Bitcoin is the first successful internet money based on peer-to-peer technology; whereby no central bank or authority is involved in the transaction and production of the Bitcoin currency. It was created by an anonymous individual/group under the name, Satoshi Nakamoto. The source code is available publicly as an open source project, anybody can look at it and be part of the developmental process.
Possibly one of the best years for Bitcoin in terms of growth and widespread adoption. A look at the achievements in 2021.
Despite the highs and lows, 2021 has probably been one of the best years for Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. .
In several respects, the world’s largest cryptocurrency conquered milestones and new records this year: its adoption continued worldwide and a larger group of institutions backed the Bitcoin It also became legal tender for the first time while technologically seeing some of its first improvements in several years.
Although China banned it, Bitcoin was stronger than ever this year, and in the midst of higher global economic inflation a general increase in prices and fall in the purchasing value of money. – driven by central banks’ money injection policies – the digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset proved more important than ever.
Below, DiarioBitcoin reviews six records it broke Bitcoin is 2021.
1. One country recognized it as a legal currency.
For the first time in its history, a nation has recognized the Bitcoin as its legal tender.
In June of this year, the National Assembly of El Salvador approved the Ley Bitcoin which recognizes the main cryptocurrency as legal tender in that country alongside the US dollar. Enacted by President Nayib Bukele, the regulation came into force in September and marked a milestone as the first of its kind in the world.
The law allows Bitcoin is used as a payment mechanism for goods and services, as well as for the payment of taxes in the Central American country, so companies and businesses should offer the option. As part of the adoption of Bitcoin El Salvador has also become the first government with a national cryptocurrency mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. program as well as the first to have a cryptocurrency investment fund whose treasury currently exceeds 1,241 million dollars. bitcoins .
2. Recorded all-time high hashrate
Mid-May, Bitcoin recorded a new all-time high of hashrate over 180 terahashes per second (TH/s) .
The hash a hash is the output result of a hashing algorithm, which creates a unique, fixed-length string to encrypt and secure a certain selection of arbitrary data. rate, or hashrate, of Bitcoin The unit of measurement for the processing power of a network. Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. , reached record highs only to plummet after China’s ban . As reported by DiarioBitcoin China’s crackdown on the cryptocurrency industry and the massive shutdown of mining operations in the region caused a decrease of about 75% in the hash rate of the Bitcoin in the middle of the year.
The phenomenon pushed the hash rate up to 57 TH/s in July. However, the mining power soon began to recover as miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. relocated overseas. Finally, in December 2021, the hash rate returned to record levels registered in May, an event that proved that Bitcoin is strong enough to overcome government censorship.
It should be noted that a rate of hash higher means more competition among miners to validate new blocks. It also means that the network a network refers to all nodes in the operation of a blockchain at any given moment in time. enjoys a higher level of security, reducing the chances of a 51% attack.
3. Reached a market an area or arena, online or offline, in which commercial dealings are conducted. capitalization of USD $1 trillion for the first time.
In February of this year, the market Bitcoin reached for the first time a capitalization of USD $ 1 billón (i.e. one million million million).
The milestone came amid the cryptocurrency conquering all-time price highs above $50,000, a surge that was driven by the participation of major institutional investors within the market. Renowned companies such as Tesla , Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain. (old Square ) y MicroStrategy supported Bitcoin after adding it to their respective balance sheets.
Likewise, financial institutions of the stature of Visa , PayPal y Mastercard began exploring digital currencies while some Wall Street banking giants also took a step into the crypto space by offering their clients exposure to Bitcoin for the first time.
4. Updated for the first time since 2017
This year, Bitcoin registered a record in terms of technological development after receiving its first upgrade in four years.
Taproot taproot is an instantiation of a soft fork for Bitcoin, intended to both improve privacy and improve other aspects tied to more complex transactions. a long-awaited update to Bitcoin was activated in November allowing developers to integrate new features that will improve privacy, scalability and security the term securities refers to a fungible and tradable financial instrument that carries a type of monetary value. on the network. Initially proposed in 2018 by Greg Maxwell, the update confirmed in June after more than 90% of the miners in the Bitcoin vote unanimously in favour of its activation.
As such, Taproot introduced a number of enhancements to the world’s largest blockchain, including increased transaction performance, privacy and efficiency . But perhaps the most striking thing is that Taproot expanded smart contract in traditional finance, a contract is a binding agreement between two parties. In cryptocurrencies, smart contracts execute functions on the blockchain. functionality to Bitcoin making them cheaper and smaller, in terms of the space they take up on the blockchain .
5. Conquered new all-time price heights
By the end of 2021, Bitcoin reached a new all-time high near $70,000.
The record was set on November 10 and coincided with a high inflation report of the U.S. government. At that time, as reported by DiarioBitcoin , la flagship cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. soared to a price of USD $69.000 for the first time in its history after the U.S. Labor Department indicated a 6.2% increase in the inflation rate for October.
Fears of higher dollar inflation supported cryptocurrency prices, possibly due to its increasing adoption as a safe-haven asset, a narrative that many analysts and pundits have begun to champion this year.
Despite multiple predictions that predicted a $100,000 peak by the end of the year, Bitcoin has since fallen slightly in price to around $50,000. Meanwhile, the latest Consumer Price Index (CPI) data in the U.S. indicates a 6.8% increase in inflation during the past 12 months, its highest value in nearly 40 years.
6. Became more scarce
The world’s oldest cryptocurrency recorded a new milestone towards the end of 2021 after becoming more scarce, as the 90% of the total supply of Bitcoin has already been mined .
According to data from Blockchain.com 18.91 million bitcoins, or the equivalent of 90% of the maximum supply of 21 million, has already been extracted. This means that most of the bitcoins have already been poured into the market and that only 10% remain to be mined.
The extraction of 90% of the bitcoins took a span of 12 years, but the rest is estimated to take many more years to mine – comparatively. Despite its scarce supply, the leading cryptocurrency still has more than 100 years left, according to estimates, which calculate that the bitcoins will be finished mining by the year 2140.
- Bitcoin: the perfect Christmas gift that keeps growing every year
- Top 10 trends shaping the crypto space in 2021
- Top 10 crypto highlights in 2021
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash