What is Bitcoin - How does Bitcoin work - The advantages and disadvantages of Bitcoin
Today we will learn about Bitcoin. What is Bitcoin, how does Bitcoin work and the advantages and disadvantages of Bitcoin, where did Bitcoin come from? Let's talk about it. If you are interested in learning about Bitcoin, you can learn a lot by reading this post.
What is Bitcoin or cryptocurrency
Virtual currency is called digital currency or cryptocurrency. Since the 18th century this coin had no existence. That is why virtual currency is called digital currency. Bitcoin is widely used in digital currency or cryptocurrency. The best of the more than a thousand cryptocurrency currencies currently in the world is Bitcoin, abbreviated as BTC (Bitcoin).
Bitcoin is not a currency. It is basically a computer-generated algorithm that can only be traded online. The smallest unit of bitcoin is 1 satoshi. Adding 100 crore satoshi together will be equal to 1 bitcoin. There is currently no fixed price for Bitcoin. The price of Bitcoin is constantly declining. Currently valued at 1 bitcoin = 19190 $ dollar,
Discovered Bitcoin.
Before you know who created Bitcoin, you first need to know about Bitcoin history. Who discovered Bitcoin is still a mystery.
In a 2008 White Paper, Satoshi Nakamoto posted a group online about Bitcoin. That paper provided detailed information on how to exchange money, not just cryptocurrency and computer science. Cryptocurrency or bitcoin was a new trend in computer science. Through which third party does not have to be used for money transfer. Transactions are done between the donor and the recipient without third-party banks.
How Bitcoin Works
Bitcoin or cryptocurrency is usually traded through P2P. Bitcoin is not controlled by any person or organization So anyone can transact with any individual organization at any time anytime. The purpose of creating Bitcoin was to arrange decentralized payments using the Internet. The main component of bitcoin transactions is the blockchain which can see the information of each transaction but no one can control it.
The information and records of each transaction are verified with a special computer called Bitcoin Mining Rig. Bitcoin mining could be done by any computer user at the beginning of Bitcoin circulation. But now bitcoin mining requires a powerful computer. Computers that could be mined in 2009 now need 12 trillion times more power than they do. Bitcoin mining is done using computer power. Bitcoin is compared to the mining lottery. Like lottery, many people buy together and get 10 prizes according to the serial or according to the rules. Similarly, mining does a lot of mining in the same field but only a limited number of people get rewards. Bitcoin mining is basically about solving various mathematical problems and anyone can get the said mining reward.
These mining computers are used to verify Bitcoin transactions. Those who own these computers are called bitcoin miners. But now bitcoin mining is not so profitable.
The disadvantage of bitcoin
- Since Bitcoin is not a pseudonym and is not controlled by anyone, the information about the transaction of any authority is not known, so in case of any illegal act, Bitcoin can be exchanged. Which is risky for a country and a nation.
- In a country where Bitcoin is illegal, the government loses money if the person or organization uses Bitcoin.
- As the bitcoin is exchanged for more criminal activities, cyber crime and crime in the country increase. And the government has a hard time suppressing crime in the country.
Benefits of Bitcoin
- Bitcoin is not controlled by anyone so anyone can make a transaction at any time.
- Bitcoin has become the most popular economy of the present time which allows transactions to be made in any country without any additional fees.
- Bitcoin Decentralized Bitcoin transfers are instantaneous.
- As Bitcoin is an open source technology, it can view the information of any transaction so that there is no scope for money manipulation.
- The Bitcoin network is similar in that it can be easily transacted with anyone in any country.
- Bitcoin is a secure technology and is unlikely to be hacked.
