If one considers Bitcoin to be a very risky stock or share, then one cannot be blamed at all. Almost all of this is manipulation and forgery, this coin that is Amir today, tomorrow can make him a fakir. Such incidents are often heard and spread among the people. The risk is not wrong. People in favor of Bitcoin are also acknowledging the issue. Bitcoin is certainly one of the inventions, blockchain technology, based on which the first ‘crypto-currency’ was created. Bitcoin is a secure software. Experts agree that the blockchain technology at the core of Bitcoin is highly reliable. Banks and financial institutions should also use blockchain technology.
The recent incredible explosion in the value of Bitcoin has shaken everyone. No one can play it anymore. Bitcoin futures are allowed to be sold on the Chicago Exchange. Many well-known organizations, including Merrill Lynch and Bank of America, say it's not a bubble. There are definitely reasons behind this price increase. Because it is very deep. More technical and scientific than economic. Blockchain has already been adopted as a new potential technology.
Efforts to invent cryptocurrencies have been going on for a long time. Researchers learned in the eighties that it was possible to invent such a coin from cryptography. But they failed to solve some problems. In 2008, an unknown researcher sent a research paper to an internet forum with a solution to those problems. Surprisingly his solution comes in handy. His solution is called blockchain. Based on this, the first cryptocurrency was invented, called Bitcoin. Due to its skyrocketing prices and rising prices, it is now considered by many to be an asset rather than a currency.
Later many more cryptocurrencies were invented — such as Ethereum, Ripple, Light Coin, etc. But since Bitcoin is the first cryptocurrency and has been able to attract the attention of many researchers and investors, it is ahead of other coins. However, another cryptocurrency can completely bankrupt Bitcoin, which is a big investment risk. No one can say which will go ahead. Now again there are about a few hundred cryptocurrencies in the market and of course many more new currencies will be imported.
Many ask, what does this coin look like? This coin has no real existence. It is a computer software. In many of the pictures, the English letter 'B' written in large gold coins is imaginary. Even such memorabilia are found. That is not bitcoin.
What is the need for bitcoin or crypto currency?
As society and life move forward, so does the advancement of science, so does the advancement of economic instruments. There has been a lot of evolution in the thing called currency. From gold, silver or coinage it has turned into paper money. Advanced technology is being used to prevent counterfeiting. Then L credit card, debit card. With that, economic exchange became easier. These can be called 'digital currencies'. But cryptocurrency has brought the most unimaginable progress. Let's highlight some of its characters.
1. It has no government or institution. Huge populations around the world are circulating these currencies through a kind of secure network. No one is a policy maker, everyone is equal, just a node in the network. This coin will go from buyer to seller directly, without any intermediary, safely and surely. There is no central form of this monetary system, there has been complete decentralization. This is called a direct peer-to-peer network.
2. Bitcoin allows anyone to buy anything from Ghana to China in an instant. No matter the bank, no matter the exchange rate. There is no middle ground, that is the design of this coin.
3. This currency can be quickly moved from one country to another. Bitcoin takes a maximum of 10 minutes. But some other cryptocurrencies may change hands in less time. However, in the current currency transfer system, it takes a few days to move from one country to another.
4. There is a nominal fee to send this coin from one person to another. It does not depend on the amount of money sent again. The same fee for sending one bitcoin and one lakh bitcoins. The current money transfer costs a lot of money.
5. Cryptocurrency transactions cannot be forged. Once transferred, it cannot be returned or changed in any way. In different countries of the world, it is being recorded on thousands of machines. This transaction is irreversible.
6.Cryptocurrencies have no inflation. The number of these coins is predetermined, so they can no longer be printed like money. Different countries are trying to increase their purchasing power in the international market by printing more of their currencies openly or secretly, resulting in a currency war. In cryptocurrency this is absolutely impossible. The maximum number of bitcoins is set at 2.1 crore.
Why is Bitcoin so valuable?
There are several reasons for the rise in the value of Bitcoin. These include:
1. It is thought that in the near future everyone around the world will use cryptocurrencies. In other words, if someone said 20 years ago that everyone around the world would use a mobile phone, it might not seem very believable then. Many feel that this is exactly what is happening here.
2. The number of bitcoins is limited. So even if the price of a bitcoin is much higher, it is not surprising. Because, all the resources of the world have to be bought with that limited bitcoin, so the price of each one will be skyrocketing.
Is it possible to buy anything with bitcoin?
