Bitcoin is a virtual currency. This is a currency which cannot be seen by anyone, it is found in virtual form. It is kept secure in electronic form. Its trend has increased significantly in the last few years. You can buy it like any other currency like Dollar, Rupee, Krona, Dinar etc. Let us know in detail in this blog what Bitcoin is.
What is cryptocurrency currency?
Cryptocurrency is a virtual currency, that is, it has no physical existence. It is a currency made on a computer algorithm, it exists only on the Internet, it cannot be controlled by any authority, even demonetization has no effect on it. There are many cryptocurrencies in the world like – Bitcoin, RED coin, SIA coin, Ethereum, Ripple (XRP) and Monero. It is very popular in the world because of its high profits.
What is Bitcoin?
Before knowing what Bitcoin is, know that Bitcoin is an English word ‘Crypto’, which means secret. Bitcoin works based on the rules of cryptography. Cryptography means the art of solving coding language. Save bitcoins in bitcoin wallet. We use it to conduct a secure online transaction. It comes in 0 and 1 series.
It has been adopted as an exchange by big companies like – Microsoft, Tesla etc. It was created by Satoshi Nakamoto in 2008 but was launched as open source software in 2009. Its smallest unit is Satoshi, 1 Bitcoin = 10 crore Satoshi. Satoshi Nakamoto is called the founder of Bitcoin.
Types of Cryptocoins
There are approximately 1,000+ cryptocurrencies in existence today, but there are a few that are most commonly used. Below are the types of cryptocoins-
- Ether and Ethereum: It is used as interchange currency. Ether is a type of token. It is used for transactions under the Ethereum block chain.
- Litecoin: It was invented in the year 2011. Like the named coin, it also works with the help of decentralized technology. With its help, Bitcoin works faster.
- Dash: Dash cryptocurrency was invented in the year 2014. Initially it was also called dark coin. It works with the help of a network called ‘Masternode’. This network is faster and more efficient than Bitcoin.
- Z Cash: Its dominance started in October 2016. This is a new type of currency in this region. All the information gets encrypted during its use, yet it cannot be used for ‘double spend’.
How is Bitcoin produced?
Producing Bitcoin is not so easy, it takes a lot of hard work. This is an electronic currency obtained through mining method due to which its price increases. Miners solve mathematical and cryptographic problems. Solving this problem allows miners to record Bitcoin blocks. The mining process is lengthy. Only a limited number of Bitcoins are created, hence the demand for them is increasing.
uses of bitcoin
Bitcoin is used in different online transactions. It works on P2P network. Nowadays online developers, NGOs use it for online transactions. Online Payment: Just like we do transactions in the bank, we can trace to whom the payment has been made. But the record of Bitcoin is not in the public ledger. It cannot be tracked when exchanged between two individuals. Its record can be seen only twice, once when someone has bought it and second time when someone is selling it.
How to trade in Bitcoin?
Bitcoin is saved in a digital wallet. Its price is not the same everywhere. Its price is volatile, it depends on activities around the world. There is no fixed time for crypto trading, its price keeps fluctuating.
Bitcoin has its own exchange
Trading in Bitcoin started in 2011. For this, the user has to first create an account. After email confirmation and account verification, you have to choose the trading method. There is a Bitcoin trading cart for trading. It contains records of the price of Bitcoin.
Is it safe to invest in bitcoin
In 2013, the RBI had said in a press release that it is not officially permitted, but it carries some risks. If you forget your password you will lose your money forever. Many times, without any warning, the price of Bitcoin falls by 40 to 50 percent in a single day.
Bitcoin rate
Currently the price of 1 Bitcoin is INR 32.81 lakh in India. There is no control on its authority, hence its prices keep increasing and decreasing almost daily according to the market.
benefits of bitcoin
Along with knowing what Bitcoin is, it is also important to know its benefits, which are as follows:
- Bitcoin can be sent to anyone and anywhere in the world.
