Never touch, never have in your wallet, but you can spend and earn. Yeah Al that sounds pretty crap to me, Looks like Bitcoin aint for me either. Bitcoin is a type of coin that sounds like a coin — but it doesn't have any busy existence. It is electronically saved on your phone, tablet, laptop or any storage media. This is not the end of the line. Some more special information you need to know about this currency. Let's find out.
Personally, there is no difference between a normal paper and a note. But the value of a note ranges from Rs. 2 to Rs. They sit together and decide what the value of a note will be. And we trust them and make this little piece of paper valuable.
But in the case of Bitcoin, this case is completely different. Because the value of Bitcoin is not determined by any government, nor by any bank. There is also no specific authority to regulate Bitcoin. The currency was first introduced in 2009, and has been around ever since, making it much more popular online.
At present 1 bitcoin is equal to 589 dollars. A few years ago, the price went up to 1,200. But since there is no authority to determine its value, no government and no bank, its value fluctuates (if the price of Bitcoin is stable now). You and I have confidence in this currency so we can exchange it with each other. The advantage is that if I want to send you some bitcoin, I can send it to you directly. It is not that I have to go to any bank or I have to send you through any authority. It is never possible to freeze your account and you can send this coin to whomever you want. No bank or ordinary currency can give you as many benefits as you can get. There are a lot of rules in bank transactions, which you must follow, but there are no rules for bitcoin.
Bitcoin can be shaved and spent in a number of ways. The easiest way to earn it is to buy some bitcoin directly. Now suppose 1 bitcoin costs ৭ 579, you can buy this coin directly for ৭ 579 and it will be credited electronically to your account online. Again you can sell any service or thing to earn this currency. Now suppose I have a phone that costs ৭ 589. So I can sell this phone online for 1 bitcoin, it will bring me this coin.
You can also mine Bitcoin if you want, and this is the medium by which new Bitcoins come to the market. Friends see which notes in general are regulated by the government or authority. They control its value and all kinds of exchanges. If ever there is a need for a note, they can print the note as they wish and thus new notes come into the market. But Bitcoin is not printed, and there is no one to control it, but it has a value that allows only a certain number (21 million) of Bitcoins to be on the market. Because the value of this currency will decrease if it increases too much, so this system has been created to control it. But there will come a time when no new bitcoin will come in the market.
Now the question is how can this currency be exchanged? See the biggest problem but here it happens. And this is a little difficult to explain. Let's try to understand the matter easily.
Suppose you went to a park for a morning walk. So go there and see an apple with an apple for sale and you want to buy an apple. Now you give him money and buy an apple in return. Now you don't have to worry about whether you got the Apple in your hand. Because you can see the apple physically and touch it with your hands. So you don't need anyone else to check it out. This app will be completely yours and you can give it to anyone you want. You can give this apple to your friend, your friend can give it to someone else and that is how this order can be maintained.
But friends, now think of a digital Apple one that is not in your pocket, but stored on your computer or any computing device. How do you know that this apple is yours? How do you make sure you don't send it to your friend? Hasn't the fun started? Since it is in digital format, it is possible to make thousands of copies. It is possible to send it to someone by mail. It is also possible to download it millions of times if left on the internet.
So you understand, exchanging physical apples and digital apples is not the same thing. Computer scientists have the same problem when exchanging bitcoins, and the problem is called "double-spending problem".