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Bitcoin- The Digital Currency

Bitcoins-Explained.

What is Bitcoin
Bitcoin Image
Bitcoin is a digital currency founded in 2008. This currency is only digital, i.e. not printed like rupee, dollar or Euros.
  • Computer scientist, inventor and academic Craig Wright told the media on that he is the man who created the digital currency Bitcoin. Previously known by the pseudonym Satoshi Nakamoto, Mr. Wright says he launched the currency in 2009 with the help of others.
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  • Bitcoin Created digitally with a purely digital existence on which no control of govenment regulators.
  • Value of other currecy can be vary when a central bank decide to print more paper money. But Bitcoin is digital currency and in a limited number so expected that it won't be prone to such devalution.
  • Bitcoin is created digitally, by a community of people that anyone can join. Bitcoins are ‘mined’, using computing power in a distributed network.
  • Thus, a Bitcoin is decentralized, easy to set up, anonymous, completely transparent, fast, non-repudiable and its transaction fees are miniscule.
  • Bitcoin would let transacting parties (i.e. sender and reciever) remain anonymous, keep transactions very secure, and eliminate middlemen fees

Charcteristics

  • Bitcoin can be used to buy things electronically. In that sense, it’s like conventional money, which are also traded digitally.
  • bitcoin users need a secret, numerical key to unlock their accounts, the anonymity of the system is vulnerable when the virtual currency is exchanged for dollars. In this regards we can say that it is safe .
  • Bitcoin is not control by a single institute, This puts some people at ease, because it means that a large bank can’t control their money.
  • Protocol of bitcoin says that only 21 million bitcoins can ever be created by miners.
  • Smallest unit of bitcoin is 'Satoshi' which is one hundred millionth of a Bitcoin i.e. equal to 10-10 Bitcoin.
  • Thus, a Bitcoin is decentralized, easy to set up, anonymous, completely transparent, fast, non-repudiable and its transaction fees are miniscule.

Use of This currency.

Anyone who has a bitcoin currency can use this currency and send to it anyone who have a bitcoin address. And this transfer is not shared with any govenment or central bank you can say that they(Govt and Central bank) can't track this. If a person doesn't have bitcoin currency then he/she could buy this currency. Unocoin in Bengaluru-based company that allows users to buy, sell, store or use bitcoins. Or even you can 'mine' Bitcoin currency by investing in software and hardware. It(mining) totalally depends on your system's power of encryption.

Value of A Bitcoin.

Value of Bitcoin is currently near about $1200+ for One Bitcoin and in 2030 it may be equal to $50,000 according to snapchat investor.

Bitcoin In India.


  • The government on April 12, 2017 has set up a committee to look into ways of regulating the fast-growing segment to curb money laundering.
  • Bitcoins have been banned in several countries on grounds that these currencies could be used for money laundering or financing terrorism
  • The panel has been asked to suggest measures for dealing with virtual currencies including issues relating to consumer protection and money laundering.
  • Since December 2013, the RBI had also cautioned users, holders and traders of virtual currencies, about the potential financial, operational, legal, customer protection and security related risks that they are exposing themselves to.
  • The committee has been tasked to submit its report within three months.

  • Source: The Hindu

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