Saturday, September 14, 2019

What is Bitcoin? How Bitcoin Works?

Hello Friends! It would probably not be wrong if Bitcoin is called the world's most valuable currency. What is this Bitcoin, which everyone is looking to buy. Today it has become a global currency. That is, you can send Bitcoin to any other person's account all over the world. It does not operate under any company or any government nor does it own any. When Bitcoin came into existence, the value of 5000 Bitcoin was around 27 $. But today the value of 1 Bitcoin is about 63,605 rupees and its value is increasing continuously. You can use Bitcoin up to 0.00000001 decimal. The 0.00000001th part of Bitcoin is called 1 Satoshi.

What is Bitcoin?

Bitcoin is a type of DIGITAL currency, It is not available or use in normal uses like dollars, rupees. Through which you can trade online through electronic means. It is a currency that is not in the form of a coin or a note, but as a type of program that stays safe in your account. Bitcoin was created in 2009 by a programmer named Satoshi Nakamoto but who is not yet known, Satoshi Nakamoto, and from time to time many people call themselves Satoshi Nakamoto. Bitcoin is transferred from one account to another in the world's fastest and very nominal fee, so it is becoming very popular. Now people are investing in Bitcoin instead of investing money in the share market, because there is a possibility of getting very good returns from here.

How Bitcoin Works? 

Now let's understand a little in detail.
Suppose you have a normal bank account and there is also money in your account. Now, if you need to transfer money from your account through internet bank, online shopping, bill payment etc., now your money goes to the recipient or merchant through various channels. For example, see this infographic -

Normal Bank Transaction

Friends! In the case of Bitcoin, instead of an account, there is a Bitcoin address that is 24 to 27 characters long. Just you cannot use this bitcoin as hard cash because it is completely digital and virtual currency. You can also transfer bitcoin to your bank account. If Bitcoin you send to someone else, it gets credited directly to the account of the same address without the third party that you want to send.

Bitcoin Transaction

Why is the value of bitcoin increasing?
Friends, when the production of any item is in a limited quantity, its production stops by going to a fixed limit and the demand for that product is very high in the market, then it is a matter of simple that the value of that product will increase. Bitcoin has been programmed to stop generating Bitcoin once 21 million Bitcoin are generated. And what is already in circulation, only those will remain in Bitcoin circulation.

Now if you are thinking that Bitcoin remains on its own or it is just a program, can it be hacked at any time? No, you are thinking wrong. If you have Bitcoin only then you can spend it, you cannot make it. They are only generated by mining and they are also very small amounts like 0.00001 Bitcoin and then these small Satoshi together become a Bitcoin.

How Bitcoin is made - what is mining? - what is Bitcoin Mining
Bitcoins are made by mining and become popular. For mining Bitcoin we need computers with good processors. When there is a transaction of Bitcoin between two people online, there are some mathematical problems that need to be solved to confirm and secure that transaction. These problems have a solution that Bitcoin is generated and comes into existence at some point.

So friends, this much in today's article. Tell us how you felt this article by commenting. Next, I will also introduce more articles related to Bitcoin, in which I will explain how you can buy and use Bitcoin online. Nowadays, a lot of fraud is being done on the Internet in the name of Bitcoin. 

I hope guys you will like this article!
Thanks For Reading