What is cryptocurrency and bitcoin

What is cryptocurrency and bitcoin You must have seen many forms of money i.e. currency, such as Rupee in India, Dollar in America, Pound in Britain, Euro in Europe etc. You must have seen all this currency in the form of pieces of paper, and you can touch it with your hand, keep it in your pocket. Wherever you go in the world, you have to use the currency of that place. In such a situation, digital payment is being encouraged today.

Due to this, the era of such a digital currency has started, which you cannot see, cannot touch, but it has become the most valuable currency in today’s time. That currency is bitcoin. It is a worldwide cryptocurrency and digital payment system. It can be said that if the Internet was the name of a place, it would be the national currency of that place. Information about this is being given here.

It is completely illegal in India i.e. it has not been recognized by the Indian government, so no person in India can buy or sell it. This is a legal offense. This is being shown here because, for the first time in the world, India is preparing to freeze the transactions done through it. Using this, those selling drugs have started transacting money through it. The Narcotic Control Bureau of India has made preparations to freeze 500 bitcoins of this transaction.

what is cryptocurrency

First of all, let us know about cryptocurrency, it is a kind of digital asset, for which cryptography is used. It is generally used to buy goods and services. It originated with bitcoin. It acts as a “peer to peer electronic” cash system. It can be used with the help of internet. With its help, money can be kept hidden very easily. There is no need to go to any bank or other government institution for its use. Therefore, with the help of cryptocurrencies, you can easily keep your money hidden.

types of cryptocoins

There are about 1000 cryptocurrencies available at the moment, but there are some of them, which are used a lot. Important cryptocurrencies are being described here.

Ether and Ethereum: It is used as an interchange currency. Ether is a kind of token. It is used for transactions under the Ethereum block chain.
Litecoin: It was invented in the year 2011. It also works with the help of decentralized technology like the named coin. With its help, bitcoin works much faster.
Dash: The Dash cryptocurrency was invented in the year 2014. Initially it was known as Dark Coin. It works with the help of a network called ‘masternode’. This network is faster and more efficient than bitcoin.

Jade Cash: It appeared in October 2016. This is a new type of currency in this region. During its use, all the information is encrypted, yet it cannot be used for ‘double spend’.
Monero: This is also a special kind of cryptocurrency. A special type of security is used in this, which is named Ring Signature. This happens a lot in the ‘dark web black market’. Smuggling is done with its help. Therefore, black marketing becomes easy by using it.

what is bitcoin

The bitcoin cryptocurrency is the first global decentralized currency created for the digital world. It can be used anytime and anywhere. With the help of this, a person can send money to any other person anywhere without the help of any third party and bank. That is, you can send money from your bitcoin wallet to another person’s bitcoin wallet. For this, you have to pay only two and a half sends (ie 1 rupee 67 paise). It is a kind of digital currency, which is created and regulated with the help of electronic system. This is a very fast way to transfer money. It is just a process between two people, so no third person is required in it. In its transactions, money comes in the form of codes in your bitcoin wallet. This is not a printed currency. It is prepared by the people themselves. With this, a good business has started all over the world with the help of computers. That’s why computers have become a necessity today.

the beginning of bitcoin

It was first released as open source software in January 2009 by Satoshi Nakamoto. He is a programmer. Nobody knows about it. Different people have been claiming themselves to be Satoshi Nakamoto in different places, but till date its real programmer has not been found. In today’s time, many such programmers are engaged in making it more secure and strong. Its original purpose was to issue money from one place to another without the help of any third party or any central authority. Software related to this has been prepared all over the world. On May 22, 2010, 10,000 bitcoins were offered for a pizza for the first time. At that time the price of 1 bitcoin was 10 seconds or less, but today its value has increased a thousand times. Due to being bought by more and more people, its price is continuously increasing.

value of bitcoin

5 years ago the price of one bitcoin was Rs. But today its cost is around Rs 45,000. In India in 2015, the price of one bitcoin was 14 thousand rupees, in the year 2016 it increased to 30 thousand rupees and today its price is 45,000 rupees. According to an estimate, next year it can be up to 6 lakhs.

