05 most Amazing information about bitcoin

What is ‘mining’?

▶One of the ways to get bitcoin can be by ‘mining’ process. Bitcoin miners use computing power to process transactions on the network, and are rewarded with newly created Bitcoins as a reward. You can think of mining as using your computer’s computing power to process transactions, secure the network, and keep everyone in the system in sync.

In the beginning, this task was a very easy task that can be participated with any CPU of any computer, but as the price of Bitcoin rose and time passed, the difficulty increased. Now that specialized hardware has to be utilized, only specialists have been left as miners.

Is it true that there is a fixed maximum number of Bitcoins?

▶Yes. Bitcoin has a predetermined amount of money to be issued, and only 21 million are issued. Currently, about 19 million have been mined. So, based on this fact, there are many cases where they claim that the price will rise, saying that ‘Bitcoin is scarce because the total amount is fixed’.

However, experts have recently pointed out that the number ’21 million’ may not have much meaning. “The Bitcoin community has a strong belief that the number of Bitcoins does not exceed 21 million, but I do not agree,” said Ajit Tripati, international head of blockchain-based financial platform Aave, in a Citibank report. It’s a lot of experimentation and math, and it’s theoretically changeable software.”

Of course, he added that “Bitcoin holders would not want to accept software changes to increase the total amount of Bitcoin,” but the statement is that the total is not completely immutable.

There are also claims that the number 21 million is meaningless in that Bitcoin can be traded by dividing it into decimal units, and this unit can also be increased. Currently, 1 BTC (1 Bitcoin) can be divided up to 0.00000001 BTC, as it is technically possible to increase this limit further if necessary. In the end, you should not buy Bitcoin based on the fixed issuance of ’21 million’.

If you forget your Bitcoin wallet address or password, can you find it?

▶Yes. Unlike when you forget your bank account or internet banking ID, you can’t find it forever. Since there is no central administrator, if a user loses their Bitcoin wallet or loses their personal password, they will not be able to find it. In this case, the lost bitcoins remain on the blockchain, but are permanently sunk into the deep sea as they become unusable to be found and used. As a result, the amount of Bitcoin circulation will decrease as well.

Losing your account password on a cryptocurrency exchange is another case. Even if you lose your exchange ID and password, you can find them by contacting the company. If you purchase Bitcoin through an exchange and store it in a wallet provided by the exchange company, this is because the company is keeping the Bitcoin instead. However, even if you have bitcoins in your exchange wallet, no one will be held responsible for mistakes such as sending the wrong coins to the wrong wallet address.

Is Bitcoin Anonymity Guaranteed?

▶ Contrary to popular belief, Bitcoin does not guarantee anonymity. This is because it is not a cryptocurrency created with anonymity in mind during the development process, and has a system in which Bitcoin addresses and transaction details are disclosed. It’s just difficult to find out who actually traded with which address. As long as you know this information, you can track your Bitcoin transactions.

However, despite these characteristics, it is known that a method of making it difficult to find a link between a trader and a Bitcoin address through microtransactions using multiple Bitcoin addresses has been used in criminal cases. It is the result of paying attention to the characteristics of cryptocurrencies, such as the fact that criminal organizations do not have to carry large amounts of cash and that it is relatively easy to take them abroad.

In addition, techniques for ‘money laundering’ of Bitcoin are emerging one after another. In conclusion, it can be understood as ‘Bitcoin itself does not guarantee anonymity, but there are many cases where it is abused to target the characteristics of cryptocurrency’.

What are Bitcoin Cash, Bitcoin Gold, and Bitcoin SV?

▶ These are all cryptocurrencies derived from Bitcoin. This method is called a ‘hard fork’ and is used when trying to move from one blockchain to another. It can be used in case of technical problems, etc. In the process of going through a hard fork, a chain split may occur, and a new coin will be created at this time. Users holding Bitcoin at the time of the hard fork will receive the same amount of new coins.

Cryptocurrencies born in this way are Bitcoin Cash, Bitcoin SV, and Bitcoin Gold. Most of the cases are caused by conflicts and differences of opinion among developers participating in the Bitcoin network.

Q10. Is bitcoin not hacked?

▶Bitcoin has suffered from several problems since its birth and has been complemented technically, but it is still working well without being hacked. There have been cases of cryptocurrency exchanges or related businesses experiencing security problems or being hacked, but it was not that Bitcoin itself was hacked.

Experts say that even when innovative future computer technologies such as quantum computers appear, it is still impossible to guarantee whether they will be secure in terms of security. I’ll have a look.

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