BTC(Bitcoin) is a virtual currency or digital currency that allows secure peer-to-peer transactions on the Internet and is not hacked through absolute security blocks. It is also the world's first cryptocurrency/cryptocurrency and has the largest market capitalization.
Bitcoin was introduced in 2008 by an anonymous developer or group of developers known by the legendary name Satoshi Nakamoto. Since then, it has become the world's largest and most famous cryptocurrency, and its popularity has inspired the development of many other cryptocurrencies.
About Bitcoin
In August 2008, the domain name Bitcoin.org was registered. It was created by Satoshi Nakamoto and Martti Malmi, along with others who developed Bitcoin with Nakamoto.
BTC's Journey
In October 2008, Nakamoto announced to the cryptography mailing list at metzdowd.com: "I am working on a new electronic cash system that is entirely peer-to-peer, with no trusted third party." The now-famous white paper published on Bitcoin.org, titled "Bitcoin: A Peer-to-Peer Electronic Cash System," would later become the Magna Carta for how Bitcoin operates today.
The First Blocks
On January 3, 2009, the first Bitcoin block was mined for the first time. Known as Block 0, it is also known as the genesis block and contains the text: "The Times 03/01/2009 Chancellor of the Exchequer on the verge of a second bank bailout," presumably indicating that the block was mined on or after that date.
Rewards
Every four years, the Bitcoin network halves the reward miners receive for adding a block. This built-in feature slows down the creation of new bitcoins and keeps the supply limited – much like digital gold. In 2009, miners earned 50 bitcoins per block. By April 2024, that reward will drop to 3.125 and will continue to drop to 1.5625 around mid-2028. This predictable scarcity and limited supply is one reason many investors view BTC as a non-inflationary asset.
BTC Blockchain Technology
BTC, as a form of digital currency, is not difficult to understand. For example, if you own one BTC, you can use your cryptocurrency wallet to send smaller portions of that Bitcoin as payment for goods or services. In contrast, how Bitcoin actually works is quite complex.
Blockchain
Blockchain is a large distributed database, a database of information that is shared and connected to each other through cryptographic techniques and cannot be reversed.
"Distributed" means that the data is stored on many computers instead of a centralized server like most other forms of data storage.
A network of automated programs installed on these computers maintains the blockchain and performs the functions necessary for the blockchain to operate and be secure.
A block on the blockchain is a file containing encrypted blocks, a transaction counter, and the transactions recorded in the block. The transaction counter lists the transactions in the block
As noted, each block contains the hash of the previous block. This creates a chain of encrypted blocks (files) containing information from all previous blocks, starting from the first block of the blockchain making it extremely difficult to change the data without having to change the previous encrypted blocks.
Uses of BTC
1. Digital Storage
This is the most common use of BTC today.
Anti-inflation: Unlike fiat money (USD, VND) which can be printed by the central bank, BTC has a fixed supply of 21 million VND and cannot be created any more. This scarcity helps it maintain its long-term value against the devaluation of paper money.
Safe haven asset: During periods of economic instability or political crisis, many investors turn to holding BTC to protect their assets, similar to gold, against depreciation.
2. Means of payment and money transfer
Although the speed is not as fast as Visa/Mastercard, Bitcoin still has a great advantage in transactions in many countries:
International money transfer: You can send BTC from Vietnam to the US, Europe or anywhere in just a few minutes to a few dozen minutes without going through an intermediary bank (like SWIFT).
Low Cost: For large value transactions, BTC transfer fees are often much cheaper than bank fees.
Payment for goods: Some large companies (such as Microsoft, luxury car manufacturers, or in El Salvador) accept BTC as a legal means of payment.
3. Investment
High Profit: Due to the large price fluctuation amplitude, BTC is a "fertile land" for traders to profit from price differences (buy low, sell high).
Portfolio Diversification: Large investment funds (such as BlackRock, Fidelity) have included BTC in their investment portfolios to spread risks compared to traditional stocks or real estate.
4. Financial Ownership
Uncontrolled: BTC operates on a decentralized Blockchain network. No government or bank has the right to freeze your BTC account or block transactions if you hold your private key.
5. Promoting Technology (Blockchain)
The birth of Bitcoin laid the foundation for the development of Blockchain technology, opening a new era of:
- Decentralized Finance (DeFi).
- Smart Contracts.
- Web3: The next generation of the internet where users own their data.
Disclaimer: This article is for informational purposes only and provides an overview of the investment project in the cryptocurrency market. Investors and traders should not rely on the information provided here to make investment decisions.
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Cryptocurrency