About Bitcoin: Everything You Need to Know

Bitcoin

Bitcoin is known as cryptocurrency, which was first described in 1998 by Wei Dai on the cypherpunks mailing list.

But the first Bitcoin specification and proof of concept were published in 2008 by Satoshi Nakamoto.

But Satoshi Nakamoto left the project in late 2010 without revealing much about himself. and the currency begin in 2009.

This is a digital Cryptocurrency with no physical extension and at what level will it exist in the future? it depends on his acceptance (how and where do people accept it?)

Special news: Where last year in 2020 Elon Musk was talking about – how customers can buy Tesla through Bitcoin.

But in May 2021 Elon Musk retweeted again, which saw a substantial drop in the bitcoin rate.

The tweet is – (Now Tesla will no longer accept payments in Bitcoin due to climate concerns).

When you buy a Bitcoin, you do not buy the full price, you buy a specific Bitcoin address. through this, you can transactions at someone else’s specific address.

Bitcoin is an automatic structure. you do not need to do any programming or coding for this.

Its algorithms run on autorun, and the system and thousands of computers are needed to run its algorithms.

But to maintain the computer at such a large scale, a third party will be required and if a 3rd party is involved then all the control will be under the 3rd party.

To avoid this, the concept of bitcoin mining was taken out.

Bitcoin Mining?

In this mining, people run their algorithms by putting their thousands of computers in it, and their computers quickly resolve their algorithms.

He gets a few points of bitcoin as a reward, all this game is called bitcoin mining.

And because the whole system is in a distributor and a blockchain, it would solve all the problems like:

• Going to power to an institute, an identity
• getting hacked

Bitcoin Mining & Inflation Rate

One bitcoin miner – how much bitcoin can it generate? And if this happens then the inflation rate has touched the sky.

To avoid this, it is already confirmed that no more than 21 million bitcoins can be generated.

The receiver of the first Bitcoin transaction was Cypherpunk Hal Finney, who created the first reusable proof-of-work system (RPoW) in 2004.

And how many bitcoins will a Bitcoin miner get as a reward? it depends on how many people are mining with him.

Check it out, In 2009, you used to generate 150 to 200 bitcoin in only 2 to 3 days, but if you generate even 1 bitcoin in today’s date, it will take you at least 150 years to do that.

How Did the Bitcoin rate rise so high?

In 2009, you could buy bitcoins for 0.04 paise, but today, the value of one bitcoin is more than 35 lakh.

But why did the Bitcoin rate jump too high from (the start of Bitcoin) in 2009 to 2021?

The price of any cryptocurrency is not decided by any institute or individual, nor does a rich investor decide, and its price completely depends on market forces such as Demand and supply.

For example – the total may be only 21 million bitcoin mines which will be mined by 2041 in a complete year. similarly, its supply has become limited, and its demand is high.

Its demand is increasing so much due to supply shortage, or as I say limited.

How Does Bitcoin Work?

Many people say that Bitcoin is nothing more than a mobile app, computer program, and coding that provides a personal wallet.

Consumers can transact with it and there is no 3rd party contribution between the transactions. it also has many disadvantages and many advantages.

Read carefully – All Bitcoin transactions have a public account called a ledger and this account is copied to every system that is part of the Bitcoin network the people who run this system are called Miners, (miners work to verify the transaction.)

(2) For example, if A has to send 2 bitcoins to the B account, the miner has to confirm whether or not A has 2 bitcoins in his account.

To confirm the transaction miner has to solve a highly complex mathematical equation.

(3) All these calculations are carried out on the computer automatically because they are extremely complicated and their combination runs in crores.

Once a questioning solution is done, how do the other computers in the network confirm, and this transaction is added to a chain called a blockchain?

(4) And what do miners get in exchange for this? they get the most valuable thing bitcoins.

This system is called ‘proof of work’ These miners have to prove the computation work they do to get awarded the bitcoins in return.

How Is The Price of Bitcoin Determined?

Notice: Simple method, the price of this cryptocurrency is determined by “Supply and demand” as I said before.

When demand for bitcoins increases, the price increases, and when demand falls, the price falls.

There is only a limited number of bitcoins in circulation and new bitcoins are created at a predictable and decreasing rate, which means that demand must follow this level of inflation to keep the price stable.

Bitcoins are still a relatively small market compared to what it could be, it doesn’t take significant amounts of money to move the market price up or down, and thus the price of a bitcoin is still very volatile.

