Many years back, an individual thought about a concept. This idea resulted in creating a peer-to-peer electronic cash system that uses a peer-to-peer network as a solution to double-spending. The project, named Bitcoin, also eliminated the need for a third party that could willingly or unwillingly reverse transactions. Satoshi Nakamoto is the name of the individual who came up with this bright idea.
Satoshi Nakamoto is a pseudonym. He is the founder of Bitcoin, the largest and most popular cryptocurrency in the market. After creating Bitcoin, Satoshi vanished into thin air. To date, no one is aware of his whereabouts.
Two individuals founded Microsoft, and we know them to be Bill Gates and Paul Allen. The same with Amazon and Space X, founded by Jeff Bezos and Elon Musk, respectively. But who founded Bitcoin? Satoshi Nakamoto, right? How much do you know about him? While many of us know much about Elon Musk, Jeff Bezos, the same cannot be said of Satoshi. Below, I have provided you with information regarding who Satoshi Nakamoto is.
Will Cryptocurrency Replace Banks?
Who Is Satoshi Nakamoto and When Was Bitcoin Created?
So, let’s begin with the first question.
If you are familiar with crypto, then you should be familiar with the name “Satoshi Nakamoto.” While you may be familiar with cryptos like Bitcoin, Ethereum, etc., then chances are you know little about the name Satoshi Nakamoto.
That said, who is Satoshi Nakamoto?
Satoshi Nakamoto is the anonymous name used by the founders of Bitcoin. Although the name Satoshi Nakamoto is often identified with Bitcoin, the actual person that the name represents is an enigma, leading many individuals to believe that it is a pseudonym for a person with another identity or a group of individuals.
For most individuals, Satoshi Nakamoto is the most mysterious name associated with a single individual or a group of people. What is known is that Satoshi Nakamoto issued a paper in 2008 that kick-started the development of crypto.
The paper, Bitcoin: A Peer-to-Peer Electronic Cash System, described the use of peer-to-peer networks as a panacea to the issue of double-spending. The problem that a digital currency or token could be duplicated in multiple transactions is not found in physical currencies since a physical bill or coin can, by its nature, only exist in a place at a single time.
What Is Bitcoin and When Was It Created?
Bitcoin, which is the first cryptocurrency ever to be created, is one of the many digital currencies that exist. Created in the year 2009 by the yet-to-be-identified Satoshi Nakamoto, bitcoin is on the path to challenge the typical fiat currencies utilized in many countries across the globe.
The identity of the individual or individuals who created the most revered digital currency in the world remains unknown. Over the years, individuals and organizations have attempted to uncover the true identity of the yet-to-be-identified Satoshi Nakamoto, all to no avail. It is said that the mysterious nature of bitcoin is one of the reasons it remains the most widely traded coin in the world.
Due to its prevalence and market cap, bitcoin’s price movements always have a huge impact on the other crypto market. Bitcoin is decentralized like other cryptocurrencies. This means that the government does not regulate it; neither is it regulated by an individual, not even its founder, Satoshi Nakamoto.
The rise in bitcoin popularity has resulted in the creation of several other cryptocurrencies, known as altcoins. Altcoins are coins other than bitcoin, and they include Ethereum, Cardano, Polkadot, BNB, SAND, etc. Today, there are over 5,000 altcoins, with Ethereum the most popular of all altcoins.
Price of Bitcoin:
After its release, bitcoin started trading from around $0.0008 to $0.08 per coin in July 2010. In fact, as of 2009, the price of bitcoin was $0. Since its introduction, bitcoin has experienced several surges and drops in its price. This trend proves how volatile Bitcoin is; thus, a major reason why bitcoin trading should be done with care and caution.
In November 2021, bitcoin reached an all-time high of $69,020 and then fell. As at the time of writing this article, the price of bitcoin was hovering around $43,000. It is predicted that bitcoin will hit $100,000 before the year ends or even $300,000 in the coming years. These are all speculations as no one can correctly predict the price of bitcoin.
Furthermore, worthy to note is that the number of minable bitcoin that exist is 21 million. And as of January 30, 2021, there were around 18,614,806 bitcoin in existence and 2,385,193 yet-to-be-mined bitcoin.
History of Bitcoin:
The history of bitcoin is not entangled in secrecy like the identity of its founder, Satoshi Nakamoto. Below is a synopsis of the history of bitcoin.
- August 18, 2008
On August 18, 2008, the domain name bitcoin.org was registered. One cannot determine the identity of whoever registered the domain name as it is protected; that is, it is shielded from the public.
- October 31, 2008
On October 31, 2008, an individual or a group of persons introduced bitcoin to the cryptography mailing list at metzdowd.com.
- January 3, 2009
In the year January 3, 2009, the first bitcoin was mined, Block 0. Block 0 is also widely recognized as the genesis block, and it comprises of the text: “The Times 03/Jan/2009 Chancellor on the brink of second bailout for banks,”
- January 8, 2009
On January 8, 2009, the bitcoin software’s prime version was publicized, and this was done on the Cryptography Mailing list.