Many things can be bought with Bitcoin nowadays. For example, any product can be bought through Bitcoin from Overstock.com. Many more such businesses are now using Bitcoin as a currency. The idea is that just as credit cards are being used instead of money now, in the future money and credit cards will be replaced by bitcoin or some other coinage.
Why is the price so volatile?
Bitcoin prices rise for all the possibilities mentioned. Again, if any fraud is caught or caught, the price goes down. Again, if a country declares it illegal beforehand, or if a country takes a position in favor of this currency, the price immediately goes down or goes up a lot. Price increase and decrease is a psychological issue for many people. Then there are other symbolic currency positions. If the news spreads, Ethereum or Ripple will be the currency of the future, then the price of Bitcoin will go down. For all these reasons, the price of Bitcoin goes up and down. In the meanwhile, lucrative big crocodile-like investors can suddenly increase the price of bitcoin by investing a lot, and then suddenly take all the money and collapse.
Who is cheating on it?
No one is directly cheating with bitcoin or cryptocurrency. The blockchain that is the basis of this is considered to be the safest. Bitcoin buyer's account is being fraudulent. Bitcoin fraud is perpetrated by intermediaries. People are being warned. More reliable organizations are coming. Passwords and identification methods are becoming more secure. So some news that Bitcoin or cryptocurrency is destroying or will destroy, is not entirely correct.
What is a blockchain?
Blockchain is a technology based on which bitcoin and other cryptocurrencies have been invented. Every transaction is in this block chain. This is called public ledger, if you do Bangla, it becomes an open ledger. It is open to everyone. The majority of the nodes in this blockchain network (computers or special types of computer-like machines) have to agree if a transaction is to go to open ledger. There is also an algorithm (consensus algorithm) to agree on this.
Finally a complex mathematical problem has to be solved, which is called Proof of Work. Those who do it are called minor. The winner of the first solution is Bitcoin. Earlier it was 25 bitcoins, now it is 12.5 bitcoins. In a few days it will be halved, which is also a protocol of blockchain technology. Minors are voting to agree again. Numerous minors are working. This is why cryptocurrency transactions cannot be fraudulent or wrong. Anyone in the world can become a minor by joining this network by buying a reliable computer or machine with special power, and can even earn some money. The potential of this blockchain technology is immense. For example, if blockchain technology is used in home and land ownership, it will be impossible to forge ownership or deed. By keeping it in open ledger, everyone will know who owns which place.
Curse of cryptocurrency
All groundbreaking discoveries have some curse. Also in crypto currency. Although every transaction is written in the block chain, there is no name or address of the person or organization. There is only one symbolic key (public key) from which it is not possible to extract that person or organization in any way. The thing is, each person's identity is with a single number, so in the wallet number 111 (the account of the cryptocurrency is called the wallet) where the bitcoin came from, where he sent it — everything can be seen. It is in the open ledger. So anyone can see, but no one will know who is the man behind this 111 number. Then huge benefits for criminals. They will be able to transact money from behind the scenes.
Government and Bitcoin
Seven countries have declared it illegal to use Bitcoin as a currency or to buy or sell it in any other way. Bangladesh is one of them. Other countries are Nepal, Ecuador, Bolivia, Morocco, Algeria and Kyrgyzstan. Like other new inventions, including Uber and elevators, it has made it difficult for governments to regulate. However, work is underway to formulate policies on its income tax structure, inheritance, etc. Despite the concerns of the government, there is no shortage of enthusiasm among the masses for this new technology. Miners are joining the Bitcoin network with great enthusiasm in countries around the world, especially in the United States, China, Canada, Australia, Nigeria, Brazil, Israel, England, Switzerland, Korea and Singapore. New potential companies are being created in those countries based on blockchain technology. It is like the line of Nazrul's poem, 'Ke Rodhibi is the pull of this tide, when the moon rises in the sky'
What is its future?
Cryptocurrency is thought to be the currency of the future. Information and technology experts have already started working on the blockchain at its core. Just as the internet changed the world, so will the mobile phone spread from house to house in the village. But which coin? Bitcoin, Ripple, Light Coin, Ethereum, or Mofiz Coin? Hard to say. No one knows. But one or the other cryptocurrency will sit on the seat. The dollar will rise slowly, the euro will rise, the money will rise one day. People will not go to the bank, everyone will have crypto currency wallet, computer or mobile. Many people say that this account does not have to be compared with a bank account. Each of these is a bank in itself. The rules of the bank, the fees, all will be decided by that person. And this currency does not have the borders of the country..
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