All About Bitcoins (a crypto-currency)

 Bitcoin is the world’s first decentralised digital crypto-currency. It is invented in 2008 by Satoshi Nakamoto and started in 2009 when its implementation was released as open software. Bitcoin is also abbreviated as "BTC."

Satoshi Nakamoto

How it works?

It is a decentralised (विकेन्द्रीकृत) digital currency without a single administrator that can be sent from user to user. 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. Bitcoin is a network that runs on a protocol known as the blockchain.

Who owns Bitcoins?

Bitcoin is not owned by a person or a group of persons. It is owned by users of bitcoins.

Now a days, many large institutions and crypto leaders have invested heavily in Bitcoin.

How do people get Bitcoins?

There are mainly three main ways by which people get Bitcoin:-

# One can, buy Bitcoins using 'real' money.

# A person can sell things and can accept the payment in Bitcoins.

# Or, Bitcoins can be generated using a computer.

How Bitcoins are created?

Bitcoins are generated through the process called "minning". Bitcoin are often compared with gold, as they both share a common factor of similarity as they both are obtained via same process i.e. minning.

Bitcoin minning has a two-fold purpose:

1. It allows for creation of new coins.
2. Also, it facilitates the processing of transaction in the network.

One more, interesting fact that is associated with Bitcoin is that, no more than 21 million Bitcoins can be mined. Bitcoin miners processes Bitcoin transactions made on the blockchain to keep the network secure and to avoid any chances of double-spending (when a user illegally spends the same bitcoin multiple times by making copies of it); in return, they get new Bitcoins.The mining process not only brings new bitcoins into circulation, but it also enables Bitcoin to keep operating as a decentralised, open-source, peer-to-peer (P2P) platform.

Why Bitcoins are valuable?

There are lots of things other than money which we consider valuable like gold and diamonds. Bitcoins are valuable as people are willing to exchange them for real goods, services and even cash.

What determines Bitcoin's value?

The price of a Bitcoin is determined by supply  and demand. When demand for Bitcoins increases, the price increases, and when demand falls, the price also falls.

Is bitcoin legal in India?

Reserve Bank of India (RBI) banned all banking transactions by crypto traders in the country two years ago. But the Supreme Court (SC) intervened and threw out the ban in March this year.

Risk with bitcoins:

Bitcoin is a virtual currency and has no sensible value that you can hide under

the house and use in difficult times. Bitcoins are not accepted everywhere. Bitcoin value fluctuates a lot by 20% or may be more.

You can see today's Bitcoin value in Indian rupees below:-

Hope you enjoyed this article!!!!!!