Cryptocurrency and Bitcoin

Cryptocurrency

The world is evolving expeditiously at a high pace. With rapidly emerging technologies and gadgets, we presently live in a dazzling world. One of the enticing advents is the cryptocurrency, more precisely the Bitcoin and Ether. 

Cryptocurrencies are in the form of the digital money that only exists virtually and one cannot retrieve them in physicals forms. They are substantially stored in your digital wallets in the form of coins. The digital wallets may be your PC'S, hardware, etc. Unlike the country's currency, they are not limited for their use in a particular area or country. They can be accessed everywhere in the world. One can use cryptocurrencies for online transactions etc. Cryptocurrencies aren't authorized by any government i.e. they are decentralized.  

So, What are Bitcoins? 

Bitcoins are a type of cryptocurrency that came into the picture in the year 2008. However, the mind behind its contrivance remains a mystery. According to some sources, Sakoshi Natamoto is said to be the name behind Bitcoin's invention. But still, it remains anonymous whether Sakoshi Natamoto is an individual or a bunch of people or tech companies like SAmsung, TOSHIba, NAkamichi, and MOTOrola. The picture still remains hazy. Now, you must be in a dilemma that how the Bitcoins' website works. So, it is run by a set of contributors, who are responsible for its maintenance, etc.

 It is an open platform. To be precise, it is a peer to peer formulation. It does not involve any middle person, for e.g a bank. The process is transparent and the user is completely held responsible for his/her transactions, etc. 

Now, what about Bitcoin's value or worth? When Bitcoins were introduced in 2009, they carried minimal or almost nil value. Since, unlike gold and silver, Bitcoins were digital and virtual. By 2017, Bitcoin's gained it's worth and till now is used worldwide. Bitcoin's worth is dependent on the demand and supply logistics. When demand exceeds the supply, Bitcoin's value steeply rise and vice versa. People purchase these Bitcoins to make a better investment. 

Bitcoin Mining: 

According to the algorithm developed by the inventor of Bitcoin, only 21 million Bitcoins are available in total. The process of extracting the Bitcoin is called Bitcoin Mining. There are a set of computationally strenuous equations and logarithms. If one succeeds in cracking that formulation, the person is rewarded with a Bitcoin. People then can either buy or sell them and use it for different products and services. Bitcoin has it's own set of liabilities too. It might enhance fraudulent, black money, high price volatility, no refund, more risky, and many more.

Blockchains: Bitcoin uses a technology to keep a record of Bitcoin transactions. Every time a transaction is made a block is added to the end of the chain. It is a complex process and irreversible process. The transaction is said to have occurred when it is added to the blockchain. Every bit coin has it's private key usually a sequence of numbers. If the key gets misplaced by the user, the Bitcoins' are lost forever. Nearly 25% Bitcoins are missing from the network.

The legality of the Bitcoin varies from country to country. In India, use of cryptocurrency has undergone a series of changes. In 2018, Lt. Arun Jaitely , in his budget speech declared Bitcoin an illegal tender and specified that government's denial for it's use. The same year, RBI declared a ban on the use and purchase of the cryptocurrency. The legality of cryptocurrency was then challenged and finally in March 2020, Supreme Court revoked the ban.   

Presently 1 Bitcoin= 24,15,295.41 Indian Rupee or 33,283.80 United States Dollar