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What is cryptocurrency and how does Bitcoin work?

What is cryptocurrency and how does Bitcoin work? What is cryptocurrency and bitcoin type and how can you earn it?

What is cryptocurrency and bitcoin type and how can you earn it?

You must have seen many forms of money, such as rupee in India, dollar in America, pound in Britain, euro 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 there. In such a situation, digital payments are being encouraged today. Due to this, the era of a digital currency has started, which you can not see or touch, but it has become the most valuable currency in today's time. That currency is Bitcoin. It is a worldwide cryptocurrency and digital payment system. It can be said that if the Internet was the name of a place, it would be the national currency there. Information about this is being given here.

It is completely illegal in India i.e. it has not been recognized by the Indian government, so no person in India can buy or sell it. It is a crime under the law. This is being shown here because for the first time in the world, India is preparing to freeze the transactions through it. Using this, those selling drugs have started transacting money through it. India's Narcotics Control Bureau has made preparations to freeze 500 bitcoins of this transaction.

What is Cryptocurrency (What is CRyptocurrency)

First of all, let's 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 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. So with the help of cryptocurrency, your money can be easily hidden.

Types of Cryptocurrency 

There are about 1000 cryptocurrencies present at the moment, but there are some of them, which are used very much. Here is a description of important cryptocurrencies.

  • Ether and Ethereum: It is used as interchange currency. Ether is a kind 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 named coin. With this 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 effective than Bitcoin.
  • Z Cash: It was introduced in October 2016. This is a new kind of currency in this area. During its use, all information is encrypted, yet it cannot be used for 'double spend'.
  • Monero: This is also a special kind of cryptocurrency. A special type of security is used in this, whose name is Ring Signature. This happens very much in the 'dark web black market'. Smuggling is done with its help. Therefore, its use makes black marketing easier.

What is Bitcoin ?

Bitcoin cryptocurrency is the first global decentralized currency, designed for the digital world. It can be used anytime and anywhere. With this help, a person can send money to another 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 sand (i.e. 1 rupee 67 paise). It is a kind of digital currency, which is created and regulated with the help of electronic system. This is a very fast way to transact money. It's just a process between two people, so there is no need for a third person. The money in its transactions comes to your Bitcoin wallet in the form of codes. This is not a printed currency. It is prepared by the people. With this, a good business has started with the help of computers all over the world. Therefore computers have become the necessity of today.

Introduction of Bitcoin (Bitcoin startup)

It was first released as open source software by Satoshi Nakamoto in January 2009. This is a programmer. Nobody knows about it. Different people in different places have been claiming themselves to be Satoshi Nakamoto, but till date its real programmer has not been found. In today's time, many such programmers are engaged in making it more secure and strong. Its original 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. On May 22, 2010, for the first time, 10 thousand 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 a thousand times. Due to its purchase by more and more people, its price is constantly increasing.

Value of Bitcoin (Bitcoin Value)

5 years ago, the price of a bitcoin was 6 rupees. But today its price is about 45,000 rupees. In India, the price of a 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 lakh.

How Does Bitcoin Work

It is exchanged with peer-to-peer technology, that is, this money reaches directly from one computer to another. It is referred to as a block chain distributed among common people. Just like the bank keeps track of your money, these block chains keep an account of every bitcoin. That is, its transactions anywhere in the world are accounted for in this block chain. Since every transaction is verified and the network keeps a record of it, there can be no fraud. This technology makes thousands of people safe who monitor 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 bitcoin mining.

In fact, thousands of people who verify this transaction in code language work like a clerk of the bank, and they are called miners. These people keep an eye on the transaction so that it is not misused. But while completing this process, these miners have to solve a math problem. Which solves this problem as quickly as the minor. He gets about 12.5 bitcoins in return, and in this way he comes to the digital market. But its economy has been built in such a way that after a time its number decreases to half. In the beginning, 1 bitcoins used to come out from 50 block. The number of bitcoins per block drops to half every 4 years. That is, after about 125 years, the creation of new Bitcoin will stop. By then, 2 million bitcoins have arrived in the world. It will end soon, so people are competing to buy it more and more.

What is a Bitcoin Wallet (What is Bitcoin Wallet)

It is a kind of software program, inside which bitcoins are stored. To be honest, it is not kept anywhere. A bitcoin has its own private number i.e. code, which is kept safe in the Bitcoin wallet. With this help, we can take Bitcoin very comfortably or give it to someone. It is similar to a mobile wallet. Read how mobile wallets work here.

Is Bitcoin Legally Correct ?

Its legal right and wrong is decided on the basis of which country you are living in and using it. It has been legalized in Japan, but in many countries it is still not legally consented. In some countries, it has been placed in the 'gray zone', where it has neither been formally banned nor its use has been recognized.

Why Use Bitcoin ?

It can be used for many special reasons, the description of which is as follows,

  • In many countries where there is no capital control. Capital control means that it is not decided how much money can be sent out of the country and how much can be ordered. In some places, people use it to send or receive more money than country leverage. These people buy Bitcoin and send it out of the country and convert it back into money. This is done in many grey 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 to buy gold, diamond, etc., with the help of which they can hide money somewhere. But all these things can also come in the eyes of the administration. So now after the bitcoin comes, they can easily buy bitcoin with their money. It is a completely digital currency.
  • Those 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. The transactions done with its help are not even face to face, so there is no fear of any kind.

Benefits from Bitcoin (itcoin Benefits)

It has many benefits, which are described as follows,

  • Since it is digital, there is very little chance of fraud.
  • 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. for that, but no third party is needed while investing in it. Therefore, in a very short time, you can be sure to invest your money here.
  • This is the era of internet. So at this time most people have the facility of desktop, smart phone, 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.
  • This requires very little additional charge. Bitcoin is free of transaction fees.

Losses from Bitcoin (Bitcoin loss)

  • There is no authority or government to control it, due to which the price of Bitcoin keeps on rising or falling, due to which investing in it can be a bit risky.
  • It is used between two people, so people also use it for wrong things like buying weapons, supplying drag, 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 it back.