10 mins

Where does the Bitcoin come from

Learn how the digital coin is created and put into circulation
5 de abril de 2024 em TINO In English

Bitcoin was the most profitable investment of 2023, according to a survey by Economatica, specialized in financial information. The cryptocurrency’s appreciation was 124% in the year, against 17.5% for second place with the Ibovespa. The price of bitcoin was 196,269.42 reais on January 25, 2024. In other words, to have a bitcoin you had to pay almost 200 thousand reais. It is not necessary to have all that money to invest, it is possible to buy a fraction, albeit minimal, of the digital currency. This fraction is like our cent and is called satoshi.

But be careful: it is considered a high-risk investment. Price volatility — which rises and falls suddenly — is dangerous. Experts advise those interested in making this type of investment to commit a maximum of 5% of the amount they have saved in this option.

Who created the bitcoin?

The rules that gave rise to bitcoin were created in 2009, by Satoshi Nakamoto, whose true identity is unknown — it is not known whether he is a man, a woman or even a group of people. The great innovation of this currency is the fact that it is decentralized, that is, it does not depend on a government or a monetary entity to exist, it is regulated by the network participants.

Before investing, the best thing to do is to learn more about this cryptocurrency. Check out the infographic and understand how it was created and how its circulation takes place.

1 – Mining

Unlike traditional currencies, the bitcoin is not issued by a monetary authority. It is mined — a term used to define the way in which coins are generated by a system of super-powerful computers. Every ten minutes, complex math problems are thrown into the system. The first machine that decrypts them receives a fee, which is currently worth 6.25 BTC (acronym for bitcoin). This value drops by half every four years. The next decrease in value is due to happen in April 2024, when the mining reward will be 3.125 BTC. This decrease will continue until the last bitcoin is mined. Experts predict that this will occur around the year 2140.

2 – Registration

Each deciphered problem generates a proof of work that allows that currency to be registered on the blockchain network.

What is blockchain?
Blockchain is a network that was born with the bitcoin. In it, all data is distributed among all users. Any change (codes, financial transactions, etc.) made on one machine is replicated on the others. Although blockchain was born as a technology for creating digital currency, over time it gained new uses, such as issuing smart contracts. 

3 – Buying and selling

Coins registered on the blockchain stay in the hands of cryptocurrency brokers. They are the ones who sell bitcoins to the general public. Someone interested in making the purchase must create an account with a broker, deposit an amount in traditional money and make the transaction to acquire bitcoin. The procedure for selling the currency is done in the same manner.

4 – Money in your wallet

Once the acquisition is made, it’s time to send the money from the broker to a digital wallet. It is through this wallet that bitcoin owners can buy products or leave the amount saved as an investment. After a wallet is created, a seed is immediately generated, a sequence of words in English that is used to access the system. This data cannot be forgotten and must be kept safe, as there is no way to recover it. If you lose the seed you lose the money.

5 – Payment

The process used to buy products and services or transfer bitcoins to other people is very similar to the process used for Pix. It can be done by reading a QR code or using a payment key. There are several payment platforms available. Some accept only one type of cryptocurrency and others more than one. With them you can also pay one-off bills and everyday bills, such as electricity and telephone bills.

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