Bitcoin is a crypto-currency which rapidly emerging as the new-age technical currency, making itself a new “medium of exchange.” It is a digital asset stored on computerized databases. It is a digital currency or electronic currency that works on a peer-to-peer basis because of its decentralized nature. It had no central authority controlling it.
Like physical currency or currency notes, it can be given from one person to another, but without any centralized authority regulating it or keeping track of it. The system is dependent on cryptography. Although no one authority controls the generation or tracking of the coins, the system itself is designed to maintain a reliable system of the record of every transaction with the tracking issuance of the currency. Satoshi Nakamoto is regarded as the founder of virtual currency Bitcoin.
How does it work?
These coins are recorded in digital ledgers using cryptography to keep them secure. The ledgers are distributed globally, each transaction made through cryptocurrency is codified as blocks, and multiple blocks are linked with each other forms of blockchains. It is through the process of mining by which these cryptocurrencies are created. The miners use the high-end process to mine the digital coins, which consume a large amount of electricity.
How can you get Bitcoins?
Bitcoins are available in the Bitcoin exchange. One can also purchase Bitcoin from other users in exchange for money or good. One can also become a miner of Bitcoin with the investment in software and hardware which need a strong electricity connection to work properly.
Reasons for the Popularity
⦁ Bitcoin came into the focus of all because of its decentralized nature.
⦁ The bank currency is regulated and controlled by the central financial authority. Still, the Bitcoins give one the liberty to trade according to their requirements without a third party’s indulgence.
The Bitcoin and the Central Bank Authorised Currency
There are many differences between the central bank’s authorized currency and bitcoins. Such as :
⦁ The first and foremost distinction is that the nation’s central bank regulates the currency we use in day-to-day life. But Bitcoin is a virtual currency or digital currency that can only be stored electronically.
⦁ There is also a difference on the grounds of the face value and real value of the currency. Although both are currencies, one the physical currency and the other digital currency, if there is inflation, the real value of the bank authorized currency will drop, or inflation can bring down the real value of bank authorized currency. But the face value will remain unchanged, but in the case of Bitcoins, one can see changes both ways, i.e., the face value and real value.
Bitcoin- a Spam or a Boom?
Being the talk of the town, you must have heard about Bitcoin. Although no one knows anything about its creators, this currency has brought way more benefits than expected. It is a cryptocurrency, invented by maybe a group of people or an unknown person who used Satoshi Nakamoto’s name. The implementation of this currency was achieved by open-source software.
It is a decentralized digital currency controlled by neither a central bank nor a single administrator, which can be shared from one user to another on the network based on peer-to-peer, without any intermediaries needed in between. These transactions are thoroughly verified by the network nodes used in the process. This listing or lodging is called the blockchain. This currency is becoming popular day by day in all corners of the world
Thus this currency is treated or created as a reward; by following the complete process, known as mining, Bitcoins are created as a reward for a process known as mining. These are transferred for other currencies, services, and products.
Why use bitcoins?
The main reasons which may help in deciding investments regarding BTC are listed below:
⦁ They can be used to purchase any merchandise anonymously.
⦁ It makes International Payments super cheap and easy because they are not controlled or tied up with any country or even regulations.
⦁ There are exactly no credit fees for this.
⦁ And due to the No-Fees structure, it becomes a good option for small businesses.
Status of Bitcoin in India
There are two applications to buy it in India. Here is some additional information regarding the status of BTC in our country:
⦁ According to the researchers, many people join such BTC earning platforms every day to get profited in the future.
⦁ Many International Exchanges Platforms are related to this marketplace that uses your Debit/ Credit Cards and even some mobile payment apps for payment purposes.
⦁ This is completely up to the investor to either invest in it or reject the option.
⦁ The price of the BTC depends completely on the exchange and the market demand.
What are the advantages of bitcoin?
Investment in Bitcoin has many advantages, which one should consider before investing in this currency. So to get to correct view regarding them, one must know:
⦁ It has proved as the best medium of transaction for dealing and trade.
⦁ This can be used easily in the process of money laundering.
⦁ It becomes difficult to store the Bitcoin safely because the wallet can be hacked easily,
⦁ You have a private key to save your Bitcoin.
Hence, one must consider all the benefits and challenges regarding this currency first before taking a step forward. They must also keep this thing in mind that no authorities govern it, so every pros and cons will be bearable to them only. And having no authority means if the account got hacked or lost, there would be one to ask for help. With the changing world, the way to use currency will also change. Due to the pandemic, the change in the situation can be seen as Bitcoins’ value is increasing. Many doors are opening in the present world, and with all of that, there is an increase in open-mindedness among the general population and financial industries.