You must have seen many forms of money i.e. currency, such as Rupees in India, Dollars in America, Pounds in Britain, Euros in Europe etc. You must have seen all this currency 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 of that country. In such a situation, digital payment is being encouraged today. Due to this, the era of such a digital currency has started, which you cannot see, cannot touch, but it has become the most valuable currency in today’s time. That currency is bitcoin. It is a worldwide crypto currency and digital payment system. It can be said that if the internet was the name of a place then it would be the national currency of that place. Information about this is being given here.
It is completely illegal in India, that is, it is not recognized by the Indian government, so no one can buy or sell it in India. This is a legal offense. It is being shown here because for the first time in the world, India is preparing to freeze the transactions through it. Using this, drug sellers have started money transactions through this. Preparations have been made by the Narcotic Control Bureau of India to freeze 500 bitcoins of this transaction.
What is Cryptocurrency?
First of all, know about cryptocurrency, it is a kind of digital asset, for which cryptography is used. It is generally used to buy goods and services. It originated with bitcoin. It acts as a “peer to peer electronic” cash system. It can be used with the help of the internet. With its help money can be kept hidden very easily. There is no need to go to any bank or other government institution for its use. Therefore, with the help of cryptocurrency, your money can be easily kept hidden.
Types of Cryptocoin (How Many Types of cryptography)
There are about 1000 cryptocurrencies in the immediate time, but there are some of them, which are used a lot. Important cryptocurrencies are being described here.
Ethereum: It is used as an interchange currency. Ether is a type of token. It is used for transactions under the ethereum block chain.
Litecoin: It was invented in the year 2011. It also works with the help of decentralized technology just like the designated coin. With its help, bitcoin works faster.
Dash: Dash cryptocurrency was invented in the year 2014. In its beginning it was known as Dark Coin. It works with the help of a network called ‘Masternode’. This network is faster and more efficient than bitcoin.
Z Cash: It was launched in October 2016. This is a new type of currency in this area. All the information gets encrypted during its use, yet it cannot be used for ‘double spend’.
Monero: This is also a special type of cryptocurrency. A special type of security is used in this, whose name is Ring Signature. This happens a lot in the ‘dark web black market’. Smuggling is done with its help. Hence black marketing becomes easy by its use.
What is bitcoin?
Bitcoin cryptocurrency is the first global decentralized currency, created for the digital world. It can be used anytime and anywhere. With the help of this a person can send money to any other person anywhere without the help of any third party and bank. That is, you can send money from your bitcoin wallet to another person’s bitcoin wallet. For this you have to pay only two and a half cents (i.e. 1 rupee 67 paise). It is a kind of digital currency, which is created and regulated with the help of electronic systems. This is a very fast way of money transaction. It is only a process between two people, so there is no need for any third person in it. In its transactions, money comes in the form of codes to your bitcoin wallet. This is not a printed currency. It is prepared by people only. Due to this, a good business has started with the help of computers all over the world. That’s why computers have become the necessity of today.
Bitcoin Startup
It was first released as open source software in January 2009 by Satoshi Nakamoto. This is a programmer. No one knows about it. Different people at different places have been claiming themselves to be Satoshi Nakamoto, but till date its real programmer has not been known. In today’s time, many such programmers are engaged in making it more secure and strong. Its basic purpose was to issue money from one place to another without the help of any third party or any central authority. Software related to this has been prepared all over the world. For the first time on May 22, 2010, 10,000 bitcoins were offered in exchange for a pizza. At that time the price of 1 bitcoin was 10 cents or less, but today its price has increased thousand times. Due to more and more people buying it, its price is increasing continuously.
Bitcoin Value
5 years ago the cost of one bitcoin was Rs.6. But today its price is around Rs.45,000. In India, the price of one bitcoin in 2015 was 14 thousand rupees, in the year 2016 it increased to 30 thousand rupees and today its price is 45,000 rupees. According to an estimate, next year it can be up to 6 lakhs.
How Does Bitcoin Work
It is exchanged through peer-to-peer technology, that is, this money reaches directly from one computer to another. It is sent in the form of a block chain distributed among common people. Just like a bank keeps track of your money, similarly these block chains keep track of every bitcoin. That is, transactions done anywhere in the world are accounted for in this block chain. Since every transaction is verified and the network keeps a record of it, fraud cannot take place in it. Thousands of people make this technique safe, who keep an eye on this transaction with the help of powerful computers. And let’s check it out. For this whoever does it successfully is given some bitcoins as a reward. This is called mining of bitcoins.
In fact, thousands of people who verify this transaction in code language work like a bank clerk, and they are called minors. 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 mathematical problem. The one who solves the problem as quickly as possible. He gets about 12.5 bitcoins in return, and thus enters the digital market. But its economy is built in such a way that after a time its number decreases to half. In the beginning, 50 bitcoins used to come out of 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 2 crore 10 lakh bitcoins would have arrived in the world. It will end soon, so people are competing to buy more and more of it.
What is Bitcoin Wallet
It is a kind of software program, inside which bitcoins are stored. In true sense, it is not kept anywhere. A bitcoin has its own private number i.e. code, which is kept safe in the bitcoin wallet. With its help, we can easily take bitcoin or give it to someone. It is similar to a mobile wallet.
Is bitcoin legal
Its legal right or wrong is decided on the basis of which country you are living and using it. It has been given legal permission in Japan, but still it has not been given legal consent in many countries. In some countries, it has been kept in the ‘grey zone’, where it is neither formally banned nor its use is recognized.
Why Use Bitcoin
It can be used for many special reasons, which are described below,
- In many countries where there is no capital control. Capital control means that it is not fixed how much money can be sent outside the country and how much can be imported. In some places people use it to send or receive money more than country leverage. These people buy bitcoin and send it out of the country and convert it back into money. The same is done in many gray areas.
- It is also used to hide personal money. Some of the more wealthy people who want to hide their money used to take refuge in Swiss banks earlier, 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 the money somewhere. But all these things can also come in the eyes of the administration. So now after this, when bitcoin comes, they can easily buy bitcoin with their money. It is completely digital currency.
- People who do not have access to the bank are using it. The most important thing is that no card etc. is required for its use. Transactions done with its help are not even face to face, so there is no fear of any kind.
Bitcoin Benefits
It has many benefits, which are described below,
- Since it is digital, there is very little chance of fraud in it.
- If you have more money and want to invest somewhere, then in most places you need the help of a third person. That is, if you want to buy land etc. with your money, then you need a lawyer etc., but no third party is required while investing in it. Therefore, by investing your money here in a very short time, you can be rest assured.
- This is the age of the internet. Therefore, at this time most of the people have the facility of desktop, smartphone etc. At this time it is very easy to use its wallet. In the same way as the wallet of M-Pesa etc. is used.
- For this very little extra charge is required. Bitcoin is free of transaction fees.
Disadvantages of bitcoin
- There is no authority or government to control it, due to which there is a lot of jump or fall in the price of bitcoin, due to which investing in it can be a bit risky.
- If it is used between two people, then people use it for wrong deeds like buying weapons, drag supply etc. Which can prove to be very dangerous.
- If your account is hacked by a hacker, you can lose your bitcoins, the biggest disadvantage is that you cannot get them back.