well.
And in the same year, a group of people called Cypherpunk (Cypherpunk) gathered in the online world. Under the pseudonym Satoshi Nakamoto (Satoshi Nakamoto), who is interested in science, computers, mathematical cryptography, and politics, picks up the idea of a digital currency system. (Cryptocurrency) that has happened in the past, come back to review and use it again. Until developing into the digital currency that we know most widely today, that is “Bitcoin”
Of course, Bitcoin’s main purpose is to create a reliable digital currency. and does not have to depend on any government or agency to cut out all financial intermediaries Because these groups have no confidence in any government or agency. Especially in terms of “money”, we still do not know who Satoshi Nakamoto is (Satoshi Nakamoto) because Satoshi himself has never been in the media. Or have revealed their identity in public before, but can be considered a person who is very important in changing “The world of digital finance”
Bitcoin coins are limited to 21 million BTC. The main purpose of this limit is to prevent “inflation” problems. There is Bitcoin Halving, or reducing mining returns to half. And in the early days of Bitcoin, the reward of mining Block Reward or reward for “First Block Closing Success” Earn up to 50 BTC per block mined by successfully cracking the first block close. And the first coin came out in 2009. After that, in 2012, the first halving occurred, causing the mining return to be reduced by half to only 25 BTC per 1 block mined. In 2016, it was reduced to 12.5 BTC per mined block, and in 2020, the 3rd halving occurred, bringing the current reward to 6.25 BTC per block mined.
Bitcoin currently has a supply circulating in the system at 19,408,918 BTC (as of June 22, 2023). Proof-of-Work (PoW) is a set of rules (protocols) set up by a group of coin developers. However, a total of 21 million bitcoins will be mined in the year 2140 (B.E. 2683), or counting for the next 120 years. It’s getting harder and harder to find, and that makes Bitcoin (BTC) more like a cryptocurrency. “Gold of the digital world” as a store of value or Store of Value
The current market value of $ 582,789,309,943 or about 20 trillion baht is ranked number 1 on the Coingecko website and has a circulating supply of 19,408,918 BTC out of a total of 21,000,000 BTC.
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