Bitcoin is a cryptocurrency and cryptocurrency is a virtual currency that has no physical existence. it was created or born in the month of January 2009 and the process of cryptography is used to keep it secure. It is based on ideas presented in a white paper by Satoshi Nakamoto. The identity of the individual or group that are responsible for the invention of Bitcoin is still unknown. In this world, there are lots of cryptocurrencies like Dogecoin, Ethereum etc and Bitcoin is one of them. In Bitcoin transactions, there is no need for a central bank or single administrators. Users can send Bitcoin directly to other users without the need for intermediaries. All Bitcoin transactions have based on peer to peer networks and the history or records of transactions is saved on the server. Every cryptocurrency has abbreviated as when traded. When Bitcoin is exchanged, it is typically abbreviated as BTC. For details , you can refer https://bitcoin-how.com/.
Bitcoin mining is a process in which a large amount of computational power is used to verify all Bitcoin transactions. The First Bitcoin miner has collected it as a reward by solving the puzzle. After some time, Desktop computers will be used for bitcoin mining. However, this process was too slow and it consumes lots of electricity. In areas where electricity was generated with the help of fossil fuels, bitcoin mining was considered harmful to the environment. According to approximate data, there are only 18 to 19 million bitcoins worldwide at the moment and these will not be discovered after 21 million.
Privacy and security of Bitcoin
The person who obtains the private key to a Bitcoin block-chain public address can authorise transactions. Private keys are mandatory to be secret otherwise criminals may attempt to steal them. Be aware of fraud person that the balance of a public address that you use can be seen by anyone. On the other hand, because this information is public, anyone can create multiple accounts or public addresses for themselves so that they can do fraud easily. As a result, everyone can transfer their Bitcoin stash across multiple addresses. A perfect plan is perfect for large investments at public addresses and that is not directly connected or transfer to anyone used for transactions.
To purchase bitcoin, the following things are needed:
- Cryptocurrency exchange account
• Personal documents for KYC
• Secured internet connection
• Payment methods like net banking, credit card and debit card
The following are the disadvantages of bitcoin
- It has not been accepted everywhere
• Due to the non-involvement of government, there has been done so many frauds
• It has been volatile in nature. The value of bitcoin is changed every 30 min.
The following are the advantages of Bitcoin
- High return potential
• Freedom from a centralised authority
• Liquidity and accessibility
• Anonymity and transparency for users
There are no rules and regulations related to bitcoin in India. If fraud happens with you in bitcoin transactions or in relation to bitcoin selected, then it will be your own responsibility. So now it’s all up to you, whether you want to invest or not. If you want to invest, then before that you should do all the research and so on, know about it very well, only then take a decision.