The world is now in the digital age. All areas are becoming digital. Significant changes are taking place in the banking sector. A decisive change in the field of currency exchange came with the advent of cryptocurrency.
What is cryptocurrency ? How is the current banking system different from that ?
Cryptocurrencies are virtual currencies that have no physical form. They are made up of intricate software codes. These are called cryptocurrencies because they use a technology called encryption. Bitcoin, light coin and ripple are the major cryptocurrencies.
Bitcoin is the world's first cryptocurrency. It is also the most valuable and popular cryptocurrency. Who first came up with the idea of Bitcoin? Although many have come forward with their claims, it is said to be the work of an individual or group known by the nickname "Satoshi Nakamoto".
What is Bitcoin ?
Bitcoin is a decentralized virtual cryptocurrency.
It is not a metal coin or a paper currency. The currencies of a country are usually controlled by its banks. For example, the RBI controls the currencies in India. But Bitcoin introduces the idea of a free currency that is not controlled by intermediaries, banks or the government.Therefore, Bitcoins can be used for international financial transactions. Bitcoins are collected in the form of digital wallets. These are created as a virtual account on the customer's computer.
Bitcoin mining is the process of obtaining bitcoin through computer processes that unravel mathematical programs. Only 21 million bitcoins can be mined in total. That means mining will be completed when 21 million bitcoins hit the market. It is safe because it keeps the cryptography technology and the Bitcoin account book known as the blockchain.
The "blockchain" is a public electronic ledger. It records all the details of Bitcoin exchange. That way you get the amount of coins left to spend on Bitcoin wallets. Every ten minutes a new block is added to the Bitcoin blockchain, according to which the coins reach the market.
Bitcoins can be used to shop, store savings, and send money to others. Globally, it is estimated that Bitcoin trades around Rs 25,000 crore a day.
If you lose your digital wallet or forget your password, you will lose the money in your wallet. Bitcoins also do not guarantee insurance coverage. Both of these can be said to be the downside of Bitcoin. However, in this digital age where many changes are taking place, the virtual currency Bitcoin has opened the door to many possibilities.
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