Why is Bitcoin the trending topic of the century? A detailed analysis.
WHAT IS A BITCOIN?
Bitcoin, a form of digital currency, created and held electronically. It is a payment system that nobody controls. It is not produced in any institutions, but by people using computers all around the world. It is renowned as the first decentralized digital currency.
Bitcoin is used primarily for financial transactions through the Internet. It is not a metal currency or paper. Instead, it is a computer-enabled program or a software code. It is referred to as “cryptocurrency” because of the encryption technology is hidden behind. Bitcoin is a free currency, without any mediation of central banks or governments of various countries. The idea of digital currency derived from the disappointment of global economic and bankruptcy.
WHOSE CRAZY IDEA WAS THIS?
Bitcoin is a cryptocurrency and a payment system invented by an unidentified programmer, or group of programmers, under the name of Satoshi Nakamoto. Bitcoin was introduced on 31st October 2008 to a cryptography mailing list and released as open-source software in 2009. There has been various claims and speculation concerning the identity of Nakamoto, none of which are confirmed.
ARE THE COPS GONNA CATCH ME IF I USE THIS?
Countries around the world have a wide-ranging view of the digital currency Bitcoin. Western superpowers like the United States and the United Kingdom have shown a positive attitude towards the new technology. Countries like Canada and Australia are still deliberating on what to do about Bitcoin, legally. Others have already finalized their word against digital currency as a whole, and bitcoin, in particular. In India, RBI is against legalizing the use of bitcoin as of now. They are currently examining the risks associated with its usage.
Anybody in the world can buy and use the money. Without a credit card, any product in the world can be purchased through bitcoin.
In many countries, ATM counters are limited to Bitcoin only when you need it.
SO HOW DOES IT WORK?
Settings-5-xxlBitcoin uses peer-to-peer technology to direct without central authority or banks; operating transactions and the issuing of Bitcoins is delivered collectively by the network. It can be transferred from person to person via the internet. It is kept in a digital wallet on the user’s computer or mobile devices. Once a Bitcoin wallet has been installed on the computer or mobile phone, it will generate the first Bitcoin address, and you can create more whenever you need one. Individuals called it miners protect BITCOIN network. After the transactions are verified, they are recorded in a public ledger called Blockchain.
A Bitcoin address is a onetime use token. Like e-mail addresses, you can send bitcoins to a person by sending bitcoins to one of their addresses. However, unlike e-mail addresses, people have many different Bitcoin addresses, and a unique address should be used for each transaction.
WHAT IS DIGITAL CURRENCY?
Consider, you have deposited some money into your bank account. Now you have no cash in our hands. But if you use the bank’s mobile application or internet to view your account, you can see the money, and you can let anyone see that. You can send that to someone’s bank account; you can buy things and much more.
SO WHY THE BIG FUSS NOW?
Bitcoin works similar to digital currency. We can’t see that in our hand, but can see online and can buy anything using that.
In the beginning, it was possible to buy a bitcoin using 4 rupees. It was in 2008, and now in 2018, the value of the coin almost reached around Rs 4 Lakh. In 2008 not many persons were aware of that, and the known one didn’t disclose that to anyone. Some of them invested money in bitcoin and now all they are billionaires.
HOW IT BECAME FAMOUS?
In early 2017, the value of a bitcoin was less than one lakh.
In May 2017, many computers around the world got hacked by the virus “Wannacry.” The hacked ones demanded bitcoin equivalent to money. That’s the moment bitcoin became popular. The people got aware of bitcoin, learned about it, and they began to own them. The value of the money has now gone up to 4 lakhs.
But even now also less than 10% of the world’s population knew bitcoin. That is why the price still cost as much as like this. That’s why former President Obama said in a program, “If anyone has bitcoins with you, then Swiss banking is like in their pocket. According to the expert’s opinion, the value of a bitcoin in 2021 will be more than 30 lakhs. At the beginning of 2017, the price value of bitcoin was 85,000, and in October 2017 it is around four lakhs.
Bitcoin can be used in almost every country for nearly everything. In many countries, many shops accept only the bitcoin. If you have a bitcoin near you, you can send money to a local bank with a bitcoin without anyone’s help. You can recharge your phone with bitcoin too. Get bill, phone bill, and other services through bitcoin.
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