Hello friends, we welcome you to our Blog Boitapic Learning with Earning. Friends, Today we are going to discuss and talk and read about cryptocurrency bitcoin. we are going to tell you the complete history of what is cryptocurrency, what is bitcoin and how it works, how many types are there, so let’s start friends.
Friends, you must have seen many forms of your money i.e. currency like Rupee in India, Dollar in America, Pond in the UK, Euro in Europe, etc. You must have seen all these currencies 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 there.
That’s why digital payments are being encouraged. Due to this, the era of such a digital currency has started, which you cannot see why you cannot, but it has become the most valuable currency in today’s time.
This currency is bitcoin. It is a worldwide cryptocurrency and digital payment system through which you can transact anywhere in any country. It is said that if the Internet was the name of a place, it would be the national currency of that place.
Friends, it has become famous very fast all over the world in a few years but still, it is completely Banned in India i.e. it has not been recognized by the Indian government. That is why no person in India can buy or sell it.
This currency has been declared a legal offense by the Government of India. Because many crimes start happening through this currency and they have been that is why the Government of India has declared this currency illegal.
This is being shown here because, for the first time in the world, the Government of India is preparing to freeze the transactions done through it. It is being used in wrongdoings, such as drug sellers have started money transactions through it. The Narcotics Control Bureau of India has made preparations to freeze 500 bitcoins in this transaction. Now friends we will tell you.
what is a cryptocurrency, how many types of cryptocurrency, what is bitcoin, how was bitcoin started, what is the value of bitcoin, how does bitcoin work, what is bitcoin wallet, is bitcoin legal, use of bitcoin Why do we do it, what are the benefits of bitcoin, what are the disadvantages of bitcoin, we are going to read about all these below?
What is CryptoCurrency?
Now we will first learn about cryptocurrency that is a kind of digital asset. For which cryptography is used. This currency is usually used for equality and service. After some time this currency appeared along with bitcoin.
This currency works as a “peer-to-peer electronic” cash system. This currency is used with the help of the internet. With the help of this, money can be kept hidden very easily, by doing this, no government or any department can come to know about it.
There is no need to go to any bank or other government institution for its use. With the help of cryptocurrency, you can easily keep your money hidden.
What are the types of cryptography?
At that time, there are about 1000 cryptocurrencies, but some of them are used a lot, here the complete information of important cryptocurrencies is being described.
Ether and Ethereum: It is used as an interchange currency. Ether is a kind of token. Which is used for transactions under the Ethereum blockchain.
Litecoin: This coin was invented in the year 2011. It also works with the help of decentralized technology just like named coin. With its help, bitcoin works faster.
Dash: This is also a currency and the Dash cryptocurrency was invented in 2014. In its beginning, it is also known as Dark Coin. It works with the help of a network called ‘master node’. This network is faster and more efficient than bitcoin.
Jade Cash: It appeared in October 2016. Jade Cash is a new type of currency in this sector. All information is encrypted during the use of Jade Cash, yet Jade Cash cannot be used for ‘double spend’.
Monero: This is also a special kind of cryptocurrency. Monero also uses a special type of security, which is named Ring Signature. Monero is widely used in the ‘dark web black market’. Smuggling is done with its help. Therefore, black marketing becomes easy by using it.
In these points, we have told you the types of cryptography and many people do the crime, black marketing, smuggling, but the government is not able to do anything about them because they do not have proof in their hands. Let us tell you what is bitcoin.
How did bitcoin start?
Bitcoin was first released as open-source software in January 2009 by Satoshi Nakamoto. Satoshi Nakamoto is a programmer. No one knows about this person. Different people have been claiming themselves to be Satoshi Nakamoto in different places.
But to date, the real programmer of bitcoin is not known. In today’s time, many such programmers are engaged in making it more secure and strong. The original purpose of bitcoin was to issue money from one place to another without the help of any third party or any central authority.
Software related to bitcoin has been created all over the world. On 22 May 2010, 10 thousand bitcoins were offered for a pizza for the first time. At that time the price of 1 bitcoin was 10s or less.
But today the price of bitcoin has increased a thousand times. As more and more people buy bitcoin, its price is continuously increasing.
What is the value of bitcoin?
Value of bitcoin 5 years ago the price of one bitcoin was Rs 6. And the price of the same bitcoin today is around ₹ 45000. In India in 2015 the price of one bitcoin was ₹ 14000, in the year 2016 it increased to ₹ 30000 and today its price is ₹ 45000. According to some estimates, by next year the price of one bitcoin can be up to 6 lakhs.
How does bitcoin work?
Bitcoin transactions are done through peer-to-peer technology, that is, money is directly transferred from one computer to another. It is sent as a blockchain divided among the common people.
Just like a bank keeps track of your money, similarly, these blockchains keep track of every bitcoin. That is, its exchange at any place in the world is accounted for in this blockchain.
After this, every transaction is verified and the network keeps a record of it.
So it cannot be a fraud. This technology is made secure by thousands of people who monitor and check this exchange with the help of powerful computers. For this, whoever successfully does it is given some bitcoins as a reward.
This is called the mining of bitcoins. Thousands of people who verify this transaction in the code language continue to work as 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. When any 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 there will be 20 million bitcoins in the world. Bitcoin will run out soon, so people are competing to buy more and more of it.
What is a bitcoin wallet?
A bitcoin wallet is a software program. It is used to store bitcoin. In the true sense, where to go, bitcoin is not kept anywhere. Any bitcoin has its own private number i.e. code. Which is kept safe in a bitcoin wallet. With the help of this, we can very easily take bitcoin or give it to anyone. It is similar to the mobile wallet.
Is bitcoin legal?
The legal right or wrong of bitcoin is decided based on the country in which you live and use it. It has been given legal permission in Japan, but in many countries, it is still not given legal evening, in some countries it has been kept in this gray zone. Jahanpanah has been formalized and banned, nor has its use been accepted.
Why use bitcoin?
Friends, bitcoin can be used for many special reasons, its description is given below.
- In many countries where there is no capital control. Capital control means that it is not fixed 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 over 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, earlier they used to take refuge in a Swiss bank, 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 money anywhere. 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 fully digital currency.
- People who do not have access to the bank are using it, the biggest thing is that no card is required for its use. The transactions done with its help are not even face to face, so there is no fear of any kind.
What are the benefits of bitcoin?
Friends, there are many benefits of bitcoin which are explained below.
- Bitcoin is a digital one so 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 and mines with your money, then you need a lawyer, etc., but there is no need for any third party while investing in it.
- Therefore, by investing your money here in a very short time, you can rest assured. This is the age of the Internet. Therefore, at this time most people have the facility of desktop, smartphone, etc. It is very simple to use a bitcoin wallet at the moment. Just like the wallet of M-Pesa etc. is used.
A very little extra charge is required for this. Bitcoin is free of transaction fees. There are no transaction fees in bitcoin. If you do transactions, then you can do transactions for free, no matter how large the number of transactions.
What are the disadvantages of bitcoin?
- There is no authority or government to control bitcoin. Due to which the price of bitcoin keeps on rising or falling drastically. Because of which investing in bitcoin can be a bit risky.
- If bitcoin 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. So you can lose your bitcoins and the biggest disadvantage is that you can’t get them back.So, friends, we have tried to give you all the information about bitcoin, if you think that some information has been missed by us, then you can tell us in the comment and friend, you can also tell how you liked this information. Friends, we are like this for you, we keep bringing new information, new tips, and finance-related information to you, if you like our information, then definitely share it with friends.
Have a nice day and night thank you.