Everything you need to know about Bitcoin.

What is a Bitcoin ?

Well,  Bitcoin is a type of digital currency which is created electronically and kept that way too. You cannot touch Bitcoin as you do it with real money, Bitcoin is a virtual money which flows electronically to its owners all around the world. There is no one who controls bitcoin, it is created by people and businesses all over the world. They are within a category of currency known as cryptocurrency.

The difference between other currencies and Bitcoin is that bitcoin is used to buy things electronically rather than physically. There is no central authority which controls the making and trading of bitcoin, it is run by the people who have them.

Satoshi Nakamoto :

The man who made Bitcoin.

Satoshi Nakamoto was the software developer who first proposed bitcoin: and he based the currency on the idea of it being free from any central authority and transferred with very low transaction fees to anyone around the world within seconds.

You might think that everyone in the world could just go out and create bitcoin themselves to buy things, but that goes against the rules of the bitcoin community. Currently, there can only ever be 21 million bitcoins in the world. These coins, like dollars or pounds, can be split into smaller counterparts. The smallest portion of a bitcoin which can be made is a one hundred millionth, which is called a Satoshi in honour of the creator.

Why Bitcoin is growing so fast ?

Bitcoin is growing like crazy. The value of Bitcoin is going up everyday and here is the reason why :

  1. Japan’s legalization of bitcoin as an official payment method – Since April 1st, 2017, Japan legalized bitcoins. This created a demand for bitcoins in Japan, contributing to its increase in value. Now, over 260,000 shops are ready to begin accepting bitcoins as payment this summer.
  2. Review of the bitcoin ETF by the SEC – The Securities and Exchange Commission (SEC) in the US rejected the Winklevoss’ ETF in March. They are now planning to review it and give their verdict by the 15th of May. If approved, bitcoin’s value will increase further.
  3. Reliable prediction by experts – Jeremy Liew, the first investor in Snapchat, and Blockchain CEO and co-founder Peter Smith believe that bitcoin hasn’t reached its potential and anticipate its value to reach $500,000 by the year 2030.
  4. Increased acceptance in many other countries – Russia’s Deputy Finance Minister Alexey Moiseev said that, in an attempt to control money laundering, Russian authorities are considering legalizing bitcoins and other cryptocurrencies in 2018India has created a committee to examine the current framework of Virtual Currency.

What is the Value of Bitcoin ?

Today, i.e December 16 2017 the value of Bitcoin is $17789.99.

Covert the money in INR and you will be blown up by the value you see of a single Bitcoin.

That is the power of cryptocurrency, that is the power and value of One Bitcoin.

How Bitcoin works ?

Well, if you are a new user of Bitcoin then you need to do some simple stuffs and you are good to go.

Install Bitcoin wallet.Once you have installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should only be used once.

Balance ( Block Chain):

The block chain is a shared public ledger on which the entire Bitcoin network relies. All confirmed transactions are included in the block chain. This way, Bitcoin wallets can calculate their spendable balance and new transactions can be verified to be spending bitcoins that are actually owned by the spender. The integrity and the chronological order of the block chain are enforced with cryptography.

Transactions:

A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast between users and usually begin to be confirmed by the network in the following 10 minutes, through a process called mining.

Mining:

Mining is a distributed consensus system that is used to confirm waiting transactions by including them in the block chain. It enforces a chronological order in the block chain, protects the neutrality of the network, and allows different computers to agree on the state of the system. To be confirmed, transactions must be packed in a block that fits very strict cryptographic rules that will be verified by the network. These rules prevent previous blocks from being modified because doing so would invalidate all following blocks. Mining also creates the equivalent of a competitive lottery that prevents any individual from easily adding new blocks consecutively in the block chain. This way, no individuals can control what is included in the block chain or replace parts of the block chain to roll back their own spends.

Source: Bitcoin Org.

How to invest in Bitcoin ?

The simplest way to invest in bitcoin starts with setting up a cryptocurrency wallet. Some of the better-known sites where you can do this are:

1. Coinbase.

2.Bitstamp.

3. Bitfinex.

Although there are a number of other platforms out there, as well. Once you establish an account, connect it to your payment source — a bank account or a credit or debit card — via two-factor authentication. Of note: It’s important to use a tool like Google Authenticator rather than just relying on text-based authentication, which can be more vulnerable to cybertheft, when investing in bitcoin.

Once you have purchased a bitcoin, it stays in your digital wallet until you trade it — either by using it as currency for a purchase, or by selling it .

Conclusion :

Well, Bitcoin is very volatile currency .

According to a survey, If you have invested $100 dollars in 2010 then you would have received $2 Million in 2017.

But, this is not 2010 right, as because the value of Bitcoin changes everyday. You should learn a lot about bitcoin and do a lot of research because even its a virtual money it is going to affect your real bank numbers.

Educate yourself and then decide.

Comment down below if you have any question regarding bitcoin.

Cheers,

Chandan

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