Updated: Jan 26
Bitcoin hit the $19,000 (Rs. 14.06 Lacs) mark on Tuesday for the first time in nearly three years. The world's most popular cryptocurrency has gained around 160% this year, fueled by a demand for risk-on assets amid unprecedented fiscal and monetary stimulus, and with the expectations that cryptocurrencies would win mainstream acceptance very soon. Bitcoin has gained nearly 38% in November alone.
Bitcoin(₿) is a cryptocurrency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and started in 2009.
It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.
The domain name "bitcoin.org" was registered on 18 August 2008. On 31 October 2008, a link to a paper authored by Satoshi Nakamoto titled Bitcoin: A Peer-to-Peer Electronic Cash System was posted to a cryptography mailing list. Nakamoto implemented the bitcoin software as open-source code and released it in January 2009. Nakamoto's identity remains unknown. On 3 January 2009, the bitcoin network was created when Nakamoto mined the starting block of the chain, known as the genesis block.
Bitcoin has been praised and criticized. Critics noted its use in illegal transactions, the large amount of electricity used by miners, price volatility, and thefts from exchanges. Bitcoin has also been used as an investment, although several regulatory agencies have issued investor alerts about bitcoin.
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