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@ CryptJoh
2025-03-15 14:38:09What is Bitcoin ? Here are the fundamentals to understand the first crypto.
Created by the anonymous Satoshi Nakamoto in 2009, Bitcoin is a decentralized digital currency with no central authority.
Censorship-resistant and peer-to-peer, it gives power to the people!
Check out my mind map for a dipper dive. #Bitcoin #Crypto #Cryptomindmap
\ \ Bitcoin runs on a blockchain—a distributed ledger secured by Nakamoto consensus & Proof of Work.
Miners earn BTC rewards by creating new blocks, while UTXO (Unspent Transaction Output) prevents double-spending. A block is added to chain every \~10min. If parallel chains form, the longest chain wins, after 6 blocks, a transaction is considered final.
Transactions are transparent yet private. Check my older cryptomindmaps for more details.
Bitcoin Economics
With a hard cap of 21 million coins, Bitcoin’s supply halves every 4 years(next in 2028), creating scarcity The smallest unit? A Satoshi - 0.00000001 BTC.
This decreasing supply is creating scarcity which drives value but also fuels volatility, with bull runs and corrections shaping its price since day one
What can you do with Bitcoin? Let’s explore!
Bitcoin was intended for payments, it's evolving into "digital gold", a store of value for the internet age.
It enables cheap, easy cross-border transfers and acts as an inflation edge.
Its Lightning Network improves the scalability for digital payments.
Bitcoin’s Challenges
The main hurdles addressed to Bitcoin is the scalability. The low number of possible transactions per second (TPS). Solutions, such as Lightning Network, provide ways to increase usage.
The energy consumption of block production in Proof of Work debate rages . Critics call it is too much electricity, while supporters argue that it is the elegant way to valorize renewable energy and ensure top-notch security.
No central authority means slow consensus via Bitcoin Improvement Proposals (BIPs) and there is no government regulation which can deter some adopters.
Bitcoin #Cryptomindmap
Thanks for reading! 🌟 Share your thoughts on Bitcoin !