- January 9, 2009
On January 9, 2009, block one was mined, thus introducing the bitcoin mining exercise.
Bitcoin Uses:
Bitcoin is one of the most popular digital money in the world. However, this coin isn’t something you can tuck in your wallet, or pocket nor is it something you can touch. You can’t visit your bank to withdraw your bitcoin, as it isn’t centralized, neither is it a physical asset. With that said, how do you use this digital currency?
- Sending Bitcoin
If you own a fraction or more bitcoin, you can send it to whoever you please. However, to do so, you’ll need the bitcoin wallet address of the recipient. Bitcoin addresses are not like your typical home address; they are unique and made up of 34 characters.
- Make payments
This is one of the common uses of bitcoin. Mind you, not all organizations accept bitcoin as payment. So don’t make the mistake of walking into a mall to buy a TV set or a microwave with bitcoin. If you wish to purchase with your bitcoin, you must ensure that the merchant accepts bitcoin as payment.
Some companies that accept bitcoin as payment are:
- Microsoft
- Over Stock
- Home Depot
- Starbucks
- Namecheap
Making a payment with your bitcoin requires you to send the equivalent dollar amount of bitcoin from your wallet to that of the company. All you need is the wallet address of the company. The process is quite easy and fast. And the transaction fee is quite small.
Storing bitcoin:
If you don’t want to send your bitcoin or use it to purchase a product or service, you can choose to store it in your wallet. You are indirectly trading bitcoin because if the price increases, your bitcoin’s value will also increase. However, worthy of note is that if the price of bitcoin plummets, the value of your bitcoin will follow suit.
If you decide to store your bitcoin, always ensure that you secure your wallet by securing your private key. Don’t disclose your private key to anyone. However, if you must, ensure you disclose it to someone you trust. Also, avoid clicking suspicious links as they may have a phishing background. And if they do, you could end up losing your bitcoin to the supposed hackers.
Best Bitcoin Trading/ Buying Sites:
Bitcoin trading sites are sites where you can trade your bitcoin asset and make money. You can also buy bitcoin in some of these sites.
There are a lot of bitcoin trading and buying sites out there. Some of these sites are terrible; some are prone to hacks and could malfunction anytime, while others are quite frustrating to use. You definitely don’t want to trade or buy bitcoin on a site that would fold up neither do you want to risk your money in a site that lacks potent firewalls and security measures to keep hackers off.
Below, I have listed some of the best sites to trade or buy bitcoin.
The sites mentioned above are very secure and user-friendly. To safeguard your crypto, ensure you activate the two-factor authentication and never give out your password or input it in any suspicious website other than the trading site.
Should I invest in Bitcoin?
Bitcoin is one of the hottest names in the crypto market. With a price of $42,000 and a stunning market cap of $817.213B, you don’t need a soothsayer to tell you of the potentials this coin holds.
Of course, bitcoin is a lucrative investment. However, people are often scared to invest in digital currency due to its volatility. If you are willing to take a chance, first ensure that you understand what you are investing in and have an investment strategy too. Also, ensure you aren’t investing just because you have a fear of missing out. There are certain questions you should ask yourself before investing your money in bitcoin:
- Do I understand what I am investing in and how bitcoin and the crypto market works?
- Am I ok with the level of risk?
- How much more expensive is bitcoin now compared to a few months ago? If so, why do I want to purchase something because its price is higher? Where else in my life do I do that?
- Is there any evidence to suggest prices could skyrocket in the future?
- If I buy it now with to sell it for more in the future, who do I think will buy it from me for that higher price and why?
- If an asset is so great, why was I not interested when it was cheaper?
- Have I convinced myself that I am in some way “in the know?”
If you lack answers to these questions, it is probably not a good idea to invest in bitcoin. If you buy bitcoin, ensure you aren’t using money you may need in a few days.
Best Penny Cryptocurrency to Invest for Long-Term
What to consider before investing in Bitcoin?
Like any investment, cryptocurrency comes with great risks and potential rewards. Compared to traditional types of investments, cryptocurrency is particularly risky. Here are some things to think about before you invest:
- I don’t recommend investing all your life savings in crypto markets
- It is best to see it a bit like gambling, so only invest a small amount of your disposable income and be prepared to lose the lot.
- Only invest what you can afford to lose, don’t just think about the short term.
- If you haven’t got much cash left at the end of each month, it makes sense to forget about crypto and concentrate on saving your money instead.
Weigh up the pros and cons first:
Pro: Crypto are global, meaning they have the same value in every country and zero exchange rates.
Con: Crypto is very volatile, subject to bull runs and market crashes, and so is a very risky investment. People have also reported waiting to withdraw their money because of technical glitches.
