Bitcoin is a type of cryptocurrency invented in 2008 and launched as a cryptocurrency software used for making digital transactions across the Internet in 2009. Bitcoin was invented by someone with the identity, Satoshi Nakamoto. According to Nakamoto, Bitcoin is a peer-to-peer electronic cash system. We can say that it is an online alternative for cash. It can be used to exchange money at different places via the Internet. It is also used to buy and sell different items daily. It is legal in India, although it is not used for transactions in some places and countries.
What is bitcoin?
Bitcoin is a type of currency that is undoubtedly virtual. It is a computer file generated with some private code encrypted using a mathematical encryption algorithm and hidden inside it. This is the main code that differs one bitcoin from another. There are two keys in bitcoin, public and private. The public key is the physical value shown to the public. The private key is the hidden encrypted code that is decrypted by the receiver using decryption methods.
Once decrypted, it authorizes proper transactions. That’s why bitcoin is called cryptocurrency. These coins are stored in an application on computers or smartphones called ‘Digital wallet.’ Digital wallets work like any other digital payment app in India. You can pay or receive coins in your digital wallets. The history of each transaction you made using bitcoin is stored publically in a list called the blockchain. This makes it more reliable and secure as the blockchain keeps a history of each transaction so that no one can misuse these coins they don’t own, make fake coins, fraud transactions, or other illegal activities. The bitcoins are so secure that the receiver and other people will not be able to recognize your account number until you tell them.
Where to buy bitcoins?
You can buy bitcoins using your real currency. One bitcoin is equal to 7,69,413.89 Indian Rupees. Some peer-to-peer marketplaces are used to buy or sell these coins in INR (Indian currency) in India. Bitcoins can also be created using computers, but it is not as simple as it sounds. It is required to build special computers those process transactions with cryptocurrency wallet development malaysia. These computers are built to handle complex calculations to create bitcoins. However, sums get increasingly complex to reduce the redundancy of coins. This is what stops plenty of bitcoins from being generated. These building and setting up of powerful computers is called mining. We can not say or decide the period of the generation of coins. It may take years and years to generate a single bitcoin.
Bitcoins are managed under decentralized authority. Any government or bank does not control it. There have been so many ups and downs in the use of it since it launched. In 2017, the currency increased up to $20000 per coin, but it is not even half the amount after two years. It is the world’s largest cryptocurrency. Some people still do not want to covert their money into it and use it because of trust issues.