What is Bitcoin | History of Bitcoin | How to earn Bitcoin

What is Bitcoin? Bitcoin is a peer-to-peer electronic money transfer system through which money can be transacted without the intervention of any third party or organization. In other words, Bitcoin is not managed by any government, Bitcoin is managed by all ordinary people. Bitcoin can be used in any country without the hassle of converting. If you shift from Europe to an American country, you need to convert the local currency of Europe to the US dollar. But in the case of bitcoin, there is no such problem.  You can exchange Bitcoin from anywhere in the world. 

Bitcoin was first launched in 2008. It was discovered by Satoshi Nakamoto (one or more individuals or organizations). In fact, it is not yet known who Satoshi Nakamoto is. When Bitcoin first launched, its price was  $0.0008. Today we will discuss the history of how that bitcoin reached $40,000 today. 

Table of Content

Dollar History

To know the history of Bitcoin, first of all, you need to know the history of the dollar or money. From about 9000 to 6000 BC, people used cattle and rice, pulses, and other commodities for exchange. But it was a very complicated process, so later on, between 1300 and 1000 BC, people used to exchange precious metals for example gold, silver, and cowries. In today’s world, we exchange paper. From cattle, precious metals, or various commodities, how has paper become the medium of exchange? The belief of common people is working behind this. Are you still confused?  Let’s be clear.

What is Bitcoin | History of Bitcoin | How to earn Bitcoin

At first, different commodities were the means of exchange. But it is difficult to transport goods for long-distance exchanges. For example, if one exchanges one ounce of rice with one ounce of pulse, it is difficult for him to transport it far away. For this reason, instead of commodities, various metals such as gold coins, silver coins, etc. are used as a medium of exchange. This is why it is made credible to the common people that these metals have value. Then it was seen that the transportation of these coins seemed to be difficult for the common people as the weight of these coins or cowries is more when transporting them far and wide. So, the need for an alternative arises. Then comes the idea of ​​paper money.

Paper money has been developed by utilizing the concept of faith developed among the common people. The first paper money was introduced in China in 806 AD. Since it was difficult to transport cattle or heavy metal objects, the government (banking system) would keep metal objects (gold coins) and issue a paper note which was basically a token. This token represented the currency reserved for the bank, and people believed that the paper had the value of the currency by which they could buy any product, or that the coin would be returned to anyone who went to the bank with this paper note.

The banking system was introduced basically based on this concept. The bank only can print dollars equal to the amount of gold it keeps in deposits. Gold is fixed so no country can print dollars or money as it pleases. This system is called the Gold Standard which means I have gold in the bank, in exchange for which the bank gives me a note or certificate. So far there has been no problem. But the problem started later on. In 1931, Britain moves away from the Gold Standard. Two years later, in 1933, the United States withdrew itself from the Gold Standard Due to the extreme economic downturn. So now there is no need to know the amount of gold in the bank, the bank can print dollars at will. Of course, if the bank prints dollars at will, it will have a negative effect. Which is called inflation. Suppose you have 1 lakh dollars. After 1 year, the value of that 1 lakh dollars will be equal to 95 thousand dollars. What you can buy today with 1 lakh dollars, after 1 year it will take 1 lakh 5 thousand dollars to buy that thing.  And that is inflation.

What is Bitcoin | History of Bitcoin | How to earn Bitcoin

Another limitation of the banking system is that when you come to America from Europe, your euro will not run in America. And then you have to convert Euro to Dollar. For which you have to take extra trouble. In this case, the bank intervenes during the transfer of money from one country to another.  And for some reason, this money transfer process can be stopped by the bank if it wants. Mobile banking was introduced in 1999 but even there the government of the country plays a central role in your transactions.

History of Bitcoin

Basically, due to the limitations of dollars or conventional money, One or more people named Satoshi Nakamoto purchased the domain from Namecheap on 31 October 2008.

In January 2009, Satoshi Nakamoto published a paper called A Peer-to-Peer Electronic Cash System, in which he explained what a blockchain is and how it works. In the paper ” A Peer-to-Peer Electronic Cash System”, he explains how to transact with Bitcoin without any center or bank.

What is Bitcoin | History of Bitcoin | How to earn Bitcoin

On January 12, 2009, Satoshi Nakamoto gave  Programmer Halfin 10 bitcoins. Halfin tweeted Running bitcoin. Then at different times, different people started promoting Bitcoin. In October 2009, 1309 bitcoins were priced at 1 Dollar. The first transaction was made with Bitcoin in 2009. Where 2 pizzas were bought with 10000 bitcoins. But with the current 1 bitcoin, a pizza factory can be given. On January 1, 2017, the price of bitcoin was $900. In December, the price of bitcoin rose to $19,500. Then, two years later, in 2019, the price of Bitcoin went down. Then the price of bitcoin was 3 thousand dollars. Then gradually the popularity of Bitcoin started to increase, and different countries legalized Bitcoin. Since then the price of Bitcoin has gone up and has never come down. The current price of 1 bitcoin is 40 thousand dollars

The benefits of Bitcoin

  • Bitcoin is a peer-to-peer system so Bitcoin can be transferred to any country at any time without any kind of bank.
  • Bitcoin does not have the problem of converting other currencies like dollars to euros.
  • The supply of Bitcoin is fixed at 21 million, Bitcoin can never be made more than this.
  • Since the supply of bitcoin is fixed and the supply of gold is fixed, there is no discrepancy between bitcoin and gold. Bitcoin can be called Digital Gold.
  • As Bitcoin is gaining popularity day by day, if you buy a Bitcoin, you are likely to get double the price after 1 year.
  • You can collect bitcoin by mining in the same way that gold can be extracted from the soil.
  • Since Bitcoin is founded based on blockchain technology, there is no possibility of it being hacked.
  • Bitcoin cannot be printed or made arbitrarily, so there is no fear of inflation in the case of Bitcoin.
  • On the other hand, what you could do with 100 dollars before, can you do it with 100 dollars after one year?  In other words, the value of the dollar is constantly declining.

The disadvantage of bitcoin

  • Since Bitcoin is a peer-to-peer transaction, once the money is transferred, it cannot be returned unless the receiver wants it.
  • Since Bitcoin is not controlled by any center or bank, criminals can easily transact without revealing their identities.

How to make money from bitcoin

What is Bitcoin | History of Bitcoin | How to earn Bitcoin

1. The best way to earn money from Bitcoin is to do mining.  When someone transacts with Bitcoin, it is checked through Bitcoin Miners to see if the transaction is going properly. The one who does the mining solves some puzzles.  In this way, some bitcoin miners are rewarded when the miners verify the transaction is correct or incorrect. When Satoshi Nakamoto first started mining in 2009, mining was done with a normal computer at home. But the current mining requires a graphics card.

2. But the problem is that it is almost impossible to bear the cost of electricity bill by mining with mining equipment.  So the best way is to buy Bitcoin and sell it when the price goes up. Since the price of Bitcoin goes up and down, you will buy it when it goes down, then when the price of Bitcoin goes up, you will sell your Bitcoin. The current price of 1 bitcoin is 40 thousand dollars.  For many, it may be impossible to buy Bitcoin at such a high price.  So you can buy Satoshi, the smallest part of Bitcoin.

3. You can also trade. When the market is down, you will trade in Bitcoin and when you get a good profit, you will close the trade.

4. Bitcoin can also be used as a medium of exchange for an online or offline business.  Tell your customer that they pay with Bitcoin.

source :

  1. https://bitcoin.org/
  2. https://en.wikipedia.org/wiki/Bitcoin

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