With the rise of this form of cryptocurrency, one ought to know the underlying facts about bitcoin. Below is a comprehensive list of such material.
With more users than any other digital currency, bitcoin is the most common form of cryptocurrency in the world. It is also accepted by a multitude of platforms in many different countries.
Despite this, some governments consider it illegal because they cannot protect coin holders in the event of the disappearance of bitcoins.
This can also be attributed to the reason that all governments want to have control over monetary platforms in their respective countries.
Someone named Satoshi Nakamoto is supposedly the founder of bitcoin. However, there is speculation about the identity of the individual. Some speculations have been made about this person and the origins of their name, but experts in the community have refuted many claims.
Evidence proved that he is either American or European, due to fluent English writing in his blogs and articles. Also, the time zone in which the articles were posted suggested the same.
Some other people have claimed to be the developer of bitcoin, such as Denis Steven Wright, a computer scientist and businessman from Australia.
As proof, he submitted details about the first-ever transaction that happened between Hal Finney (the first person to ever receive bitcoins) and Satoshi. But the claim is disputed by users within the bitcoin community. Some view this evidence as proof that he was somehow involved the first transaction.
In some cases, there is speculation that Finney is indeed Satoshi Nakamoto, since they both lived in the same town. He, however, refuted the claim.
After all, coins are mined; the number will be approximately 21 million. According to trusted sources, as of July 17, 2016, the number of coins in existence was slightly more than 15.7 million.
These figures arrived after the computation of transaction outputs, found in system databases and verified transactions.
Just by having the bitcoin address, it is impossible to tell the particulars of the recipient even by name. The main reason is that the address is composed of alphanumeric characters which are about 34 characters long.
Then, unlike in other platforms where the name of the individual is displayed, the same does not occur in sending/receiving bitcoins. Perhaps this is the reason why most illegal transactions occur by using bitcoins.
Also, most wallet programs will assign you with a portfolio ID, which is then used as your username—instead of giving you a username or letting you choose a username which may be similar to your own name. This further improves the aspect of privacy.
Dark web users prefer bitcoin as a mode of payment because there is no evidence that a purchase has taken place. The items purchased may include drugs, weapons, counterfeit products and thus the reason to stay anonymous since it further complicates the tracking procedure and one can easily remain in the run.
It is nearly impossible to find a vendor on the dark web who will accept other payment platforms, since it will expose their doings to a greater extent
For those in the United States, Microsoft began accepting payment for its products and services through bitcoins.
However, this can result in a situation where those who get paid by bitcoins for selling illegal products find their way to “cleanse” the money perhaps through buying and re-selling legitimate items.
Without a doubt, the first transaction was carried out by bitcoin founder Satoshi Nakamoto on January 12, 2009. For trials purposes, he sent the payment to the late Harold Thomas Finney who was a member and contributor of the cryptography community.
At the time of writing this article in May 2017, bitcoin has made significant strides. It grew to a record high never seen before just this year.
Because governments always want to have control over monetary institutions within their countries, many have discouraged the use of bitcoin because it alludes to a sort of peer-to-peer transaction.
Their argument is that they cannot protect individuals in the event the Blockchain is down, causing the disappearance of coins. Of course, they would want a scenario similar to that of the banking industry, but this cannot happen in a Blockchain system.
Unlike other platforms such as PayPal, it is impossible to facilitate a reversal of a bitcoin transaction. This is one reason why most individuals involved in illegal goods and services prefer using bitcoin as the only payment option.