In 2010, a year after Satoshi Nakamoto took the first steps to launch the Bitcoin network, a man named Laszlo Hanich wanted to make history by using Bitcoin to buy something in the real world. He filled out a form online and suggested in that form that anyone would buy him a pizza for 10,000 bitcoins. The price of bitcoin at that time was less than one cent, which means that 10,000 bitcoins had a price equal to 100 US dollars. After seeing Laszlo's form, Jeremy Sturdivant decided to accept the offered Bitcoin in exchange for a pizza. In 2015, 5 years after that exchange, the total value of Jeremy's bitcoins was about $4 million, which is equivalent to 80,000 pizzas.
In Bitcoin, the emergence of technology to save the economy, article we talked about society's need for Bitcoin. In 2009, Bitcoin was invented in response to all the disruptions, widespread financial corruption in banks, and lack of financial transparency that led to the collapse of the world economy for 5 years. became. We learned that Bitcoin is a value or an asset that can be transferred from one account to another without the intervention of banks or any other institution. We also saw that another unique feature of Bitcoin is that you can transfer a large amount of Bitcoin to another account from anywhere in the world at the lowest cost and in a fraction of the time.
But, the main focus of this article is on one word: value.
And it starts with the question, what are the characteristics of Bitcoin that are considered valuable? By examining this factor, we understand better that in 2020, Laszlo traded not only 10,000 bitcoins but also a revolutionary technology and idea for a pizza.
For centuries, mankind has kept and traded gold as a valuable asset. Due to its special properties, gold has always had a higher value than silver or copper in history. Gold is more limited than silver and it is more expensive and difficult to obtain. As the demand for more gold increased, its scarcity made gold more valuable. Just like gold, Bitcoin is limited and there are only 21 million of them in the world.
Satoshi Nakamoto also used programming science in 2010 to limit Bitcoin to 21 million units. By 2022, 19 million bitcoins have been traded and accumulated by various people, and this number will eventually reach 21 million, which is the maximum bitcoin accessible according to the Bitcoin protocol. Since the production of the first bitcoin and in the first years of this network, when the price of each bitcoin was less than one cent until the price of each bitcoin reached an incredible number of 60,000 dollars, i.e. more than 600m% growth, bitcoins were traded by various people from all over the world. And it went from hand to hand.
At the time of writing this article, the price of Bitcoin is struggling to maintain the price of $20,000. Suppose someone wants to send money from a remote island in America to someone in Northern Europe. With the help of banks and of course, if various approvals are received, this transfer will be done after a few working days. With the help of Bitcoin, this transfer can be done in less than a minute. Or in another example, which happened in 2022, Bitcoin was a tool to save a country. When Russia invaded Ukraine and besieged the capital of this country, the international community was able to donate financial aid to this country with the help of Bitcoin from all over the world.
One of the main features of Bitcoin is its transparency. Although only its owner can access his bitcoins with a personal password; anyone on the network can see the number of bitcoins at each address, or where the bitcoins have been transferred from and to which address is also completely visible. But because addresses are completely anonymous, Bitcoin actually combines transparency and privacy. Unlike bank accounts linked to your name, Bitcoin addresses will never have anything to do with your name or profile.
So far, in this article, we have learned about the unique features of Bitcoin and examined how and why Bitcoin is considered one of the most influential and important inventions of humanity in the third millennium. Also, In the previous article: “the bitcoin, the Emergence of Technology, to Save the Economy”, I saw how Bitcoin was born in the heart of the financial turmoil of 2008 to 2012 and society's dire need for a new economic-financial system.
Now that we know why Bitcoin was invented and also its unique features, we can talk a little more and more specifically about Bitcoin itself and its nature.
Basically, how is Bitcoin made?
Who runs it?
And how does the Bitcoin network work?
Questions that we will discuss in detail in the next article.
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