Bitcoin statistics
Launch date: 2009-01-09
Total Bitcoins: 21.000.000 BTC
Bitcoins mined: 20.000.000 BTC
Network speed: 7 transactions per second
Block reward: +3.15 BTС
Block generation time: 8m 53s
Date of the next halving: 26-03-2028
Home page: https://bitcoin.org
What is Bitcoin?
Bitcoin (BTC) is the first and most well-known cryptocurrency. This revolutionary form of digital money operates without centralized control, relying on blockchain technology – a distributed ledger that ensures transparency and security of transactions.
Bitcoin's decentralized nature makes it unique. Instead of banks and governments, the network is supported by participants around the world, ensuring resistance to censorship and manipulation. Bitcoin offers fast and relatively inexpensive international transfers, which are especially valuable in the age of globalization.
Bitcoin is the digital gold of the 21st century, offering financial freedom and protection against inflation. Its limited supply of 21 million coins creates scarcity, which is attractive to investors seeking to preserve and grow their capital amid the instability of fiat currencies.
In its 14 years of existence, Bitcoin has gone from being a little-known experiment to a global financial phenomenon. Its market capitalization has reached over $2 trillion, demonstrating the potential of cryptocurrencies.
How does the Bitcoin blockchain work?
The Bitcoin blockchain is a revolutionary technology that underpins the first cryptocurrency. Imagine a digital ledger where each page is a block containing transaction information. These blocks are linked by complex mathematical formulas, forming an unbreakable chain. The unique hash of each block ensures the integrity of the entire system, making it resistant to counterfeiting.
Mining is a key element of the system. Miners use powerful computers to solve cryptographic problems, creating new blocks. This process ensures network security and the issuance of new Bitcoins. The first miner to solve the problem gets the right to add a block to the chain and a reward in BTC. Other network participants verify the solution, ensuring the legitimacy of transactions.
Consensus in the network is achieved through the Proof-of-Work mechanism. This ensures that all participants agree on the state of the blockchain, preventing double spending and fraud. Each transaction is verified and confirmed by multiple network nodes, ensuring the highest level of security. The mining difficulty is automatically adjusted, maintaining the stability of new Bitcoin issuance.
The Bitcoin blockchain is not just a technology, but a fundamental rethinking of the principles of the financial system. Its transparency, security, and decentralization open up new opportunities for the global economy.
Advantages of Bitcoin
Bitcoin, the cryptocurrency, with a limited supply of 21 million coins, which protects Bitcoin from inflation, making it a potential store of value..
The first cryptocurrency, Bitcoin, has been around longer than any other cryptocurrency. During this time, there has not been a single failure in the Bitcoin network. It can be considered the absolute champion in terms of reliability among other cryptocurrencies.
Transparent blockchain – guarantees traceability of funds, allowing you to determine the exact number of coins in circulation and verify that Bitcoin is indeed a scarce asset with a limited supply.
Limited supply – allows Bitcoin to be used as a deflationary asset and a store of value. Despite high volatility, the value of Bitcoin has ultimately shown growth over time.
Mining capability – allows you to participate in the initial equal distribution of funds among all network participants, as well as store a complete copy of all transactions that have been made on the Bitcoin network.
The availability of a cold wallet is another major advantage of Bitcoin, allowing users to store and use funds without third-party services. Essentially, every Bitcoin holder can be both a banker and a bank at the same time.
Disadvantages of Bitcoin
Despite its revolutionary nature, Bitcoin faces serious challenges. Let's consider some of them:
High exchange rate volatility makes it difficult to use as a stable means of payment. Sharp fluctuations in value can lead to significant financial losses for unprepared investors.
The energy intensity of mining has attracted justified criticism. The high electricity consumption required to maintain the network runs counter to current environmental trends, creating reputational risks and potential regulatory restrictions.
Scalability and network speed are also bottlenecks for the Bitcoin blockchain. The current transaction speed on the Bitcoin network is about 7 transactions per second, which can cause some delays in transferring funds during peak loads. This problem can be solved by increasing the transaction fee if urgent payment is required.
The size of the blockchain requires a large amount of free disk space (approximately 500 GB). This disadvantage is not critical, as it only affects those who are involved in mining. For those who want to have their own cold wallet, it is possible to reduce the required disk space by downloading only part of the blockchain with the latest transactions.
The lack of anonymity and transparency of the Bitcoin blockchain is both its strength and weakness. This does not mean that it is possible to determine who owns the funds or wallet, but anyone can see all wallets and transactions on the Bitcoin network.
What is Bitcoin halving?
Bitcoin halving is a key event in the cryptocurrency ecosystem, programmed into its code. Every 210,000 blocks, approximately once every four years, the reward miners receive for mining a block is halved. This emission control mechanism ensures the scarcity of Bitcoin, similar to the limited supply of gold. The first halving took place in 2012, reducing the reward from 50 to 25 BTC. In 2016, it decreased to 12.5 BTC, and in 2020 – to 6.25 BTC.
Halving affects the Bitcoin economy, potentially increasing its value due to a decrease in the rate of new coin issuance. This event attracts the attention of investors and can cause significant price fluctuations.