How Does Bitcoin Work

Its exchange is done by peer to peer technology, that is, this money directly reaches from one computer to another. It is sent as a block chain divided among the common people. Like a bank keeps track of your money, similarly these blockchains keep track of every bitcoin. That is, its transactions at any place in the world are accounted for in this block chain. Since every transaction is verified and the network maintains its records, it cannot be fraudulent.

This technology is made secure by thousands of people who keep an eye on this transaction with the help of powerful computers. and check it out. For this, whoever successfully does it is given some bitcoins as a reward. This is called mining of bitcoins.

In fact, thousands of people who verify this transaction in the code language act like a clerk of the bank, and they are called miners. These people keep an eye on the transaction so that it is not misused. But while completing this process, these minors have to solve a math problem. Joe Minor solves this problem as quickly as possible. He gets about 12.5 bitcoins in return, and thus enters the digital market.

But its economy has been built in such a way that after a time its number is reduced to half. Initially 50 bitcoins were used to withdraw from 1 block. The number of bitcoins per block is halved every 4 years. That is, after about 125 years, the creation of new bitcoins will stop. By then, 20 million bitcoins will have arrived in the world. It will end soon, so people are competing to buy more and more of it.

what is bitcoin wallet

It is a kind of software program, inside which bitcoins are stored and kept. In the true sense, it is not kept anywhere. A bitcoin has its own private number ie code, which is kept secure in the bitcoin wallet. With the help of this, we can take bitcoin very comfortably or give it to someone. It is similar to mobile wallet. Read here how mobile wallet works.

Is bitcoin legal

Its legal right and wrong is decided on the basis of which country you are living in and using it. It has been given legal permission in Japan, but it is still not given legal consent in many countries. In some countries it has been kept in the ‘Grey Zone’, where neither it has been formally banned nor its use has been recognized.

Why Use Bitcoin

It can be used for many special reasons, which are described as follows,

In many countries where there is no capital control. Capital control means that it is not decided how much money can be sent out of the country and how much can be imported. In some places, people use it to send or order money in excess of the country leverage. These people buy bitcoin and send it out of the country and convert it back into money. This is done in many gray areas.

It is also used to hide personal wealth. Some more wealthy people who want to hide their money, they used to take refuge in Swiss bank earlier, but now it is difficult to deposit money there. After that they have the option of buying gold, diamond etc., with the help of which they can hide the money somewhere. But all these things can also come in the eyes of the administration. So now

after bitcoin comes, they can easily buy bitcoin with their money. It is a completely digital currency.
People who do not have access to the bank are using it. The most important thing is that it does not require any card etc. to use it. Transactions done with its help are not even face to face, so there is no fear of any kind.

profit from bitcoin

It has many benefits, which are described below,

Since it is digital, there is very little chance of fraud in it.
If you have more money and want to invest somewhere, then most of the places you need the help of a third person. That is, if you want to buy land etc. with your money, then you need a lawyer etc., but no third party is required while investing in it. Therefore, in a very short time, you can be rest assured by investing your money here.
This is the age of the internet. Therefore, at this time most of the people have the facility of desktop, smart phone etc. Its wallet is very easy to use at this time. In the same way as the wallet of M-Pesa etc. is used.
For this very little extra charge is required to be paid. Bitcoin is free of transaction fees.

loss from bitcoin

There is no authority or government to control it, due to which the price of bitcoin keeps on rising or falling, due to which investing in it can be a bit risky.
If it is used between two people, then people also use it for wrong things like buying weapons, supplying drag etc. Which can prove to be very dangerous.
If your account is hacked by a hacker, you can lose your bitcoins, the biggest disadvantage is that you cannot get it back.

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