What is Bitcoin?

Bitcoin is a currency that is not printed on paper. Not even in gold, silver, copper coins. Bitcoin is a digital currency or cryptocurrency that transacts only in the net world. The importance of trading on the Internet.

It is a virtual currency, with no controlling countries, no companies, no banks. As a result, there is no way to know how many bitcoins are on the market or whether they are being counterfeited.

Initiation

• It is said that Bitcoin became the medium of trade in Netdunia by 2006. Although Satoshi Nakamato is believed to be the creator of Bitcoin, no trace of him has been found. In October 2006, Satoshi Nakamoto, a 9-page research proposal entitled "Bitcoin: A Peer-to-Peer Electronic Cash System", was published online, giving an idea of ​​the first Bitcoin. In short, it is a peer-to-peer electronic currency payment system that allows one to complete transactions with another without having to go to a third party or organization. With that you can refrain from 'double spending'. In this system, all types of transactions will be done not on the basis of trust, but on the basis of 'proof of work (transaction)' and all types of transactions will be recorded in a specific network.

Satoshi has created the first software for bitcoin ‘mining’ since the proposal was published. ‘Mining’ is the method of making bitcoin. In January 2009, Satoshi released the first bitcoin currency. The true identity of this Satoshi Nakamoto is still unknown.

Usage and price

what is the price of bitcoin

The price of Bitcoin changes every hour. In terms of Indian currency, sometimes a bitcoin can be worth Rs 6 lakh, sometimes even more.

This currency, created entirely digitally, has virtually no physical existence. No central bank controls it. Its monetary system is ongoing as a result of its worldwide use by individuals or entities. Due to the peer-to-peer system, direct transactions are done without any organization or middleman. Due to the use of cryptography, it is impossible to access Bitcoin without proper permission. Another thing is that it is possible to trade in Bitcoin under a completely pseudonym.

The idea is that the value of Bitcoin will increase over time.

How it works

what is bitcoin and how does it work

Being a peer-to-peer network, Bitcoin transactions are completed from the wallet of the donor and the recipient to the wallet. Bitcoin is stored in the 'wallet'. It can be either online or offline. A bitcoin user has to use two keys. A ‘Public Key’, it is open to everyone. The other is the ‘private key’, which is kept secret and used to secure transactions.

The history of the transaction is recorded in a ledger (public ledger), called a 'block chain'. In this case ‘public key’ is used and the same transaction cannot be repeated by the same user. From the first transaction account in Blockchain to date all accounts are preserved and are being updated regularly.

The reason for the widespread circulation of Bitcoin

Set up easily

Setting up a Bitcoin account is much easier than having a normal bank account. If you have a minimum of computer knowledge and experience working online, you can easily open a Bitcoin account. There is no fee to open this account.

Privacy

A user can hold multiple bitcoin addresses where he does not have to be associated with any specific name, address or other person. This type of privacy is not usually seen in digital currency systems in a competitive market. For this reason, from netizens to traders, everyone is comfortable using Bitcoin.

Transparency

The details of transactions on the Bitcoin network are stored in a huge but simple ledger called Blockchain. So the bitcoin user does not have to store all the information of his transaction separately. In the Bitcoin system a user can see the movement of his transaction whenever he wants, so there is almost no possibility of fraud.

Speed

The Bitcoin system works smoothly. Within minutes of transferring money, it will reach the other end server. The Bitcoin network also completes payment processes very quickly. This is why traders are now more interested in using Bitcoin for their institutional transactions.

Other benefits The devaluation of the currency has created a volatile situation in the economy. As a result, ordinary people are facing big problems. So many have chosen Bitcoin as a remedy to prevent currency devaluation. According to experts, the use of digital currency should be increased to reduce the pressure on ordinary currency. Since Bitcoin is the first digital currency, people are using it more.

The disadvantage of bitcoin

Disadvantages of Bitcoin

1) One of the disadvantages of this is that if for some reason the transaction becomes incomplete, there is no way to get the money back even if the recipient does not get that service.

2) If the Bitcoin ‘Wallet’ is lost or damaged, it cannot be recovered. Bitcoin as a medium of exchange is not at all stable.

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