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Bitcoin-Everything you need to know

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Let’s imagine, you want to order something online. You just looked at the laptop screen, opened the merchant website and make the payment. Your screen shows the notification of payment confirmation and payment is now done. Desired goods will be delivered to you.

image via tendenci.com

But the problem here is that, the bank has every record of your transaction. It can send information to income tax department and you can’t exceed a certain limit of transaction else you need to obtain a permission from your bank. Means financial activity is closely monitored here.

image via sahultrading.com

Now let’s again imagine, I have a mango with me and I want to give it to you. Here I will simply give it to you. I don’t need anyone’s authorization to transfer it to you. I need not tell this to third person. It is so simple. The mango is mine and I want it to hand it to you.

This whole procedure is just so simple. You will get the mango and now mango is all yours. I won’t have any authority over this mango and you will use the mango the way you want.

Now, you can eat it, donate it, exchange it or simply preserved it in the fridge for future. Everything is so simple here!!!!

Bitcoin meaning or what are bitcoins

Just like mango, bitcoin is a virtual currency which can easily be transferred to anyone and it can be used for different purposes without any hassle. It simply is internet coins. Paying with bitcoins is far more simple.

Bitcoin money

image credit-twitter
image credit-twitter

Bitcoin is like any other currency. So obviously value of bitcoin too fluctuates like in India how the rupee’s valuation swung wildly against the US dollar.

Bitcoin exchange rate chart is very volatile.

                                                                                       

 So how biticon was created?

Bitcoins are just unique pieces of digital codes which people accept as digital currency. Bitcoins are hidden in data blocks which are complex mathematical puzzles. You need to solve the puzzle by using special computer software. It is designed  by Satoshi Nakamoto, a Japanese programmer. Now it is spread all across the internet. Total number of Bitcoins is 21 million. Additional bitcoins cannot be created. So as demand will grow it will be costlier.

How to store bitcoin?

image credit-reddit
image credit-reddit

Bitcoins are stored in electronic device like cellphone or computer.

It exists as an application running on our computer/ mobile, which communicates with other Bitcoin users over the Internet. it can be used like any other wallet.

Biticoin mining

image source-coindesk.com
image source-coindesk.com

In gold mining, a miner digs deeper to find gold. Same ways in biticoin mining, a programmer solve complex mathematical puzzles to get the biticoin.  These puzzles are very complicated and it is barely solved by a handful of people.

It makes it a scarce resource. You need to be extremely genius to solve it.

Ways to get bitcoins

  1. You can mine it
  2. If you are not able to solve the puzzle then you can purchase it from bitcoin market.
  3. You can also exchange it via bitcoin exchange.

Bitcoin wallet

image source-theguardian
image source-theguardian

Bitcoin wallet is like an “app” that we would install on our phone/ web. We can use it as wallet to do transactions.

Bitcoin payments

Once we’ve got a Bitcoin wallet, we can start accumulating bitcoins. We can use bitcoins to buy anything which we generally buy via currency. Making payments with bitcoins is an incredibly simple. Just enter the recipient address, enter the desired amount and the press the send button. Every single purchase is immediately logged digitally on a transaction log that tracks the time of purchase and who owns how many bitcoins.

bitcoin Ledgers

imagae credit-http://whatscookingamerica.net/
imagae credit-whatscookingamerica

It is just like an accounting book which tracks all transactions of bitcoins.

The number of bitcoin is limited and all transaction will be updated and verified by the public ledger. But it is not controlled by any central authority like bank.

 

Benefits of virtual currency bitcoin

  • Of course, it is safe, simple and cheap.
  • It offers freedom in payment. You can transfer/ receive fund anywhere in world at any given time.
  • It is very easy to carry.
  • It allows users to be in control of their transactions.
  • It is untraceable. You don’t have to be afraid of any organization to trace your funds.

    image credit-buzzle
    image credit-buzzle

Problem with uses of bitcoins

Looking for real money bitcoin casino sites?.

  • Bitcoins are not issued by any government.
  • There is no central authority across the globe to keep on tracking.
  • bitcoin value graph is very volatile.
  • There is no transactions record and monitor the transactions, so it is very safe to use by terrorists, money launderers and drug cartel.
  • It is hard to trade as there is no regular authority like pay pal to monitor it. Most people still afraid to accept it.
  • It is too volatile. Prices go up very rapidly.

Comments (2)

  • I personally avoid this marketplace because I do not like design which trying looks like Agora. Also there is no multisig support …

  • Bitcoin is created and held electronically. It is an innovative payment network and a new kind of money. But sad to say it is not issued by any government. Thanks for sharing this informative post.

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