Bitcoin is the digital cryptocurrency and a payment which was invested by satoshi nakamoto and a group of programmers. Bitcoin was introduced in 2008 and later given as a software in the year 2009 .This system runs on a peer to peer connection and there is no involvment of third party. The transaction occurs between sender and the reciever .Transactions are verified by the nodes and the history of all the transactions are available in the public ledger digital called blockchain.
Bitcoin is the first of its kind in the digital cryptocurrency and it has the highest market value in comparison to all other digital crytocurrency.Bitcoins are created as a reward in a competition in which users offer their computing power to verify and record bitcoin transactions into the blockchain. Miners get the bitcoins as the miner and all the transactions history is available in the market.
- Blockchain-a blockchain is a public ledger where all the public transactions are recorded.suppose person A sends bitcoins to person B all the transactions will be listed in the public blockchain.These transactions are being controlled by nodes and is a part of the bitcoin software.
- Transaction– transactions are a part of bitcoins where you can send the sender bitcoins in exchange of stuffs. you have to pay transaction fees as a part of miner fees for the transaction to be complete.Sender should keep the transaction fees to be normal otherwise if they keep it low, the transaction to be complete may take a lot of time and sometimes it might not even get confirmend.
- Unit-The unit of bitcoin is bitcoin .The smallest part of bitcoin is called satoshi which is equal to 0.00000001 btc , which is very very small.
- Energy for mining-nowadays bitcoin mining is not profitable at all for a single person. Even if u try to go for mining you should you need a farm for mining and it will need a lot of energy ,i think to make it profitable you need solar power or any other alternative sources of energy.
Supply-A successful miner is awarded with bitcoins for block .he is awarded with 12.5 bitcoins in 2016 .bitcoin blocking gets halved in every 4 years .So in the year 2020 if a person gets a block he will be awarded with 6.25 bitcoins.
Wallet-Bitcoins are kept in wallet in which it has unique sets of words ,letters and numbers in which all your bitcoins are stored.Bitcoin wallet has to be stored at first so that you can keep all your bitcoins safe.
Decentralization-Bitcoins is decentralized which means no third party or any government has the authority to control over it .
Bitcoin is nowadays considered as the virtual currency of the internet which can be bought online and offline and can be sell in exchange of fiat.
The first bitcoin atm was installed in canada,vancouver, british colombia.In this atm , it will show a bar code scaner and the person can send the money instantaneously in exchange of bitcoins.as of now 900 bitcoin atms have been installed in the year march 2017.
Price and volatility-The price of bitcoins in the year 2012 was Rs20 and then suddenly it rose to Rs2144. in the later half of 2012 the price of bitcoin fell down rs 120.in the year 2017, the highest price of bitcoins rose to Rs 86000 in the international market.
Bitcoin is the only mode of transaction in the dark web for selling of drugs,weapons,child pornography,hire for murder service and the famous silk road. the silk road was shut down by F.B.I in the year 2013. well after that there have been other alternatives markets for the selling of all the illegal stuffs.
Bitcoin is being used for the money laundering during the demonetisation period .as of rule u can apply 1.5 lakhs to a bank. Here s the interesting fact, people who bought bitcoins send their 500 1000 notes to their banks and there were 1000 s of buyers of bitcoin available in the indian market .if a person send even rs 5000 to all the buyers in exchange of bitcoins, everything comes white.
Inspite of having disadvantages it has advantages
- bitcoin is freedom as we can do all the transactions
- bitcoin is decentralized and no one has the control of bitcoins
- bitcoin is digital currency and being accepted all over the globe for all the stuffs and the necessary things.
- bitcoin will be the future currency which will beat all the currency in the world.
In march 7th 2017, bitcoin has become costlier than gold.
It is predicted that the price of bitcoins will rise upto 3000$ by the end of 2017 and 100k $ in the year ,it s along way to go but we have hope in to become to the strongest digital cryptocurrency in the world.