What is Bitcoin and Why is Bitcoin Used

What is Bitcoin and Why is Bitcoin Used

What is Bitcoin?

Bitcoin is a virtual currency. Just like other currencies like Rupee, Dollar etc. Bitcoin is also a digital currency. This is very different from other currencies because we can neither see Bitcoin nor touch it like money. We can only store Bitcoin in an online wallet. Bitcoin was invented by (What is Bitcoin and Why is Bitcoin Used) Satoshi Nakamoto in 2009 and has been growing in popularity ever since. Bitcoin is a decentralized currency, which means that there is no bank or authority or government to control it, i.e. no one owns it. Bitcoin can be used by anyone just like we all use the internet and no one owns it just like Bitcoin.

Why is Bitcoin used?

We can use Bitcoin to make online payments or any kind of transactions. Bitcoin works peer to peer network based which means people can easily transact with each other directly without any bank, credit card or any company.

Bitcoin is considered to be the fastest and most efficient to use in transactions. Nowadays many people (What is Bitcoin and Why is Bitcoin Used) are adopting Bitcoin like online developers, entrepreneurs, non-profit organizations etc. and because of this bitcoin is being used for global payment all over the world. 

As we do online transactions using other currencies, we have to follow the payment process of banks, only then we can make payment and the account of every transaction made by us is present in our bank account so that it can be traced. Maybe where and how much money has been spent, but no one owns Bitcoin so transactions made with it are recorded in a public ledger (account) which is called bitcoin “blockchain”.

There all the transaction details done with bitcoin are stored and the same blockchain is the proof of whether the transaction has taken place or not.

Bitcoin today’s rate:

The value of Bitcoin today is around 30,578.40. Its value is more or less as there is no authority to control it so its value varies according to its demand.

What is Bitcoin Wallet?

We can only store Bitcoin electronically and we need a bitcoin wallet to keep it. There are many types of Bitcoin wallets like desktop wallet, mobile wallet, online / web-based wallet, hardware wallet. We have to create an account using one of these wallets. This wallet gives us a unique id as an address, such as suppose you have earned bitcoin from somewhere and you have to store it in your account, then you will need that address there and with the help of that you can use bitcoin in wallet.

A part from that if you have to buy or sell bitcoin then you need bitcoin wallet and after that you can transfer all the money you get in return for the bitcoin you sell to your bank account through bitcoin wallet.

How to earn bitcoin?

  • The first way is that if you have the money you can buy a bitcoin directly by paying $ 999. It is not that if you have to buy a bitcoin, you have to pay the full $ 999, you can also buy the smallest bitcoin unit “satoshi” if you wish. 1 bitcoin has 100 million satoshi, so you can buy the smallest bitcoin amount of satoshi and gradually deposit 1 or more bitcoins. When you have bitcoin and its price goes up, then you can make more money by selling it.
  • The other way is that if you are selling goods to someone online and if the buyer has bitcoin then you take bitcoin from him in exchange for money, then you will sell them the goods and you will also get bitcoin which Will be stored in your bitcoin wallet. You can also make a profit later by selling that bitcoin to another person at a higher price.
  • For this, we will need a computer with a high-speed processor whose hardware should also be good. We use bitcoin only to make online payments and when someone makes a payment with bitcoin the transaction is verified.  We call those who verify them miners and those miners have high-performance computers and GPU and they verify transactions through it. They verify whether the transactions are correct or not or whether there has been any manipulation. In return for this verification, they get some bitcoins as a reward, and in this way, new bitcoins enter the market.

Anyone can do this, it requires a computer with a high-speed processor, which is not within everyone’s budget.

Just like in every country there is a limit to print currency in a year that you can print only so many notes in a year, then in the same way with bitcoin, there are some limitations that no more than 21 million bitcoins can enter the market. That is, the limit of bitcoin is just 21 million, more bitcoins will never be found.

Speaking of now, about 13 million bitcoins have come in the market and the new bitcoins that are there will now come through mining.

What are the benefits of using Bitcoin?

  • Here your transaction fee is much less than paying with a credit card and debit card.
  • You can send Bitcoin anywhere and anytime in the world without any hassle.
  • Bitcoin account is not blocked here as sometimes for some reason the bank blocks our credit or debit card, then that problem does not occur here.
  • If you want to invest in bitcoin for the long term then you can benefit a lot from this as it has been seen in the record that the price of bitcoin is increasing then you can benefit a lot from Found.
  • In the transaction process of Bitcoin, there is no government or authority that keeps an eye on you, so there are many people who use it to do wrong things, so it is beneficial for them.

What are the disadvantages of using Bitcoin?

  • There is no authority, bank, or government to control bitcoin here, so because of this, the price of bitcoin fluctuates a lot, so it becomes a bit risky.
  • If your account is ever hacked you will lose all your bitcoins and it cannot be brought back and no one will be able to help you.

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