People who haven’t heard of Bitcoin can’t be found. Naturally, there is no end to our speculations about Bitcoin. In this post, we will learn the basics of Bitcoin.
What is Bitcoin?
Bitcoin is a cryptocurrency created by Satoshi Nakamoto, an anonymous person (a group of Bucks) in 2008. It started circulating in 2009. Simply put, Bitcoin is a digit that enables peer-to-peer (peer-to-peer) transactions via the Internet.
Credit card or debit card/payment network money transactions using traditional methods like PayPal or Pioneer. Vote bitcoin means decent, which can be exchanged by anyone without any hindrance from what will come out of your own.
Each bitcoin transaction is recorded in a blockchain, which acts as a bank ledger. This is basically a record of all transactions made by Bitcoin.
Bitcoin blockchain information is spread across all networks worldwide. No organization, country, or third party controls it and anyone can be a part of it.
Bitcoin supply but specific. In all, there are only 21 million bitcoins. It is not possible to make or produce more bitcoins than this amount. All Bitcoin users share this money. Although this whole amount of bitcoin has not yet been collected.
Who made Bitcoin?
Before learning how Bitcoin works, it is important to know the history of its creation. Although much research has been done on the creator of Bitcoin, the identity of the creator of Bitcoin remains unknown.
Bitcoin technology was first mentioned in a white paper published online in 2006. An individual or group called Satoshi Nakamoto posted this information online.
The White Paper not only provides detailed information on cryptography and computer science but also on how to exchange money or information while concealing digital identities.
Cryptocurrency and Bitcoin were a new chapter in computer science. This creates a new world of money transfers through the internet. Bitcoin technology eliminates the need for third parties, such as banks, to exchange money.
The value of Bitcoin
The price of Bitcoin always fluctuates. The price of any cryptocurrency fluctuates in the same way. As a result, it is very difficult to answer the question of how much money is in one bitcoin, how much money is equal to one bitcoin, and how much money is equal to one bitcoin.
According to the latest data, a bitcoin is currently worth around Rs 50 lakh. We already know that the price of Bitcoin is not fixed, it always fluctuates. You can easily find out the current price of Bitcoin by typing BTC or Bitcoin and searching on Google.
How Bitcoin Works
Bitcoin does not work in the traditional way, such as payment networks like Visa or payment services like PayPal. Bitcoin is not controlled by any particular person or organization. Bitcoin is the world’s first free payment network, where anyone can participate. The main purpose of creating Bitcoin was to create a decentralized payment system using the Internet.
One of the major components of Bitcoin is the blockchain which keeps track of its transactions. However, because Bitcoin is decentralized, anyone can view transaction information and no one can control it.
Let’s take a closer look at how Bitcoin works;
A special computer is known as a “mining rig” and verifies the information of each transaction. In the beginning, bitcoin mining could be done using a simple computer. But now a lot of powerful computers are needed to mine Bitcoin. As of 2019, Bitcoin mining now requires 12 trillion times more computing power than 2009 Bitcoin.
Bitcoin can be mined using mining using computing power. Bitcoin mining can be compared to a lottery or race. Basically, anyone can win a race or a lottery by solving various math problems. The prize here is Bitcoin. This reward of mining tends to change with each transaction.
These mining computers are used to assist in bitcoin transactions. Those who own these computers are called bitcoin miners. They receive Bitcoin as a reward for assisting in Bitcoin transactions. However, this type of bitcoin mining is no longer as profitable as it used to be.
At first, Bitcoin had no value. In 2016, a bitcoin was worth about $7500. However, in the case of Bitcoin, you do not have to buy the whole bitcoin. It is possible to own the smallest bitcoin.
The smallest part of Bitcoin is called Satoshi. A bitcoin made with 100 million satoshi. Satoshi Nakamoto has set up the bitcoin network in such a way that it will not be possible to mine more than 21 million bitcoins. There are currently about 3 million bitcoins left to dig. The idea is that by 2140 all bitcoins will be mined.
The Disadvantage of Bitcoin
Since Bitcoin transactions can be done under a fake name and without any central authority knowing, it is often impossible to find out if they are illegal. But when people use normal banking channels, it’s easy to find out who gave and who got the money. Because of this, Bitcoin is in danger. Bangladesh has not yet accepted Bitcoin or any other cryptocurrency. Because of this, it is best not to use this kind of virtual currency in Bangladesh before the government there recognizes it.
The Benefits of Bitcoin
Bitcoin may be used similarly to debit and credit cards. In the case of Bitcoin, the only required information is the public key and the payment amount. Let’s take a look at some of Bitcoin’s advantages.
- It is possible to use Bitcoin at any time, in any nation, with no extra costs since Bitcoin is a popular currency.
- Since Bitcoin is decentralized, the trade procedure occurs instantly. Bitcoin, like standard credit cards, records transaction information quickly.
- Bitcoin is an open-source technology that enables anybody to observe transaction data, eliminating the possibility of financial manipulation.
- Bitcoin technology is very secure and almost hard to hack.
The difference between bitcoin and conventional money
There are several distinctions between Bitcoin and traditional currency. Typically, the government of a nation issues conventional currency. Bitcoin, on the other hand, is a computer-based network driven by open-source code.
The government controls the money supply by establishing the value of a conventional currency. In contrast, the price of Bitcoin is determined by supply and demand.
Only the government and banks are interconnected in a traditional economy. Nobody else is aware of its significance. Nonetheless, the government or financial authorities may at any moment take any action with this money. On the other side, all Bitcoin transactions are public and can be watched by anyone on the Internet.
Ordinary money has a physical currency or money, but Bitcoin has no physical currency. Although Bitcoin can be used for shopping in all countries of the world, the use of Bitcoin is not yet universally recognized.
Frequently Asked Questions About Bitcoin
What is BTC?
BTC is an acronym for Bitcoin.
Is Bitcoin a Cryptocurrency?
Yes, Bitcoin is the most popular cryptocurrency.
Is it possible to make money from bitcoin?
In countries where Bitcoin is legal, it is possible to make money by buying Bitcoin at a lower price and selling other assets at a higher price.
