Everyone is talking about coins so let’s try to understand what Bitcoin is. I will make you understand about it in a very simple language and after reading this article you will be able to decide whether I should purchase it or not.
An article was published in 2008 that said every country has its own currency and we should remove the monopoly of all countries and there should be one digital currency in the whole world. That digital currency should be based on old customs as in the past people used to trade different commodities in gold. According to reports, Mr. Satoshi Nakamoto invented a digital currency in January 2009 and named it Bitcoin. Actually, Nakamoto did all these things with a fake ID so that he could protect himself from the judiciary. Before invention of bitcoin, he first discovered the features of currency i.e.
1- We mine gold and mining is not very easy so he thought digital currency should be like gold so that it would be very difficult to mine it.
2- Currency should be trusty so that people can purchase and sell it. As all we know that we trust in gold because it is a materialistic thing and the whole world agrees.
3- Gold is available in a very limited supply and digital currency should also be limited.
4- It would be easy to transfer it and you can perform a tiny transaction as well.
The currency he made was based on all aforementioned factors. When he launched it, people started questioning that it could be hacked easily. To prevent it from hacking he made small servers-like blocks and every block had a duplicate copy so it would not be easy for the hacker to hack millions of blocks around the globe. Just because of that block chain, this digital currency got secured.
He was a wise person that’s why he mined 1.1M coins before its launch because he knew that if this currency gets popular in future and its value goes high then I would exchange my 1.1M bitcoins with fiat currency.
Now the question comes in our mind of how this coin got popular. All those people who want to send their illegal money to other countries started using bitcoin because it was a fast and easy way to transfer money and eventually its demand started increasing day by day. When people saw that its value was increasing rapidly they also started to take interest in it and its popularity further increased.
Actually bitcoin is not a physical coin, it is just a code. The Bitcoin which started from zero now has reached sixty six thousand US dollars. It is claimed that, only 21 million bitcoins are available in the world and eighteen million have been mined so far and three millions are still unmined.
How can you buy and sell bitcoins?
There are many exchanges in the world from where you can buy bitcoins. Actually exchange makes a contact between buyer and seller. Before its purchase you have to buy a wallet in which the code of bitcoin is stored. There are two types of wallet, one is hard wallet and the other is soft wallet. In a soft wallet you can store your bitcoin code on the cloud. Now there are many mobile applications available in the market. By using these applications you don’t need to buy any wallet and these applications buy and purchase bitcoin on behalf of you and you can take your profit easily. The most famous application in the world is “Binance”. In “Binance”, you make an ID and link your fiat bank account from where you pay money to buy bitcoin and receive the amount when you sell your bitcoin.
In conclusion, to be very honest with all of you, it is very risky to invest in bitcoin because if something wrong happens with you while trading, no one will be responsible for that and even you can’t register an FIR in a police station because Government is not involved. Though Bitcoin exchanges are trying their best to protect transactions, it is a little bit perilous. Choice is yours.
Thank you
Source Image:
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Very interesting write-up. Keep it up