what is a bitcoin and how does it work? by harraiyaclub

What Is Bitcoin?

Bitcoin is a digital Currency

which was developed in 2009. Founder of bitcoin is still a mystery but the ideas set out in a white paper by the mysterious person Satoshi Nakamoto which is followed in bitcoin. Bitcoin offers less transaction fees than online payment and other currencies because bitcoin is not controlled by any government.Bitcoin is a type of crypto currency where there is no physical bitcoin available. Bitcoin can’t be issued by any government or bank or can’t be backed. The common word that is used for bitcoin is BTC.

Understanding Bitcoin

Bitcoin runs in a computer to computer system where you just need to install a bitcoin wallet in your mobile or computer and then you can generate your Bitcoin address and If you need more than that you can generate more bitcoin addresses.Now you can share your Bitcoin address to your clients or friends and you can accept payment through bitcoin. This system is similar to Gmail but you can use 1 bitcoin address for 1 time use.Bitcoin uses a block chain system which is a shared public ledger that allows bitcoin wallets to calculate the spendable balance to verify the transactions.Bitcoin uses private keys which are used to sign transactions. It’s pretty similar to an ATM pin which helps you to protect your privacy so bitcoin private keys also do the same.

Bitcoin Mining

Bitcoin mining is a process which helps bitcoin to be released into circulation. Generally you need to solve computationally difficult puzzles to find or add a block into blockchain.Basically bitcoin mining adds or verifies transactions record across the network and in return miner’s will get some rewards in bitcoin form.

History of Bitcoin

Aug. 18, 2008,

18 Aug. 2008 is the day of bitcoin.org domain registration but the owner put whoisguard protection on the domain so no one knows about the owner and his details.

Oct. 31, 2008,

A person using the name Satoshi Nakamoto announced at the Cryptography Mailing list at metzdowd.com that “I’ve been working on a new electronic cash system that’s fully peer-to-peer, with no trusted third party. This now-famous whitepaper published on bitcoin.org, entitled “Bitcoin: A Peer-to-Peer Electronic Cash System,”

Jan. 3, 2009

On 3 Jan 2009 the first bitcoin was mined block0 and this is also known as genesis block.

Jan. 8, 2009

On 8 th Jan the first version of bitcoin software was launched to the cryptography mailing list.

Who Is Satoshi Nakamoto?.

The creator of bitcoin is still anonymous no one knows about bitcoin developer. Satoshi Nakamoto is the name of a group or person who launched the real bitcoin whitepaper in 2008 but still we don’t know that this is the real name of the bitcoin creator or not.

Bitcoin as a Form of Payment

Bitcoin can be accepted as a form of payment by product sellers. Bitcoin payment option can be used just like other payment options like credit card, debit card etc…The transactions can be handled through hardware terminal or wallet address.

How to Buy Bitcoin

So many people believe that digital currency is the future because digital currency increase transaction speed and offers you lower transaction fees and bitcoin is one of fastest growing digital currency so if you want to invest in crypto currency or bitcoin then first you need to understand some things like bitcoin is not a physical currency if you want to invest in bitcoin then you need to be a part of any trust platform which allows you to buy and sell crypto currency like bitcoin.There are so many platforms which allow you to buy bitcoin and other crypto currency but I am going to share a platform where you can invest in bitcoin in just 100rs. Yes you heard it right.I am talking about Coin Switch Kuber this platform offers you to invest you in bitcoin at just 100rs only with lower commission rates and when you purchased bitcoin it will be added in you coin switch Kuber digital wallet and when the price of bitcoin is you can sell them directly from your wallet and you can earn profit so if you want to invest in bitcoin then must try this platform.

Types of Risks Associated With Bitcoin Investing

Bitcoin offers users and transaction privacy and because of it many illegal transactions can be done and because of it the government can take action against bitcoin or maybe it can be banned by the government.Hackers are also a threat for bitcoin owners if hackers hacked your computer then they can transfer your Bitcoin to another account as you know bitcoin is a computer based digital currency so it can be easily done through hacking the victim device.There are no securities in bitcoin like in india rbi control banking system so if bank made any type of fraud then RBI can help you but in bitcoin no third party available for security.Mark risk is also included in bitcoin because bitcoin is totally dependent on people hoping that they will buy bitcoin and sell them at a higher price and bitcoin fluctuation rate is too high so it’s also a big risk.

Final Words

Once you have carefully read the full article you will get clarity about bitcoin. After that you can invest in bitcoin (at your own risk) if you are interested in investing but if you still don’t have enough knowledge about bitcoin then I must recommend you to read this article carefully then move forward.If you gained good information about bitcoin then comment down below and also share with your other friends and if you have any other questions regarding bitcoin then tell us in the comment box.

Leave a Reply

Your email address will not be published. Required fields are marked *