Things you Should Know about Bitcoin

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Things you should know about bitcoin

What is Bitcoin?

Bitcoin is made from the word cryptography + currency. Bitcoin is a Cryptocurrency invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. The currency began to use in 2009 when its implementation was released as open-source software.

What is Cryptography?

Cryptography is associated with the process of converting ordinary plain text into unintelligent text and vice-versa. It is the method of storing & transmitting data in a particular form so that only those for whom it is intended can read and process it.

To know more about cryptography check out https://techarge.in/cryptography/.

What is Cryptocurrency?

In a simple way, we can describe Cryptocurrency is a Digital form of cash.

Let us understand it in a more simple way, Suppose a person “A” lives in India and another personB” lives in America want to send money, they send money with the help of banks which act as the third party. Who also verify the identity of the sender and the receiver and charge some transaction fee, as well as convert the currency as per the current value of money in the market.

While in Cryptocurrency, The sender sends money to the receiver without any third party, which is possible with the digital form of cash.

What are the advantages of Cryptocurrency?

  1. No intermediary required.
  2. No geographical barrier.
  3. Less Charges
  4. Very Fast (means transaction time is very less ,it varies from the range of 0-4 sections while ordinary transaction can take up-to 10 minutes. )

What are the disadvantages of Cryptocurrency?

  1. Transaction is irreversible (if any wrong transaction take place ,then it can not be roll-back.As sender and receiver identity is unrevealed ).
  2. Used for illegal activity.

Are CryptoCurrency is Legal in India?

Is the big Question Illegal or Legal? To understand this better, First understand about Cryptocurrency being legal & Cryptocurrency is being allowed as a legal tender in India.

Things you Should Know about Bitcoin

Is Cryptocurrency Legal? Yes. As of 6 April 2018, RBI imposed a banking ban on Indian banks to have a relationship with Crypto-companies. But in same 2018 year bans was lifted by the Indian’s Supreme court, which allowed Indian banks to handle cryptocurrency transaction from exchange and trade. (up to till date.)

Then ,What is problem ? As the Cryptocurrency is illegal tender of money means ,Suppose you go to shop to buy a new computer as you give shopkeeper Cryptocurrency Will shopkeeper will accept it? No. You have pay in INR .Hope you have understand what si illegal tender means.

What is BlockChain?

BlockChain in comprise of two words Block + Chain .Block means Database ,and if their is a lot database and they are link to each other as Chain plays a roll to connect the databases.

In a technical way, A blockchain is a digital record of transactions. The name comes from its structure, in which individual records, called blocks, are linked together in a single list, called a chain. Blockchains are used for recording transactions made with cryptocurrencies, such as Bitcoin.

BlockChain are designed to be immutable. Once a block is written to a BlockChain, realistically, it cannot change (means once a piece of information goes in there, you can depend on it never changing).

How does cryptocurrency work?

As cryptocurrency ( or crypto for short) is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of the computerized database using Miners (strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership). It typically does not exist in physical form (like paper money) and is typically not issued by a central authority.

What is the role of Miners in Bitcoin transaction?

Miners provide security and confirm Bitcoin transactions. The role of miners is to secure the network and to process every Bitcoin transaction. Miners achieve this by solving a computational problem that allows them to chain together blocks of transactions.

Things you Should Know about Bitcoin

Is Supply of Bitcoin is Limited or Unlimited?

Yes ,The supply of Bitcoin is Limited ,which exactly 21 million bitcoin in all over the world .Out of which around 18.6 million are in circulation.

Why invest in Bitcoin?

For that, you have to understand that Bitcoin is volatile (means that value of bitcoin changes over time very frequently ).

bitcoin-price-over-the-last-5-years-1
bitcoin-price-over-the-last-5-years-1

Currently, $36000/bitcoin but this is much amount for a beginner to invest in Cryptocurrency. Is buying in-fractions is allowed in Bitcoin? Yes, you can buy a fraction of Bitcoin.

So Finally, Anyone Should invest or not? Now you are the right person to decide this should I invest or not. As you know all the about bitcoin that is necessary.

Where you store Cryptocurrencies ?

  1. Store it with exchanges.
  2. Store it with yourself (Hardware Wallets).

Hope you like the articles .Do share and Keep Learning . 🙂

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