- Its account is not blocked, like sometimes bank accounts are blocked.
- It can be used in international transactions and transaction fees are charged.
- In this, there is no role of middleman due to which transactions are done at less cost.
- It does not have legal recognition in any country, so it can be used without any extra cost.
Disadvantages of Bitcoin
Along with knowing what Bitcoin is, it is also important to know its disadvantages, which are as follows:
- Its biggest disadvantage is that if your data gets hacked and cannot be recovered or if you forget the password, you lose all your Bitcoins.
- There is no control over it by any authority, due to which it can be used to buy illegal things.
How to buy?
You can use 2 websites to buy Bitcoin. Let us know how to buy it-
- Unocoin: There is no extra fee for buying Bitcoin on this website. You can integrate it with business uno point. If there were any fluctuations in Bitcoin, you can immediately send or keep it. It does not charge any box. It can also be auto sold.
- Zebpay: You can still get DTH switched off with the help of Bitcoin, you can also buy vouchers of Amazon, MMT with it.
What is a Bitcoin wallet?
We can only store Bitcoin electronically and to store it, a Bitcoin wallet is required. There are many types of these like desktop wallet, mobile wallet, online/web-based wallet, hardware wallet, using one of these wallets we have to create an account in it. This wallet provides us with a unique ID in the form of an address, like suppose you have earned Bitcoin from somewhere and you want to store it in your account, then you will need that address there and with the help of that you can transfer the Bitcoin to your account. Can keep in wallet.
What is a Bitcoin miner?
In all countries there is a limit on printing currency notes, similarly there are limitations on creating Bitcoin also. The limitations are that not more than 21 million (2.10 crore) bitcoins can come into the market. At present it is around Rs 13 million (1.30 crore) in the market. The new bitcoins come through mining.
Suppose you want to send Bitcoin to someone, then the sending process is verified and the people who verify are called miners. Those who have high powered computers. Bitcoin transactions are verified through these computers.
Central government’s announcement on crypto tax in Budget 2022
In the Union Budget 2022, Finance Minister Nirmala Sitharaman announced crypto tax which will be implemented in the next financial year. Crypto tax will be flat 30 percent and it will be implemented in the financial year (2022-23) starting from April 1.
Future of Bitcoin in India
After knowing what Bitcoin is, now there is a need to know its future in India. There are hot discussions right now on what will be the future of Bitcoin in India, because many countries have banned Bitcoin. There was talk of banning it in India too but the issue could not be resolved. According to experts, there are some private cryptocurrencies whose activities have been suspicious. In such a situation, there was talk of banning these cryptocurrencies in India.
FAQs
How to invest in Bitcoin?
Investing in Bitcoin can be done through cryptocurrency exchanges. For this you will have to enter your details. After email verification and account security verification, you will have to hear the name of the country.
How is Bitcoin made?
The smallest unit of Bitcoin is Satoshi and 1 Bitcoin = 100 million Satoshi. Just like 1 rupee of Indian currency = 100 paise, similarly 10 crore Satoshi makes one Bitcoin.
What is cryptocurrency?
In simple language, cryptocurrency is a digital cash system, which is built on computer algorithms. It remains online only as points. No country or government has any control over this.
Why do you need a Bitcoin wallet in Hindi?
Transactions are transfers of value between Bitcoin wallets, which are added to the blockchain. Bitcoin wallets store secret data called a private key or seed.
Future of Bitcoin in India?
The continued adoption of digital assets by large investors and their further integration into the financial system will prove to be the main drivers of growth in the crypto space in 2022.
Who owns Bitcoin?
The owner of Bitcoin is Satoshi Nakamoto of Japan.
How does Bitcoin work?
Bitcoin works on peer to peer network basis, which means that people can easily transact with each other without going through any bank, credit card or any company.
Bitcoin is the currency of which country?
Bitcoin cannot generally be called the currency of any one country because it is a digital currency and everyone can buy, sell or use it online.
