₿itcoin is a classic network effect, a positive feedback loop. The more people who use ₿itcoin, the more valuable ₿itcoin is for everyone who uses it, and the higher the incentive for the next user to start using the technology. ₿itcoin shares this network effect property with the telephone system, the web, and popular Internet services like eBay and Facebook.
₿itcoin is a remarkable cryptographic achievement, and the ability to create something that is not duplicable in the digital world has enormous value
Whereas most technologies tend to automate workers on the periphery doing menial tasks, blockchains automate away the center. Instead of putting the taxi driver out of a job, blockchain puts Uber out of a job and lets the taxi drivers work with the customer directly.
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Hodl (/ˈhɒdəl/ HOD-əl; often written HODL) is slang in the cryptocurrency community for holding the cryptocurrency rather than selling it. A person who does this is known as a Hodler (baghodler, ex-hodler, landhodler). It originated in a December 2013 post on the ₿itcoin Forum message board by an apparently inebriated user who posted with a typo in the subject, "I AM HODLING." In 2017, Quartz listed it as one of the essential slang terms in ₿itcoin culture, and described it as a stance, "to stay invested in ₿itcoin and not to capitulate in the face of plunging prices." TheStreet.com referred to it as the "favorite mantra" of ₿itcoin holders. Though originally used in relation to holding ₿itcoin, it is now also used to describe holding other cryptocurrencies and tokens such as Ethereum.
History of bitcoin
A timeline that shows bitcoin History from the idea all the way to present day.
- Satoshi Nakamoto began working on the ₿itcoin concept.
- Neal Kin, Vladimir Oksman, and Charles Bry file an application for an encryption patent application.
- Bitcoin.org was registered at anonymousspeech.com.
- Nakamoto describes the ₿itcoin currency and solves the problem of double spending.
- The ₿itcoin project is registered on SourceForge.net.
- Block 0 is established.
- Version 0.1 of ₿itcoin is released.
- The first ₿itcoin transaction.
- An exchange rate is established.
- Version 0.2 is released.
- The difficulty increases.
- The ₿itcoin Market is established as a ₿itcoin currency exchange.
- Encryption patent is published.
- The first real-world transaction using 10,000 BTC spent on pizza.
- Version 0.3 released.
- In five days, the price grew 1000%, rising from $0.008 to $0.08 for 1 bitcoin.
- The MtGox ₿itcoin currency exchange market is established.
- Exploit generates 184 billion ₿itcoins.
- Financial task force issues warning.
- The first public version of an OpenCL miner is released.
- Market cap exceeds $1 million USD.
- ₿itcoind compiled for Nokia N900.
- First mobile ₿itcoin transaction.
- Difficulty increases.
- Silk Road opens for business.
- 25% of total ₿itcoins generated.
- ₿itcoin reaches parity with US dollar.
- WeUseCoins.com is created.
- Second largest decrease in difficulty.
- Britcoin opens for trading.
- ₿itcoin Brasil opens.
- ₿itcoin passes parity with Euro.
- Difficulty surpasses 100,000.
- ₿itcoin Market drops PayPal.
- The largest percentage price decrease to-date became known as the Great Bubble of 2011. Top of bubble at $31.
- WikiLeaks starts accepting ₿itcoin.
- Major breach of security at MtGox.
- Difficulty passes 1 million.
- ₿itcoin Conference and World Expo in New York City, NY.
- P2Pool mines its first block.
- Back-to-back drop in difficulty.
- Casascius coins mint physical ₿itcoins.
- ₿itcoin & Future Technology European Conference in Prague, Czech Republic.
- $2 minimum price after the first price drop.
- London 2012 ₿itcoin Conference.
- ₿itcoin Foundation begins.
- Slowly rising for a year. Price at $13.
- Version 0.8 released.
- ₿itcoin goes up to $30.
- ₿itcoin spikes to $74.90.
- Market cap reaches $1 billion.
- ₿itcoin surpasses $100.
- Price hits an all-time high of $266.
- ₿itcoin Central is hacked.
- First ₿itcoin ATM unveiled.
- ₿itcoin Central gets hacked again.
- FBI shuts down Silk Road.
- ₿itcoin price drops from $139 to $109.71 in less than three hours after Silk Road closure, recovers.
- ₿itcoin price surges to a new all-time record of $1242.
- Price crashed to $600, rebounded to $1000, crashed again to the $500 range. Stabilized in between.
- China's Central Bank bans ₿itcoin transactions.
- The network exceeded 10 petahash/sec.
- Price spiked to $1000, then settled in the $800–$900range.
- Version 0.9 released.
- The network exceeded 100 petahash/sec.
- Microsoft began to accept bitcoin to buy Xbox games and Windows apps.
- Version 0.10 released.
- Version 0.11 released.
- 2015 record high of $504.
- Price at $1150 per bitcoin.
- Price fell 30% in a week, reaching a multi-month low of $750.
- The network exceeded 1 exahash/sec.
- Version 0.12 released.
- Steam started accepting bitcoin as payment.
- Version 0.13 released.
- There are 770 bitcoin ATMs worldwide.
- Version 0.14 released.
- The price of 1 bitcoin surpassed the spot price of an ounce of gold for the first time.
- The number of GitHub projects related to bitcoin passed 10,000.
