Nowadays, for the sake of Facebook or YouTube, all of us may have heard the word bitcoin at some point. But the details about Bitcoin are not well known to many of us. What is Bitcoin? How does it work? What are the uses? Let's find out the answers to these questions.
What is Bitcoin?
Bitcoin is a type of cryptocurrency. And cryptocurrency is a kind of digital currency system that has no physical form. Bitcoin is currently the most popular cryptocurrency in the world.
Usually we do not resort to a third party company for money transactions. Suppose, for example, you send some money to your friend. In this case you sent the money to your friend from your phone's b-Kash / Rocket account. Here you are the sender, your friend the recipient and the development / rocket third party, who controlled all the transaction process and charged some fees for it.
But Bitcoin is a currency system that does not require a third party to exchange money. Bitcoin reaches the recipient directly from the sender. This system is called ‘peer-to-peer’. In this case all the transaction process is using cryptography which is a very secure process. Since no third party entity controls the transaction process, it is not possible to determine the transaction speed of Bitcoin. This means that no one can know who is sending bitcoin to whom. Bitcoin transactions can be done with complete anonymity.
That's how this bitcoin came about
August 16, 2006 On this day, the domain of a website called ‘bitcoin.com’ is registered in the internet world. In November of this year, a group of individuals or groups under the pseudonym 'Satoshi Nakamoto' published a research paper online called 'Bitcoin: A Peer-to-Peer Electronic Cash System'. This research paper is the first to give an idea about Bitcoin.
In January 2009, Satoshi Nakamoto released the code for Bitcoin software online. Bitcoin 'mining' software is created. Bitcoin mining is the process by which bitcoin is made. Satoshi created the world's first bitcoin in January 2009.
Many people have been arrested on suspicion of being Satoshi Nakamoto, but it is still unknown who the real Satoshi Nakamoto is, or who is behind the name.
The way Bitcoin works
Bitcoin, like ordinary currency, cannot be traded by hand. No bank or institution controls it. Due to the peer-to-peer system, Bitcoin goes directly from the sender to the recipient's wallet. A wallet is like your wallet, where you store your own bitcoin. Wallets can be either online or offline. The online wallet can be used by the user through his smartphone or computer.
Each wallet has a specific address. It is impossible to remember that the address is completely encrypted. Users use this address for bitcoin transactions.
When Bitcoin is sent from one address to another, it is immediately recorded in an open ledger, called a 'blockchain'. It is such a huge ledger that it has a record of all the bitcoin transactions that have taken place so far. A new bitcoin is created on the network as each transaction is completed. This method is called bitcoin mining.
The way bitcoin mining is done
Bitcoin mining is a complex process. Is done through a specific mining software. This requires a high-powered computer. This process is accomplished using some complex mathematical algorithms using the computer's CPU and GPU.
Every bitcoin transaction is recorded in the blockchain. At this time Bitcoin miners determine the legitimacy of each transaction through mining software. And at this time a new bitcoin was created.
All of these processes of bitcoin transactions and the creation of new bitcoins occur extremely securely. As a result, there is no possibility of any kind of deception or fraud. The identities of both parties are secret.
Some unique features of Bitcoin
Bitcoin is a completely decentralised currency system. Neither the government nor any authority controls it. As a result of the peer-to-peer system, every user here is the real owner of their bitcoin. No one else can take ownership of their bitcoin network.
The whole process of bitcoin transactions is anonymous. A bitcoin user can open multiple bitcoin accounts. No personal information, such as username, address, etc., is required to open these accounts. As a result, the real identity of the user remains secret.
The bitcoin transaction process is done extremely transparently. Records of each transaction are stored in a blockchain that anyone can view from any part of the world. As a result, there is no scope for corruption.
Opening a Bitcoin account is very easy. In this case, there is no need to fill any troublesome form like opening a normal bank account. No extra fees are required. No paperwork is required.
The bitcoin transaction process is very fast. Bitcoin will reach the recipient in a matter of minutes, no matter where it is sent from.
Some disadvantages of bitcoin
Bitcoin is completely non-refundable. In other words, if someone sends Bitcoin to a wrong address by mistake, it is not possible to get it back.
The Bitcoin transaction process is not controlled by any organisation. The identities of both the sender and the recipient are completely secret. As a result, it is possible to use Bitcoin in many criminal activities. Bitcoin is also used to buy and sell illegal products. The secret part of the Internet is that all transactions on the Dark Web are done via Bitcoin.
The price of Bitcoin is very volatile. Sometimes it leads to a huge amount, sometimes it is called a huge landslide.
The value of Bitcoin in the world today and its status in Bangladesh
Bitcoin has been gaining value day by day since its first launch. In 2011, the market price of Bitcoin first rose from ০ 0.30 to $ 32. Then in 2013 the price went up to 66 28. Thus, the price of Bitcoin is gradually increasing. At the end of 2016, the price went above 600. Then in 2016 the price of Bitcoin increased to a record amount. The price of Bitcoin rose to around $ 9,000 in November this year, rising by about a thousand per month. And this December, the price has risen to more than 15,000, which is truly unprecedented.
Bitcoin is very popular in many countries of the world. Bitcoin is accepted by more than thirty thousand companies around the world like WordPress, Microsoft, Wikipedia, Overstock. Its popularity is constantly increasing day by day. Even Microsoft founder Bill Gates has commented on Bitcoin, saying, "Bitcoin is better than currency."
Now let's see the position of Bitcoin in Bangladesh. Bangladesh became the first country in Asia to join the Bitcoin Foundation on 15 August 2014. But within a month of joining the Bitcoin Foundation, all Bitcoin transactions were banned. Bangladesh Bank in a press release urged the people to refrain from all types of bitcoin transactions in the country. That means bitcoin transactions are declared completely illegal. Bitcoin is still banned in Bangladesh.
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