What is Bitcoin?

What is Bitcoin? Simplified for our readers

We are hearing a lot about this term “Bitcoin” in the News and on the Internet. Everyday there is some news about it and this made me wonder what this global phenomena is all about? Is this just another medium to perform transactions online or there’s more to it.

The inception of Bitcoin was in 2009 and it has gone a long way from being a currency with no base price to having $0.008/Bitcoin = Rs.5/Bitcoin approx in July 2010 and then this turned to a global phenomena.

Now in 2017, it has shore up to $17000/Bitcoin which equals to Rs. 11,39,300 approx in Indian Terms.

So I decided to write this article in order to provide a simplified version on the “Bitcoin” phenomena for our readers.

And many more reasons that are making the World go frenzy over it. At present the price of a single bitcoin is above $17,000 and its likely to go north in upcoming weeks due to various technological improvements and enhanced security options in the transaction system of this crypto-currency

 

What is Bitcoin?

Now what actually is Bitcoin?

Bitcoin is a worldwide peer to peer transaction system

As we use Paytm Digital Transaction mode to transact which uses Indian rupee, Bitcoin uses its coins instead of Rupee/Dollar in its own wallet

which is not regulated by any Central Bank or any Government Authority. It is open source which means no person, company or country owns this network just like no one owns the Internet and anyone can use it to perform transactions from and in any part of the world. It’s like a Worldwide payment system in which any person can transact directly without any intermediary, clearing house or bank. Any Person residing in any country can join and perform transactions in any part of the World.

In India our currency “Rupee” like all other countries, is regulated by a Central Bank .i.e. Reserve Bank of India along with various banking institutions. Rupee is what we call Money and we use it as a medium for all our transactions. Similarly the Central Banks of other Countries regulate their respective currencies. When We make a transaction it is done through Banks or through cash and the circulation of cash is regulated but with Bitcoin a person can make a transaction anonymously.

Thinking to buy…here is the way to do it!!!!

Can be purchased using various national currencies through various terminals or exchanges. These Bitcoins are stored in a Bitcoin wallet and can be used for trading as well. “Coinbase” is an exchange where Bitcoins are purchased and sold by the Traders. They are traded from one personal wallet to another hoping that the value will increase with time just like stocks in a Share Market.

Why is this so hyped?

Simple answer is because its non regulated and its ease of use.

  1. Bitcoin on mobiles allows you to pay with a simple two step scan-and-pay. No need to sign up, swipe your card, type a PIN, or sign anything. All you need to receive Bitcoin payments is to display the QR code in your Bitcoin wallet app. And let your friend scan your mobile, or touch the two phones together (using NFC radio technology).
  2. Bitcoin transactions are secured by military grade cryptography. Nobody can charge you money or make a payment on your behalf. So long as you take the required steps to protect your wallet, Bitcoin can give you control over your money and a strong level of protection against many types of fraud.
  3. Just like with email, you don’t need to ask your family to use the same software or the same service providers. Just let them stick to their own favorites. No problem there; they are all compatible as they use the same open technology. The Bitcoin network never sleeps, even on holidays!
  4. Sending bitcoins across borders is as easy as sending them across the street. There are no banks to make you wait three business days, no extra fees for making an international transfer, and no special limitations on the minimum or maximum amount you can send.The Price surge of Bitcoin is truly remarkable. Is this a scam or are we on the verge of witnessing something that will change the way the world does its transactions? Only time will tell.

For more info on Bitcoin go to their official site

Read my other articles here

 

Post Author: Rohit Sharma

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