The history of bitcoin started with its invention and implementation by Satoshi Nakamoto,
Bitcoin has a maximum amount of 21 million coins that can be mined.
Bitcoin is mined by individuals who maintain the system and uphold the most up to date protocols. In return, for adding blocks to the system, or approving transactions, they are awarded with a certain amount of Bitcoin for each block they process. This reward is cut in half with every 210,000 blocks that are added to the system and are known as ‘halving events’.
In 2009, miners were awarded 50 Bitcoin, in 2013 it was 25, in 2018 it was 12.5, and in 2020, it was reduced 6.25.
Once it reaches this limit, no more Bitcoins can be created and miners will be able to collect transaction fees for their work. Because of these limitations, Bitcoin is often considered to be reasonably inflation-proof. It is not possible, for instance, for a central bank to issue new bitcoins, which means that the coins that are already in circulation won’t be devalued.
Unlike Ether or Ripple XRP, which are both intended for use only on specific platforms, Bitcoin was created to be used as an alternative form of currency. This means that it relies on individuals to appreciate its worth by trading or spending it, so its value can keep rising with market demand.
Some people may hold Bitcoin with the intention of using it to make purchases, similar to how we use fiat currencies. Others may purchase Bitcoin with the intention to trade it. Holding on to the coin until the value rises, then exchanging it for fiat currency. The more a currency is exchanged, the higher potential there is for speculation and volatility.