Bitcoin is Legal?

According to the Library of Congress, trading or using cryptocurrencies applies in 9 countries:

• Vietnam
• United Arab Emirates
• Algeria
• Bolivia
• Pakistan
• Iraq
• Egypt
• Morocco.

An “implicit ban” applies in 15 countries, which include Bahrain, Bangladesh, China, Colombia, Indonesia, Kuwait, Lesotho, Macau, Oman, Qatar, Saudi Arabia, Lithuania, Taiwan, and the Dominican Republic of Indonesia.

Notice: Is Bitcoin legal in India? Yes, Bitcoin is legal in India, but the government does not even recognize it. This means whatever you will be trading or purchasing through bitcoins.

In this, all the risk will be yours.

The government will have no hand in this and the government is working to make some of its rules and regulations but it has not achieved any result.

On 5 April 2018, the RBI issued a notice to all the banks in which it was mentioned that you would not give your service to all identities who are dealing in cryptocurrency.

That means you cannot withdraw your money from a cryptocurrency exchange in a bank account.

Then cryptocurrency exchange challenged this in the Supreme Court and after running for 2 years, the cryptocurrency exchange won the case and RBI had to remove its guidelines.

NOTICE: But now after the tweet of Elon Musk on bitcoin India again bans cryptocurrency.

Why Do So Many People Trust In Bitcoin?

Much of the trust in Bitcoin comes from the fact that it requires no trust at all.

There are many reasons why so many people trust this cryptocurrency which include:

• This is fully open-source and decentralized – which means that anyone has access to the entire source code at any time.

• No organization individual, or rich investors can control Bitcoin.

• No third-party interface.

• The whole system is heavily protected by cryptocurrency algorithms.

• All networks remain secure even if not all its users can be trusted.

Pros & Cons of Bitcoin?

Consumers can transact with it and there is no 3rd party contribution between the transactions. it also has many disadvantages and many advantages means pros and cons.

Pros

• It made it possible to send and get money anywhere at any time.
• it frees people free from the worry of rescheduling for bank holidays, no borders, or any other limitations.

• There is no third-party interface like government, broker, etc, and no fee to receive bitcoin, many wallets let you control how large a fee to pay when spending.

• Bitcoin transactions are highly secure with cryptocurrency algorithms to resolve that, you have to solve the mathematical equation which runs in crores.

• It’s through payments that can be made without personal information tied to the transaction. the offers strong protection against identity theft.

• No institute or individual, nor does a rich investor can even control or manipulate the Bitcoin protocol because it is cryptocurrency secure.

Cons

• In this, due to no third party, or government interface, if there is a problem in your money transactions, then you will be responsible for it yourself.

• If an internal problem arises, like a virus corrupting data, or the wallet file being corrupted, bitcoin will be lost.

• Its value changes every 30 seconds according to the demand, then it creates confusion at the time of refund.

• It has no physical appearance, no one can touch it, cannot be stored, and it is always converted into currencies.

• There is no government intervention in this, so there are many illegal activities in it such as drug dealing, hacking computers, etc.

How To Get Bitcoin?

You have to spend a lot of time or hard work on bitcoin.

But even then it is not a confirmation then you will get the full bitcoin, and you will get a few points from it.

Such as Elon Musk, Mike Tyson, Facebook, Paypal, Messi, etc. it is big companies and identities have invested and earned money from it.

And you too can earn from it if you want. there are different cryptocurrency exchange methods in India such as

• App: such as WazirX, CoinSwitch, Zebpay, Bitbns, CoinDCX, etc. In which you can trade on more than 100 different cryptocurrencies.

• Mining: Through mining, you can get bitcoins, only you need to have a big setup of computers, Miners that work for u, etc.

And if you are thinking about getting rich in Bitcoin overnight, then forget it.

In such a situation, you will have a definite loss, and if you invest in it by reading, or thinking carefully, then you can also earn from it.

Down Line

People run their algorithms by putting thousands of computers in them and their computers quickly resolve their algorithms.

The price of Cryptocurrency is not decided by any institute or individual, nor does a rich investor decide, and its price completely depends on market forces – Demand and supply.

It’s through payments that can be made without personal information tied to the transaction. the offers strong protection against identity theft.

Due to no third-party, or government interface, if there is a problem in your money transactions, then you will be responsible for it yourself.