Can you imagine such a thing whose value was completely zero 11 years ago today? And today its value is 27 lakhs. I am talking about bitcoin, a few days ago you touched the all-time high price, due to which it is being discussed a lot in the market and media.
I had come to the truth about bitcoin for a long time because people who invest and trade in the stock market should know about it.
Because some big businessmen say that in the future the operation of cryptocurrency will be enough.
That’s why I thought this time would be right to give you information on this through an education post and explain to you well what is bitcoin, where and why bitcoin is used, how the price of bitcoin increases, what is a legal tender Who is called bitcoin miner, advantages and disadvantages of bitcoin
13 years ago today, on 31st October 2008, a person named Satoshi Nakamoto published a paper on the Internet whose main objective was…
a version of electronic cash that would allow payment to be sent directly from one party to another party without going through financial. (A version of electronic cash that would allow payments to be sent directly from one party to another without going through financial institutions.)
Friends, in order to understand the contact of satoshi’s paper and cryptocurrency, we have to understand some important concepts of your economic history i.e. economic history.
Our financial system is based on trust or trust. Currency notes or coins have value in our society because it is supported by the government and central bank.
You can pick up any note from your wallet and see the core and you will be able to see the RBI Governor’s sign across it. On any note, it must be written that “I promise to pay 100 or 200 rupees to the holder.
Without this guarantee, there is no value of this note, so it has cleared you how powerful the government and the central bank are in terms of money and monetary policy,
Now the thing is that when you deposit your money in the bank, then in a way you allow the bank to play with that money, the bank gives loan to the company and individual from these deposits, that is why you get interested.
Recently you must have seen that banks often use these savings and deposits in an irresponsible way, there are times that banks give loans to big industrialists without checking, then that loan becomes bad debts or NPAs. And it becomes a victim of depositors like us.
8 November 2016 Do you remember that due to Demonetisation, the government had given 500 or 1000 notes worthless core in one stroke.
People who are in favor of bitcoin or cryptocurrency, a big reason behind this is that they do not want the government and the central bank to not have so much control of our money.
Now you understand what was the original idea of Satoshi Nakamoto. Satoshi envisioned bitcoin as an alternative financial system that would be based on software technology and would be out of third-party control.
what is bitcoin
Bitcoin is a virtual currency, you can also call it digital currency. Because it is used digitally.
Bitcoin is called virtual currency because it is completely different from the rest of the currency, we cannot see it like other currency like eurodollar rupees nor can we touch it like money.
But still, we use it as money in transactions. We can store bitcoin only in an online wallet.
Bitcoin is a decentralized currency, this means that there is no bank or government authority to control it, that is, no one owns it.
Anyone can use bitcoin-like we all use the internet and no one owns it.
Those who have bitcoin cannot physically buy things, but it can be used online only. Apart from online payment, it can also be converted into other currencies.
If you have bitcoin, then you can convert it into your country’s currency and transfer it to the bank account. Today, bitcoin has become the most expensive currency in the world.
Bitcoin cannot be controlled by any organization which means the government or bank has no authority over it.
Where and why is bitcoin used
You can use Bitcoin core to make online payments or any kind of transaction.
Bitcoin is based on a peer-to-peer network which means people can easily transact with each other directly without any bank, credit card, or company.
Paying from common debit and credit card costs about 2 to 3% transaction fee, but there is no such thing in bitcoin, there is no extra charge in its transaction, due to this it is becoming popular.
Apart from this, it is also safe and fast. Today many people have come to bitcoin like online developer entrepreneurs nonprofit organizations etc. And for this reason, bitcoin is being used for global payments all over the world.
Like any Onno credit card, there is no credit limit in it and there is no problem of carrying any cash.
How does the price of bitcoin increase
This whole game is run by the formula of demand and supply. As the demand increases, so does its price. And if the demand falls, the price also goes down.
The person who created bitcoin had made 21 million bitcoins for the whole world and after that, neither made more nor less than this. Now out of this 21 million, 18.5 million bitcoins have come into the market and the rest are yet to come.
Now understand how its price increases, when many big companies started investing money in it and the owner of the very big company started saying that cryptocurrency is the money of the future.
As you all know about Elon musk, they have invested a lot of their money in cryptocurrency, now people have seen that Elon musk is investing money in cryptocurrency, then they also started investing money, as the demand increased, the supply was less, then you increased its price. engaged
But a few days ago, Elon Musk gave a very clear core that he will not accept cryptocurrency as a legal tender at all.
And on hearing this news, there was a stir in the market. Everyone started selling their own bitcoins and this also reduced its brother. The price of bitcoin had fallen by 30%.
what is legal tender?
Legal tender means that RBI has released money for all of us. We can buy anything by taking that money with anyone.
But if you go to someone with bitcoin, which is in digital form, then you cannot buy anything from it.
Like you buy shares of a company and take those shares to the car people, you tell him to take these shares from me and if you give me this car, then the car people will not give you the car at all, they will say that you only give me money. Which is legal tender. And from which you can buy anything.
Who is a bitcoin miner
All bitcoin transactions have a public account, which is called a ledger, you can understand it in such a way that the account is lost in a system that is part of the bitcoin network, the people who run the system are called miners.
The job of miners is to verify the transaction. Suppose A or B are two people, A has to send 1 bitcoin to B’s account, then the miners will have to confirm whether there is really 1 bitcoin in A’s account or not.
To confirm a transaction, miners have to solve a complex mathematical equation, the loss is a unique variation of a bitcoin transaction, the job of miners is to find it.
All these calculations are done automatically by the computer because this equation is very complicated. This combination happens in crores, that is why these miners need a computer with very complex or high processing power.
Miners get bitcoins as a reward for doing this work. This system is called Proof of Work.
Advantages of Bitcoin
- There is no mediator in the middle to do the transaction.
- This is global money, you can send it from any country to any other country without permission.
- Transaction fees are very low. When you have to convert money from dollars to Indian rupees or from Indian to dollar rupees, then for that you have to pay an amount that is not there in cryptocurrency.
- Its transaction is quick and easy.
Disadvantages of Bitcoin
- It is very difficult to trace the wrong transaction.
- To be used for wrong purposes.
- Its price keeps going up and down very quickly
Let me tell you by commenting on my article What is Bitcoin – How does Bitcoin work? If you have any questions in your mind related to Bitcoin then definitely ask. You must share this information with your relatives and friends as well so that they can also find them.
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