- Price traded above $1290.
- Japan Declares ₿itcoin as Legel Tender
- ₿itcoin "splits" into ₿itcoin (BTC) and ₿itcoin Cash (BCH)
- ₿itcoin for the first time hit $10,000
- On 6 December 2017 the software marketplace Steam announced that it would no longer accept bitcoin as payment for its products, citing slow transactions speeds, price volatility, and high fees for transactions.
- all-time high of $19,783.06 reached on 17 December 2017.
- On 22 January 2018, South Korea brought in a regulation that requires all the bitcoin traders to reveal their identity, thus putting a ban on anonymous trading of bitcoins.
- On 24 January 2018, the online payment firm Stripe announced that it would phase out its support for bitcoin payments by late April 2018, citing declining demand, rising fees and longer transaction times as the reasons.
- On 1 July 2018, bitcoin's price was $6,343.
- Bancor cryptocurrency exchanges hack.
- The price on January 1, 2019 was $3,747
- The price on February 1, 2019 was $3,999
- The price on March 1, 2019 was $4,081
- The price on April 1, 2019 was $5,181
- The price on Mai 1, 2019 was $8,287
- The price on June 1, 2019 was $10,908
- The price on Juli 1, 2019 was $9,506
- The price on August 1, 2019 was $9,487
- the Intercontinental Exchange (the owner of the NYSE) began trading of bitcoin futures on its exchange called Bakkt. Bakkt also announced that it would launch options on bitcoin in December 2019.
- The price on September 1, 2019 was $8,085
- The price on October 1, 2019 was $9,225
- At the moment, one bitcoin cost: $7,242
₿itcoin Rap Song
Instant transactions, no waiting for checks to clear, no chargebacks (merchants will like this), no account freezes (look out Paypal), no international wire transfer fee, no fees of any kind, no minimum balance, no maximum balance, worldwide access, always open, no waiting for business hours to make transactions, no waiting for an account to be approved before transacting, open an account in a few seconds, as easy as email, no bank account needed, extremely poor people can use it, extremely wealthy people can use it, no printing press, no hyperinflation, no debt limit votes, no bank bailouts, completely voluntary. This sounds like the best payment system in the world!
We’ll all look back in 20 years and conclude that Bitcoin was as influential a platform for innovation as the Internet itself was.
Bitcoin is a technological tour de force.
Stay away from it. It’s a mirage, basically. In terms of cryptocurrencies, generally, I can say almost with certainty that they will come to a bad ending.
We have elected to put our money and faith in a mathematical framework that is free of politics and human error.
Still thinking about #Bitcoin. No conclusion – not endorsing/rejecting. Know that folks also were skeptical when paper money displaced gold.
I am very intrigued by Bitcoin. It has all the signs. Paradigm shift, hackers love it, yet it’s derided as a toy. Just like microcomputers.
Ten percent of my net worth is in this space.
The blockchain Trilemma is one of the greatest hurdles for cryptocurrencies. The Trilemma is a situation which involves the three basic concepts of blockchain technology: security, scalability, and decentralization. The Blockchain trilemma states that you can always achieve the three main attributes of scalability, security, and decentralization at the expense of others, or that you cannot maximize all three properties at the same time.The Trilemma concept was originally signified by Vitalik Buterin, the founder of Ethereum (ETH), who invented the name in regard to the scalability of blockchain technology.
A Man in the Middle (MitM) attack is one in which an attacker places himself between two peer nodes in the network. They redirect victims funds to their own wallets by changing the destination address of cryptocurrency transactions. In the case of the ledger wallet, a malware installed on the target computer changes the destination address of Bitcoin transactions and replaces it with the address of the attacker’s wallet. The only way users can detect and stop the attack is to manually compare the address displayed on their computer with the one that appears on the ledger’s display.
Sybil or 51% Attack
A Sybil attack is an attack where a single adversary is controlling multiple nodes on a network. It is unknown to the network that the nodes are controlled by the same adversarial entity. The reputation system is subverted by forging identities in peer-to-peer networks. A 51% attack is a type of Sybil attack. If an attacker succeeds in filling the network with 51% or more clients, then they can control the decisions in the Bitcoin network.
The real opposition is that between the ego-bound man, whose existence is structured by the principle of having, and the free man, who has overcome his egocentricity.
The mechanisms that keep nodes motivated to participate in the system and follow its rules. • Inter-committee Conﬁguration: How the members are assigned to the committee in a single committee setting; either members serve on the committee permanently (static), or they are changed at regular intervals (rolling, or full swap).
Consensus algorithms enable network participants to agree on the contents of a blockchain in a distributed and trust-less manner. Consensus decision-making is a group decision-making process in which group members develop, and agree to support a decision in the best interest of the whole. Consensus may be defined professionally as an acceptable resolution, one that can be supported, even if not the “favourite” of each individual. Consensus is defined by Merriam-Webster as, first, general agreement, and second, group solidarity of belief or sentiment.
It’s gold for nerds.
Every informed person needs to know about Bitcoin because it might be one of the world’s most important developments.
I really like Bitcoin. I own Bitcoins. It’s a store of value, a distributed ledger. It’s also a good investment vehicle if you have an appetite for risk. But it won’t be a currency until volatility slows down.
Happy Holidays and keep HODL