Thursday, June 20, 2019

How Far Has Bitcoin Gone Ten Years After The First Block Was Mined

Ten years ago the financial world received a new gift in the form of the first digital currency. The first digital currency in the world came into existence ten years ago on the 3rd of January 2009 when the first Bitcoin was mined.

In contrast to the earlier celebrated ten years of the existence of Bitcoin in October 2018, which was the celebration of the release of the white paper of the first digital currency, January 3rd marks the first time Bitcoin came into existence.

The Purpose Of Creating The Cryptocurrency

The first set of Bitcoin was mined on the 3rd of January 2009 and can be said to have kick-started the beginning of the transformation of the financial system and its order in the world. Even though ten years on after its creation, the cryptocurrency world can be said to still be in the nascent stage, characterised with many issues in the form of hacks, instability, theft, scam among others.

The primary purpose of the creation of the first Cryptocurrency which the subsequent Cryptocurrencies created equally aimed to achieve is the creation of a financial world order that is beyond the control of a few in the society as well as the control of centralised government as explicit in the existing financial system controlled by the government of countries. Also, the creation aims at giving independence to financial transactions as well as privacy to users.

Over the past ten years, the subject of the first digital currency achieving the purpose of its creation has been a debate and clouded by the subject of its surrounding challenges. This has led to the creation of more Cryptocurrencies by different individuals who are equally aiming to achieve the same purpose.

Though the industry is still in nascency and has faced bearish market over the last one year which has made many pessimists be prevailing. The crypto market remains the future of the financial world as many have predicted.

The First Bitcoin Mined and the Present Mode of Bitcoin Mining

The first crypto mined ten years ago took place with less investment and more profit in comparison to what is obtainable in the Bitcoin world today. The first block mined on the 3rd of January known as the genesis block profited Satoshi Nakamoto 50 Bitcoins. The present worth is in the tune of $200,000 and five times worth a year ago.

At the early stage, Bitcoin could be mined with the weakest of consumer grade CPUs and still have a good chance of being rewarded with Bitcoins. However, the subsequent organisation in the crypto market led to the rise of the difficulty of mining which requires more and more powerful processors, then graphics cards.

In the year 2013, the application specific integrated circuits, or ASIC mining hardware, started to appear which is specialised for mining the digital currency. The competition that free subsequently led to Bitcoin mining rising to Gigahash for the first time in 2013. This is a more than a thousand, times as difficult as the mining of the genesis block and has led to increasing environmental impact of the equivalent of a country in the world today.

The continuous competition has made the Bitcoin mining fierce, and only those that can invest in competition is so fierce that only those that can invest in server farms of ASIC miners with cheap electricity can make a profit from mining, especially because of the bearish market.

From indication, more difficult awaits the act of mining Bitcoin even as 80 percent of the minable currency is done already. In contrast, modern or the third generation cryptocurrencies have adopted a simpler method of mining. Some involve the operation of a system among others.

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