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Now, let’s take a look at the entire journey and evolution of Bitcoin:

The biggest thing to hit the global market since the invention of currency is the word “Bitcoin”. What started merely as an alternate electronic payment system soon became the seventh wonder of the modern economy. But while most of us are following the ups and downs of the Bitcoin market, most of us probably don’t know everything about its history. So let’s look at how it all started.

 Prelude

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It all started with “a paper” – October 2008. Satoshi Nakamoto (a pseudonym name) published a paper revealing a breakthrough. The paper described a peer-to-peer electronic currency system that used software code to authenticate and protect transactions. The idea was to remain anonymous from any centralized bank or government authority.

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Since Bitcoin was introduced, there have been several hundred other cryptocurrencies enter the market.

The main idea behind cryptocurrency was to create a secure and anonymous way to transfer currency from one person to another and since then it’s been heralded as ‘digital gold’. To promote the anonymity, Satoshi Nakamoto had to develop something new, this is when Blockchain, the digital ledger of Bitcoin transactions, was created.

The blockchain is a continuously growing list that records every cryptocurrency transaction and secures each block using cryptography. Each part of the chain contains a timestamp and transaction data which is approved and stored on a peer-to-peer network. The main security benefit of a blockchain is that once a block has been stored, it cannot be altered, ensuring that any cryptocurrency ledgers can’t be tampered with.

Growth

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2009: Genesis Block

In 2009, the bitcoin network came into existence. It was open source and Satoshi Nakamoto mined the first block (Block #0), which is today known as the genesis block. Mining the block gave Satoshi Nakamoto a reward of 50 bitcoins.

And, the first receiver of the first bitcoin transaction was a programmer and early supporter, Hal Finney.

From there the bitcoin market began to grow. The first notable, real-world transaction was when Laszlo Hanyecz, a Florida programmer, paid 10,000 bitcoins for two pizzas from Papa John.

2011: Transaction Growth

  • By 2011, there were several organizations that were accepting bitcoin payments such as Electronic Frontier Foundation and Wikileaks.
  • Bitcoin Foundation, the premier non-profit corporation which promotes the use of Bitcoin is founded in 2012.
  • By 2013, many countries began giving some recognition to bitcoins and cryptocurrency. The Bitcoin market was skyrocketing, and by April Bitcoin’s total market cap surpassed the billion-dollar mark. This was big news for the cryptocurrency ecosystem and for the outside world as well. This helped Bitcoin becoming a global media sensation.

A setback to Bitcoin – the Cypriot financial crisis

The higher and higher ride hit the bottom around 11th April 2014 when the Cypriot financial crisis occurred. The banks of Cyprus were in a debt so huge that the debt was more than the country’s GDP. With the government unable to pay back, Cyprus asked the European Union for help.

They agreed to help but on the condition that 6 billion Euros out of the 16 billion to be paid, will be paid by bank depositors i.e. people having savings in the bank.

Fearing that the government is coming for their money, a lot of people withdrew their savings.

Ultimately, an emergency loan of 2.5bn Euro was given by Russia.

However, all this crisis caused the value of Bitcoin to take a dive. Price dropped and reached its lowest.

Slow start leading to BTC technology Revolution

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January 2015 was a slow start of the year for Bitcoin in terms of market price, at least when compared to 2014. Microsoft planned to take their Bitcoin program onto the global stage. Bitstamp suffered a major setback as $5 million worth of BTC were reportedly stolen during a hack. The Bitcoin Foundation planned a series of events to boost core development process. UK banks raised their voices to support Bitcoin while Europe’s biggest payments processor Ingenico adopted the world’s most famous cryptocurrency.

Bitcoin technology revolution – March 2015: At this point, global companies were more interested in Bitcoin’s technology – the blockchain – than in Bitcoin itself. They recognized the blockchain as being a technology with the vast potential to completely change the global financial and networking community. IBM decided to study Bitcoin’s technology and Intel announced their plan to further explore the blockchain.

The Bitcoin market seemed to have a steady flow in 2015, but a discussion was born among Bitcoin’s team of core developers. Gavin Andresen put out a proposal to increase the block size limit, allowing Bitcoin’s network to process a higher amount of transactions in the same period of time. The proposal divided up the community and Andresen decided to act by creating BitcoinXT. Also, the blockchain tech continued to be praised by global groups like Santander and Barclays.

