A new type of money
What is Bitcoin?
Bitcoin is a decentralized digital currency that can be sent from user to user on a peer-to-peer network. It is designed to be a payment system free of any central authority. Transactions are recorded on a public ledger called a Blockchain, which anyone can download and verify for themselves. The value of Bitcoin come from its qualities of being an uncensorable and immutable, open financial system.
How does Bitcoin work?
Bitcoin uses public-key cryptography, peer-to-peer networking, and proof-of-work to process and verify payments. Bitcoins are sent (or signed over) from one address to another with each user potentially having many, many addresses in their Bitcoin wallet. Each BTC transaction is broadcast to the network and included in the blockchain so that the included bitcoins can be easily verified and cannot be spent twice.
Bitcoin has a fixed total supply of 21 million coins.
Bitcoin Circulating Supply
Average Block Time
Who Created Bitcoin?
Bitcoin was created by a person or group of people going by the pseudonym Satoshi Nakamoto. In 2008 they released the whitepaper – Bitcoin: A Peer-To-Peer Electronic Cash System – on a cryptography mailing list.
After launching the Network, Satoshi continued to work on Bitcoin for a couple of years before disappearing and leaving Bitcoin to continue as an open source project with no single authority figure.
How Many Bitcoin Are There?
Satoshi likened Bitcoin to a precious metal, in the fact that it was designed to be a scarce asset. To ensure this, Bitcoin was hardcoded with a maximum supply of 21 million BTC.
The emmision schedule was also designed to mimic gold in the way the block subsidy reduces over time, making it harder and harder to mine.
How Are New Bitcoins Created?
Bitcoin are issued through a process called mining. Mining computers perform the dual functions of securing the network and ordering and commiting new transactions to the blockchain. When a miner is successful in mining a new block, they are rewarded with the fees of all transactions included in that block. They also receive "new" bitcoin, called the block subsidy.
The block subsidy is the only way new bitcoin are able to be produced, and the rate at which they are produced reduces over time, until the point that 21 million bitcoin exist. The reduction in block subsidy is known as The Halving.
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Pay bills with the top cryptocurrencies
While Bitcoin is the most popular cryptocurrency, you also have the option to use many other cryptocurrencies to pay your bills at LRoS. Choose your favourite coin from the list to get started!