As we have advanced our technologies in this modernised world, hackers or online cheaters have to done advancement. So how to protect our self form such situations. Bitcoin is the solution to it. It has been a most searched topic in the google search in recent times. The word bitcoin has been a topic of curiosity among many of us. The current transition from the physical currency to the digital currency has brought tremendous change in conventional business methods. We might see some similar transition to cryptocurrency as well shortly. Let us discuss what a bitcoin is …
What is bitcoin?
As we have some coins and the ruppes or the dollar which we carry with us always in a physical manner. Bitcoin is also not like a debit or the credit card we use. It is not a physical currency. It is a type of cryptocurrency. As the word “Bitcoin” itself suggests the bit means related to a computer language …. Well, that is right it a computer-generated file which is stored in the computer in the memory. It is one of the methods of the transitions or a new way of investment for the people.
Let us see how it works…
Bitcoin works on its app known as the “Digital wallet” in a computer, smartphone or a laptop. Suppose you do some transition through the bitcoins like from one bitcoin address you have to another person having a bitcoin address recorded publicly as a “Blockchain”.It is independent of the banks or the central government. People also creat the mining of it.
How to get bitcoins?
If one wants to buy this bitcoins, there are several ways which are as follows.
- It can be generated through computers, and even people do it with powerful computers. One may sell some product and get money back paid in the form of the bitcoins.
- If one has sufficient money depending upon the person’s willingness, he/she may buy the bitcoins from the real money.
Creation of a new bitcoin
It can be created through the computer, but it is not that easy what it seems. To create a bitcoin one need a powerful type of computers and to manage it, one needs a third party person to be helped, so people do it with minings. But now if one wants to create it, it would take 250 years to complete a bitcoin.
Many big and multinational companies have invested in the bitcoin because it values more than 18 lakhs for a single bitcoin. It has a great chance to increase its value shortly. It is valuable simply because people believe in it.
The demand of the bitcoins
May this fact fascinates the people that is independent of the central government or banks. People always need some new to be invested. People may thing to invest in the gold or at other places but to invest in the bitcoin make the transitions easy for the one and as its increment in the prize attract many people towards it. Some may not want the third party involvement in their changes or their work details to be revealed to anyone else, so bitcoin is a solution.
Is it secure?
If the transition made through the bitcoin it is recorded in the public list so anyone else cannot know your account details until you reveal it. It is safe because no bitcoin can be copied. Every bitcoin is unique in itself or rather, the bitcoin address is individual.
- As there is no involvement of the banks and the central government corruption can be stopped to a large extend.
- Cannot be copied so no worry to be get cheated.
- Account details are going to be safe always.
- One of the most significant drawbacks is that as the banks or the central government does not own it, one transits money at his/her risks.
- If one gets cheated anyhow, no one will there to answer why or how it gets possible.
- Bitcoins may not be accepted everywhere.
Finally, after gaining some knowledge about the bitcoins, you know its terms and conditions, how it works, future scopes, security level, advantages, and disadvantages if one thinks of investing in it. There is always some risk in everything, and by taking a risk, only one can make money irrelevant to any fields. If you dream of being rich overnight bitcoins may lead to some risk but working smartly with bitcoins may boost your income. Hence, think positive and if you desire to invest or make transitions or trade through it, go for it.