Bitcoin halving table
| Date | Block Height | Reward (BTC) |
|---|---|---|
| 2012-11-28 | 210,000 | 50 |
| 2016-07-09 | 420,000 | 25 |
| 2020-05-11 | 630,000 | 12.5 |
| 2024-04-20 | 840,000 | 6.25 |
| 2028 | 1,050,000 | 3.125 |
| 2032 | 1,260,000 | 1.5625 |
| 2036 | 1,470,000 | 0.78125 |
| 2040 | 1,680,000 | 0.390625 |
| 2044 | 1,890,000 | 0.1953125 |
| 2048 | 2,100,000 | 0.09765625 |
| 2052 | 2,310,000 | 0.04882813 |
| 2056 | 2,520,000 | 0.02441406 |
| 2060 | 2,730,000 | 0.01220703 |
| 2064 | 2,940,000 | 0.00610352 |
| 2068 | 3,150,000 | 0.00305176 |
| 2072 | 3,360,000 | 0.00152588 |
| 2076 | 3,570,000 | 0.00076294 |
| 2080 | 3,780,000 | 0.00038147 |
| 2084 | 3,990,000 | 0.00019073 |
| 2088 | 4,200,000 | 0.00009537 |
| 2092 | 4,410,000 | 0.00004768 |
| 2096 | 4,620,000 | 0.00002384 |
| 2100 | 4,830,000 | 0.00001192 |
| 2104 | 5,040,000 | 0.00000596 |
| 2108 | 5,250,000 | 0.00000298 |
| 2112 | 5,460,000 | 0.00000149 |
| 2116 | 5,670,000 | 0.00000075 |
| 2120 | 5,880,000 | 0.00000037 |
| 2124 | 6,090,000 | 0.00000019 |
| 2128 | 6,300,000 | 0.00000009 |
| 2132 | 6,510,000 | 0.00000005 |
| 2136 | 6,720,000 | 0.00000002 |
| 2140 | 6,930,000 | 0.00000001 |
What is a Bitcoin cold wallet?
A cold wallet is a standalone device for storing Bitcoins that is not connected to the internet. It provides maximum protection for crypto assets against hacker attacks and theft. Unlike hot wallets, cold wallets store private keys offline, significantly reducing the risk of unauthorized access. There are various types: hardware devices, paper wallets, and steel plates with engraved keys.
Cold storage is the foundation of security in the world of cryptocurrencies. It's like a safe deposit box at a bank, only digital and completely under your control. According to research, using cold wallets reduces the risk of losing funds by 98% compared to online storage.
The choice depends on the amount of funds stored and the required level of security. For large amounts, hardware wallets are recommended, as they provide a balance between security and ease of use.
What is Bitcoin mining?
Bitcoin mining is the process by which new Bitcoins are created and transactions are confirmed on the network. It is based on blockchain technology, which is a distributed ledger that stores all transactions.
How does Bitcoin mining work?
Transaction collection: When users send Bitcoins to each other, these transactions are collected into blocks. Each block contains transaction information, a timestamp, and a reference to the previous block.
Solving a mathematical problem: To add a new block to the blockchain, miners must solve a complex mathematical problem known as "proof of work". This task requires significant computing resources and time.
Competition between miners: Miners around the world compete with each other to be the first to solve the problem. The first to solve it gets the right to add a block to the blockchain and receives a reward in the form of new Bitcoins and transaction fees.
Adding a block to the blockchain: Once a block is added, it becomes part of the blockchain, and all nodes in the network update their copies of the ledger. This makes transactions irreversible and protects the network from fraud.
Repeating the process: After adding a block, the process starts again with a new set of transactions.
Why is mining necessary?
Network security: Mining helps protect the network from attacks, as changing information in the blockchain requires control of more than 50% of the network's computing power.
Creation of new Bitcoins: Mining is the only way to create new Bitcoins, which makes it important for maintaining the cryptocurrency economy.
Bitcoin Security
Bitcoin's security is based on a complex cryptographic system and a decentralized network. The key element is blockchain technology, where each transaction is confirmed by multiple independent nodes, making it extremely difficult to counterfeit or hack. Public key encryption ensures that only the owner of the private key can dispose of their Bitcoins.
For maximum protection, users are advised to use reliable wallets, apply two-factor authentication, and regularly update their software. Cold storage is considered the safest method for large amounts. It is important to remember that the main vulnerability is often related to the actions of the user themselves.
The Bitcoin network uses a Proof-of-Work consensus algorithm, which requires significant computing power to add new blocks, further protecting the system from attacks. Each block contains the hash of the previous one, forming an unbreakable chain that would require enormous resources to change.
How to earn Bitcoin?
Earning Bitcoins opens up a variety of opportunities for cryptocurrency enthusiasts. Mining, despite the need for significant investments in equipment and electricity, remains a popular method. Trading on crypto exchanges attracts active investors who are ready to conduct in-depth market analysis. The integration of Bitcoin payments into business creates new prospects for entrepreneurs.
Freelancing for Bitcoin is gaining popularity among professionals in various fields. Some companies offer payment in cryptocurrency, which is particularly attractive for international projects. Participating in educational programs and creating content about Bitcoin can also be a source of income.
Success in the world of Bitcoin requires a deep understanding of technology and the market. According to research, active cryptocurrency users spend an average of 2-3 hours a day studying news and analyzing market trends. Continuous learning and adaptation to a rapidly changing environment are the keys to long-term growth in the crypto economy.