These days Cryptocurrency has become a vital source of trading, there was a phase when people used to invest in property, mutual funds, etc to enjoy the benefits of trading. When we talk about Cryptocurrency the first term that strike to our mind is Bitcoin. If you are new in the world of digital currency than these two terms might puzzle you. To understand What is Bitcoin, we first have to perceive What is Cryptocurrency. After scanning the above details you may have found the topic of our today’s write-up. In this particular article, we will be explaining to you What Bitcoin actually is? How can you trade them? And all other facts surrounding it.
What is a Cryptocurrency?
Cryptocurrency can be defined as a digital or virtual currency used as a medium of exchange between different parties. It makes use of cryptography to verify and secure the transaction. Cryptocurrencies are decentralized control and each cryptocurrency works through a blockchain. Now, most of you may be wondering What is Blockchain? As mentioned above Blockchain is a decentralized control that records each and every cryptocurrency transaction. As described by Don & Alex Tapscott(authors of Blockchain Revolution) Blockchain is an incorruptible digital ledger of all economic transaction associated with cryptocurrency. This can even store any valuable information digitally.
What is Bitcoin?
In the year 2009, a group of persons or an individual has created it by the founder as Satoshi Nakamoto. Clearly, there is no evidence on who has created this currency which means the creator is unknown till now. Bitcoins are a form of cryptocurrency that can be used to buy products, to order food online or even one can pay deposit his/her college’s fee with it. As described above it is of decentralized form which means no middlemen is involved in the transaction. In Ancient times people used to trade by establishing trust on any specific firm or middlemen. A lot of firms acting as a middleman broke the trust of investors by doing fraudulent activities. This is the biggest reason why Bitcoin makes use of Blockchain technology. The year 2017 was the luckiest period for the Bitcoin traders as in this phase Bitcoin has touched the sky-high values making the traders super rich overnight. This was the time when Bitcoin received rapid attention all over the world.
How one can acquire Bitcoin?
There are several markets known as Bitcoin exchanges from where one can easily buy and sell Bitcoin. The Bitcoin you purchased is stored in a cloud memory based valet secured by your password. One can transfer the Bitcoin to some another person as well by knowing his wallet ID. Wallet ID is secure and works similar to UPI payment apps that are used to send case digitally. Some of the well-known Bitcoin exchanges are Zebpay, Coinbase, Bitstamp, etc. If you are planning to trade Bitcoin then the risk factor is always there, a majority of users has reported certain exchanges to be involved fraudulent activities. In most cases, the user makes payment for the Bitcoin but he didn’t get any Cryptocurrency in his/her wallet from the Exchange. So whenever investing in Bitcoin make sure to opt for a trusted market.
Another way to acquire Bitcoin is through mining. Mining itself is a very controversial topic, everyone including me, you can do mining but wait it does have some limitations. Bitcoin is rewarded to a person who solves a tricky mathematics calculation. Later, a majority of humans decided to use high-speed computers to achieve the perfect results and surprisingly the idea worked. Now almost all miners are using high powered computer systems to earn bitcoins. Here high computing power means more investment. It can even take more than 5000$ to develop a single mining system depending upon its computing power. The major computer hardware responsible for mining process is a graphics card, which probably is one of the most expensive pieces of tech in an entire setup. No more Bitcoins will be gifted/circulated after reaching the 21 million mark which is the biggest limitation yet.
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