Bitcoin is a decentralized digital currency created in 2009, mined through complex computational processes and traded like forex pairs on platforms offering BTC/USD. This guide covers its origins, supply mechanics, profitability of mining, wallet setup, and effective trading strategies.
- Who created Bitcoin?
- Why did Bitcoin’s price surge?
- How many Bitcoins can be mined?
- When will Bitcoins run out?
- Can Bitcoin replace traditional money?
- Is solo Bitcoin mining profitable?
- How to set up a Bitcoin wallet?
- How to profit from Bitcoin?
- How do news affect Bitcoin price?
- Does technical analysis work for BTC/USD?
- Scalping and Bitcoin don’t mix
- Frequent gaps
- Best trading sessions for Bitcoin?
- Bitcoin trading strategies
- Should you start trading Bitcoin?
Who created Bitcoin?
Bitcoin was first introduced to the public in 2009 by a person or group using the pseudonym Satoshi Nakamoto. Whether this is a real individual or a team remains unknown, as contact was limited to forums and email.
No statements from Satoshi Nakamoto have emerged in recent years. The original Bitcoin network rules and software still function, with the creator holding the same rights as any other user.
Is Bitcoin money for criminals and terrorists?
Bitcoin lacks a physical form, existing as digital code. Early users were tech-savvy individuals and those seeking anonymity, including some with legal issues.
Media coverage linked Bitcoin to dark web drug markets like Silk Road, and hacks on exchanges like Mt. Gox damaged its reputation.
However, claiming Bitcoin is used only by criminals is false. Adoption grows worldwide, with more organizations, platforms, and services accepting it for payments.
Why did Bitcoin’s price surge?
Bitcoin is fully decentralized, untied to any country, central bank, or economic conditions. Initial price growth stemmed from speculation.
In March 2017, media reported potential U.S. SEC approval of the first Bitcoin ETF. Though rejected due to concerns over exchange transparency, speculation drove BTC/USD above $3000, later pulling back to $2500.
How many Bitcoins can be mined?
Often called “digital gold,” Bitcoin has a limited supply like planetary gold reserves. The network is designed for 21 million Bitcoins total, sustained post-emission by transaction fees.
Mining involves solving complex hash functions seeking a “valid” hash starting with many zeros. When found, a block is solved, emitting coins to the miner who records transactions.
This is a simplified explanation. Here’s a short video on how a Bitcoin farm works:
When will Bitcoins run out?
Currently, global network power finds a block every ~10 minutes, rewarding 12.5 BTC. Rewards halve every ~4 years (200,000 blocks); it was 50 BTC until summer 2016, reaching zero in ~123 years.
The network self-regulates via difficulty: every 2016 blocks, it adjusts based on solve time to maintain 10-minute intervals, preventing emission deviations or miner collusion crashes.
Fig. 1. Chart of Bitcoin supply growth.
Can Bitcoin replace traditional money?
With 21 million BTC max, is that enough? Bitcoin divides into 10 million satoshi (1 BTC = 10 million satoshi), plus microbitcoin (0.000001 BTC) and millibitcoin (0.001 BTC).
~16 million BTC exist now, equaling 160 trillion satoshi. Global GDP is ~70-80 trillion USD, so Bitcoin could theoretically cover all world money supply.
Is solo Bitcoin mining profitable?
Bitcoin’s peer-to-peer network scales difficulty with total power. Early mining used CPUs/GPUs; GPUs proved superior, clearing ATI Radeon stocks.
Now ASIC chips dominate, spiking power and difficulty.
Fig. 2. Difficulty rise as CPUs yield to GPUs then ASICs.
Block odds tie to hash power and internet speed. Miners join pools to share power/rewards evenly. Top 10 pools make ~90% blocks; Chinese pools >60%.
How to set up a Bitcoin wallet?
Creating a Bitcoin wallet requires no ID or personal info. Beginners can choose from desktop, mobile, web, or device wallets.
Visit the official Bitcoin site (bitcoin.org), select “Get Started.” It leads to beginner guides for receiving, using, and creating wallets.
Official Bitcoin site homepage.
Beginner section on official Bitcoin site.
Bitcoin wallet selection.
Video guide for setup:
How to profit from Bitcoin?
Common methods from easiest to hardest:
Method 1: Captchas, lotteries, games
FAQ
Who created Bitcoin?
Bitcoin was introduced in 2009 by Satoshi Nakamoto, a pseudonym for an unknown person or group.
How many Bitcoins can be mined?
The Bitcoin network is designed for a total supply of 21 million Bitcoins.
When will Bitcoins run out?
Mining rewards will reach zero in approximately 123 years due to halvings every 4 years.