There was a lot of chatter about Bitcoin’s future after the market price plunged from the $1,000 mark. But as time passed by, people realized that Bitcoin is more about innovation than about profit.

2017 – The best year for Bitcoin

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2017 was arguably the best year for Bitcoin. Bitcoin broke its own record so many times and reached all-time high values.

For example, it passed the $1000 USD mark on 2-3 March 2017. The only other time it was reached was in November 2013. That being said, it did not just stop over there. From reaching $3000 USD in May to crossing $4400 in September, the currency has seen a sharp spike in value.

Guaranteed, the currency’s value changes rapidly in response to certain events. For example, at the beginning of September, the value was 5000 USD but thanks to the crackdown on ICOs and exchanges by the Chinese Government, the price dropped to 2900 USD on 12th September 2017. But as the world moved past the shock, just a month later i.e. on 13th October, the price was again 5600 USD.

The currency kissed the $7450 mark for the first time in November. This is being attributed to a recent announcement by Chicago Mercantile Exchange (CME) to offer Bitcoin futures.

For those who are unaware of the futures contract, it is basically a contract where the buyer and seller agree to buy a specific quantity of a commodity at a certain price on a certain date in future. The advantage being, it hedges risk.

Today, bitcoin is one one of the hottest investment and trading options in the world. Bitcoin opened new opportunities such as bitcoin mining and utilization of blockchain technology in the world. The bitcoin market has taken a life of its own and continues to expand, even though there have been concerns. From the history of bitcoin, you can assess that bitcoin is here to stay.

SegWit Transaction

SegWit (shorthand for Segregated Witness; not to be confused with SegWit2x) was proposed to solve the scalability. It was activated on Aug 24, 2017, as a soft-fork (block 477,120) to Bitcoin. Before this, the block size limit was 1 MB, which puts a cap on the maximum transaction which a block can hold. SegWit Transactions increases it up to 4x. Though technically it’s not 4MB, it introduced a concept of Virtual Size, where the weight of each transaction is 1/4th of what it is for a legacy address transaction. Since the size of the transaction is relatively small, transaction fee on the network is also low for spending a SegWit Address’s Output.

Miners need to upgrade their tools, as the transaction structure was modified, the previous version of Bitcoin Core couldn’t be used to validate the transaction. But, since the final Transaction information is same, except the signature part, previous versions would have been able to read the transaction once it is mined by a supported client.

Another feature of SegWit is fixing for Transaction Malleability. In one line, it’s an issue with Bitcoin Transaction, that causes the change in Transaction Id due to modifiable data in Transaction at the time of mining. This could be deliberate or side-effect.

All the Wallet Addresses on KoinOK is SegWit Address (P2SH nested SegWit to be specific). Transferring bitcoin from SegWit address to Legacy address is compatible.

How to Buy & Sell Bitcoins Online?

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Getting your First Bitcoins can be easily done from:

KoinOK is Indian’s most customer-focused cryptocurrency exchange which enables users to trade and invest in popular digital assets in an open order book system. KoinOK exchange is a one-stop solution for quick, easy and secure trading in cryptocurrencies in India.

Steps to Buy BTC in India:

  1. Simply register at first instance on KoinOK. You will need to upload your KYC documents for verification (PAN Card & Aadhaar Card).
  2. ID Proofs: After registering, you will need to perform a few verification steps before you can start using the account, for which you need to upload PAN card and Aadhaar card.
  3. KYC verification will be done very shortly and you will be notified.
  4. Once you have been notified, you are ready to go.

Future of BTC

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How will the BTC cryptocurrency market shape in future? Experts say that Bitcoin will stay. It is very likely that some altcoins will emerge and progress rapidly. For nobody really knows the future. There is a good possibility that price will continue to increase.

Blockchain, on the other hand, has a more concrete future. Often Bitcoin and other cryptocurrencies are offered up as the main use of blockchain, however, it is only one of the applications of the blockchain. Companies around the world are adopting this technology in order to increase their efficiency and add value to customers. An example of this is that Blockchain is being used internally by companies as a database for applications like managing physical and digital assets, recording internal transactions and verifying identities. This is a useful solution for companies struggling to reconcile and maintain multiple internal databases.