What is bitcoin?
In this article we will learn what is Bitcoin,
How does it work? If you look at its images, it looks like a golden coin.
Most people who do not know about cryptocurrency consider it a golden coin.
But this is not the case at all, Bitcoin is a kind of digital currency as opposed to a traditional currency. Which does not have any physical form. That is, it is only used on the Internet.
Just as a rupee is worth 1 Bitcoin also has its own value. Overall, it is also a kind of currency. But there is a lot of difference between common currency and Bitcoin which we will go into in detail. So in this post, we will give information about bitcoin.
Like common currency, it is not operated by any bank or government, but is a decentralized digital currency. For example, when you conduct a transaction from account 1 to account 2, then an intermediates (bank or government) is needed to make that transaction successful.
This does not happen in the context of bitcoin, rather it uses peer-to-peer technology. That is, all the members on the network are connected to each other so that no middleman is needed while conducting the transaction. So Bitcoin is completely open-source, everyone can use it.
Its transactions are verified by network nodes through cryptography. After that the details of those transactions are stored in a decentralized ledger system called Blockchain. This whole process is defined as Bitcoin Mining.
Miners who do this mining process receive Bitcoin as a reward. After this process a new bitcoin came into existence. It is a fixed asset i.e. only 21 million bitcoin can be created and till date 80% of it has been mined. We can exchange bitcoin with other currencies, products, and services.
Who created Bitcoin and Why?
Bitcoin was released in 2009 by a person named Satoshi Nakamoto. However the identity verification of the person of this name has not been done yet. There is also news that it can be a group of people and not just a person.
But a question that must arise in your mind is why Bitcoin was created?
The mystery arises when you look at a published proposal by Santoshi Nakamoto. Its title is as follows, the complete information about bitcoin is given under the post "Bitcoin: A Peer-to-Peer Electronic Cash System". In one of its paragraphs, the purpose behind creating Bitcoin seems to be.
He has written that the basic problem with traditional currency is that we have to depend on the banking system for it. They also believe that our money on banks is not completely safe and they cheat us a lot in the name of the scheme. If we look at the history, this thing is also true, many such incidents have happened.
What is the value of bitcoin?
The value of 1 BTC (it is the nickname of bitcoin) is currently ₹ 6,00,482.87, equivalent to about six lakh Indian rupees. However its value fluctuates continuously. In December 2017, it touched its highest price ever - ₹ 1,259,942.
Maybe, your question is who determines the value of Bitcoin.
There are many factors behind influencing the value of bitcoin. The most prominent among them is the supply and demand for Bitcoin. The higher it is, the more its price will increase. It is also dependent on the cost incurred in the mining process to some extent. Apart from this, there are many factors that determine the price of 1 BTC.
How do Investment in Bitcoin?
Anyone who is interested in cryptocurrency can start investing in Bitcoin. However, it is not so easy for a common man. Investing in bitcoin means buying it and making a profit by selling it when its price is high. But you must be thinking that the price of bitcoin is very high.
It is not necessary that you buy 1 BTC directly. You can also purchase its smallest units. Just as there are 100 paise in a rupee, similarly 100 million Santoshi make one BTC. So you can slowly buy these small units and make a BTC.
There are many things an investor needs in order to start investing in bitcoin:
1. To get your KYC verified, submit a PAN card and a valid address proof.
2. Select Bitcoin Wallet. These are the software that help you store and sell Bitcoin.
- Zebpay
- UnoCoin
- Coinbase
are the best Bitcoin wallet.
3. After choosing one of the Wallets, you have to create your account by signing up in them so that you can use them.
4. Connect your wallet to a bank account, debit card, or credit card.
5. Finally, you purchase Bitcoin. You can start it by buying a small bitcoin unit.
One thing that you have to keep in mind is that it is a risky investment. So get as much information about it as possible. If you do not want to take a big risk, then invest in its small units. Use cryptocurrency exchange that is more secure.
Some Important crypto Currency
- Bitcoin
- Litecoin
- Namecoin
- Peercoin
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