A few years back when i got to know about bitcoin it was at a point to be a big deal or maybe it already was to some people. Bitcoin is decentralised currency ie. currency on which no country has control or you can say no country owns it. Bitcoin was created by Satoshi Nakamoto (alias) & introduced to world 8 years ago on 3rd January 2009. Bitcoin is cryptocurrency & payment system and like every currency it has a value which is relative to other currency hence, it is always in fluctuation like any other currency. This means we can convert the units of bitcoins in any currency we want! Be it Indian rupee or US Dollar.

What makes bitcoin so valuable or important?

There are many reasons why this currency is so much in demand, the fact that it is decentralised so no country has administration over it catches more attention. There can only be 21 million bitcoin is another considerable factor Every 10 minutes (approx.) 12.5 bitcoins per block are mined (earned) & this continues until mid 2020 and then afterwards 6.25 bitcoins per block for 4 years until next halving. This halving continues until 2110–40, when 21 million bitcoins will have been issued.

How to get Bitcoins?

Bitcoins are rewarded  (created) to the users who offer their computing power to verify and record bitcoin transactions into the blockchain this process is called mining & those who do it are called miners but this is tough way of getting them because of all hassle of setting up the system & investment. Better ways are buying it online from bitcoin banks. Some games, apps & websites offer bitcoins as a reward to users for using the services they offer but these are manly in few satoshis if you want to buy a big then bitcoin bank is best option so far.

Bitcoin wallet

To get a bitcoin address we need bitcoin wallet which can be used to store bitcoins just like any other wallet the difference is other online wallet like PayTm stores rupees & bitcoin wallet stores bitcoins. Once you have installed a Bitcoin wallet on your computer or mobile phone, it will generate your first Bitcoin address and you can create more whenever you need one. You can disclose your addresses to your friends so that they can pay you or vice versa. In fact, this is pretty similar to how email works, except that Bitcoin addresses should only be used once.

Security of transactions

A transaction is a transfer of value between Bitcoin wallets that gets included in the block chain. Bitcoin wallets keep a secret piece of data called a private key or seed, which is used to sign transactions, providing a mathematical proof that they have come from the owner of the wallet. The digital signature also prevents the transaction from being altered by anybody once it has been issued. All transactions are broadcast between users and usually begin to be confirmed by the network in the following 10 minutes, through mining.

Units

tad.co.in

Stay tuned! 

One thought on “Bitcoin

Leave a Reply

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