[Informative] Everything you need to know about Bitcoin!

[Informative] | Everything you need to know about Bitcoin | |2020|

Whole guide about Bitcoin

(28/05/20) For today 1 Bitcoin= around ₹6,97,000

Introduction :

Bitcoin, often described as a cryptocurrency, a virtual currency or a digital currency - is a type of money that is completely virtual.

It's like an online version of cash. You can use it to buy products and services, but not many shops accept Bitcoin yet and some countries have banned it altogether.

The physical Bitcoins you see in photos are a novelty.They would be worthless without the private codes printed inside them.

Bitcoin (₿) is a cryptocurrency. Bitcoin was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto and started in 2009 when its source code was released as open-source-software.

Bitcoin is one of those things that in the past several years has created a lot of buzz around the globe. Be it Donald Trump or India demonetizing their currency, dramatic economic events can be viewed in terms of Bitcoin.

Detailed Information :

Unlike fiat money (INR, US Dollar, Euro & other paper currencies), Bitcoin is not regulated by any country. It’s kind of official currency of the internet & anyone with an internet connection can own it. 

The best thing about Bitcoin is how easy it is to transfer all over the world with very low fees. For example, transferring any amount of bitcoin from the United States to India or Europe will cost only $2-3(around ₹150-₹230) or less.

Your transaction also remains anonymous(not fully). Only the sender and the receiver know who is involved with the transaction.

As the world is slowly adopting & accepting Bitcoin, individuals & businesses are saving a lot of money while doing business globally.

How does it work :

Each Bitcoin is basically a computer file which is stored in a 'digital wallet' app on a smartphone or computer.

People can send Bitcoins (or part of one) to your digital wallet, and you can send Bitcoins to other people.

Every single transaction is recorded in a public list called the blockchain.

This makes it possible to trace the history of Bitcoins to stop people from spending coins they do not own, making copies or undo-ing transactions.

How are new Bitcoins created?

In order for the Bitcoin system to work, people can make their computer process transactions for everybody.

The computers are made to work out incredibly difficult sums. Occasionally they are rewarded with a Bitcoin for the owner to keep.

People set up powerful computers just to try and get Bitcoins. This is called mining.

But the sums are becoming more and more difficult to stop too many Bitcoins being generated.

If you started mining now it could be years before you got a single Bitcoin.

You could end up spending more money on electricity for your computer than the Bitcoin would be worth.

Why are Bitcoins valuable?

There are lots of things other than money which we consider valuable like gold and diamonds. The Aztecs used cocoa beans as money!

Bitcoins are valuable because people are willing to exchange them for real goods and services, and even cash.

Why do people want Bitcoins?

Some people like the fact that Bitcoin is not controlled by the government or banks.People can also spend their Bitcoins fairly anonymously. Although all transactions are recorded, nobody would know which 'account number' was yours unless you told them.

Image sources : Pixabay, Pexels