Bitcoin can be purchased online as well as dollar-pound-euro. However, in other monetary systems, such as the country's government and the central bank, Bitcoin is not involved. In 2009, Satoshi Nakamoto, a pseudonym or a group of software developers, introduced a new type of virtual currency. This type of currency is known as cryptocurrency. The cryptocurrency invented by Nakamoto is called Bitcoin.
There is no banking system in bitcoin transactions. Direct (peer-to-peer) interaction between two users is done online electronically. A method called cryptography is used to secure transactions.
The reason Bitcoin has come into the spotlight in recent times is inflation. Those who have invested in Bitcoin, their wealth has suddenly increased hundreds of times. But why is Bitcoin becoming popular? It can be traded without revealing one's identity. On the other hand, the transaction cost is very low. But the biggest reason is that there is an idea among many that investing in Bitcoin will pay off several times over.
Although not yet recognized as a currency in many countries, Bitcoin is rapidly gaining popularity. As a result, the central banks of many countries have taken the initiative to formulate policies for bitcoinSK Sur Chowdhury, Deputy Governor of Bangladesh Bank, said at a seminar of the recently concluded 'Digital World 2018' conference that a committee comprising central banks and government and non-government organizations would be formed by June next year. The task of this committee will be to find out how to quickly introduce digital currency in Bangladesh.
Here is some information about Bitcoin:
Bitcoin is limited
It is possible to introduce 21 million bitcoins in the conventional way. That is, supply is limited. That is why Bitcoin is compared to gold. At one stage of extraction from the mine, the supply of such gold will be exhausted. Then there could be the lifted gold bikini. However, there will be no opportunity for new lifting. The idea of bitcoin is the same. Bitcoin has to be ‘extracted’ through the solution of the algorithm, which is known as bitcoin mining. And if it continues at the current rate, it will take 2140 years to mine 21 million bitcoins.
Bitcoin can also be bought in fractions
Fractions of Bitcoin have come up in discussions recently as the exchange rate has risen. That means it is also possible to buy fractions of bitcoin. Bitcoin's fraction is known as Satoshi, matching the inventor's name. One Satoshi is one tenth of a bitcoin.
Bitcoin theft of one and a half billion dollars
Like other currencies, Bitcoin is exchanged at a fixed rate. This exchange is through bitcoin exchange. 9 lakh 60 thousand bitcoins were stolen from the exchange. At current exchange rates, its market value is about ৫ 1.5 billion. Although some parts of the stolen bitcoin were recovered, the mystery behind the theft could not be solved.
One thousand competitors of Bitcoin
Bitcoin is a type of cryptocurrency. Not the only cryptocurrency. After the success of Bitcoin, more than a thousand such virtual currencies were introduced. All, however, did not succeed like Bitcoin. However, this gives an indication of the future financial system based on virtual currency.
Bitcoin is divided into two parts
Due to the split in Bitcoin's software code, all bitcoins purchased before August 1 this year are virtually split in two. Along with Bitcoin, another cryptocurrency called Bitcoin Cash emerged. This means that if someone buys a bitcoin before August 1, 2016, at the same time he automatically becomes the owner of a bitcoin cash. At present the price of 1 bitcoin cash is 1 thousand 300 dollars.
